[Federal Register Volume 59, Number 199 (Monday, October 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25633]


[[Page Unknown]]

[Federal Register: October 17, 1994]


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DEPARTMENT OF COMMERCE
[C-401-056]

 

Viscose Rayon Staple Fiber From Sweden Preliminary Results of 
Countervailing Duty Administrative Review

AGENCY: International Trade Administration/Import Administration, 
Commerce.

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

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SUMMARY: The Department of Commerce has conducted an administrative 
review of the countervailing duty order on viscose rayon staple fiber 
from Sweden. We preliminarily determined the net subsidy to be 0.26 
percent ad valorem for the period January 1, 1991 through December 31, 
1991. In accordance with 19 CFR 355.7, any rate less than 0.50 percent 
ad valorem is de minimis. We invite interested parties to comment on 
these preliminary results.

EFFECTIVE DATE: October 17, 1994.

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

SUPPLEMENTARY INFORMATION:

Background

    On May 6, 1992, the Department of Commerce (the Department) 
published in the Federal Register a notice of ``Opportunity to Request 
Administrative Review'' (57 FR 19412) of the countervailing duty order 
on viscose rayon staple fiber from Sweden (44 FR 28319; May 15, 1979). 
Svenska Rayon AB, a producer and exporter of viscose rayon staple 
fiber, made a timely request that we conduct an administrative review 
of the order for the period January 1, 1991 through December 31, 1991. 
We initiated the review on June 18, 1992 (57 FR 27212). The Department 
is conducting this administrative review in accordance with section 
751(a) of the Tariff Act of 1930, as amended (the Act).

Scope of Review

    Imports covered by this review are shipments of Swedish regular 
viscose rayon staple fiber and high-wet modulus (modal) viscose rayon 
staple fiber. Such merchandise is classifiable under item number 
5504.10.00 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 one program. The only known Swedish producer/exporter of this 
merchandise to the United States is Svenska Rayon AB (Svenska).

Analysis of Program

Elderly Employment Compensation Program

    The Swedish government provided a subsidy to certain companies 
within the textile and apparel industries through a special employment 
contribution for older workers. This program provided compensation to a 
company based upon the number of hours worked by employees over 50 
years of age. A company participating in the program had to agree not 
to dismiss or release redundant employees of any age for any reason 
other than normal attrition. Payments were calculated on the basis of 
28 Swedish kroner per hour for employees over age 50 who were involved 
in production. The payment could not exceed 15 percent of the company's 
total labor costs. In prior administrative reviews of this order, this 
program was determined to be countervailable because the program was 
available only to certain companies within the textile and apparel 
industry. (See e.g., Viscose Rayon Staple Fiber From Sweden; 
Preliminary Results of Countervailing Duty Administrative Review (57 FR 
6493; February 25, 1992) and Viscose Rayon Staple Fiber From Sweden; 
Final Results of Countervailing Duty Administrative Review (57 FR 
12912; April 14, 1992)).
    Svenska received its last payment under this program in July 1982. 
In January 1983, the Swedish government excluded the rayon fiber 
industry, including Svenska, from this program. We have calculated the 
benefit stream using the declining balance methodology. We allocated 
the benefits from the grant received in 1982 over the 10-year average 
useful life of assets in the rayon fiber industry, according to the 
``Asset Guideline Classes'' of the Internal Revenue Service. As in 
prior reviews of the subject merchandise, we used Svenska's 1982 
weighted cost of capital as the discount rate.
    We divided the benefit attributable to the review period by the 
value of Svenska's total revenue during the review period. On this 
basis, we preliminarily determine the benefit from this program to be 
0.26 percent ad valorem.

Preliminary Results of Review

    As a result of our review, we preliminarily determine the net 
subsidy to be 0.26 percent ad valorem for the period January 1, 1991 
through December 31, 1991. In accordance with 19 CFR 355.7, any rate 
less than 0.50 percent ad valorem is de minimis.
    If the final results of this review remain unchanged from these 
preliminary results, the Department intends to instruct the Customs 
Service to liquidate, without regard to countervailing duties, all 
shipments of this merchandise exported on or after January 1, 1991 and 
on or before December 31, 1991.
    Further, upon completion of this review the Department intends to 
instruct the Customs Service to collect a cash deposit of estimated 
countervailing duties of zero, as provided for by section 751(a)(1) of 
the Act, on all shipments of this merchandise from Sweden entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this administrative review.
    Parties to the proceeding may request disclosure of the calculation 
methodology. Interested parties may request a hearing not later than 10 
days after the date of publication of this notice. Interested parties 
may submit written arguments in case briefs on these preliminary 
results within 30 days of the date of publication. Rebuttal briefs, 
limited to arguments raised in case briefs, may be submitted seven days 
after the time limit for filing the case brief. Any hearing, if 
requested, will be held seven days after the scheduled date for 
submission of rebuttal briefs. Copies of case briefs and rebuttal 
briefs must be served on interested parties in accordance with 19 
C.F.R. 355.38(e).
    Representatives of parties to the proceeding may request disclosure 
of proprietary information under administrative protective order no 
later than 10 days after the representative's client or employer 
becomes a party to the proceeding, but in no event later than the date 
the case briefs, under 19 C.F.R. 355.38(c), are due.
    The Department will publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any case or rebuttal brief or at a hearing.
    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: October 7, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-25633 Filed 10-14-94; 8:45 am]
BILLING CODE 3510-DS-M