[Federal Register Volume 60, Number 98 (Monday, May 22, 1995)]
[Notices]
[Pages 27082-27083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1250]



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DEPARTMENT OF COMMERCE
[C-614-503]


Lamb Meat From New Zealand; Final Results of Countervailing Duty 
Administrative Review and Revocation of Countervailing Duty Order

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

ACTION: Notice of final results of countervailing duty administrative 
review and revocation of countervailing duty order.

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SUMMARY: On March 1, 1995, the Department of Commerce (the Department) 
published in the Federal Register its preliminary results of 
administrative review of the countervailing duty order on lamb meat 
from New Zealand for the period April 1, 1992, through March 31, 1993. 
We have completed this review and determine the net subsidy to be 
0.0013 percent ad valorem for all companies. In accordance with 19 CFR 
355.7, any rate less than 0.5 percent ad valorem is de minimis. We will 
instruct the U.S. Customs Service to liquidate, without regard to 
countervailing duties, all shipments of this merchandise as indicated 
above. In addition, because the requirements for revocation of the 
order have been met by the Government of New Zealand (GONZ) pursuant to 
19 CFR 355.25(a)(1), the Department is revoking the countervailing duty 
order.
EFFECTIVE DATE: May 22, 1995.

FOR FURTHER INFORMATION CONTACT: Gayle Longest or Kelly Parkhill at the 
Office of Countervailing Compliance, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230; 
telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On March 1, 1995, the Department published in the Federal Register 
(60 FR 11072) the preliminary results of its administrative review of 
the countervailing duty order on lamb meat from New Zealand and intent 
to revoke the countervailing duty order. We invited interested parties 
to comment on the preliminary results and intent to revoke. We received 
no comments.
    The review covered the period April 1, 1992, through March 31, 
1993. The review involved 9 companies and the following programs which 
we verified have been terminated:

(1) Livestock Incentive Scheme (LIS)
(2) Regional Development Suspensory Loan Scheme (RDSL)
(3) Expert Assistance Grant Scheme (EAGS)
(4) The Export Market Development Taxation Incentive (EMDTI)
(5) Export Suspensory Loan Scheme (ESLS)
(6) Export Programme Grant Scheme (EPGS / Export Programme Suspensory 
Loan Scheme (EPSLS)

Scope of Review

    Imports covered by this review are shipments of lamb meat, other 
than prepared, preserved, or processed, from [[Page 27083]] New 
Zealand. This merchandise is currently classifiable under item numbers 
0204.10.0000, 0204.22.2000, 0204.23.2000, 0204.30.0000, 0204.42.2000, 
and 0204.43.2000 of the Harmonized Tariff Schedule (HTS). The HTS 
numbers are provided for convenience and Customs purposes. The written 
description remains dispositive.

Revocation of the Countervailing Duty Order

    According to 19 CFR 355.25(b), a government meets the minimum 
threshold requirement for revocation of an order if, in requesting the 
third consecutive administrative review of the order, the government 
submits a certification that the government has abolished all subsidy 
programs for the subject merchandise for a period of three consecutive 
years, and that the government will not reinstate the abolished 
programs or substitute other countervailable programs. Under 19 CFR 
355.25(a)(1)(i), the Department must have also found that there was no 
net subsidy for the subject merchandise in the two consecutive 
administrative reviews prior to the year in which the government 
requests revocation, and in the third consecutive administrative 
review, the Department must also determine that there is no net 
subsidy. If the foregoing threshold requirements are met, and the 
Department determines in the review during which revocation has been 
requested that the government has eliminated all subsidies on the 
subject merchandise for the third consecutive year, and is not likely 
to substitute or replace formerly countervailable programs with new 
subsidies, then the Department will revoke the order.
    Based upon certification by the GONZ, as well as the Department's 
administrative determinations, we have determined that the GONZ has 
abolished all subsidy programs for lamb meat for a period of three 
consecutive years. In addition, the GONZ has certified that it will not 
reinstate the abolished programs or substitute other countervailable 
programs. We therefore determine that there is no likelihood that the 
GONZ will substitute or replace formerly countervailable programs with 
new subsidies. Accordingly, we are revoking the countervailing duty 
order.

Calculation Methodology for Assessment and Cash Deposit Purposes

    We calculated the bounty or grant from the LIS, (the only 
terminated program with residual benefits), on a country-wide basis by 
treating the loan amounts forgiven in prior years as grants and 
allocated those amounts over five years, the average useful life of 
breeding stock. This methodology is described in Sec. 355.49(g) of 
Countervailing Duties; Notice of Proposed Rulemaking and Request for 
Public Comments (51 FR 23366, 233385; May 31, 1989). Because the 1988 
grant under this program was allocated over five years, we find that a 
benefit was conferred during the review period; however, this is the 
last year of the five-year benefit stream and no further benefits will 
be provided under these LIS loans. The discount rate chosen was the 
average interest rate on overdrafts during the year in which the loans 
were forgiven.
    The methodology and discount rate are the same used in previous 
administrative reviews (see e.g. Lamb Meat from New Zealand; 
Preliminary Results of Countervailing Duty Administrative Review (56 FR 
27243; June 13, 1991) and Lamb Meat from New Zealand; Final Results of 
Countervailing Duty Administrative Review (56 FR 38423; August 13, 
1991). We added the value of the benefits from the grants and 
multiplied the results by a factor determined to represent the value of 
lamb meat as a percentage of the total value of all livestock 
production. We then divided that result by the total value of lamb meat 
production during the review period. The country-wide rate calculated 
using this methodology was de minimis, as defined by 19 CFR Sec. 355.7.

Final Results of Review

    For the period April 1, 1992, through March 31, 1993, we determine 
the net subsidy to be 0.0013 percent ad valorem for all companies. In 
accordance with 19 CFR Sec. 355.7, any rate less than 0.5 percent ad 
valorem is de minimis.
    Therefore, the Department will instruct the U.S. Customs Service to 
liquidate, without regard to countervailing duties, all shipments of 
this merchandise exported on or after April 1, 1992, and before March 
31, 1993; in addition, the Department will instruct the U.S. Customs 
Service to refund with interest any deposits of estimated duties on 
such entries.
    We have determined that the GONZ has met the requirements for 
revocation of the countervailing duty order pursuant to 19 CFR 
Sec. 355.25(a)(1) and 19 CFR Sec. 355.25(b)(1). Therefore, the 
Department will instruct the U.S. Customs Service to terminate 
suspension of liquidation on entries of the subject merchandise and to 
liquidate, without regard to countervailing duties, such merchandise 
exported on or after April 1, 1993, the first day after the period 
reviewed herein. We will also instruct the Customs Service to refund 
any deposits of estimated duties on such entries.

Administrative Protective Order (APO)

    This notice serves as the only reminder to parties subject to APO 
of their responsibilities concerning the return or destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
353.34(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)), 19 CFR 
355.22, and 19 CFR 355.25.

    Dated: May 15, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-1250 Filed 5-19-95; 8:45 am]
BILLING CODE 3510-DS-P