[Federal Register Volume 69, Number 234 (Tuesday, December 7, 2004)]
[Notices]
[Pages 70657-70659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3476]


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DEPARTMENT OF COMMERCE

International Trade Administration

[ C-475-819 ]


Certain Pasta from Italy: Final Results of the Seventh 
Countervailing Duty Administrative Review

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

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

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SUMMARY: On July 30, 2004, the U.S. Department of Commerce published in 
the Federal Register its preliminary results of the administrative 
review of the countervailing duty order on certain pasta from Italy for 
the period January 1, 2002 through December 31, 2002. Based on 
information received since the preliminary results and our analysis of 
the comments received, we have revised the net subsidy rates for Pasta 
Zara S.p.A./Pasta Zara 2 S.p.A. and Pastificio Corticella S.p.A./
Pastificio Combattenti S.p.A. Therefore, the final results differ from 
the preliminary results. The final net subsidy rates for the reviewed 
companies are listed below in the section entitled ``Final Results of 
Review.''

EFFECTIVE DATE:  December 7, 2004.

FOR FURTHER INFORMATION CONTACT: Melani Miller Harig or Andrew Smith, 
AD/CVD Operations, Office 1, Import Administration, U.S. Department of 
Commerce, Room 3099, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone (202) 482-0116 and (202) 482-1276, 
respectively.

SUPPLEMENTARY INFORMATION:

Case History

    On July 24, 1996, the U.S. Department of Commerce (``the 
Department'') published a countervailing duty order on certain pasta 
(``pasta'' or ``subject merchandise'') from Italy. See Notice of 
Countervailing Duty Order and Amended Final Affirmative Countervailing 
Duty Determination: Certain Pasta From Italy, 61 FR 38544 (July 24, 
1996).
    In accordance with 19 CFR 351.213(b), this review of the order 
covers the following producers or exporters of the subject merchandise 
for which a review was specifically requested: Pastificio Fratelli 
Pagani

[[Page 70658]]

S.p.A. (``Pagani''), Pastificio Corticella S.p.A./Pastificio 
Combattenti S.p.A. (collectively, ``Corticella/Combattenti''), Pasta 
Zara S.p.A./Pasta Zara 2 S.p.A. (``Pasta Zara 2'')\1\ (collectively 
``Pasta Zara/Pasta Zara 2''), Pasta Lensi S.r.l. (``Lensi''),\2\ and 
Pastificio Carmine Russo S.p.A./Pastificio Di Nola S.p.A..
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    \1\ During the first part of the period of review (calendar year 
2002) (``POR''), Pasta Zara 2 was named Societa per Azioni Pasta 
Giulia S.p.A; on September 9, 2002, the company changed its name to 
Pasta Zara 2.
    \2\ Lensi is the successor-in-interest to IAPC Italia S.r.l. See 
Notice of Final Results of Antidumping and Countervailing Duty 
Changed Circumstances Reviews: Certain Pasta from Italy, 68 FR 41553 
(July 14, 2003).
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    Based on withdrawal of the request for review, we rescinded this 
administrative review for Pastificio Antonio Pallante S.r.l. (See 
Certain Pasta from Italy: Preliminary Results and Partial Rescission of 
the Seventh Countervailing Duty Administrative Review, 69 FR 45676 
(July 30, 2004) (``Preliminary Results'').)
    Since the publication of the Preliminary Results, case briefs were 
submitted on August 30, 2004 by Pasta Zara/Pasta Zara 2 and Corticella/
Combattenti. The Department did not conduct a hearing in this review 
because none was requested.

Scope of the 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, 
diastases, 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, Bioagricoop S.r.l., QC&I International Services, 
Ecocert Italia, Consorzio per il Controllo dei Prodotti Biologici, 
Associazione Italiana per l'Agricoltura Biologica, or Codex S.r.L. In 
addition, based on publicly available information, the Department has 
determined that, as of August 4, 2004, imports of organic pasta from 
Italy that are accompanied by the appropriate certificate issued by 
Bioagricert S.r.l. are also excluded from this order. See Memorandum 
from Eric B. Greynolds to Melissa G. Skinner, dated August 4, 2004, 
which is on file in the Department's Central Records Unit (``CRU'') in 
Room B-099 of the main Department building.
    The merchandise subject to review is currently classifiable under 
items 1901.90.9095 and 1902.19.20 of the Harmonized Tariff Schedule of 
the United States (``HTSUS''). Although the HTSUS subheadings are 
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 to Richard Moreland, dated 
August 25, 1997, which is on file in the CRU.
    (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 to Barbara P. Sidari, dated July 30, 1998, which is available 
in the CRU.
    (3) On October 23, 1997, the petitioners filed an application 
requesting that the Department initiate an anti-circumvention 
investigation of Barilla S.r.L. (``Barilla''), an Italian producer and 
exporter of pasta. The Department initiated the investigation on 
December 8, 1997. See Initiation of Anti-Circumvention Inquiry on 
Antidumping Duty Order on Certain Pasta From Italy, 62 FR 65673 
(December 15, 1997). On October 5, 1998, the Department issued its 
final determination that, pursuant to section 781(a) of the Tariff Act 
of 1930, as amended by the Uruguay Round Agreements Act effective 
January 1, 1995 (``the Act''), circumvention of the antidumping order 
on pasta from Italy was occurring by reason of exports of bulk pasta 
from Italy produced by Barilla which subsequently were 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).
    (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 to Richard Moreland, dated 
May 24, 1999, which is available in the CRU.
    (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). On September 19, 2003, we published an affirmative 
finding of the anti-circumvention inquiry. See Anti-Circumvention 
Inquiry of the Antidumping and Countervailing Duty Orders on Certain 
Pasta from Italy: Affirmative Final Determinations of Circumvention of 
Antidumping and Countervailing Duty Orders, 68 FR 54888 (September 19, 
2003).

Period of Review

    The period for which we are measuring subsidies, or POR, is January 
1, 2002 through December 31, 2002.

Analysis of Comments Received

    All issues raised by the interested parties to this administrative 
review in the case briefs are addressed in the November 29, 2004 
``Issues and Decision Memorandum'' from Barbara E. Tillman, Acting 
Deputy Assistant Secretary for Import Administration, to James J. 
Jochum, Assistant Secretary for Import Administration (``Decision 
Memorandum''), which is hereby adopted by this notice. Attached to this 
notice as an appendix is 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 all issues

[[Page 70659]]

raised in this review and the corresponding recommendations in this 
public memorandum which is on file in the CRU. In addition, a complete 
version of the Decision Memorandum can be accessed directly on the 
Internet at http://ia.ita.doc.gov/frn/ under the heading ``Italy.'' The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Changes to the Preliminary Results

    Based on our analysis of the comments submitted in the case briefs, 
we have made changes in our calculation of the net subsidy rates for 
Pasta Zara/Pasta Zara 2 and Corticella/Combattenti. These changes are 
discussed in the relevant section of the Decision Memorandum.

Final Results of Review

    In accordance with section 751(a)(1)(A) of the Act and 19 CFR 
351.221(b)(5), we calculated an individual subsidy rate for each 
producer/exporter covered by this administrative review. For the period 
January 1, 2002 through December 31, 2002, we determine the net subsidy 
rates for producers/exporters under review to be those specified in the 
chart shown below:

------------------------------------------------------------------------
             Producer/Exporter                    Net Subsidy Rate
------------------------------------------------------------------------
Pastificio Fratelli Pagani S.p.A..........     0.06 percent (de minimis)
Pastificio Corticella S.p.A./Pastificio        0.09 percent (de minimis)
 Combattenti S.p.A........................
Pasta Zara S.p.A./Pasta Zara 2 S.p.A./         0.30 percent (de minimis)
 Societa per Azioni Pasta Giulia S.p.A....
Pasta Lensi S.r.l.........................     0.00 percent (de minimis)
Pastificio Carmine Russo S.p.A./Pastificio     0.16 percent (de minimis)
 Di Nola S.p.A............................
------------------------------------------------------------------------

    The calculations will be disclosed to the interested parties in 
accordance with 19 CFR 351.224(b).
    Because the countervailing duty rates for all of the above-noted 
companies are less than 0.5 percent and, consequently, de minimis, we 
will instruct U.S. Customs and Border Protection (``Customs'') to 
liquidate entries during the period January 1, 2002 through December 
31, 2002 without regard to countervailing duties in accordance with 19 
CFR 351.106(c)(1). The Department will issue appropriate instructions 
directly to Customs within 15 days of publication of these final 
results of this review.
    For all other companies that were not reviewed (except Barilla G. e 
R. F.lli S.p.A. and Gruppo Agricoltura Sana S.r.L., which are excluded 
from the order), the Department has directed Customs to assess 
countervailing duties on all entries between January 1, 2002 and 
December 31, 2002 at the rates in effect at the time of entry.
    The Department will also instruct Customs to collect cash deposits 
of estimated countervailing duties for the above-noted companies at the 
above-noted rates on the f.o.b. value of all shipments of the subject 
merchandise from the producers/exporters under review that are entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this administrative review. For all 
non-reviewed firms (except Barilla G. e R. F.lli S.p.A. and Gruppo 
Agricoltura Sana S.r.L., which are excluded from the order), we will 
instruct Customs to collect cash deposits of estimated countervailing 
duties at the most recent company-specific or all-others rate 
applicable to the company. These rates shall apply to all non-reviewed 
companies until a review of a company assigned these rates is 
requested.
    This notice serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return or 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.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: November 29, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1: Corticella/Combattenti and Sgravi Benefits
Comment 2: Benefit for Pasta Zara/Pasta Zara 2's First Law 908/55 Fondo 
di Rotazione Iniziative Economiche (Revolving Fund for Economic 
Initiatives) (``FRIE'') Loan
Comment 3: Benefit for Pasta Zara 2's Second Law 908/55 FRIE Loan
[FR Doc. E4-3476 Filed 12-6-04; 8:45 am]
BILLING CODE: 3510-DS-P