[Federal Register Volume 59, Number 23 (Thursday, February 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2449]


[[Page Unknown]]

[Federal Register: February 3, 1994]


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DEPARTMENT OF COMMERCE
[C-508-605]

 

Industrial Phosphoric Acid From Israel; Final Results of 
Countervailing Duty Administrative Review

AGENCY: International Trade Administration/Import Administration, 
Department of Commerce.

ACTION: Notice of final results of countervailing duty administrative 
review.

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SUMMARY: On October 28, 1993, the Department of Commerce published the 
preliminary results of its administrative review of the countervailing 
duty order on industrial phosphoric acid from Israel (58 FR 57986). We 
have now completed the review and determine the net subsidy to be 6.98 
percent ad valorem for all firms during the period January 1, 1991 
through December 31, 1991.

EFFECTIVE DATE: February 3, 1994.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Cameron Cardozo, 
Office of Countervailing Compliance, International Trade 
Administration, U.S. Department of Commerce, Washington, DC 20230; 
telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On October 28, 1993, the Department of Commerce (the Department) 
published in the Federal Register (58 FR 57986) the preliminary results 
of its administrative review of the countervailing duty order on 
industrial phosphoric acid from Israel (52 FR 31057; August 19, 1987) 
covering the period January 1, 1991 through December 31, 1991. The 
Department has now completed this administrative review in accordance 
with section 751 of the Tariff Act of 1930, as amended (the Act).

Scope of Review

    Imports covered by this review are shipments of Israeli industrial 
phosphoric acid. During the review period, such merchandise was 
classifiable under item number 2809.20.00 of the Harmonized Tariff 
Schedule (HTS). The HTS item number is provided for convenience and 
Customs purposes. The written description remains dispositive.
    The review covers the period January 1, 1991 through December 31, 
1991 and nine programs. Negev Phosphates, Ltd. (NPL), which merged with 
Rotem Fertilizers Ltd. on December 31, 1991 after operating 
independently throughout the review period, was the only known producer 
exporting the subject merchandise from Israel to the United States 
during the 1991 review period.

Analysis of Comments Received

    We gave interested parties an opportunity to comment on the 
preliminary results. We received a written comment from the 
respondents, the Government of Israel (GOI) and NPL, and a written 
rebuttal comment from the petitioners, the Monsanto Company and FMC 
Corporation.
    Comment: Respondents argue that the cash deposit rate should be 
reduced by the amount of benefit attributable to the Exchange Rate Risk 
Insurance Scheme (EIS) because the program was terminated prior to the 
publication of these final results. The GOI and NPL state that most EIS 
claims will be paid by the end of 1993 as indicated in the GOI response 
to the Department's questionnaire. The GOI and NPL also point to the 
reduction in benefits that exporters received from this program in this 
review period compared to those received in the prior administrative 
review. Thus, respondents claim that it is unreasonable to base the 
deposit rate for future entries on benefits received in 1991, given the 
program's declining benefits and termination with limited residual 
benefits.
    Petitioners point out that the exact timing of NPL's receipt of 
benefits under the EIS will depend on variables such as the time 
necessary for shipment of the goods and EIS processing of the claim. 
According to petitioners, these uncertainties preclude the 
determination of a fixed date for actual termination of benefits to be 
received by NPL. As a result, EIS benefits should continue to be 
reflected in the cash deposit rate.
    Department's Position: We disagree with the respondents. The 
Department's regulations require the Department to instruct the Customs 
Service to collect a cash deposit of estimated countervailing duties on 
future entries. The Department normally uses as an estimate of 
countervailing duties on future entries the assessment rate found in 
the final results of review (see 19 CFR 355.22(c)(10)).
    Although the EIS program was terminated, it is clear that some 
payments may continue to be received beyond the date of EIS termination 
by exporters who entered into EIS contracts before termination of the 
program. In situations in which a government terminates a program but 
residual benefits may continue to be bestowed under the terminated 
program, it is the Department's practice not to adjust the deposit 
rate. See Cotton Yarn from Brazil; Preliminary Results of 
Administrative Review (56 FR 47456, 47457; September 19, 1991) and 
Cotton Yarn from Brazil; Final Results of Administrative Review (57 FR 
1454; January 14, 1992). In order to adjust the cash deposit rate as a 
result of a program-wide change, the Secretary must be able to measure 
the change in the level of countervailable subsidies provided under the 
program in question (see section 355.50(a)(2) and (d)(1) of 
Countervailing Duties; Notice of Proposed Rulemaking and Request for 
Public Comments (54 FR 23366; May 31, 1989). Therefore, because 
residual benefits from the EIS program may continue to be provided 
after the date of our preliminary results and cannot be measured, we 
have not adjusted the cash deposit rate as a result of the termination 
of the EIS program.

Final Results of Review

    After reviewing all of the comments received, we determine the net 
subsidy to be 6.98 percent ad valorem for all companies during the 
period January 1, 1991 through December 31, 1991.
    Therefore, the Department will instruct the Customs Service to 
assess countervailing duties of 6.98 percent of the f.o.b. invoice 
price on all shipments of this merchandise exported on or after January 
1, 1991 and on or before December 31, 1991.
    Further, the Department will instruct the Customs Service to 
collect a cash deposit of 6.98 percent of the f.o.b. invoice price on 
all shipments of this merchandise entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice.
    This cash deposit shall remain in effect until publication of the 
final results of the next administrative review.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 355.22.

    Dated: January 28, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-2449 Filed 2-2-94; 8:45 am]
BILLING CODE 3510-DS-P