[Federal Register Volume 66, Number 193 (Thursday, October 4, 2001)]
[Notices]
[Pages 50613-50615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24923]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-813]


Final Affirmative Countervailing Duty Determination: Honey From 
Argentina

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

ACTION: Notice of final affirmative countervailing duty investigation.

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SUMMARY: On March 13, 2001, the Department of Commerce (the Department) 
published in the Federal Register its preliminary affirmative 
determination in the countervailing duty investigation of honey from 
Argentina. Based on our analysis of the questionnaire responses, 
verification, and the comments submitted by the parties, we determine 
that subsidies are being conferred on the manufacture, production and 
export of honey from Argentina. The subsidy rates in this final 
determination differ from those in the preliminary determination. The 
revised final subsidy rates for the investigated producers/exporters 
are listed below in the ``Suspension of Liquidation'' section of this 
notice.

EFFECTIVE DATE: October 4, 2001.

FOR FURTHER INFORMATION CONTACT: Thomas Gilgunn at (202) 482-4236, 
Holly Hawkins at (202) 482-0414 or Christian Hughes at (202) 482-0648, 
Office of AD/CVD Enforcement VII, Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, Room 
7866, 14th Street and Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the Tariff Act of 1930, as amended. In addition, unless 
otherwise indicated, all citations to the Department's regulations are 
to the regulations codified at 19 CFR part 351 (2000).

Background

    On March 13, 2001, the Department published the results of its 
preliminary determination in the investigation of Honey From Argentina. 
See Honey from Argentina: Preliminary Affirmative Countervailing Duty 
Determination and Alignment with Final Antidumping Determination on 
Honey from the People's Republic of China, 66 FR 14521 (Preliminary 
Determination). We invited interested parties to comment on the 
Preliminary Determination.
    On April 3, 2001, we issued a supplemental questionnaire to the 
Government of Argentina. We received a response to this questionnaire 
on April 30, 2001. On May 7, 2001, we received comments from 
petitioners regarding the verification of the questionnaire responses. 
Verification of the questionnaire responses provided by the Government 
of Argentina (GOA) was conducted May 30 through June 11, 2001. We also 
met with an independent banker in Argentina during this time period.
    On May 31, 2001, we postponed the final determination in this 
investigation until September 24, 2001, pursuant to the postponement of 
the final determination in the companion antidumping duty investigation 
of honey from the People's Republic of China with which this 
investigation had

[[Page 50614]]

previously been aligned. See Notice of Postponement of Final 
Determination of Sales at Less Than Fair Value: Honey from Argentina 
and the People's Republic of China and Postponement of Final 
Countervailing Duty Determination: Honey from Argentina, 66 FR 30413 
(June 6, 2001).
    The GOA and petitioners submitted timely case and rebuttal briefs 
in this investigation.
    Although the deadline for this determination was originally 
September 24, 2001, in light of the events of September 11, 2001 and 
the subsequent closure of the Federal Government for reasons of 
security, the time frame for issuing this determination has been 
extended by two days.

Scope of the Investigation

    The merchandise subject to this investigation is natural honey, 
artificial honey containing more than 50 percent natural honeys by 
weight, preparations of natural honey containing more than 50 percent 
natural honeys by weight, and flavored honey. The subject merchandise 
includes all grades and colors of honey whether in liquid, creamed, 
combs, cut comb, or chunk form, and whether packaged for retail or in 
bulk form.
    The merchandise subject to this investigation is currently 
classifiable under subheadings 0409.00.00, 1702.90, and 2106.90.99 of 
the Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS subheadings are provided for convenience and U.S. Customs 
Service (Customs) purposes, the Department's written description of the 
merchandise under investigation is dispositive.

Analysis of Comments Received

    The programs under investigation, as well as the issues raised in 
the case and rebuttal briefs submitted in this countervailing duty 
investigation are discussed and addressed in the Issues and Decision 
Memorandum in the Final Affirmative Countervailing Duty Determination: 
Honey from Argentina, from Joseph A. Spetrini, Deputy Assistant 
Secretary for AD/CVD Enforcement III, to Faryar Shirzad, Assistant 
Secretary for Import Administration, dated September 26, 2001, 
(Decision Memorandum) which is hereby adopted by this notice. Attached 
to this notice as an appendix is a list of the programs under 
investigation, as well as a list of the issues which parties have 
raised and to which we have responded in the Decision Memorandum. 
Parties can find a complete discussion of the programs and issues 
raised in this investigation, and the corresponding recommendations in 
this public memorandum, which is on file in the Department's Central 
Records Unit, in room B-099. In addition, the Decision Memorandum can 
be accessed directly on the World Wide Web at http://ia.ita.doc.gov, 
under the heading ``Federal Register Notices.'' The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Suspension Agreement

    On August 24, 2001, the Department and the Government of Argentina 
initialed a proposed suspension agreement and the Department gave 
interested parties until September 14, 2001 to comment on the proposed 
agreement. However, the Department and the Government of Argentina did 
not sign a final suspension agreement on honey from Argentina by the 
deadline date of September 26, 2001. Consequently, we have not 
addressed petitioners' and the GOA's comments on the proposed 
suspension agreement.

Suspension of Liquidation

    In accordance with section 777A(e)(2)(B) of the Act, we have 
calculated an aggregate or industry-wide rate for all of the producers/
exporters of honey under investigation. We have determined that the 
total estimated countervailable subsidy rate is 4.53 percent ad 
valorem. However, due to a program-wide change, we have established a 
cash deposit rate of 5.85 percent ad valorem in accordance with section 
351.526(a) of the Department's regulations.
    In accordance with our preliminary affirmative determination, we 
instructed Customs to suspend liquidation of all entries of honey from 
Argentina, which were entered or withdrawn from warehouse for 
consumption on or after March 13, 2001, the date of the publication of 
our preliminary determination in the Federal Register, and to require a 
cash deposit or bond for such entries of the merchandise in the amounts 
indicated in the Preliminary Determination. In accordance with section 
703(d) of the Act, we instructed Customs to discontinue the suspension 
of liquidation for merchandise entered on or after August 18, 2001, but 
to continue the suspension of liquidation of entries made between March 
12, 2001 and August 18, 2001.
    We will reinstate suspension of liquidation under section 706(a) of 
the Act for all entries if the ITC issues a final affirmative injury 
determination, and we will require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amount 
indicated above. This suspension of liquidation, if reinstated, will be 
effective on the date of publication of the countervailing duty order. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided that the ITC 
confirms that it will not disclose such information, either publically 
or under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.
    If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated. If however, 
the ITC determines that such injury does exist, we will issue a 
countervailing duty order.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    This determination and notice are issued and published in 
accordance with sections 705(d) and 777(i) of the Act.

    Dated: September 26, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

I. Subsidies Valuation Information
    A. Aggregation
    B. Green Box Claims
    C. Allocation Period
    D. Discount Rates and Benchmark Loan Rates
    E. Denominators
II. Programs Determined to Confer Subsidies
    A. Federal Programs
    1. Argentine Internal Tax Reimbursement/Rebate Program 
(Reintegro)

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    2. BNA Pre-Financing of Exports Regime for the Agriculture 
Sector
    3. Regional Productive Revitalization: National Program for the 
Promotion and Development of Local Productive Initiative 
(Dinamizacion Productiva Regional Nacional de Promocion y Fomenta de 
la Iniciativa Productiva Local)
    B. Provincial Government Programs
    1. Buenos Aires Honey Program
    a. Line of Credit for Working Capital
    b. Line of Credit for the Acquisition of Capital Goods
    c. Technical Assistance
    2. Province of Chaco Line of Credit Earmarked for the Honey 
Sector
    3. Province of San Luis Honey Development Program
    a. Leasing Agreements
    b. CFI Lines of Credit
III. Programs Determined Not to Confer Subsidies
    A. Federal Programs
    1. BNA Line of Credit for Working Capital and Investment 
Purposes
    2. Global Credit Program for Micro and Small Businesses
    3. Credit for Small Business Ventures
    4. National Income Tax Exemption Pursuant to Article 20(1) of 
Law 20,628
    5. Law 22,913 Emergency Aid/Emergency Agricultural and Livestock 
Law
    6. BICE Norm 007: Line of Credit Offered to Finance Industrial 
Investment Projects, and Projects to Restructure and/or Modernize 
the Argentine Industry
    7. PROAPI
    B. Provincial Government Program
    Exemption from Municipal Gross Income Tax Contingent on Export 
Activity Pursuant to Article 116(12) of Law 150 (Buenos Aires Gross 
Income Tax Exemption)
IV. Programs Determined to be Not Used
    A. Federal Programs
    1. BICE Norm 011: Financing of Production of Goods Destined for 
Export
    2. BNA Line of Credit to the Agricultural Producers of the 
Patagonia (Regulation Annex to Circular BNA No. 10,111/1)
    3. BNA Financing for the Acquisition of Goods of Argentine 
Origin Line of Credit for the Acquisition of Industrial and 
Agricultural Machinery, Silos and Transportation Vehicles
    4. ``Production Pole'' Program for Honey Producers
    5. Enterprise Restructuring Program (PRE)
    6. Government Backed Loan Guarantees (SGR)
    7. Fundacion Export*Ar
    B. Provincial Government Programs
    1. Province of Chubut Honey Program under Law No. 4430/98
    2. Province of Santiago del Estero: Creditos de Confianza (Trust 
Credits)
    3. Entre Rios Honey Program: Law No. 7435/84
V. Federal Programs Determined to be Terminated
    A. Federal Programs
    1. PROMEX Consortium for Honey Exportation
    2. Regional Promotional Scheme-Reimbursement ``Patagonico'': 
Exemption of Import Duties on Capital Goods
    B. Provincial Program
    Formosa Honey Program/Undomesticated Bee Development Project
VI. Programs Determined Not to Exist
    A. Federal Programs
    1. BNA Warrant-Based Export Financing
    2. Honey-Specific Line of Credit Program for the Pre-Financing 
of Development Expenses Associated with Export Sales
    B. Provincial Government Programs
    1. La Pampa Lines of Credit
    2. Province of San Luis: Creditos de Confianza (Trust Credits)
VII. Analysis of Comments
    Comment 1: Initiation Standard
    Comment 2: Denominator
    Comment 3: Argentine Internal Tax Reimbursement/Rebate Program 
(Reintegro)
    Comment 4: The System for Determining the Reintegro
    Comment 5: The Credibility of the EcoLatina Report
    Comment 6: The EcoLatina Report: Examination of the Indirect Tax 
Incidence for the Argentine Honey Sector
    Comment 7: The EcoLatina Report: Indirect Taxes
    Comment 8: Buenos Aires Honey Program: Specificity of the Line 
of Credit for Working Capital
    Comment 9: Buenos Aires Honey Program: Specificity of the Line 
of Credit for the Acquisition of Capital Goods
    Comment 10: Buenos Aires Honey Program: Benchmark Rate
    Comment 11: Chaco Line of Credit Earmarked for the Honey Sector
    Comment 12: San Luis Honey Development Program: 
Countervailability of the Leasing Component
    Comment 13: San Luis Honey Development Program: Leasing 
Component Calculations
    Comment 14: CFI Credit for Small Business Ventures Program Loans 
to the Honey Sector and De Jure Specificity
    Comment 15: CFI Financing: De Jure/De Facto Specificity
    Comment 16: CFI Credit for Small Business Ventures in the 
Province of San Luis: Link between Programs
    Comment 17: Countervailability of BICE Norm 007
    Comment 18: PROAPI'S Sales of Fertilized Queen Bees: Adequacy of 
Remuneration
    Comment 19: Use of BNA Loan Programs
    Comment 20: Countervailability of Fundacion Export*Ar Program
    Comment 21: Warrant-Based Financing
VIII. Total Ad Valorem Subsidy Rate
IX. Recommendation

[FR Doc. 01-24923 Filed 10-3-01; 8:45
BILLING CODE 3510-DS-P