[Federal Register Volume 60, Number 80 (Wednesday, April 26, 1995)]
[Notices]
[Pages 20478-20480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10265]



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DEPARTMENT OF COMMERCE
[C-351-029]


Final Results of Countervailing Duty Administrative Review: 
Certain Castor Oil Products From Brasil

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

EFFECTIVE DATE: April 26, 1995.

FOR FURTHER INFORMATION CONTACT:Vincent Kane or Cynthia Thirumalai, 
Office of Countervailing Investigations, Import Administration, U.S. 
Department of Commerce, Room B099, 14th Street and Constitution Avenue 
NW., Washington, DC 20230; telephone (202) 482-2815 and (202) 482-4087, 
respectively.

Final Determination

Background

    On November 7, 1994, the Department of Commerce (the Department) 
published in the Federal Register (59 FR 55443) the preliminary results 
of its administrative review of the countervailing duty order on 
certain castor oil products from Brazil (Preliminary Determination). 
See 41 FR 11018 (March 16, 1976). The Department has now completed that 
administrative review in accordance with section 751 of the Tariff Act 
of 1930, as amended (the Act).

Applicable Statute and Regulations

    The Department is conducting this administrative review in 
accordance with section 751(a) of the Act. Unless otherwise indicated, 
all citations to the statute and to the Department's regulations are in 
reference to the provisions as they existed on December 31, 1994.

Scope of Review

    The merchandise subject to this review is hydrogenated castor oil 
and 12-hydroxystearic acid. Imports of these products are currently 
classifiable under the following Harmonized Tariff Schedule (``HTS'') 
subheadings: 1516.20.90 and 1519.19.40. Although the HTS subheadings 
are provided for convenience and customs purposes, our 
[[Page 20479]] written description of the scope of this proceeding is 
dispositive.
    This review covers the period January 1, 1992 through December 31, 
1992, six companies, and the following 12 programs: (1) Preferential 
Export Financing under Resolution 950/1009; (2) Income Tax Exemption 
for Export Earnings; (3) Preferential Export Financing Under CIC-OPCRE 
6-2-6; (4) Preferential Financing for industrial Enterprises by the 
Bank of Brazil; (5) Reduction of Industrial Products Tax (IPI) and 
Import Duties Under Decreto No. 77.065 through BEFIEX; (6) Preferential 
Financing for National Trading Companies under Resolution 883 of the 
Banco Central do Brasil; (7) Accelerated Depreciation for Brazilian-
Made Capital Goods; (8) Preferential Financing under Resolution 68 
through FINEX; (9) Preferential Financing under Resolution 578/83 
through FUNPAR; (10) Preferential Financing under Resolution 579/83 
through PROEX and PROSIM; (11) Preferential Financing for the Storage 
of Merchandise Destined for Export under Resolution 330/Portaria 130 of 
the Banco Central do Brasil; and (12) Green Yellow Drawback (Portaria 
68/83).

Calculation Methodology for Assessment and Cash Deposit Purposes

    We calculated the total subsidy on a country-wide basis by first 
calculating the subsidy for each company subject to the administrative 
review. We then weight-averaged the rate received by each company by 
its share of total Brazilian exports of the subject merchandise to the 
United States, including all companies, even those with de minimis and 
zero rates. Using this methodology we calculated a country-wide rate of 
0.03 percent, which is de minimis.

Analysis of Program

Income Tax Exemption for Export Earnings

    Although this program was eliminated on April 12, 1990, by Decree 
Law 8,034, Boley was authorized to use the income tax exemption on 
export earnings under the terms of a contract with the Commission for 
the Granting of Fiscal Benefits to Special Export Programs (BEFIEX) 
until its contract expired. Therefore, despite the fact that the income 
tax exemption for export earnings was eliminated, Boley received 
residual benefits from the program during the review period. No other 
company under review used this program.

Programs Found To Be Terminated

    We find the following programs to be terminated and find that the 
respondents did not receive any residual benefits under them during the 
period of review.
    a. Preferential Export Financing under Resolution 950/1009 through 
CACEX (Carteira de Comercio Exterior) of the Bank of Brazil.
    We verified that this program was terminated on August 30, 1990, by 
Banco Central Bank do Brasil Resolution No. 1,744. See also Final 
Negative Countervailing Duty Determination: Silicon Metal from Brasil, 
56 FR 26988, 26989 (June 12, 1991).
    b. Preferential Export Financing under CIC-OPCRE 6-2-6.
    We verified that, on May 10, 1990, the functions of CACEX of the 
Bank of Brazil, which administered these export financing loans, were 
absorbed by the Secretariat of Foreign Trade (SECEX). SECEX was not 
empowered to perform banking operations and the export financing was 
discontinued.
    c. Reduction of Industrial Products Tax (IPI) and Import Duties 
under Decreto No. 77.065 through BEFIEX (Comissao par a Concessao de 
Beneficios a Programas Especials de Exportacao) and CIEX (Comissao para 
Incentivos a Exportacao).
    We verified, that, on April 12, 1990, Decree Law 8,032 limited this 
program exclusively to imports made by the federal, state, and 
municipal governments, territories, other political entities, and 
scientific institutions, thereby eliminating the benefit to commercial 
enterprises.
    d. Preferential Financing for National Trading Companies under 
Resolution 883 of the Banco Central do Brasil.
    We verified that Banco Central do Brasil Resolution 1,744 revoked 
Resolution 883 on August 30, 1990, thereby terminating this program. 
(See also, Certain Round-Shaped Agricultural Tillage Tools from Brazil; 
Preliminary Results of Countervailing Duty Administration Review, 57 FR 
10885, 10886 (March 31, 1992).)
    e. Preferential Financing under Resolution 68 through FINEX.
    We verified that this program was terminated on April 5, 1990, 
after it failed to be reenacted within two years of April 5, 1988, the 
date on which Brazil's new constitution came into effect. Article 4 of 
the new constitution provided that all programs requiring funding from 
the national treasury had to be reenacted within a two-year period or 
cease to exist. Legislation to reenact preferential financing through 
FINEX was not passed and the program ceased to exist.
    f. Preferential Financing under Resolution 579/83 through PROSIM 
and PROEX (BNDES).
    We verified that preferential financing through PROSIM was 
terminated on February 4, 1985, by BNDES Resolution 607, and that 
preferential financing through PROEX (BNDES) was terminated on 
September 2, 1991 by BNDES Resolution 762.
    g. Preferential Financing for the Storage of Merchandise Destined 
for Export under Resolution 330/Portaria 130 of the Banco Central do 
Brasil.
    We verified that this program was terminated on August 21, 1984, by 
Central Bank Resolution 950.

Programs Found To Be Not Used

    We find that respondents did not use following programs during the 
review period:

a. Preferential Financing for Industrial Enterprises by the Bank of 
Brazil
b. Preferential Financing under Resolution 578/83 through FUNPAR
c. Accelerated Depreciation for Brazilian Made Capital Goods
d. Green Yellow Drawback (Portaria 68/83)

Analysis of Comments Received

    We gave interested parties an opportunity to comment on the 
preliminary results. We received no comments.

Final Results of Review

    As a result of our review, we determine the net subsidy to be 0.03 
percent ad valorem for all firms during the period January 1, 1992 
through December 31, 1992. In accordance with 19 CFR 355.7, any rate 
less than 0.50 percent ad valorem is de minimis.
    Therefore, the Department will instruct the Customs Service to 
liquidate, without regard to countervailing duties, all shipments of 
this merchandise exported on or after January 1, 1992 and on or before 
December 31, 1992.
    The Department will instruct the Customs Service to continue to 
suspend liquidation on all shipments of this merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice. Because the net subsidy is de minimus, 
however, the cash deposit on shipments entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register will be zero. These instructions shall 
remain in effect until publication of the final results of the next 
administrative review. [[Page 20480]] 

Return or Destruction of Proprietary Information

    This notice serves as the only reminder to parties subject to 
Administrative Protective Order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 355.34(d). Failure to 
comply is a violation of the APO.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 
355.22.

    Dated: April 19, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-10265 Filed 4-25-95; 8:45 am]
BILLING CODE 3510-DS-M