[Federal Register Volume 66, Number 55 (Wednesday, March 21, 2001)]
[Notices]
[Pages 15839-15840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6911]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-508-605]


Industrial Phosphoric Acid From Israel: Final Results of 
Countervailing Duty Administrative Review

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

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

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SUMMARY: On September 6, 2000, the Department of Commerce (the 
Department) published the preliminary results of its administrative 
review of the countervailing duty order on industrial phosphoric acid 
(IPA) from Israel. The review covers the period January 1, 1998 to 
December 31, 1998.
    Based on our analysis of the comments received, and the decision of 
the Court of Appeals for the Federal Circuit in Delverde S.r.L. v. 
United States, 202 F.3d 1360 (Fed. Cir. 2000) (Delverde III), the 
Department has reexamined its change in ownership analysis and 
methodology. As a result, we have made changes to the net subsidy rate. 
Therefore, the final results differ from the preliminary results. The 
final net subsidy rate for the reviewed company is listed below in the 
section entitled ``Final Results of Review.''

EFFECTIVE DATE: March 21, 2001.

FOR FURTHER INFORMATION CONTACT: Sean Carey or Samantha Denenberg, 
Office of AD/CVD Enforcement VII, Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone 
(202) 482-3964 or (202) 482-1386, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930 (the Act), as 
amended by the Uruguay Round Agreements Act (URAA) effective January 1, 
1995. In addition, unless otherwise indicated, all citations to the 
Department's regulations are codified at 19 CFR part 351 (2000).

Background

    On September 6, 2000, the Department published the preliminary 
results of the administrative review of the countervailing duty order 
on industrial phosphoric acid. See Industrial Phosphoric Acid from 
Israel; Preliminary Results and Final Partial Recission of 
Countervailing Duty Administrative Review, 65 FR 53984 (September 6, 
2000). This review covered two manufacturers/exporters, Rotem Amfert 
Negev Ltd. (Rotem) and Haifa Chemicals Ltd. (Haifa). Haifa did not 
export the subject merchandise during the POR. Therefore, we rescinded 
the review with respect to Haifa in the preliminary results. The review 
covers the period January 1, 1998 through December 31, 1998, and nine 
programs.
    On September 12, 2000, Rotem submitted corrections to its sales 
values as a result of errors found at verification. The Department 
issued its reports on the verification of Rotem's and the GOI's 
questionnaire responses on December 14, 2000. The public version of 
these reports are on file in the Central Records Unit (CRU), room B-099 
of the Main Commerce Building.
    On October 4, 2000, the Department invited interested parties to 
provide comments on the implications for this administrative review, if 
any, of the Delverde III decision, but to exclude from their case 
briefs any specific comments pertaining to the privatization of Israel 
Chemicals Ltd. (ICL) until the Department issued its preliminary 
decision memo on ICL's privatization (the parent company of Rotem). 
Rotem and the Government of Israel (GOI) provided comments on the 
Department's change-in-ownership methodology on October 24, 2000. As a 
result of the Department's review of our change-in-ownership 
methodology, the Department extended the time limit for the final 
results in order to make additional inquiries concerning the 
privatization of ICL. See Industrial Phosphoric Acid from Israel; 
Notice of Extension of Time Limit for Countervailing Duty 
Administrative Review, 65 FR 68126 (November 14, 2000). The Department 
issued its interpretation of Delverde III and revised its change in 
ownership approach on December 19, 2000, in the Final Results of 
Redetermination

[[Page 15840]]

Pursuant to Court Remand, Acciai Speciali Terni S.p.A. v. United States 
(Final Redetermination).
    On December 22, 2000, the Department issued a change-in-ownership 
questionnaire to Rotem and the GOI, and received responses on January 
18, 2001. On February 9, 2001, the Department issued its ``Change-in-
Ownership Analysis Memorandum'' (CIO Memorandum) on ICL's 
privatization. Rotem and the GOI submitted comments on the Department's 
CIO Memorandum on February 14, 2001. Rotem and the GOI filed their case 
brief on January 5, 2001, commenting on the preliminary results in this 
administrative review but excluding any comments concerning ICL's 
privatization. Petitioners have not provided any comments in this 
administrative review.

Scope of the Countervailing Duty Order

    Imports covered by this review are shipments of industrial 
phosphoric acid (IPA) from Israel. Such merchandise is classifiable 
under item number 2809.20.00 of the Harmonized Tariff Schedule (HTS). 
The HTS item number is provided for convenience and U.S. Customs 
Service purposes. The written description of the scope remains 
dispositive.

Analysis of Comment Received

    All issues raised in the case and rebuttal briefs, including those 
in comments on the Department's Change-in-Ownership Memorandum, and 
submitted by parties to this administrative review, are addressed in 
the ``Issues and Decision Memorandum'' (Decision Memorandum) from 
Joseph A. Spetrini, Deputy Assistant Secretary, Group III, Import 
Administration, to Bernard T. Carreau, fulfilling the duties of 
Assistant Secretary for Import Administration, dated concurrent with 
this notice, which is hereby adopted by this notice. A list of issues 
which parties have raised and to which we have responded, all of which 
are in the Decision Memorandum, is attached to this notice as Appendix 
I. Parties can find a complete discussion of all issues raised in this 
review and the corresponding recommendations in this public memorandum 
which is on file in the CRU. In addition, a complete version of the 
Decision Memorandum can be accessed directly on the internet at http://ita.doc.gov/import_admin/records/frn, under the heading ``Israel.''

Changes Since the Preliminary Results

    Based on our analysis of comments received, and the Department's 
revised change in ownership approach that is based on the Court's 
ruling in Delverde III, we have made certain changes to the net subsidy 
rate. These changes are discussed in the relevant sections of the 
Decision Memorandum.

Final Results of Review

    In accordance with 19 CFR 351.212 (b), we calculated an individual 
net subsidy rate for the producer/exporter subject to this review. For 
the period January 1, 1998 through December 31, 1998, we determine the 
net subsidy for Rotem to be 4.98 percent ad valorem. We will instruct 
the U.S. Customs (Customs) to assess countervailing duties as indicated 
above on all appropriate entries. 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. See 19 CFR 351.213(b). Pursuant to 19 CFR 
351.212(c), for all companies for which a review was not requested, 
duties must be assessed at the cash deposit rate. Thus, for the period 
covered by this review, January 1, 1998, through December 31, 1998, 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.
    As a result of the International Trade Commission's determination 
that revocation of this countervailing duty order would not likely lead 
to continuation or recurrence of material injury to an industry in the 
United States in the reasonably foreseeable future, the Department, 
pursuant to section 751(d)(2) of the Act, revoked the countervailing 
duty order on IPA from Israel. See Revocation of Countervailing Duty 
Order: Industrial Phosphoric Acid from Israel, 65 FR 114 (June 13, 
2000). Pursuant to section 751(c)(6)(A)(iv) of the Act and 19 CFR 
351.222(i)(2)(ii), the effective date of revocation was January 1, 
2000. Accordingly, the Department has instructed Customs to discontinue 
suspension of liquidation and collection of cash deposits on entries of 
the subject merchandise entered or withdrawn from warehouse on or after 
January 1, 2000. The Department, however, will conduct administrative 
reviews of subject merchandise entered prior to the effective date of 
revocation in response to appropriately filed requests for review.
    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written notification of 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    This administrative review is issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 1675(a)(1) 
and 19 U.S.C. 1677f(i)(1)).

    Dated: March 5, 2001.
Timothy J. Hauser,
Acting Under Secretary for International Trade.

Appendix I: Issues Discussed in Decision Memorandum

http://ita.doc.gov/import_admin/records/frn, under the heading 
``Israel.''

I. Background Information
    Change in Ownership
II. Subsidies Valuation Information
    Grant Benefit Calculation
III. Analysis of Programs
    A. Programs Conferring Subsidies
    1. Encouragement of Industrial Research and Development Grants 
(EIRD)
    2. Encouragement of Capital Investment Law (ECIL)
    3. Infrastructure Grant
    B. Programs Determined to be Not Used
    1. Environmental Grant Program
    2. Reduced Tax Rates under ECIL
    3. ECIL Section 24 Loans
    4. Dividends and Interest Tax Benefits under Section 46 of the 
ECIL
    5. ECIL Preferential Accelerated Depreciation
IV. Analysis of Comments in Case Brief
    Comment 1: Allocation of Disbursements made in the POR for 
Previously Approved and Allocated Non-Recurring Grants
    Comment 2: Infrastructure Grants Net of Value Added Tax (VAT)
V. Analysis of Comments on Department's Change in Ownership 
Memorandum
    Comment 3: Delverde III Implications on Change in Ownership
    Comment 4: The Department's New Change in Ownership Approach

[FR Doc. 01-6911 Filed 3-20-01; 8:45 am]
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