[Federal Register Volume 61, Number 62 (Friday, March 29, 1996)]
[Notices]
[Pages 14076-14077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7637]



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DEPARTMENT OF COMMERCE
[C-201-001]


Leather Wearing Apparel From Mexico; Notice of Intent To 
Terminate the Countervailing Duty Administrative Review and Notice of 
Intent To Amend the Revocation of the Countervailing Duty Order

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

ACTION: Notice of Intent to Terminate the Countervailing Duty 
Administrative Review and Notice of Intent to Amend the Revocation of 
the Countervailing Duty Order.

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SUMMARY: On September 6, 1995, the Court of Appeals for the Federal 
Circuit (CAFC) ruled that, absent an injury determination by the 
International Trade Commission, the Department of Commerce (the 
Department) may not assess countervailing duties under section 
1303(a)(1) on entries of dutiable merchandise which occurred on or 
after April 23, 1985, the effective date of Mexico's Bilateral 
Agreement with the U.S. Ceramica Regiomontana v. U.S., Court No. 95-
1026 (Fed. Cir., Sept. 6, 1995) (Ceramica). As a result, we intend to 
terminate this administrative review, which covers the period January 
1, 1994 through December 31, 1994, and amend the effective date of the 
revocation of the countervailing duty order on Mexican leather wearing 
apparel. The amended revocation would apply to all unliquidated entries 
of subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after April 23, 1985. We invite interested parties to 
comment on our intent to terminate this administrative review and to 
amend the revocation of the order.

EFFECTIVE DATE: March 29, 1996.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Cameron Cardozo, 
Office of Countervailing Compliance, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W.,

[[Page 14077]]
Washington, D.C. 20230; telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    The countervailing duty order on leather wearing apparel from 
Mexico was issued on April 10, 1981 pursuant to section 303 of the 
Tariff Act of 1930, as amended (the Act). No injury determination was 
required for cases conducted pursuant to section 303. In the Uruguay 
Round Agreements Act of 1994 (URAA), which amended the Act, section 303 
was repealed because the new Agreement on Subsidies and Countervailing 
measures (SCM Agreement) prohibits the assessment of countervailing 
duties on imports from a member of the WTO without an affirmative 
injury determination. The URAA added section 753 to the Act which 
provided domestic interested parties an opportunity to request an 
injury investigation for orders that had been issued pursuant to 
section 303.
    Because no domestic interested parties exercised their right under 
section 753(a) of the Act to request an injury investigation on Mexican 
leather wearing apparel, the International Trade Commission made a 
negative injury determination with respect to this order, pursuant to 
section 753(b)(4) of the Act. As a result, the Department revoked this 
countervailing duty order, effective January 1, 1995, pursuant to 
section 753(b)(3)(B) of the Act. Revocation of Countervailing Duty 
Orders, 60 FR 40,568 (August 9, 1995). Administrative reviews of 
periods prior to January 1, 1995 could still be conducted, and on April 
28, 1995 an administrative review of this order was requested for the 
period January 1, 1994 through December 31, 1994. 60 FR 25885 (May 15, 
1995).
    On September 6, 1995, in a case involving the countervailing duty 
order on ceramic tile from Mexico, the CAFC ruled that, absent an 
injury determination by the International Trade Commission (ITC), the 
Department may not assess countervailing duties under section 
1303(a)(1) on entries from Mexico of dutiable merchandise which 
occurred on or after April 23, 1985, the effective date of Mexico's 
Bilateral Agreement with the U.S. (Ceramica at 8). On February 21, 
1996, the Department implemented the CAFC's ruling in the case of 
Mexican ceramic tile. 61 FR 6630. Because the order on leather wearing 
apparel is a Mexican order and involves the same set of pertinent facts 
(i.e., the ITC did not make an injury determination), the CAFC's 
decision applies to the order on leather wearing apparel from Mexico.
    As a result, we intend to terminate the instant review of this 
countervailing duty order. Also, we intend to amend the previous 
revocation of this order to make the revocation for all unliquidated 
entries effective April 23, 1985, rather than January 1, 1995, in 
recognition of the Ceramica decision.

Scope of the Review

    Imports covered by this review are shipments of Mexican leather 
wearing apparel. These products include leather coats and jackets for 
men, boys, women, girls, and infants, and other leather apparel 
products including leather vests, pants, and shorts. Also included are 
outer leather shells and parts and pieces of leather wearing apparel. 
This merchandise is currently classifiable under Harmonized Tariff 
Schedule (HTS) item numbers 4203.10.4030, 4203.10.4060, 4203.10.4085 
and 4203.10.4095. The HTS item numbers are provided for convenience and 
Customs purposes. The written description remains dispositive.

Notice of Intent To Terminate the Countervailing Duty Administrative 
Review and Notice of Intent To Amend the Revocation of the 
Countervailing Duty Order

    This notice serves as notification to the public of our intent to 
terminate the instant administrative review and amend the revocation of 
the countervailing duty order on Mexican leather wearing apparel to be 
effective April 23, 1985. If our final determination remains unchanged 
from this notice of intent, the revocation will apply to all 
unliquidated entries of subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after April 23, 1985.
    Therefore, we intend to instruct the U.S. Customs Service to 
terminate the suspension of liquidation and liquidate all unliquidated 
entries of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after April 23, 1985, without regard 
to countervailing duties. We intend to instruct the U.S. Customs 
Service to refund with interest any estimated countervailing duties 
collected with respect to those entries. We note that the requirements 
for a cash deposit of estimated countervailing duties were previously 
terminated in conjunction with the section 753 determination.
    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 this notice of intent within 
21 days of the date of publication. Rebuttal briefs, limited to 
arguments raised in case briefs, may be submitted five days after the 
time limit for filing the case brief. Parties who submit argument in 
this proceeding are requested to submit with the argument (1) a 
statement of the issue, and (2) a brief summary of the argument. Any 
hearing, if requested, will be held two 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 CFR 
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 section 355.38(c), are due. The Department will 
publish its final determination with respect to this intended 
termination and revocation, including the results of its analysis of 
issues raised in any case or rebuttal brief or at a hearing.
    This notice is published in accordance with section 751(a)(1) of 
the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 355.22.

    Dated: March 21, 1996.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 96-7637 Filed 3-28-96; 8:45 am]
BILLING CODE 3510-DS-P