[Federal Register Volume 70, Number 26 (Wednesday, February 9, 2005)]
[Notices]
[Pages 6832-6834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-534]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-818]


Notice of Final Results of the Seventh Administrative Review of 
the Antidumping Duty Order on Certain Pasta from Italy and 
Determination to Revoke in Part

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 6, 2004, the Department of Commerce published the 
preliminary results and partial rescission of the seventh 
administrative review and revocation of the antidumping duty order in 
part, for the antidumping duty order on certain pasta from Italy. The 
review covers eight manufacturers/exporters of the subject merchandise: 
(1) Barilla Alimentare, S.p.A. (Barilla), (2) Corticella Molini e 
Pastifici S.p.A. (Corticella) and its affiliate Pasta Combattenti 
S.p.A. (Combattenti) (collectively, Corticella/Combattenti), (3) 
Pastificio Guido Ferrara S.r.l. (Ferrara), (4) Industria Alimentare 
Colavita, S.p.A. (Indalco) and its affiliate Fusco S.r.l. (Fusco) 
(collectively Indalco), (5) Pasta Lensi S.r.l. (Lensi), (6) PAM S.p.A. 
(PAM), (7) Pastificio Riscossa F. Illi Mastromauro, S.r.l. (Riscossa), 
and (8) Pastificio Carmine Russo S.p.A./Pastificio Di Nola S.p.A. 
(Russo). The period of review (POR) is July 1, 2002, through June 30, 
2003.
    As a result of our analysis of the comments received, these final 
results differ from the preliminary results. For our final results, we 
have found that during the POR, Barilla, Corticella/Combattenti, 
Indalco, PAM, Riscossa, and Russo sold subject merchandise at less than 
normal value (NV). We have also found that Ferrara and Lensi did not 
make sales of the subject merchandise at less than NV (i.e., they have 
``zero'' or de minimis dumping margins). We have also determined to 
revoke the antidumping duty order with respect to subject merchandise 
produced and also exported by Ferrara and Lensi because each company 
sold the subject merchandise at not less than NV for a period of at 
least three consecutive years. See 19 CFR 351.222(b)(2) and the 
``Revocation'' section of this notice. The final results are listed in 
the ``Final Results of Review'' section below.

EFFECTIVE DATE: February 9, 2005.

FOR FURTHER INFORMATION CONTACT: Mark Young, AD/CVD Operations, Office 
3, Import Administration, International Trade Administration, U.S. 
Department of Commerce, Washington, D.C. 20230; telephone: (202) 482-
6397.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 2004, the Department published the preliminary results 
of the seventh administrative review of the antidumping duty order on 
certain pasta from Italy. See Notice of Preliminary Results, Partial 
Rescission of Antidumping Duty Administrative Review and Revocation of 
the Antidumping Duty Order in Part: For the Seventh Administrative 
Review of the Antidumping Duty Order on Certain Pasta from Italy, 69 FR 
47880 (August 6, 2004) (Preliminary Results). Although the Department 
initiated the review of fifteen companies, we rescinded the reviews of 
N. Puglisi & F. Industria Pasta Alimentari S.p.A. (Puglisi), La 
Molisana Industrie Alimentari S.p.a. (La Molisana), Molino e Pastificio 
Tomasello S.r.l. (Tomasello), Pastificio Antonio Pallante S.r.l. 
(Pallante) and Industrie Alimentari Molisane S.r.l. (IAM) (collectively 
Pallante/IAM), Pastificio Fratelli Pagani S.p.A. (Pagani), Rummo S.p.A. 
Molino e Pastificio (Rummo), and Pastificio Lucio Garofalo S.p.A. 
(Garofalo). See the ``Background'' and ``Partial Rescission'' section 
of the Preliminary Results, 69 FR at 47880, 47881. The review covers 
the remaining eight manufacturers/exporters: Barilla, Corticella/
Combattenti, Ferrara, Indalco, Lensi, PAM, Riscossa, and Russo.
    We invited parties to comment on our Preliminary Results. 
Petitioners\1\ filed case briefs on September 7, 2004, regarding 
Barilla, Indalco, and Riscossa. Barilla, Indalco, PAM, Russo, Riscossa, 
and Lensi each filed case briefs on September 7, 2004. On September 13, 
2004, petitioners submitted rebuttal briefs concerning Barilla and 
Indalco, and Barilla, Riscossa, and Indalco submitted rebuttal briefs. 
On October 6, 2004, a public hearing was held at the Department of 
Commerce with respect to Barilla. On November 4, 2004, the Department 
published the notice of extension of final results of the antidumping 
administrative review of pasta from Italy, extending the date for

[[Page 6833]]

these final results to February 2, 2005. See Certain Pasta From Italy: 
Extension of Final Results of Antidumping Duty Administrative Review, 
69 FR 64275.
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    \1\ Petitioners are New World Pasta Company, Dakota Growers 
Pasta Company, Borden Foods Corporation and American Italian Pasta 
Company.
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Scope of Review

    Imports covered by this order are shipments of certain non-egg dry 
pasta in packages of five pounds four ounces 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 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 
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, 
or by Associazione Italiana per l'Agricoltura Biologica.
    The merchandise subject to this order 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.

Assignment of the Same Antidumping Duty Rate to Corticella/Combattenti 
and CLC

    In the Preliminary Results, we stated that evidence indicates that 
Corticella/Combattenti and its toll producer, Coopertive Lomellina 
Cerealicoltori S.r.l. (CLC), are affiliated, and we noted that the 
Department recognized, given the nature of their affiliation, that a 
related issue could arise with respect to whether there is a potential 
for manipulation of price or production and, if so, whether Corticella/
Combattenti and CLC should receive a single same antidumping duty rate. 
See 69 FR at 47880. We solicited comments on the issue for 
consideration in the final results of review. We did not receive any 
comments on the matter.
    For purposes of these final results, we continue to find that 
Corticella/Combattenti and CLC are affiliated. Further, upon further 
examination, we have revised our approach from the Preliminary Results 
regarding the antidumping duty rates assigned to Corticella/Combattenti 
and CLC. Specifically, we find that there is sufficient record evidence 
to warrant collapsing Corticella/Combattenti and CLC pursuant to 19 CFR 
351.401(f) and that the companies should receive a single weighted-
average antidumping duty margin. For further discussion of this issue, 
see the February 2, 2005 memorandum from the Team to Melissa G. 
Skinner, Director, AD/CVD Operations, Office 3, entitled, ``The 
relationship of Coopertive Lomellina Cerealicoltori S.r.l. (CLC) with 
Corticella Molini e Pastifici S.p.A. (Corticella) and its affiliate 
Pasta Combattenti S.p.A. (Combattenti, collectively Corticella/
Combattenti),'' a proprietary document, the public version of which is 
available in the Central Records Unit, room B-099 of the main 
Department building.

Revocation

    In the Preliminary Results, we preliminarily determined to revoke 
the antidumping duty order with respect to subject merchandise produced 
and exported by Ferrara. See 69 FR at 47887. We did not receive any 
comments from interested parties concerning our revocation with respect 
to Ferrara. For the reasons set forth in the Preliminary Results, 69 FR 
at 47886, we continue to find that revocation is appropriate with 
respect to Ferrara and, thus, we revoke the antidumping duty order with 
respect to subject merchandise produced and exported by Ferrara.
    Regarding Lensi, in the Preliminary Results, we found that the 
company made sales of subject merchandise at less than NV. See 69 FR at 
47886. As a result, we preliminarily determined not to revoke the 
antidumping duty order with respect to Lensi. However, as explained in 
Comments 13 through 20 of the Issues and Decision Memorandum that 
accompanies the final results of review, we have corrected certain 
inadvertent errors in Lensi's margin program and, as a result, find 
that Lensi did not sell subject merchandise at less than NV. As noted 
in the Issues and Decision Memorandum, petitioners did not comment on 
any of the issues raised by Lensi, including the revocation issue. As 
explained in the February 2, 2005, memorandum to Melissa G. Skinner, 
Director, AD/CVD Operations, Office 3, from the Team, we find that 
Lensi has satisfied all requirements under 19 CFR 351.222(e)(1) and 19 
CFR 351.222(b)(2) entitling it to revocation, and, thus, we revoke the 
antidumping duty order with respect to subject merchandise produced and 
exported by Lensi. In accordance with 19 CFR 351.222(f)(3), we will 
instruct CBP to terminate the suspension of liquidation for merchandise 
produced and exported by Ferrara or produced and exported by Lensi, 
entered, or withdrawn from warehouse, for consumption on or after the 
first day after the period under review, and to refund any cash 
deposit.

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, which is hereby adopted by this notice. A list of the 
issues which parties have raised, and to which we have responded in the 
Issues and Decision Memorandum, is attached to this notice as an 
Appendix. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn. 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 margins exist for 
the period July 1, 2002, through June 30, 2003:

------------------------------------------------------------------------
                Manufacturer/exporter                  Margin (percent)
------------------------------------------------------------------------
Barilla.............................................                7.25
Corticella/Combattenti..............................                4.00
Ferrara.............................................          de minimis
Indalco.............................................                6.03
Lensi...............................................          de minimis
PAM.................................................                4.78
Riscossa............................................                1.05
Russo...............................................                7.36
All Others..........................................               11.26
------------------------------------------------------------------------

Assessment

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. In accordance with 19 CFR 
351.212(b), we have calculated exporter/importer-specific duty 
assessment rates by aggregating the dumping margins for the examined 
U.S. sales for each importer and dividing the amount by the total 
entered value of the sales for that importer. In situations in which 
the importer-specific assessment rate is above de miminis, we will 
instruct CBP to assess antidumping duties on that importer's entries of 
subject merchandise. The Department will issue appropriate assessment 
instructions directly to CBP within 15 days of publication of these 
final results of review.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of

[[Page 6834]]

this notice of final results of the administrative review for all 
shipments of certain pasta from Italy entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of these 
final results, 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 
CBP 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 and/or 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 and/or countervailing 
duties occurred and the subsequent increase in antidumping duties by 
the amount of antidumping and/or countervailing duties reimbursed.
    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 the 
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 2, 2005.
Barbara E. Tillman,
Acting Assistant Secretary for Import Administration.

Appendix I

List of Comments and Issues in the Decision Memorandum

List of Comments:

Barilla Alimentare, S.p.A. (Barilla)

Comment 1: Double Counting of the Cost of Semolina Purchases
Comment 2: Treatment of Subject Merchandise Produced by Other Italian 
Manufacturers
Comment 3: Overstatement of Constructed Export Price (CEP) Profit
Comment 4: CEP Offset
Comment 5: Use of Facts Available for Financial Discount
Comment 6: Reclassification of Rebate Payments as Selling Expense
Comment 7: Margin Calculation Methodology
Comment 8: Application of Case Discount

Industria Alimentare Colavita, S.p.A. and Fusco S.r.l. (collectively 
Indalco)

Comment 9: Liquidation Instructions
Comment 10: Margin Calculation Methodology
Comment 11: Selling, General & Administrative (SG&A) Expenses
Comment 12: DIFMER Adjustment

Pasta Lensi S.r.l. (Lensi)

Comment 13: Credit and purchase order adjustments to the Gross Unit 
Price in the Net U.S. Price Calculation
Comment 14: Credit Adjustment to Gross Unit Price in Calculating Normal 
Value
Comment 15: Commission Offset for CEP Sales
Comment 16: CEP Offset
Comment 17: Imputed Credit Expenses
Comment 18: Wheat Classifications
Comment 19: CEP Profit
Comment 20: Revocation of the Antidumping Duty Order for Lensi

PAM S.p.A. (PAM)

Comment 21: Collapsing PAM's wheat types 1 and 2

Pasta Riscossa F. Illi Mastromaura, S.r.l. (Riscossa)

Comment 22: Use of a Constant Factor for Inland Freight Expense
Comment 23: Correction of the Home Market Warranties field
Comment 24: Inclusion of Purchased Pasta in Comparison Market Program
Comment 25: Adjustment of Semolina Costs
Comment 26: Revision of Riscossa's Reported Interest Rate

Pastificio Carmine Russo S.p.A./ Pastificio Di Nola S.p.A. (Russo)

Comment 27: U.S. Price Calculation
[FR Doc. E5-534 Filed 2-8-05; 8:45 am]
BILLING CODE 3510-DS-S