[Federal Register Volume 68, Number 28 (Tuesday, February 11, 2003)]
[Notices]
[Pages 6882-6884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3402]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-818]


Notice of Final Results of Antidumping Duty Administrative Review 
and Determination Not to Revoke in Part: Certain Pasta from Italy

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

ACTION: Notice of Final Results of Antidumping Duty Administrative 
Review and Determination Not to Revoke in Part.

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SUMMARY: On August 9, 2002, the Department of Commerce published the 
preliminary results and partial rescission of the fifth administrative 
review and intent not to revoke the order in part, for the antidumping 
duty order on certain pasta from Italy. The review covers four 
manufacturers/exporters of the subject merchandise: (1) Pastificio 
Garofalo S.p.A. (``Garofalo''), (2) Italian American Pasta Company 
(``IAPC''), (3) Pastificio Guido Ferrara S.r.l. (``Ferrara'') and (4) 
Pastificio Fratelli Pagani S.p.A. (``Pagani''). The period of review 
(``POR'') is July 1, 2000, through June 30, 2001.
    Based on our analysis of the comments received, these final results 
differ from the preliminary results. The final results are listed in 
the section ``Final Results of Review'' below. For our final results, 
we have found that during the POR, Garofalo sold subject merchandise at 
less than normal value (``NV''). We have also found that IAPC, Ferrara, 
and Pagani did not make sales of the subject merchandise at less than 
NV (i.e., they had ``zero'' or de minimis dumping margins). We have 
also determined not to revoke the antidumping duty order with respect 
to subject merchandise produced and also exported by Pagani.

EFFECTIVE DATE: February 11, 2003.

FOR FURTHER INFORMATION CONTACT: Brian Ledgerwood or Mark Young, AD/CVD 
Enforcement Office VI, Import Administration, International Trade 
Administration, U.S. Department of Commerce, Washington, D.C. 20230; 
telephone: (202) 482-3836 or (202) 482-6397, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 9, 2002, the Department published the preliminary results 
of administrative review of the antidumping duty order on certain pasta 
from Italy. See Notice of Preliminary Results and Partial Rescission of 
Antidumping Duty Administrative Review and Intent Not to Revoke in 
Part: Certain Pasta from Italy, 67 FR 51827 (August 9, 2002) 
(``Preliminary Results''). Although the Department initiated the review 
on seven companies, we rescinded the review for three of those 
companies (two companies withdrew their requests; we had previously 
revoked the order with respect to the third company). See Partial 
Rescission section of the Preliminary Results for a more detailed 
explanation. The review covers the remaining four manufacturers/
exporters. The POR is July 1, 2000, through June 30, 2001. We invited 
parties to comment on our Preliminary Results. We received case briefs 
on September 19, 2002, from petitioners, Ferrara, Garofalo, IAPC, and 
Pagani. On September 26, 2002, petitioners, Ferrara, and Garofalo 
submitted rebuttal briefs. On November 22, 2002, the Department 
extended the deadline for the final results of this review until 
February 3, 2003. See Certain Pasta From Italy and Turkey: Extension of 
Final Results of Antidumping Duty Administrative Reviews, 67 FR 71534 
(December 2, 2002).

Scope of Review

    Imports covered by this review are 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 scope 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 review 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 
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, by Consorzio per il Controllo dei Prodotti Biologici, 
by Associazione Italiana per l'Agricoltura Biologica, or by Codex 
S.R.L.
    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 Rulings

    The Department has issued the following scope rulings to date:
    (1) On August 25, 1997, the Department issued a scope ruling 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 antidumping and countervailing duty 
orders. See Memorandum from Edward Easton, Senior Analyst, Office of 
AD/CVD Office V, to Richard Moreland, Deputy Assist Secretary, ``Scope 
Ruling Concerning Pasta from Italy,'' dated August 25, 1997, which is 
on file in the Central Records Unit (CRU), room B-099 of the main 
Commerce Department Building.
    (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 
antidumping and countervailing duty orders. 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, which is available in the CRU.

[[Page 6883]]

    (3) On October 23, 1997, the petitioners filed an application 
requesting that the Department initiate an anti-circumvention 
investigation of Barilla, an Italian producer and exporter of pasta. 
The Department initiated the investigation on December 8, 1997 (62 FR 
65673). On October 5, 1998, the Department issued its final 
determination that Barilla's importation of pasta in bulk and 
subsequent repackaging in the United States into packages of five 
pounds or less constitutes circumvention, with respect to the 
antidumping duty order on pasta from Italy pursuant to section 781(a) 
of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.225(b). 
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).
    (4) 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 is within the scope of the 
antidumping and countervailing duty orders. On May 24, 1999, we issued 
a final scope ruling finding that, effective October 26, 1998, pasta in 
packages weighing or labeled up to (and including) five pounds four 
ounces is within the scope of the antidumping and countervailing duty 
orders. See Memorandum from John Brinkmann, Program Manager, Office of 
AD/CVD Enforcement VI, to Richard Moreland, Deputy Assistant Secretary, 
``Final Scope Ruling,'' dated May 24, 1999, which is available in the 
CRU.
    The following scope ruling is pending:
    (5) On April 27, 2000, the Department self-initiated an anti-
circumvention inquiry to determine whether Pagani's importation of 
pasta in bulk and subsequent repackaging in the United States into 
packages of five pounds or less constitutes circumvention, with respect 
to the antidumping and countervailing duty orders on pasta from Italy 
pursuant to section 781(a) of the Act and 19 CFR 351.225(b). See 
Certain Pasta from Italy: Notice of Initiation of Anti-circumvention 
Inquiry of the Antidumping and Countervailing Duty Orders, 65 FR 26179 
(May 5, 2000).

Intent Not to Revoke Order

    For the reasons outlined in the ``Issues and Decision Memorandum'' 
(``Decision Memorandum'') from Bernard Carreau, Deputy Assistant 
Secretary for Import Administration, to Faryar Shirzad, Assistant 
Secretary for Import Administration, dated February 3, 2002, which is 
hereby adopted by this notice, we have determined not to revoke the 
antidumping duty order with respect to subject merchandise produced and 
also exported by Pagani because Pagani failed to demonstrate that for 
three consecutive years it sold the subject merchandise to the United 
States in commercial quantities in accordance with 19 CFR 351.222(e).

Use of Facts Available

    Ferrara did not provide the Department with cost of production and 
constructed value information regarding two sales of tricolor pasta 
which did not have matches in the home market database. Consequently, 
in the Preliminary Results, we applied facts available (FA) to 
determine Ferrara's dumping margin. See the July 31, 2002 Analysis 
Memorandum for Pastificio Guido Ferrara s.r.l. Pursuant to section 
776(a)(2)(A) of the Act, we have continued to apply FA to determine 
Ferrara's dumping margin in the final results. See Decision Memorandum, 
Comment 16, for further details.

Analysis of Comments Received

    All issues raised in the case and rebuttal brief by parties to this 
administrative review are addressed in the Issues and Decision 
Memorandum (``Decision Memorandum'') from Bernard Carreau, Deputy 
Assistant Secretary for Import Administration, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated concurrently with 
this notice, which is hereby adopted by this notice. A list of the 
issues which parties have raised and to which we have responded is 
attached to this notice as an Appendix. In addition, a complete version 
of the Decision Memorandum can be accessed directly on the Web at 
http://ia.ita.doc.gov. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Final Results of Review

    We determine that the following weighted-average margin percentages 
exist for the period July 1, 2000, through June 30, 2001:

------------------------------------------------------------------------
                                                             Margin
                 Manufacturer/exporter                  [chyph](percent)
------------------------------------------------------------------------
Italian American Pasta [chyph]Company (IAPC)..........             0.14
Pastificio Guido Ferrara S.r.l. (Ferrara).............             0.38
Pastificio Garofalo S.p.A. (Garofalo).................             0.55
Pastificio Fratelli Pagani S.p.A. (Pagani)............             0.00
------------------------------------------------------------------------

Assessment

    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. In accordance with 19 
CFR 351.212(b), we have calculated exporter/importer-specific 
assessment rates by aggregating the dumping margins for all U.S. sales 
to each importer and dividing the amount by the total entered value of 
the sales to that importer. In situations in which the importer-
specific assessment rate is above de miminis, we will instruct Customs 
to assess antidumping duties on that importer's entries of subject 
merchandise. We will direct Customs to assess the resulting percentage 
margins against the entered Customs values for the subject merchandise 
on each of that importer's entries under the order during the POR.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of the administrative 
review for all shipments of pasta from Italy entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(1) of the Act: (1) The cash deposit rate for 
the reviewed companies will be the rates shown above, except where the 
margin is de minimis or zero we will instruct Customs not to collect 
cash deposits; (2) for previously reviewed or investigated companies 
not listed above, the cash deposit rate will continue to be the 
company-specific rate published for the most recent period; (3) if the 
exporter is not a firm covered in this review, a prior review, or the 
original less than fair value investigation, but the manufacturer is, 
the cash deposit rate will be the rate established for the most recent 
period for the manufacturer of the merchandise; and (4) the cash 
deposit rate for all other manufacturers or exporters will continue to 
be 11.26 percent, the ``All Others'' rate established in the less than 
fair value investigation. See Notice of Antidumping Duty Order and 
Amended Final Determination of Sales at Less Than Fair Value: Certain 
Pasta from Italy, 61 FR 38547 (July 24, 1996). These deposit 
requirements shall remain in effect until publication of the final 
results of the next administrative review.

Notification

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties or

[[Page 6884]]

countervailing duties prior to liquidation of the relevant entries 
during this review period. Failure to comply with this requirement may 
result in the Secretary's presumption that reimbursement of antidumping 
duties occurred and the subsequent assessment of doubled antidumping 
duties.
    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely 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 are sanctionable violations.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 3, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.

APPENDIX I

List of Comments and Issues in the Decision Memorandum

List of Issues:

Pagani

Comment 1. Revocation

IAPC

Comment 2. Unit of Measure Used in Calculation of Foreign Unit Price in 
Dollars
Comment 3. Use of Special Charges in the Calculation of U.S. Net Price
Comment 4. Application of Month Identifiers for U.S. and Home Market 
Sales
Comment 5. Calculation of Variables Used in CEP Profit

Garofalo

Comment 6. Affiliation between Garofalo and Amato
Comment 7. Exclusion of Home Market Sales Outside the Course of 
Ordinary Trade
Comment 8. Garofalo's Product Classification
Comment 9. Bank Charges for U.S. Sales
Comment 10. U.S. International Freight
Comment 11. Warranty Expenses Offset
Comment 12. Programming Errors
Comment 13. Home Market Commissions
Comment 14. Appropriate Handling of Entries from Certain Importers
Comment 15. Offset of Export Subsidies

Ferrara

Comment 16. The Department's Application of Facts Available
Comment 17. Product Matching Criteria
Comment 18. CVD Adjustment
[FR Doc. 03-3402 Filed 2-10-03; 8:45 am]
BILLING CODE 3510-DS-S