[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Notices]
[Pages 39949-39950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19475]


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DEPARTMENT OF COMMERCE
[C-351-406]


Certain Agricultural Tillage Tools From Brazil; Preliminary 
Results of Countervailing Duty Administrative Review

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

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

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SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the countervailing duty order on certain 
agricultural tillage tools from Brazil. For information on the net 
subsidy for the reviewed company, as well for all non-reviewed 
companies, please see the Preliminary Results of Review section of this 
notice. If the final results remain the same as these preliminary 
results of administrative review, we will instruct the U.S. Customs 
Service to assess countervailing duties as detailed in the Preliminary 
Results of Review section of this notice. Interested parties are 
invited to comment on these preliminary results.

EFFECTIVE DATE: July 31, 1996.

FOR FURTHER INFORMATION CONTACT: Gayle Longest or Anne D'Alauro, Office 
of CVD/AD Enforcement, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202) 
482-3338 or (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On October 22, 1985, the Department published in the Federal 
Register (57 FR 10885) the countervailing duty order on certain 
agricultural tillage tools from Brazil. On October 5, 1995, the 
Department published a notice of ``Opportunity to Request an 
Administrative Review'' (60 FR 52149) of this countervailing duty 
order. We received a timely request for review, and we initiated the 
review, covering the period January 1, 1994 through December 31, 1994 
on November 16, 1995 (60 FR 57573).
    In accordance with section 355.22(a) of the Department's Interim 
Regulations, this review covers only those producers or exporters of 
the subject merchandise for which a review was specifically requested 
(see Antidumping and Countervailing Duties: Interim Regulations; 
Request for Comments, 60 FR 25130 (May 11, 1995)) (Interim 
Regulations). Accordingly, this review covers Marchesan Implementos 
Argicolas, S.A. This review also covers 5 programs.
    As explained in the memoranda from the Assistant Secretary for 
Import Administration dated November 22, 1995, and January 11, 1996 (on 
file in the public file of the Central Records Unit, Room B-099 of the 
Department of Commerce), all deadlines were extended to take into 
account the partial shutdowns of the Federal Government from November 
15 through November 21, 1995, and December 15, 1995, through January 6, 
1996. Therefore, the deadline for these preliminary results is no later 
than July 31, 1996 and the deadline for the final results of this 
review is no later than 120 days from the date on which these 
preliminary results are published in the Federal Register.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act (URAA) effective January 1, 1995 (the 
Act). The Department is conducting this administrative review in 
accordance with section 751(a) of the Act.

Scope of the Review

    Imports covered by this review are shipments of certain round 
shaped agricultural tillage tools (discs) with plain or notched edge, 
such as colters and furrow-opener blades. During the review period, 
such merchandise was classifiable under item numbers 8432.21.00, 
8432.29.00, 8432.80.00 and 8432.90.00 of the Harmonized Tariff Schedule 
(HTS). The HTS item numbers are provided for convenience and Customs 
purposes. The written description remains dispositive.

Verification

    As provided in section 782(i) of the Act, we verified information 
submitted by the Government of Brazil and Marchesan. We followed 
standard verification procedures, including meeting with government and 
company officials and examination of relevant accounting and financial 
records and other original source documents. Our verification results 
are outlined in the public versions of the verification reports, which 
are on file in the Central Records Unit (Room B-099 of the Main 
Commerce Building).

Analysis of Programs

I. Programs Preliminarily Determined To Be Not Used

    We examined the following programs and preliminarily determine that 
the producer and/or exporter of the subject merchandise did not apply 
for or receive benefits under these programs during the period of 
review:
    A. Accelerated Depreciation for Brazilian-Made Capital Goods
    B. Preferencial Financing for Industrial Enterprises by Banco do 
Brasil (FST and EGF loans)
    C. SUDENE Corporate Income Tax Reduction for Companies Located in 
the Northeast of Brazil
    D. Preferencial Financing under PROEX (formerly under Resolution 68 
and 509 through FINEX)
    E. Preferencial Financing under FINEP

Preliminary Results of Review

    In accordance with section 355.22(c)(4)(ii) of the Department's 
Interim Regulations, we calculated an individual subsidy rate for each 
producer/exporter subject to this administrative review. For the period 
January 1, 1994 through December 31, 1994, we preliminarily determine 
the net subsidy for Marchesan to be zero percent ad valorem.
    As provided for in the Act, any rate less than 0.5 percent ad 
valorem in an administrative review is de minimis. Accordingly, no 
countervailing duties will be assessed. If the final results of this 
review remain the same as these preliminary results, the Department 
intends to instruct the U.S. Customs Service to liquidate, without 
regard to countervailing duties, shipments of the subject merchandise 
from Marchesan

[[Page 39950]]

exported on or after January 1, 1994, and on or before December 31, 
1994. Also, the cash deposit required for this company will be zero.
    Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for 
investigated and reviewed companies, the procedures for establishing 
countervailing duty rates, including those for non-reviewed companies, 
are now essentially the same as those in antidumping cases, except as 
provided for in section 777A(e)(2)(B) of the Act. The requested review 
will normally cover only those companies specifically named. Pursuant 
to 19 C.F.R. Sec. 355.22(g), for all companies for which a review was 
not requested, duties must be assessed at the cash deposit rate, and 
cash deposits must continue to be collected, at the rate previously 
ordered. As such, the countervailing duty cash deposit rate applicable 
to a company can no longer change, except pursuant to a request for a 
review of that company. See Federal-Mogul Corporation and The 
Torrington Company v. United States, 822 F.Supp. 782 (CIT 1993) and 
Floral Trade Council v. United States, 822 F.Supp. 766 (CIT 1993) 
(interpreting 19 C.F.R. Sec. 353.22(e), the antidumping regulation on 
automatic assessment, which is identical to 19 C.F.R. Sec. 355.22(g)). 
Therefore, the cash deposit rates for all companies except those 
covered by this review will be unchanged by the results of this review.
    We will instruct Customs to continue to collect cash deposits for 
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to non-reviewed companies covered by this 
order are those established in the most recently completed 
administrative proceeding. See Certain Round-Shaped Agricultural 
Tillage Tools from Brazil; Final Results of Countervailing Duty 
Administrative Review, 57 FR 22461. These rates shall apply to all non-
reviewed companies until a review of a company assigned these rates is 
requested. In addition, for the period January 1, 1994 through December 
31, 1994, the assessment rates applicable to all non-reviewed companies 
covered by this order are the cash deposit rates in effect at the time 
of entry.

Public Comment

    Parties to the proceeding may request disclosure of the calculation 
methodology and 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. 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 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. Sec. 355.38.
    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. Sec. 355.38, 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)).

    Dated: July 19, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-19475 Filed 7-30-96; 8:45 am]
BILLING CODE 3510-DS-P