[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19423]


[[Page Unknown]]

[Federal Register: August 9, 1994]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE
[C-549-811]

 

Preliminary Negative Countervailing Duty Determination: 
Disposable Lighters From Thailand

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

EFFECTIVE DATE: August 9, 1994.

FOR FURTHER INFORMATION CONTACT: Kristin M. Heim, Office of 
Countervailing Investigations, Import Administration, U.S. Department 
of Commerce, Room B099, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone (202) 482-3798.

PRELIMINARY DETERMINATION:

Case History

    Since the initiation of this investigation on May 31, 1994, the 
following events have occurred.
    On June 1, 1994, we issued a questionnaire to the Government of 
Thailand in Washington, DC., concerning petitioner's allegations.
    On July 8, 1994, we received responses from the Government of 
Thailand and Thai Merry Company Ltd. On July 21, 1994, we received a 
supplemental questionnaire response filed jointly by both respondents.

Scope of Investigations

    The products covered by this investigation are disposable pocket 
lighters, whether or not refillable, whose fuel is butane, isobutane, 
propane, or other liquified hydrocarbon, or a mixture containing any of 
these, whose vapor pressure at 75 degrees fahrenheit (24 degrees 
Celsius) exceeds a gage pressure of 15 pounds per square inch. Non-
refillable pocket lighters are imported under subheading 9613.10.0000 
of the Harmonized Tariff Schedule of the United States (``HTSUS''). 
Refillable, disposable pocket lighters would be imported under 
subheading 9613.20.0000. Although the HTSUS subheadings are provided 
for convenience and Customs purposes, our written description of the 
scope of this proceeding is dispositive.

Injury Test

    Although Thailand is not a ``country under the Agreement'' within 
the meaning of section 701(b) of the Tariff Act of 1930, as amended 
(``the Act''), the merchandise being investigated is non-dutiable under 
the Generalized System of Preferences and Thailand is a contracting 
party to the General Agreement on Tariffs and Trade. Thailand, 
therefore, is entitled to an injury test on imports of the subject 
merchandise. On June 20, 1994, the ITC preliminarily determined that 
imports of the subject merchandise from Thailand materially injure, or 
threaten material injury to, a U.S. industry.

Petitioner

    The petitioner is BIC Corporation. Petitioner states that it is the 
sole remaining domestic producer of the subject merchandise and that it 
is filing on behalf of the domestic industry.

Respondents

    The Government of Thailand (``GOT'') and Thai Merry Company Ltd. 
(``Thai Merry'') are respondents in this investigation. Although Thai 
Merry is not the only exporter of disposable lighters to the United 
States, it accounts for more than 85 percent of exports and is, 
therefore, the sole company respondent.

Analysis of Programs

    For purposes of this preliminary determination, the period of 
investigation (``the POI'') is calendar year 1993.
    Consistent with our practice in preliminary determinations, when a 
response to an allegation denies the existence of a program, receipt of 
benefits under a program, or eligibility of a company or industry under 
a program, and the Department has no persuasive evidence showing that 
the response is incorrect, we accept the response for purposes of the 
preliminary determination. All such responses, however, are subject to 
verification. If the response cannot be supported at verification, and 
the program is otherwise countervailable, the program will be 
considered a bounty or grant in the final determination.
    Based upon our analysis of the petition and the responses to our 
questionnaires, we preliminarily determine the following:

I. Program Preliminarily Determined to be Countervailable

Section 31 of the Investment Promotion Act

    The Investment Promotion Act of 1977 (``IPA'') provides incentives 
for investment to promote the development of the Thai economy. The IPA 
authorizes an array of tax exemptions and exclusions. The IPA is 
administered by the Board of Investment through promotion certificates. 
These certificates list the various sections of the IPA under which a 
company is eligible to receive benefits.
    Under Section 31, companies may obtain a three-to-eight year 
exemption from payment of corporate income tax on profits derived from 
promoted activities, as well as deductions from net profits for losses 
incurred during the tax exemption period. The 1977 IPA Act has been 
amended several times and, in 1991, the GOT passed the Investment 
Promotion Act No. 2 of 1991. This 1991 Act was the law in effect during 
the POI. Section 16 of this law states that eligible activities for 
this exemption include ``* * * activities which involve production for 
export.''
    Thai Merry applied for and received income tax exemptions under 
section 31 of the IPA for the income tax return filed during the POI. 
The approval certificate received by Thai Merry for participation in 
this program states that ``the company has received a promoted status 
in the business for production of gas lighters for export.''
    Because Thai Merry received these benefits for exported lighters, 
we preliminarily determine that this program confers an export bounty 
or grant. To calculate the benefit for the POI, we divided the tax 
savings by the total value of export sales, pursuant to 355.47(c)(ii) 
of the Proposed Regulations (Countervailing Duties: Notice of Proposed 
Rulemaking and Request for Public Comments, 54 FR 23366 (May 31, 
1989)). . On this basis, we calculated a net bounty or grant of 0.23 
percent ad valorem.
    Because this is the only countervailable program and the rate is de 
minimis, pursuant to 19 CFR 355.7 (1994), we preliminarily determine 
that no benefits which constitute bounties or grants within the meaning 
of the countervailing duty law are being provided to manufacturers, 
producers, or exporters of disposable lighters in Thailand.

II. Programs Preliminarily Determined Not to be Used

    We preliminarily determine that producers or exporters in Thailand 
of the subject merchandise did not receive benefits during the POI for 
exports of the subject merchandise to the United States under the 
following programs:

1. Industrial Estates/Export Processing Zones
2. Preferential Short-term Loans Under the Export Packing Credit 
Program
3. Tax and Duty Exemptions Under the Investment Promotion Act (sections 
28, 33, 34, 36(1), 36(2), 36(3) and 36(4))
4. Tax Certificates for Exporters
5. Rediscount of Industrial Bills
6. International Trade Promotion Fund

Verification

    In accordance with section 776(b) of the Act, we will verify the 
information used in making our final determination.

Public Comment

    In accordance with 19 CFR 355.38, we will hold a public hearing, if 
requested, to afford interested parties an opportunity to comment on 
this preliminary determination. Individuals who wish to request a 
hearing must submit such a request within ten days of the publication 
of this notice in the Federal Register to the Assistant Secretary for 
Import Administration, U.S. Department of Commerce, room B099, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230. Interested 
parties should contact the Department by telephone to learn the time 
and date of the hearing.
    This determination is published pursuant to section 703(f) of the 
Act (19 U.S.C. 1671b(f)).

    Dated: August 1, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-19423 Filed 8-8-94; 8:45 am]
BILLING CODE 3510-DS-P