[Federal Register Volume 66, Number 194 (Friday, October 5, 2001)]
[Notices]
[Pages 51015-51017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25102]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-818; A-489-805]


Final Results of Expedited Sunset Reviews: Certain Pasta From 
Italy and Turkey

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

ACTION: Notice of final results of expedited sunset reviews: Certain 
pasta from Italy and Turkey.

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SUMMARY: On June 1, 2001, the Department of Commerce (``the 
Department'') initiated five-year (``sunset'') reviews of the 
antidumping duty orders on certain pasta (``pasta'') from Italy and 
Turkey (66 FR 29771) pursuant to section 751(c) of the Tariff Act of 
1930, as amended (``the Act''). On the basis of notices of intent to

[[Page 51016]]

participate and substantive comments filed on behalf of the domestic 
interested parties, and inadequate response and/or request for waivers 
from respondent interested parties, the Department conducted expedited 
(120-day) sunset reviews of these antidumping duty orders. As a result 
of these reviews, the Department finds that revocation of the 
antidumping orders on pasta from Italy and Turkey would be likely to 
lead to continuation or recurrence of dumping at the levels indicated 
in the Final Results of Review section of this notice.

EFFECTIVE DATE: October 5, 2001.

FOR FURTHER INFORMATION CONTACT: Martha V. Douthit or Carole A. 
Showers, Office of Policy for Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, D.C. 20230; telephone: (202) 482-
5050 or (202) 482-3217, respectively.

SUPPLEMENTARY INFORMATION:

Statute and Regulations

    These reviews were conducted pursuant to sections 751(c) and 752 of 
the Act. The Department's procedures for the conduct of sunset reviews 
are set forth in Procedures for Conducting Five-year (``Sunset'') 
Reviews of Antidumping and Countervailing Duty Orders, 63 FR 13516 
(March 20, 1998) (``Sunset Regulations''), and in 19 CFR part 351 
(2000) in general. Guidance on methodological or analytical issues 
relevant to the Department's conduct of sunset reviews is set forth in 
the Department's Policy Bulletin 98:3 Policies Regarding the Conduct of 
Five-year (``Sunset'') Reviews of Antidumping and Countervailing Duty 
Orders; Policy Bulletin, 63 FR 18871 (April 16, 1998) (``Sunset Policy 
Bulletin'').

Background

    On June 1, 2001, the Department initiated sunset reviews of the 
antidumping duty orders on pasta from Italy and Turkey (66 FR 29771), 
pursuant to section 751(c) of the Act.\1\ On June 15, 2001, the 
Department received Notices of Intent to Participate on behalf of New 
World Pasta, American Italian Pasta Company, Borden Foods Corporation, 
and Dakota Growers Pasta Company (collectively, ``the domestic 
interested parties''), within the applicable deadline specified in 
section 351.218(d)(1)(i) of the Sunset Regulations.\2\ The domestic 
interested parties claimed interested party status under section 
771(9)(C) of the Act, as producers of certain pasta in the United 
States. On July 2, 2001, the Department received complete substantive 
responses from the domestic interested parties within the 30-day 
deadline specified in the Sunset Regulations under section 
351.218(d)(3)(i).\3\ We did not receive substantive responses from 
respondent interested parties in these proceedings.\4\ As a result, 
pursuant to 19 CFR 351.218(e)(1)(ii)(C), the Department conducted an 
expedited, 120-day, sunset review of these antidumping duty orders.
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    \1\ See Notice of Initiation of Five-Year (Sunset) Reviews, 66 
FR 29771 (June 1, 2001).
    \2\ See Letter of Domestic Party Notice of Intent to 
Participate--Sunset Review of the Antidumping Duty Order on Certain 
Pasta from Italy, June 15, 2001, and Domestic Party Notice of Intent 
to Participate--Sunset Review of the Antidumping Duty Order on 
Certain Pasta from Turkey, June 15, 2001.
    \3\ See Substantive Response by the Domestic Industry, Sunset 
Review of the Antidumping Duty Order on Certain Pasta from Italy, 
July 2, 2001, and Substantive Response by the Domestic Industry, 
Sunset Review of the Antidumping Duty Order on Certain Pasta from 
from Turkey, July 2, 2001.
    \4\ On June 4, 2001, La Molisana Industrie Alimentari (``La 
Molisana'') and Molisana U.S. entered an appearance in support of 
revocation of the antidumping duty order on Certain Pasta from 
Italy. On June 27, 2001, Rienzi & Sons, Inc. (``Rienzi''), and N. 
Puglisi & F. Industria Paste Alimentari S.p.A. (``Puglisi'') entered 
an appearance in the proceeding on Certain Pasta from Italy. These 
companies did not submit substantive responses in this review.
    On June 29, 2001 and July 2, 2001, the Department received 
waivers of participation in the Department's sunset review on pasta 
from Italy on behelf of Delverde, SpA (``Delverde''), Tamma Industri 
Alimentari di Capitanata SrL (``Tamma'') and Prodotti Alimentari 
Meridionali S.r.L. (``PAM'').
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Scope of Reviews

Italy (A-475-818)

    Imports covered by the antidumping duty order on pasta from Italy 
include shipments of certain non-egg dry pasta in packages of five 
pounds (2.27 kilograms) or less, whether or not enriched or fortified 
or containing milk or other optional ingredients such as chopped 
vegetables, vegetable purees, milk, gluten, diastasis, vitamins, 
coloring and flavorings, and up to two percent egg white. The pasta 
covered by this order is typically sold in the retail market, in 
fiberboard or cardboard cartons, or polyethylene or polypropylene bags 
of varying dimensions.
    Excluded from the scope of this order are refrigerated, frozen, or 
canned pastas, as well as all forms of egg pasta, with the exception of 
non-egg dry pasta containing up to two percent egg white. Also excluded 
from this order are imports of organic pasta from Italy that are 
accompanied by the appropriate certificate issued by the Instituto 
Mediterraneo Di Certificazione, by Bioagricoop Scrl, by QC&I 
International Services, by Ecocert Italia or by Consorzio per il 
Controllo dei Prodotti Biologici.
    The merchandise subject to the antidumping duty order on pasta from 
Italy is currently classifiable under item 1902.19.20 of the Harmonized 
Tariff Schedule of the United States (``HTSUS''). Although the HTSUS 
subheading is provided for convenience and Customs purposes, the 
written description of the merchandise subject to the order is 
dispositive.
Scope Rulings
    The Department has issued the following scope rulings:
    (1) On August 25, 1997, the Department issued a scope ruling, 
finding that multicolored pasta, imported in kitchen display bottles of 
decorative glass that are sealed with cork or paraffin and bound with 
raffia, is excluded from the scope of the order. See Memorandum from 
Edward Easton to Richard Moreland, dated August 25, 1997, on file in 
the Central Records Unit (``CRU'') of the main Commerce Building, Room 
B-099.
    (2) On July 30, 1998, the Department issued a scope ruling, finding 
that multipacks consisting of six one-pound packages of pasta that are 
shrink-wrapped into a single package are within the scope of the order. 
See letter from Susan H. Kuhbach, Acting Deputy Assistant Secretary for 
Import Administration, to Barbara P. Sidari, Vice President, Joseph A. 
Sidari Company, Inc., dated July 30, 1998, on file in the CRU.
    (3) On October 23, 1997, the petitioners filed a request that the 
Department initiate an anti-circumvention investigation against 
Barilla, an Italian producer and exporter of pasta. On October 5, 1998, 
the Department issued a final determination that, pursuant to section 
781(a) of the Act, Barilla was circumventing the antidumping duty order 
by exporting bulk pasta from Italy which it subsequently repackaged in 
the United States into packages of five pounds or less for sale in the 
United States. See Anti-circumvention Inquiry of the Antidumping Duty 
Order on Certain Pasta from Italy: Affirmative Final Determination of 
Circumvention of the Antidumping Duty Order, 63 FR 54672 (October 13, 
1998) (Barilla Circumvention Inquiry).
    (4) On October 26, 1998, the Department self-initiated a scope 
inquiry to determine whether a package

[[Page 51017]]

weighing over five pounds as a result of allowable industry tolerances 
may be within the scope of the order. On May 24, 1999, we issued a 
final scope ruling finding that, effective October 26, 1998, pasta in 
packages weighing up to (and including) five pounds four ounces, and so 
labeled, is within the scope of the order. See Memorandum from John 
Brinkmann to Richard Moreland, dated May 24, 1999 on file in the CRU.
    On December 13, 2000 the Department revoked the antidumping duty 
order with respect to De Cecco. See 65 FR 77852 (December 13, 2000).

Turkey (A-489-805)

    Imports covered by the antidumping duty order on pasta from Turkey 
include shipments of certain non-egg dry pasta in packages of five 
pounds (2.27 kilograms) or less, whether or not enriched or fortified 
or containing milk or other optional ingredients such as chopped 
vegetables, vegetable purees, milk, gluten, diastases, vitamins, 
coloring and flavorings, and up to two percent egg white. The pasta 
covered by this order is typically sold in the retail market, in 
fiberboard or cardboard cartons, or polyethylene or polypropylene bags 
of varying dimensions. Excluded from the scope of this order are 
refrigerated, frozen, or canned pastas, as well as all forms of egg 
pasta, with the exception of non-egg dry pasta containing up to two 
percent egg white.
    The merchandise subject to review is currently classifiable under 
item 1902.19.20 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). Although the HTSUS subheading is provided for convenience 
and Customs purposes, the written description of the merchandise 
subject to the order is dispositive.
Scope Ruling
    On October 26, 1998, the Department self-initiated a scope inquiry 
to determine whether a package weighing over five pounds as a result of 
allowable industry tolerances may be within the scope of the orders. On 
May 24, 1999 we issued a final scope ruling finding that, effective 
October 26, 1998, pasta in packages weighing up to (and including) five 
pounds four ounces, and so labeled, is within the scope of the order. 
See Memorandum from John Brinkmann to Richard Moreland, dated May 24, 
1999, on file in the CRU.

Analysis of Comments Received

    All issues raised by parties to this sunset review are addressed in 
the Issues and Decision Memorandum (``Decision Memorandum'') from 
Jeffrey A. May, Director, Office of Policy, Import Administration, to 
Faryar Shirzad, Assistant Secretary for Import Administration, dated 
October 1, 2001, which is hereby adopted by this notice. The issues 
discussed in the Decision Memorandum include the likelihood of 
continuation or recurrence of dumping and the magnitude of the margins 
likely to prevail were the order revoked. Parties may find a complete 
discussion of all issues raised in these reviews and the corresponding 
recommendations in this public memorandum which is on file in the 
Central Records Unit, room B-099, of the main Commerce building. In 
addition, a complete version of the Decision Memorandum may be accessed 
directly on the Web at http://ia.ita.doc.gov/frn, under the heading 
``October 2001.'' The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Final Results of Reviews

    We determine that revocation of the antidumping duty orders on 
pasta from Italy and Turkey would likely lead to continuation or 
recurrence of dumping at the following percentage weighted-average 
margins:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
               Manufacturer/producer/exporter                   margin
                                                              (percent)
------------------------------------------------------------------------
Arrighi/Italpasta..........................................        19.09
De Cecco...................................................      Revoked
De Matteis.................................................         0.00
Delverde/Tamma.............................................         1.68
La Molisana................................................        14.73
Liguori....................................................        11.58
Pagani.....................................................        17.47
All Others.................................................        11.26
------------------------------------------------------------------------

    The antidumping order with respect to De Cecco, was revoked based 
on three years of sales in commercial quantities at not less than 
normal value. See 65 FR 77852 (December 13, 2000).

------------------------------------------------------------------------
                                                  Amended      Revised
                                                 margin (%)    deposit
        Manufacturer/producer/exporter             (61 FR    rate (61 FR
                                                   38545)       38545)
------------------------------------------------------------------------
Filiz.........................................        63.29        63.29
Maktas........................................        60.87       48.26*
All Others....................................        60.87       51.49*
------------------------------------------------------------------------
* Article VI of the General Agreement on Tariffs and Trade (1947)
  prohibits assessing dumping duties on the portion of the margin
  attributable on an export subsidy. In this case, the product in the
  investigation was subject to a countervailing duty order (see Final
  Affirmative Countervailing Duty Determination: Certain Pasta from
  Turkey, 61 FR 30288 (June 14, 1996). Therefore, for all entries of
  pasta from Turkey, entered or withdrawn from warehouse for consumption
  made on or after the date on which the order in the companion
  countervailing duty order investigation was published in the Federal
  Register, Customs is instructed to deduct the portion of the margin
  attributable to the export subsidy form the countervailing duty
  investigation. Therefore, the cash deposit rate for Maktas is 48.26,
  and 51.49 percent for all other Turkish manufacturers/producers/
  exporters. The deposit rate for Filiz is based on total adverse facts
  available taken from the petition. Because the margin for Filiz was
  not a calculated margin, the margin remains unchanged.

    This notice serves as the only 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 of the Department's regulations. 
Timely 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 sunset review and notice are in accordance with sections 
751(c), 752, and 777(i)(1) of the Act.

    Dated: October 1, 2001.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 01-25102 Filed 10-4-01; 8:45 am]
BILLING CODE 3510-DS-P