[Federal Register Volume 66, Number 184 (Friday, September 21, 2001)]
[Rules and Regulations]
[Pages 48546-48555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23562]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 159 and 178

[T.D. 01-68]
RIN 1515-AC84


Distribution of Continued Dumping and Subsidy Offset to Affected 
Domestic Producers

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to implement the 
Continued Dumping and Subsidy Offset Act of 2000, by prescribing the 
administrative procedures, including the time and manner, under which 
antidumping and countervailing duties assessed on imported products 
would be distributed to affected domestic producers as an offset for 
certain qualifying expenditures. This distribution to the affected 
producers is known as the continued dumping and subsidy offset.

EFFECTIVE DATE: September 21, 2001.

FOR FURTHER INFORMATION CONTACT: Jeffrey J. Laxague, Office of 
Regulations and Rulings, (202-927-0505).

SUPPLEMENTARY INFORMATION:

Background

    Antidumping duties are imposed upon imported merchandise that the 
U.S. Department of Commerce has found is, or is likely to be, sold in 
the United States at less than its fair value. Countervailing duties 
are imposed upon imported merchandise that the Department of Commerce 
determines benefits from actionable subsidies bestowed by a foreign 
government. In all antidumping cases, and in most countervailing duty 
cases, these duties are only assessed if the U.S. International Trade 
Commission determines that the imported goods cause material injury or 
the threat of material injury to a domestic industry. The rules and 
procedures concerning proceedings leading to orders or findings under 
which antidumping and countervailing duties are assessed are found in 
19 U.S.C. 1671 et seq., in part 207 of the regulations of the U.S. 
International Trade Commission (19 CFR chapter II, part 207), and in 
part 351 of the regulations of the International Trade Administration, 
U.S. Department of Commerce (19 CFR chapter III, part 351).
    The Continued Dumping and Subsidy Offset Act of 2000 (``CDSOA'') 
was enacted on October 28, 2000, as part of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 (``Act'') (Pub. L. 106-387; 114 Stat. 1549). 
The provisions of the CDSOA are contained in Title X (sections 1001-
1003) of the Act.
    The CDSOA, in section 1003 of the Act, amended Title VII of the 
Tariff Act of 1930, by adding a new section 754 (codified at 19 U.S.C. 
1675c) in order to provide that assessed duties received pursuant to a 
countervailing duty order, an antidumping duty order, or an antidumping 
duty finding under the Antidumping Act of 1921, would be distributed by 
Customs to affected domestic producers for certain qualifying 
expenditures that these producers incur after the issuance of such an 
antidumping duty order or finding, or countervailing duty order. This 
distribution is called the continued dumping and subsidy offset. It is 
noted that the continued dumping and subsidy offset under 19 U.S.C. 
1675c covers all antidumping and countervailing duty assessments made 
on or after October 1, 2000, in connection with all antidumping duty 
orders or findings, or countervailing duty orders, in effect as of 
January 1, 1999, or issued thereafter. Pursuant to 19 U.S.C. 1675c, the 
Commissioner of Customs shall prescribe procedures for distribution of 
the continued dumping and subsidy offset.

Customs Rulemaking

    Accordingly, by a document published in the Federal Register (66 FR 
33920) on June 26, 2001, Customs proposed to amend the Customs 
Regulations to add a new subpart F to part 159 (19 CFR part 159, 
subpart F; Secs. 159.61-159.64) that principally prescribed the 
procedures, including the time and manner, and the required information 
necessary for the distribution of antidumping and countervailing duties 
assessed under an appropriate order or finding, that would be payable 
as a continued dumping and subsidy offset to those affected domestic 
producers for their qualifying expenditures, in accordance with section 
754 of the Tariff Act of 1930, as amended (19 U.S.C. 1675c).

[[Page 48547]]

    In addition, under the Background heading of the proposed rule 
document (66 FR at 33922-33923), Customs provided several illustrations 
of the administrative process by which Customs would make distributions 
of the continued dumping and subsidy offset to affected domestic 
producers.

Discussion of Comments

    The June 26, 2001, notice of proposed rulemaking made provision for 
the submission of public comments on the proposed regulations for 
consideration before adoption of those regulations as a final rule. The 
prescribed comment period closed on July 26, 2001. Forty comments were 
received by Customs. The issues raised in the comments are summarized 
and addressed below.

Affected Domestic Producers

    Comment: Several commenters requested that Customs clarify the term 
``producer''. It was asked in this context whether companies that have 
filed for bankruptcy could still be affected domestic producers for 
purposes of the statute.
    Customs Response: Customs agrees. Companies that have filed for 
bankruptcy would be affected domestic producers for purposes of section 
1675c, if they remained in operation and continued to produce the 
product covered by the relevant order or finding, and provided further 
that such companies complied with the other requirements of the 
statute.
    In addition, companies will be considered to have ceased production 
if they did not produce the product covered by an order or finding at 
all during the fiscal year that is the subject of the disbursement. 
This latter requirement is added in Sec. 159.61(b)(1) which is 
redesignated as Sec. 159.61(b)(2)(i) in this final rule document.
    Comment: Several commenters proposed that domestic parties not on 
the list of affected domestic producers, as prepared by the U.S. 
International Trade Commission (USITC), be allowed to file 
certifications to claim an offset. Also, many comments included a 
request that the proposed regulations be clarified to provide for the 
filing of certifications by successor companies to those companies that 
appeared on the USITC list.
    Customs Response: Under the 19 U.S.C. 1675c(d)(1), and as indicated 
in Sec. 159.61(b), only a party on the USITC list is potentially 
eligible to receive an offset as an affected domestic producer. 
However, Customs agrees that a provision must be made for successor 
companies, as discussed below.
    Specifically, where a company has succeeded to the operations of 
another company that appeared on the USITC list of affected domestic 
producers, the successor company may file a certification on behalf of 
the predecessor company. The USITC list is contained in the notice of 
intention to distribute the continued dumping and subsidy offset that 
must be published in the Federal Register in accordance with 
Sec. 159.62. In its certification, the company must name the 
predecessor company to which it has succeeded and it must describe in 
detail the duly authorized succession by which it is entitled to file 
the certification on behalf of the predecessor.
    A new paragraph (b)(1)(i) is added to Sec. 159.61 in the final rule 
to address the filing of certifications by successor companies. As 
already noted, paragraph (b)(1) of proposed Sec. 159.61 is redesignated 
as paragraph (b)(2)(i) in the final rule.
    Comment: A number of commenters inquired as to whether an 
association whose name appeared on the USITC list for an order or 
finding could file a certification on behalf of its member companies 
and, if so, what qualifying expenditures could be included in the 
certification. It was also asked whether a company that was a member of 
such an association could file a certification, where the member 
company did not appear on the USITC list.
    Customs Response: An association that appears on the USITC list of 
affected domestic producers in connection with a given order or 
finding, as set forth in the notice of distribution published in the 
Federal Register under Sec. 159.62, cannot file a certification on 
behalf of its member companies. Customs does not believe that an 
association can properly certify, and thus be held liable for the 
accuracy of, member companies' qualifying expenditures. In order to 
certify, one must have direct knowledge of the validity of the expenses 
being claimed. In Customs view, associations are in no position to do 
so. The association may, of course, file a certification in its own 
right to claim an offset for that order or finding, but its qualifying 
expenditures would naturally be limited to those expenditures that the 
association itself has incurred in connection with that particular 
case, after the date of the order or finding.
    In addition, an individual member of the association may file a 
certification to claim an offset for the same order or finding, even 
though the member company does not appear on the USITC list, provided 
that the company also meets the other requirements of the statute. It 
was clearly not the intent of Congress to prevent members of an 
association that initiated a proceeding at the USITC from filing 
certifications so that they may qualify for an offset under the 
statute, since an affected domestic producer is defined as ``any 
manufacturer, producer, farmer, rancher, or worker representative 
(including associations of such persons)''.
    In its certification, the company must name the association 
appearing on the USITC list, of which it is a member, and the company 
must specifically establish that it was a member of the association at 
the time the association filed the petition with the USITC.
    To allow for the filing of certifications by an association's 
member companies that are not included on the USITC list of affected 
domestic producers, a new paragraph (b)(1)(ii) is added to Sec. 159.61. 
Paragraph (b)(2) of proposed Sec. 159.61 is redesignated as paragraph 
(b)(2)(ii) in the final rule.
    Comment: A number of commenters suggested that Customs consult with 
the USITC on any questions that arise concerning the USITC list of 
affected domestic producers that appears in the Customs notice of 
intention to distribute the offset.
    Customs Response: Customs already consults with the USITC in this 
matter and will continue to do so.
    Comment: Some commenters suggested that Customs remove questionable 
parties from the list of affected domestic producers that is forwarded 
to Customs by the USITC, for example companies which do not appear to 
meet the domestic production criteria for filing a certification.
    Customs Response: Customs will not arbitrarily delete parties from 
the list of companies supplied by the USITC. If a certification is 
submitted by a company appearing on the USITC list that third parties 
believe contains false statements regarding eligibility to file a 
certification and receive an offset, they may notify the Customs Office 
of Investigations regarding their allegations.

Qualifying Expenditures

    Comment: A number of commenters requested clarification of the term 
``qualifying expenditures''. These commenters basically wanted to know 
the end of the time period within which qualifying expenditures could 
be incurred for purposes of claiming an offset. For example, if an 
order was terminated in January 2000, could qualifying expenditures be 
claimed if they are incurred up until the date the first certification 
is filed (October 2001),

[[Page 48548]]

or are the expenditures incurred limited by the date of the 
termination?
    Customs Response: A qualifying expenditure that may be offset by a 
distribution of assessed antidumping and countervailing duties 
encompasses those expenditures that are incurred after the issuance of 
an order or finding and prior to the termination of the order or 
finding. Proposed Sec. 159.61(c) is revised in the final rule to 
reflect this.
    Customs expects that claims made for qualifying expenditures will 
be made in accordance with the statute and that they will be supported 
by records that would be kept by any prudent person in the ordinary 
course of business, as required in Sec. 159.63(b) and (c). The record 
of expenditures being certified should conform to Generally Accepted 
Accounting Principles in determining when a qualifying expenditure has 
occurred. To the extent that common problem areas are found during 
Customs verifications of certifications, Customs will report on such 
issues in its annual report.
    Comment: Several commenters suggested that Customs require 
companies claiming a distribution of the offset under an order or 
finding to limit their claims only to those qualifying expenditures 
that are associated with the product that is the subject of the order 
or finding.
    Customs Response: Customs agrees. The statute (19 U.S.C. 
1675c(b)(1)(B)) mandates that an affected domestic producer produce the 
product that is covered by an order or finding under which the offset 
is sought. Accordingly, there is a corresponding statutory limitation 
upon those qualifying expenditures that may lawfully be claimed as an 
offset under the order or finding. Consequently, qualifying 
expenditures on which a distribution may be claimed under section 
1675c(b)(4) are limited only to those expenditures that can be related 
to the production of the product that is covered by the scope of the 
order or finding.
    It is Customs position that any other interpretation would only 
result in absurd consequences. The lack of a like product limitation 
would discriminate against producers who do not manufacture multiple, 
disparate products, such as steel and petroleum products. Those 
producers who make multiple products would be able to claim all their 
expenditures on facilities and equipment, even if those expenses had 
little or no connection with the manufacture of the particular product 
involved in an order or finding. This would potentially reduce funds 
available for non-diversified producers. There would also be a 
substantial administrative problem for Customs if there were orders or 
findings on more than one product in a company's line of merchandise.
    In this latter regard, one example would be an affected domestic 
producer who manufactures five different products, each of which is the 
subject of a separate antidumping/countervailing duty order or finding, 
and who incurs $1 million in qualifying expenditures. Of the $1 million 
in qualifying expenditures, $600,000 is related to the production of 
just one product, and $100,000 incurred during the production of each 
of the other four products. In the absence of a same product 
requirement, the affected domestic producer could simply claim $1 
million for each certification. However, Customs would not be able to 
match the $1 million in claimed expenses with any one of the five 
special accounts and would therefore have no reasonable basis for 
apportioning distributions from those accounts.
    Proposed Secs. 159.61(c) and 159.63(d) are amended in the final 
rule to reflect this additional limitation upon qualifying 
expenditures.

Notice of Distribution; Content

    Comment: Several commenters proposed that Customs make information 
available concerning the dollar amounts in the special accounts for an 
order or finding prior to requiring companies to file certifications.
    Customs Response: Customs agrees. In future notices of intention to 
distribute the offset under Sec. 159.62 for a given fiscal year, 
Customs will publish the dollar amount in the special account for each 
order or finding as of June 1 of that fiscal year. Of course, the final 
amount to be disbursed will differ, but the published amount may serve 
as an estimate for purposes of determining whether to file a 
certification for that fiscal year. Proposed Sec. 159.62(b) is changed 
in the final rule to provide for this.

Content and Sufficiency of Certifications

    Comment: Several commenters proposed changing the signing official 
for the certifications to a lower-level employee, rather than a party 
legally authorized to bind the affected domestic producer, as required 
in proposed Sec. 159.63(b).
    Customs Response: Customs disagrees. The person signing the 
certification must be authorized to legally bind the domestic producer. 
Enforcement actions may be taken against individuals and companies who 
file false information with Customs.
    Comment: One commenter requested that domestic producers be 
expressly permitted in proposed Sec. 159.63(b)(2) to file claims for 
partial amounts.
    Customs Response: Customs does not believe such a provision needs 
to be expressly set forth in the regulations. The important point is 
that any amounts certified by a claimant for distribution must be 
supported by business records that must be retained for possible 
Customs verification, as previously noted. If other qualifying 
expenditures become verified at a later date, those can be included in 
subsequent certifications to claim a distribution.
    Comment: Several commenters requested clarification whether a 
company that is listed as an affected domestic producer on more than 
one order or finding may file a separate certification claiming a 
distribution, respectively, for each order or finding, using the same 
qualifying expenditures as the basis for distribution in each case. One 
commenter expressed a concern that Customs might overpay a claimant if 
a company may file multiple certifications in this way.
    Customs Response: When the same product is covered by orders or 
findings for more than one country, an individual company that is 
listed for each of those cases must file the same dollar claim for each 
case, since qualifying expenditures are not associated with a specific 
country case. Consequently, in order to avoid the possibility of an 
overpayment in these circumstances, Customs will require each 
certification to list all other orders or findings where the company is 
claiming the same qualifying expenditures. This requirement is included 
in Sec. 159.63(b)(3)(ii) in the final rule. However, as previously 
observed, those companies that have multiple orders on different 
products may not claim the same expenditures for all cases. The 
expenditures claimed must relate to the product covered by the order or 
finding for which an offset is being claimed.
    Comment: Several commenters suggested that the certifications 
should require an additional statement specifying exactly how a party 
meets the requirements in the statute for filing a certification.
    Customs Response: Customs disagrees. Proposed Sec. 159.63(b)(3) 
already adequately addresses the requirements concerning those parties 
that would be entitled to file certifications.
    It is also noted that, due to the addition of paragraphs (b)(3)(i) 
and

[[Page 48549]]

(b)(3)(ii) to Sec. 159.63 in the final rule, as indicated above, it has 
been decided, for editorial clarity, to reorganize paragraph (b)(3) of 
proposed Sec. 159.63 in the final rule as paragraphs (b)(3), and 
(b)(3)(i)-(b)(3)(iii).

Correction of Certifications

    Comment: Many commenters suggested that Customs not reject 
certifications for minor errors or omissions. They also proposed a 
correction period for claimants to perfect their certifications.
    Customs Response: Customs agrees. Parties listed in notices of 
intention to distribute must file their certifications within 60 days 
after publication of the notice, as already provided in proposed 
Sec. 159.63(a). However, Customs will then have 15 days after the close 
of the 60-day filing period to return a certification that is found to 
be materially incorrect or incomplete. Within 10 days of the date that 
Customs returns a certification as being materially incorrect or 
incomplete, Customs must receive a corrected certification from the 
affected domestic producer. Customs will make every effort to assist 
companies to perfect their certifications and will not return claims 
for minor errors or omissions. Proposed Sec. 159.63(c) is revised in 
the final rule to include these additional provisions regarding the 
processing of incorrect or incomplete certifications. Nevertheless, 
claimants should be mindful that it remains their responsibility to 
meet the requirements of the regulations for filing proper 
certifications.
    Furthermore, in an effort to provide greater notice to domestic 
producers of Customs intent to distribute the offset, and thus enable 
the earlier filing of certifications, future notices of distribution 
will be published at least 90 days before the end of a fiscal year, as 
opposed to 60 days. Proposed Sec. 159.62(a) is amended in the final 
rule to this effect.

Verification of Certifications

    Comment: One commenter suggested, with reference to proposed 
Sec. 159.63(d), that Customs verify every certification. Another 
commenter recommended a 5-year retention requirement for records needed 
to support claims for distribution, rather than the 3-year period 
contained in proposed Sec. 159.63(d).
    Customs Response: A number of certifications may be selected to 
determine whether, and to what extent, verifications will be conducted.
    However, Customs agrees with the recommendation for a 5-year record 
retention requirement, and proposed Sec. 159.63(d) is changed in the 
final rule to provide for this. This accords with the general record 
retention provision of 5 years that is set forth in Sec. 163.4(a), 
Customs Regulations (19 CFR 163.4(a)).

Disclosure to Public of Certain Information Contained in Certifications

    Comment: With respect to the information contained in the 
certifications described in proposed Sec. 159.63, over 20 comments were 
received on the question of whether certain information required to be 
set forth in the certifications should be made public on a company-
specific basis. The comments were equally divided over whether the 
company name and the dollar amounts claimed for an offset should be 
made public.
    Customs Response: As stated in the proposed rule, Customs was 
especially interested in receiving public comment as to whether it 
should adopt the position that the name of the certifying producer and 
the total amount being certified for distribution should be considered 
information available for disclosure to the public.
    Customs has concluded that the name of the claimant, the total 
dollar amount claimed by that party on the certification, as well as 
the total dollar amount that Customs actually disburses to that company 
as an offset, will be available for disclosure to the public. Customs 
has determined that this information does not qualify as business 
confidential information. Proposed Sec. 159.63 is changed in the final 
rule by adding paragraph (e) to state that the submission of a 
certification by an affected domestic producer will be construed as an 
understanding on the part of the affected domestic producer that the 
foregoing information will be disclosed to the public. Alternatively, a 
statement in a certification that this information is proprietary and 
exempt from disclosure will result in Customs rejection of the 
certification.
    Accordingly, as part of the annual report on the Continued Dumping 
and Subsidy Offset Act (CDSOA), Customs will publish the following by 
case number: the name of the claimant; the total dollar amount claimed 
by that party on the certification; and the total dollar amount 
disbursed to that company by Customs. Proposed Sec. 159.64(g), which 
concerns the issuance of the annual report, is amended in the final 
rule to provide for this disclosure of information.

Recommended Conditions/Restrictions on Disbursements

    Comment: One commenter suggested that Customs prescribe how 
domestic producers may spend the disbursements that they receive under 
proposed Sec. 159.64.
    Customs Response: Customs disagrees. There is no statutory 
requirement as to how a disbursement to an affected domestic producer 
is to be spent, and, absent statutory authority, Customs may not impose 
such a requirement.
    Comment: One commenter suggested that Customs deduct its 
administrative costs associated with the program from the offset to be 
distributed prior to making any disbursements.
    Customs Response: Customs disagrees. There is no provision in the 
statute to allow for such a deduction.
    Comment: Two commenters recommended that the disbursements to 
companies in an industry be reduced by the amount of other Government 
aid provided to that industry via other programs.
    Customs Response: Customs disagrees. Again, there is no provision 
in the statute to allow for such a reduction. Thus, Customs has no 
authority to reduce the amount of the offset payable to affected 
domestic producers under the statute, based upon aid provided to such 
producers through other Government programs.

Refunds to Importers; Recovery of Overpayments to Domestic Producers

    Comment: One commenter requested, in connection with proposed 
Sec. 159.64(b), that a domestic producer furnish Customs with a surety 
bond in order to guarantee that any overpayment of assessed duties to 
the producer would be repaid in the event that a subsequent 
reliquidation results in a lesser amount of duties being assessed.
    Customs Response: Customs disagrees. At this time, it does not 
appear to be practical or necessary to require domestic producers to 
file a surety bond to cover the amount of an annual distribution.
    Comment: Two commenters expressed concern that administration of 
the CDSOA under proposed Sec. 159.64(b)(2) would delay the processing 
of refunds to importers in the case of reliquidations and/or court 
action. The concern was that Customs would hold up action on a refund 
request until it had received repayment of the overpaid disbursement 
from the domestic producers.
    Customs Response: Customs will not withhold action on refund claims 
based on the recovery of overpaid disbursements. Customs will establish 
procedures to compute the overpaid amounts to be recovered from 
domestic producers, so that recovery of the

[[Page 48550]]

overpayment can be made, but those recoveries will take place 
independent of the refund of duties to importers. Customs already has 
authority under 19 U.S.C. 1520(a) to refund excess duties paid, and the 
necessary monies to make such refunds are authorized to be appropriated 
annually from the general fund of the Treasury.
    Proposed Sec. 159.64(b)(2) is revised in the final rule to include 
the assurance that refunds to importers will not be delayed pending the 
recovery of overpayments to domestic producers.
    Comment: One commenter asserted that Customs had no authority to 
require repayment of an offset in proposed Sec. 159.64(b)(3) when 
Customs had overpaid the offset due to an error in liquidation of an 
import entry.
    Customs Response: The ability to recover potential overpayments of 
disbursed duties due to the reliquidation of import entries is a 
central feature of issuing disbursements. If Customs were unable to 
collect overpayments of disbursed duties due to import entry 
reliquidations, Customs would simply have to delay all disbursements 
until the time for reliquidation of the relevant import entries had 
passed, thereby precluding the possibility of overpayments due to 
reliquidations. Under this latter scenario, for example, disbursements 
for entries liquidated in Fiscal Year 2001 would not take place until 
November of 2002 if Customs did not have a mechanism in place to 
recover potential overpayments. With this mechanism in place, Customs 
anticipates completing distributions by the end of November 2001.

Unclaimed Offset Not Available for Future Distribution

    Comment: Many commenters stated that assessed duties remaining 
unclaimed after an annual distribution has occurred should not be 
deposited into the General Fund, as required under proposed 
Sec. 159.64(c)(1), but should be available for future distributions to 
affected domestic producers.
    Customs Response: Customs disagrees. In Customs view, sections 
1675c(c) and (d)(3) of the statute clearly require disbursement of 
liquidated duties in each fiscal year, based on certifications timely 
filed for that year's assessments. There is no provision for disbursing 
duties collected in one fiscal year based on claims that may be filed 
two or three years later simply because there was a previous unclaimed 
balance. The CDSOA provides that ``[s]uch distribution shall be made 
not later than 60 days after the first day of a fiscal year from duties 
assessed during the preceding fiscal year.'' 19 U.S.C. 1675c(c).
    However, the part of proposed Sec. 159.64(c)(1) that dealt with the 
transfer of balances to different accounts has been deleted from this 
section in the final rule. Since that information only concerns 
internal Customs processing, it is not necessary to be included in the 
regulations.
    Proposed Sec. 159.64(c)(1) is changed in the final rule 
accordingly; and proposed Sec. 159.64(b)(2) and (b)(3) is changed 
consistent with Sec. 159.64(c)(1).

Requests for Reconsideration of a Disbursement

    Comment: In cases where a distribution to an affected domestic 
producer was not for the entire amount certified, a number of 
commenters proposed that the time limit within which an affected 
domestic producer could request a reconsideration of the amount of the 
distribution be extended beyond the 10 business-day time limit set 
forth in proposed Sec. 159.64(c)(3).
    Customs Response: Customs agrees. Parties will have 30 calendar 
days, rather than 10 business days, to request reconsideration of a 
disbursement. Proposed Sec. 159.64(c)(3) is revised in the final rule 
to include this requirement.

Termination of Orders or Findings

    Comment: A number of commenters requested clarification of Customs 
actions when an order or finding has been terminated by the U.S. 
Department of Commerce (Commerce).
    Customs Response: When an order or finding is terminated by the 
Department of Commerce, Customs will work with Commerce to determine 
the extent of unliquidated entries covered by the case. If, for 
example, there is more than one Commerce review period pending at the 
time of termination, and Commerce only issues liquidation instructions 
for one of the pending review periods, Customs will process the entries 
covered by the instructions as an annual disbursement. The delayed 
disbursement referred to in Sec. 159.64(d)(2) is limited to the final 
distribution when the special account established under the order or 
finding is terminated.

Interest

    Comment: Some commenters suggested, with reference to proposed 
Sec. 159.64(e), that the Clearing Account and the Special Account that 
Customs establishes under the CDSOA should be interest-bearing 
accounts.
    Customs Response: Customs disagrees. Briefly, as previously 
explained in the notice of proposed rulemaking, funds in Government 
accounts are not interest-bearing unless specified by Congress. Because 
Congress did not make an explicit provision for the accounts 
established under the CDSOA to be interest-bearing, no interest may 
accrue on these accounts. Thus, only interest charged on antidumping 
and countervailing duty funds themselves, pursuant to the express 
authority in 19 U.S.C. 1677g, will be transferred to the special 
accounts and be made available for distribution under the CDSOA.
    Comment: A number of commenters wanted to know about the interest 
that Customs pays when antidumping or countervailing duty deposits 
exceed the final assessed duty amount. These commenters asked if this 
interest would have any effect on the amount of the offset for an order 
or finding.
    Customs Response: Interest paid by Customs when deposits exceed the 
amount of the duties assessed will not be taken from either the 
clearing account or the special account. It is not a part of, and 
therefore does not reduce, the computation of the continued dumping and 
subsidy offset for an order or finding that would be distributed to 
affected domestic producers.

Annual Report; Content; Certain General Information

    Comment: A number of commenters suggested that the annual report 
also contain the following general information for each order or 
finding: information regarding the number of entries and dollar amounts 
in the clearing account at the beginning of each fiscal year; the 
number and amount of Customs reliquidations during the fiscal year; and 
the dollar amounts remaining uncollected from Customs bills issued 
during the fiscal year.
    Customs Response: Customs agrees that the annual report should 
include this information as well. Proposed Sec. 159.64(g) is further 
revised in the final rule to make reference to the inclusion of this 
additional information in the annual report for public disclosure. 
Also, in its annual report, Customs will address any initiatives that 
have been implemented to improve the liquidation and disbursement 
process under the CDSOA.

Miscellaneous Issues Raised

    Comment: Several commenters objected to the CDSOA as violating the 
World Trade Organization (WTO) agreements on Dumping and Subsidies and 
the North American Free Trade Agreement (NAFTA).

[[Page 48551]]

    Customs Response: These comments concern the statute and not the 
regulations and, accordingly, fall outside the scope of this 
rulemaking.
    Comment: One commenter requested a public hearing. Another 
commenter requested an extension of the period for filing comments.
    Customs Response: Customs finds that the process of informal 
rulemaking in accordance with the Administrative Procedure Act (5 
U.S.C. 553) conducted in this matter was sufficient. The comments 
received during the proposed rulemaking comment period fairly and 
adequately addressed the issues that were presented by the proposed 
rule, and Customs fully considered all views that were contained in the 
comments in issuing this final rule document. Neither a public hearing 
nor an extension of the comment period is necessary in this case.
    Comment: Several commenters suggested the term ``assessment'' be 
defined.
    Customs Response: Customs disagrees. As explained in the notice of 
proposed rulemaking, the assessment of duties on an import entry is 
accomplished by liquidating the subject entry; and, in pertinent part, 
the term ``liquidation'' is already defined in Sec. 159.1, Customs 
Regulations (19 CFR 159.1), as the final computation or ascertainment 
of the duties accruing on an entry.
    Comment: There were a few comments requesting a clarification of 
the pro rata allocation of the offset to affected domestic producers 
that is required under the statute (19 U.S.C. 1675c(d)(3)).
    Customs Response: Customs believes that proposed Sec. 159.64(c)(2), 
which addresses this issue, is clear and that no further clarification 
is necessary. Specifically, where the certified net claims exceed the 
offset available in a special account, the offset will be distributed 
on a pro rata basis based on each affected domestic producer's total 
certified claim. For example, on an individual case with only two 
claimants, if only $1 million is available for disbursement, where 
Company A claims total qualifying expenditures of $80 million, and 
Company B claims total qualifying expenditures of $20 million, Company 
A would receive $800,000 and Company B would receive $200,000. For 
those parties filing multiple certifications when there is more than 
one country case for a specific product, Customs will establish 
internal controls to prevent payments to affected domestic producers in 
excess of the amounts claimed.
    Comment: One commenter suggested that the regulations specify that 
Customs decisions in administering the statute are subject to judicial 
review by the U.S. Court of International Trade (USCIT).
    Customs Response: Customs disagrees. The CDSOA does not specify 
which particular federal court would have jurisdiction to review 
disputes regarding Customs decisions in administering the statute, and 
Customs lacks authority to confer jurisdiction on a particular court 
through its regulations.

Additional Changes

    Paragraph (b) of proposed Sec. 159.63 is revised to include a 
requirement that the certification include a statement that the 
domestic producer has records to support the qualifying expenditures 
being claimed. Also, paragraph (b)(1)(vi) of proposed Sec. 159.63, 
allowing for the distribution of an offset via Electronic Funds 
Transfer (EFT), is deleted since Customs has not made any provision for 
the electronic payment of the offset. Furthermore, proposed 
Sec. 159.64(e) is revised in the final rule to reflect that statutory 
interest charged on antidumping and countervailing duties at 
liquidation will be transferred only to the special account for the 
related order or finding, when such interest is collected from the 
importer.

Conclusion

    After careful consideration of the comments received and further 
review of the matter, Customs has concluded that the proposed 
amendments should be adopted with the modifications discussed above.

Inapplicability of Delayed Effective Date of Final Rule Document

    Customs finds that good cause exists under 5 U.S.C. 553(d)(3) for 
dispensing with a delayed effective date for this final rule. The final 
rule will instead be effective upon its date of publication in the 
Federal Register. Customs finds that it would be contrary to the public 
interest to delay distributions that affected domestic producers are 
entitled to under the statute. Moreover, dispensing with a delayed 
effective date is necessary in order to ensure that Customs is able to 
timely comply with the statutory requirement that assessed duties 
received in Fiscal Year 2001 be distributed to affected domestic 
producers by November 30, 2001 as provided in 19 U.S.C. 1675c(c).

Regulatory Flexibility Act and Executive Order 12866

    The amendments implement the terms and conditions of the Continued 
Dumping and Subsidy Offset Act of 2000, which applies to antidumping 
and countervailing duties assessed on or after October 1, 2000. The 
amendments are necessary in order to enable and expedite the 
distribution of the offset to affected domestic producers. For these 
reasons, pursuant to the provisions of the Regulatory Flexibility Act 
(5 U.S.C. 60127a et seq.), it is certified that these amendments do not 
have a significant economic impact on a substantial number of small 
entities. Nor do the amendments meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Paperwork Reduction Act

    The collection of information in this final rule document was 
submitted for review and has been approved by the Office of Management 
and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 
(44 U.S.C. 3507) under OMB control number 1515-0229. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection of information displays 
a valid control number.
    This collection of information is contained in Sec. 159.63. This 
information is necessary in order to enable, and to expedite, the 
distribution of the continued dumping and subsidy offset to the 
affected domestic producers. The likely respondents and/or 
recordkeepers are domestic business organizations, such as 
manufacturers, producers, ranchers, farmers and worker representatives 
(including associations of such persons). The estimated average annual 
burden associated with this information collection is 40 hours per 
respondent or recordkeeper.
    Comments on the accuracy of this burden estimate and suggestions 
for reducing this burden should be sent to the Office of Management and 
Budget, Attention: Desk Officer for the Department of the Treasury, 
Office of Information and Regulatory Affairs, Washington, DC 20503. A 
copy should also be sent to the Regulations Branch, Office of 
Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania 
Avenue, NW., 3rd Floor, Washington, DC 20229.
    Part 178, Customs Regulations (19 CFR part 178), containing the 
list of approved information collections, is revised to reflect the 
additional

[[Page 48552]]

information collection burden imposed under this final rule.

List of Subjects

19 CFR Part 159

    Antidumping (liquidation of duties), Countervailing duties 
(liquidation of duties), Customs duties and inspection, Liquidation of 
entries for merchandise.

19 CFR Part 178

    Administrative practice and procedure, Collections of information, 
Imports, Paperwork requirements, Reporting and recordkeeping 
requirements.

Amendments to the Regulations

    Parts 159 and 178, Customs Regulations (19 CFR parts 159 and 178), 
are amended as set forth below.

PART 159--LIQUIDATION OF DUTIES

    1. The authority citation for part 159 is amended by adding an 
authority citation for Subpart F so as to read, in part, as follows:

    Authority: 19 U.S.C. 66, 1500, 1504, 1624. Subpart C also issued 
under 31 U.S.C. 5151. Subpart F also issued under 19 U.S.C. 1675c.
* * * * *

    2. Part 159 is amended by adding a new subpart F to read as 
follows:

Subpart F--Continued Dumping and Subsidy Offset

159.61  General.
159.62  Notice of distribution.
159.63  Certifications.
159.64  Distribution of offset.

Subpart F--Continued Dumping and Subsidy Offset


Sec. 159.61  General.

    (a) Continued dumping and subsidy offset. Under section 754 of the 
Tariff Act of 1930, as amended by Public Law 106-387, 114 Stat. 1549 
(19 U.S.C. 1675c), known as the Continued Dumping and Subsidy Offset 
Act of 2000, assessed duties received on or after October 1, 2000 under 
a countervailing duty order, an antidumping duty order, or a finding 
under the Antidumping Act of 1921, will be distributed, as provided 
under this subpart, to affected domestic producers for certain 
qualifying expenditures that these affected domestic producers incur 
after the issuance of such an antidumping duty order or finding, or 
countervailing duty order. This distribution is called the continued 
dumping and subsidy offset.
    (b) Affected domestic producer. (1) General rule. Except as 
provided in paragraph (b)(2) of this section, an ``affected domestic 
producer'' under paragraph (a) of this section means any manufacturer, 
producer, farmer, rancher or worker representative (including any 
association of such persons) that remains in operation continuing to 
produce the product covered by the antidumping duty order or finding or 
countervailing duty order, and that was a petitioner or an interested 
party that supported a petition concerning an antidumping duty order, a 
finding under the Antidumping Act of 1921, or a countervailing duty 
order that was entered. It is the responsibility of the U.S. 
International Trade Commission (USITC) to ascertain and timely forward 
to Customs a list of the domestic producers potentially considered 
``affected domestic producers'' eligible to receive a distribution in 
connection with each order or finding. In addition to the potential 
``affected domestic producers'' set forth on the USITC list, the 
following parties also are potential ``affected domestic producers'':
    (i) Successor company. In the case of a company that has succeeded 
to the operations of a predecessor company that appeared on the USITC 
list, the successor company may file a certification to claim an offset 
as an affected domestic producer on behalf of the predecessor company. 
In its certification, the company must name the predecessor company to 
which it has succeeded and it must describe in detail the duly 
authorized succession by which it is entitled to file the 
certification.
    (ii) A member company of an association. A member company of an 
association appearing on the USITC list for an order or finding may 
file a certification to claim an offset as an affected domestic 
producer, even though the member company does not itself appear on the 
USITC list, provided that the company also meets the other requirements 
of the statute. In its certification, the company must name the 
association of which it is a member and the company must specifically 
establish that it was a member of the association at the time the 
association filed the petition with the USITC.
    (2) Exceptions. A party who is named on the USITC list is not an 
``affected domestic producer'' under the following circumstances:
    (i) Product no longer produced. A company, business or person that 
has ceased production of the product covered by the antidumping duty 
order or finding, or countervailing duty order, i.e., did not 
manufacture that product at all during the fiscal year that is the 
subject of the disbursement, is not an affected domestic producer under 
this section.
    (ii) Acquisition by related company. (A) Related company defined. A 
company, business or person is not an affected domestic producer if 
that company, business, or person has been acquired by another company 
or business that is related to a company that opposed the antidumping 
or countervailing duty investigation that led to the order or finding. 
For purposes of this paragraph, a company, business or person is 
related to another company, business or person if:
    (1) The company, business or person directly or indirectly controls 
or is controlled by the other company, business or person;
    (2) A third party directly or indirectly controls both companies, 
businesses or persons; or
    (3) Both companies, businesses or persons directly or indirectly 
control a third party and there is reason to believe that the 
relationship causes the first company, business or person to act 
differently than a nonrelated party.
    (B) Control of one party by another. For purposes of paragraphs 
(b)(2)(ii)(A)(1) through (b)(2)(ii)(A)(3) of this section, one party 
would be considered to directly or indirectly control another party if 
the party was legally or operationally in a position to exercise 
restraint or direction over the other party.
    (c) Qualifying expenditures. Qualifying expenditures which may be 
offset by a distribution of assessed antidumping and countervailing 
duties must fall within the categories described in paragraphs (c)(1) 
through (c)(10) of this section. These expenditures must be incurred 
after the issuance, and prior to the termination, of the antidumping 
duty order or finding or countervailing duty order under which the 
distribution is sought. Further, these expenditures must be related to 
the production of the same product that is the subject of the related 
order or finding, with the exception of expenses incurred by 
associations which must relate to a specific case.
    (1) Manufacturing facilities;
    (2) Equipment;
    (3) Research and development;
    (4) Personnel training;
    (5) Acquisition of technology;
    (6) Health care benefits for employees paid for by the employer;
    (7) Pension benefits for employees paid for by the employer;
    (8) Environmental equipment, training, or technology;
    (9) Acquisition of raw materials and other inputs; and
    (10) Working capital or other funds needed to maintain production.

[[Page 48553]]

Sec. 159.62  Notice of distribution.

    (a) Publication of notice. At least 90 days before the end of a 
fiscal year, Customs will publish in the Federal Register a notice of 
intention to distribute assessed duties received as the continued 
dumping and subsidy offset for that fiscal year. The notice will 
include the list of domestic producers, based upon the list supplied by 
the USITC (see Sec. 159.61(b)(1)), that would be potentially eligible 
to receive the distribution.
    (b) Content of notice. The notice of intention to distribute the 
offset will also contain the following:
    (1) The case name and number of the particular order or finding 
concerned, together with the dollar amount contained in the special 
account for that order or finding as of June 1 of the subject fiscal 
year (see Sec. 159.64(a)(1)); and
    (2) The instructions for filing the certification under Sec. 159.63 
in order to claim a distribution.


Sec. 159.63  Certifications.

    (a) Requirement and purpose for certification. In order to obtain a 
distribution of the offset, each affected domestic producer must submit 
a certification, in triplicate, or electronically as authorized by 
Customs, to the Assistant Commissioner, Office of Regulations and 
Rulings, Headquarters, or designee, that must be received within 60 
days after the date of publication of the notice in the Federal 
Register, indicating that the affected domestic producer desires to 
receive a distribution. The certification must enumerate the qualifying 
expenditures incurred by the domestic producer since the issuance of an 
order or finding for which a distribution has not previously been made, 
and it must demonstrate that the domestic producer is eligible to 
receive a distribution as an affected domestic producer.
    (b) Content of certification. While there is no established format 
for a certification, the certification must identify the date of the 
Federal Register notice under which it is submitted, and the case name 
and the number of the particular order or finding cited in the Federal 
Register notice. The certification must be executed and dated by a 
party legally authorized to bind the domestic producer. The 
certification must also state that the information contained in the 
certification is true and accurate to the best of the certifier's 
knowledge and belief under penalty of law, and that the domestic 
producer has records to support the qualifying expenditures being 
claimed.
    (1) Identifying information for domestic producer. The 
certification must include the following identifying information 
related to the domestic producer:
    (i) The name of the domestic producer and any name qualifier, if 
applicable (for example, any other name under which the domestic 
producer does business or is also known);
    (ii) The address of the domestic producer (if a post office box, 
the secondary street address must also be included);
    (iii) The Internal Revenue Service (IRS) number (with suffix) of 
the domestic producer, employer identification number, or social 
security number, as applicable;
    (iv) The specific business organization of the domestic producer 
(corporation, partnership, sole proprietorship); and
    (v) The name(s) of any individual(s) designated by the domestic 
producer as the contact person(s) concerning the certification, 
together with the phone number(s) and/or facsimile transmission 
number(s) and electronic mail (email) address(es) for the person(s).
    (2) Amount of claim. In calculating the amount of the distribution 
being claimed as an offset, the certification must enumerate the 
following:
    (i) The total amount of qualifying expenditures currently and 
previously certified by the domestic producer, and the amount certified 
by category(see Sec. 159.61(c)(1) through (c)(10));
    (ii) The total amount of those expenditures which have been the 
subject of any prior distribution under section 754, Tariff Act of 
1930, as amended (19 U.S.C. 1675c); and
    (iii) The net amount for new and remaining qualifying expenditures 
being claimed in the current certification (the total amount currently 
and previously certified as noted in paragraph (b)(2)(i) of this 
section minus the total amount the subject of any prior distribution as 
noted in paragraph (b)(2)(ii) of this section).
    (3) Statement of eligibility to receive distribution. The 
certification must contain a statement that the domestic producer 
desires to receive a distribution and is eligible to receive the 
distribution as an affected domestic producer (see Sec. 159.61(b)(1) 
and (b)(2)).
    (i) Amount certified for payment. The affected domestic producer 
must affirm that the net amount certified for distribution does not 
encompass any qualifying expenditures for which distribution has 
previously been made (see paragraphs (b)(2)(ii) and (b)(2)(iii) of this 
section).
    (ii) Same qualifying expenditures included on more than one 
certification. Where the domestic producer is listed as an affected 
domestic producer on more than one order or finding covering the same 
product and files a separate certification for each order or finding 
using the same qualifying expenditures as the basis for distribution in 
each case, each certification must list all the other orders or 
findings where the producer is claiming the same qualifying 
expenditures.
    (iii) Continued production of product covered by order or finding; 
acquisition by related company. The statement must include information 
as to whether the domestic producer remains in operation and continues 
to produce the product covered by the particular order or finding under 
which the distribution is sought (see Sec. 159.61(b)(2)(i)). In 
addition, the domestic producer must state whether it has been acquired 
by a company or business that is related to a company, within the 
meaning of Sec. 159.61(b)(2)(ii)(A)(1) through (3), that opposed the 
antidumping or countervailing duty investigation that resulted in the 
order or finding under which the distribution is sought.
    (c) Review and correction of certification. A certification that is 
submitted in response to a notice of distribution and received within 
60 days after the date of publication of the notice in the Federal 
Register may be reviewed before acceptance to ensure that all 
informational requirements are complied with and that any amounts set 
forth in the certification for current and prior qualifying 
expenditures, including the amount claimed for distribution, appear to 
be correct (see paragraph (b)(2) of this section). A certification that 
is found to be materially incorrect or incomplete will be returned to 
the domestic producer within 15 days after the close of the 60-day 
filing period. Within 10 days of the date that Customs returns a 
certification as being materially incorrect or incomplete, Customs must 
receive a corrected certification from the affected domestic producer. 
Customs will make every effort to assist companies to perfect their 
certifications and will not return claims for minor errors or 
omissions. However, it remains the sole responsibility of the domestic 
producer to ensure that the certification is correct, complete and 
satisfactory so as to demonstrate the entitlement of the domestic 
producer to the distribution requested. Failure to ensure that the 
certification is correct, complete and satisfactory as provided in this 
paragraph will result in the domestic producer not receiving a 
distribution.
    (d) Verification of certification; supporting records. 
Certifications are

[[Page 48554]]

subject to verification. Parties, therefore, are required to maintain 
the accounting records used in developing their claims, for a period of 
five years after the filing of the certification. The records 
supporting certifications must be those that are normally kept in the 
ordinary course of business (see Sec. 163.1(a)(1) and (a)(2)(vi) of 
this chapter). Parties must be able to demonstrate that their records 
specifically support each qualifying expenditure enumerated in a 
certification. In addition, the claimant must be able to support how 
qualifying expenditures are determined to be related to the production 
of the product covered by the order or finding.
    (e) Disclosure of information in certifications; acceptance by 
producer. The name of the affected domestic producer, the total dollar 
amount claimed by that party on the certification, as well as the total 
dollar amount that Customs actually disburses to that company as an 
offset, will be available for disclosure to the public (see 
Sec. 159.64(g)(1)). The submission of the certification will be 
construed as an understanding and acceptance on the part of the 
domestic producer that this information will be disclosed to the 
public. Alternatively, a statement in a certification that this 
information is proprietary and exempt from disclosure will result in 
Customs rejection of the certification.


Sec. 159.64  Distribution of offset.

    (a) The creation of Special Accounts and Clearing Accounts.
    (1) Special Accounts. As directed in the legislation (19 U.S.C. 
1675c(e)), Customs will establish Special Accounts for each antidumping 
duty order or finding or countervailing duty order, into which funds 
will be transferred as set out in paragraph (b) of this section. All 
distributions to affected domestic producers will be made from the 
Special Accounts.
    (2) Clearing Accounts. In order to properly manage and account for 
dumping and subsidy offsets, as well as any requisite refunds to 
importers, Customs will also establish Clearing Accounts. All estimated 
antidumping and countervailing duties received pursuant to an 
antidumping or countervailing order or finding in effect on January 1, 
1999, or thereafter, will be deposited into a Clearing Account.
    (b) Distribution of assessed duties received from the Special 
Accounts; refunds resulting from reliquidation or court action; and 
overpayments to affected domestic producers.
    (1) Distribution of assessed duties received from the Special 
Accounts.
    (i) No later than 60 days after the end of a fiscal year, Customs 
will distribute the assessed duties transferred from the Clearing 
Accounts and received into the Special Accounts. The amount distributed 
shall be referred to as the dumping and subsidy offset;
    (ii) Transfers from the Clearing Accounts to the Special Accounts 
will be made by Customs throughout the fiscal year. Transfers will 
occur between a Clearing Account and a Special Fund Account when an 
entry upon which antidumping or countervailing duties are owed is 
properly liquidated pursuant to an order, finding or receipt of 
liquidation instructions;
    (iii) The amount transferred at liquidation to the Special Account 
will be dependent upon the amount actually collected on the entry and 
in the Clearing Account. Following liquidation, additional transfers 
will be made on the liquidated entry to the corresponding Special 
Account, as additional antidumping or countervailing duties are 
collected.
    (2) Refunds resulting from reliquidation or court action. If any of 
the underlying entries composing a prior distribution should 
reliquidate for a refund, such refund will be recovered from the 
corresponding Special Account. Similarly, refunds to importers 
resulting from any court action involving those entries will also be 
recovered from the corresponding Special Account. Refunds to importers 
will not be delayed pending the recovery of overpayments from domestic 
producers as set out in paragraph (b)(3) of this section.
    (3) Overpayments to affected domestic producers. Overpayments to 
affected domestic producers resulting from subsequent reliquidations 
and/or court actions and determined by Customs to be not otherwise 
recoverable from the corresponding Special Account as set out in 
paragraph (b)(2) of this section will be collected from the affected 
domestic producers. The amount of each affected domestic producer's 
bill will be directly proportional to the total dumping and subsidy 
offset amounts that the affected domestic producer previously received 
under the related Special Account. All available collection methods 
will be used by Customs to collect outstanding bills, including but not 
limited to, administrative offset. Interest at the same rate set out at 
Sec. 24.3a(c) of this chapter will begin to accrue on unpaid bills 30 
days from the bill date.
    (c) Payment of certified claims.
    (1) If the total amount of the certified net claims filed by 
affected domestic producers does not exceed the amount of the offset 
available for distribution in the corresponding Special Account, the 
certified net claim for each affected domestic producer will be paid in 
full.
    (2) If the certified net claims exceed the dumping and subsidy 
offset amount available in the corresponding Special Account, such 
offset will be made on a pro rata basis based on each affected domestic 
producer's total certified claim.
    (3) In any case where the distribution is not for the entire 
certified qualifying expenditure submitted by an affected domestic 
producer, and if the affected domestic producer believes that the 
reduction was the result of clerical error or mistake by Customs, it 
must file a request for reconsideration within 30 calendar days to the 
address given in the notification. After considering the matter, the 
Customs Service will notify the party requesting reconsideration of its 
decision. However, any adjustments will be made only from funds 
remaining in the account for that case in the current or future fiscal 
years, and will be paid prior to any future distributions.
    (d) Final distribution and termination of the Special Account. 
    (1) A Special Account will be terminated and a final distribution 
will occur when:
    (i) The order or finding with respect to which the account was 
established has terminated; and
    (ii) All entries relating to the order or finding are liquidated, 
all outstanding amounts collected or properly accounted for by Customs, 
all related protests, petitions, and court actions fully concluded, and 
all refunds due to importers on the underlying entries are paid in 
full.
    (2) Once the requirements set out in paragraph (d)(1) of this 
section have been met, notice of a final distribution will be issued 
pursuant to Sec. 159.62.
    (3) Amounts not timely claimed under the notice of final 
distribution will be permanently deposited into the General Fund of the 
Treasury.
    (e) Interest on Special Accounts and Clearing Accounts. In 
accordance with Federal appropriations law, and Treasury guidelines on 
Special Accounts, funds in such accounts are not interest-bearing 
unless specified by Congress. Likewise, funds being held in Clearing 
Accounts are not interest-bearing unless specified by Congress. 
Therefore, no interest will accrue in these accounts. However, 
statutory interest charged on antidumping and countervailing duties at 
liquidation will be transferred to the Special Account, when collected 
from the importer.
    (f) Distribution final and conclusive. Except as provided in 
paragraphs (b)(3)

[[Page 48555]]

and (c)(3) of this section, any distribution made to an affected 
domestic producer under this section shall be final and conclusive on 
the affected domestic producer.
    (g) Annual report; disclosure of information. Although it is not 
mandated in the law (19 U.S.C. 1675c), Customs will issue an annual 
report on the disbursements. This report will be available to the 
public via the Customs website. The annual report will address any 
initiatives that have been implemented to improve the liquidation and 
disbursement process. In addition, the annual report will include the 
information described in paragraphs (g)(1) and (g)(2) of this section.
    (1) Company-specific information. The annual report will include 
the following information concerning those parties that have submitted 
certifications for a distribution of the offset with respect to each 
order or finding as identified by its case number:
    (i) The name of the claimant;
    (ii) The total dollar amount claimed by that party on its 
certification; and
    (iii) The total dollar amount disbursed to that company by Customs.
    (2) General information. The annual report will include the 
following general information for each order or finding as identified 
by its case number:
    (i) The number of entries and dollar amounts in the clearing 
account at the beginning of each fiscal year;
    (ii) The number and amount of Customs re-liquidations during the 
fiscal year; and
    (iii) The dollar amounts remaining uncollected from Customs bills 
issued during the fiscal year.

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

    1. The authority citation for part 178 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 et seq.


    2. Section 178.2 is amended by adding a new listing in the table in 
appropriate numerical order to read as follows:


Sec. 178.2  Listing of OMB control numbers.

------------------------------------------------------------------------
                                                                  OMB
          19 CFR section                  Description           control
                                                                  No.
------------------------------------------------------------------------
 
                  *        *        *        *        *
Sec.  159.63.....................  Distribution of continued  1515-0229
                                    dumping and subsidy
                                    offset to affected
                                    domestic producers.
 
                  *        *        *        *        *
------------------------------------------------------------------------


    Approved: September 17, 2001.
Charles W. Winwood,
Acting Commissioner of Customs.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 01-23562 Filed 9-18-01; 3:36 pm]
BILLING CODE 4820-02-P