[Federal Register Volume 70, Number 39 (Tuesday, March 1, 2005)]
[Notices]
[Pages 9921-9923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-820]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-818]


Notice of Preliminary Results of New Shipper Review of the 
Antidumping Duty Order on Certain Pasta From Italy

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

SUMMARY: In response to a request by Atar, S.r.L. (``Atar''), the 
Department of Commerce (``the Department'') is conducting a new shipper 
review of the antidumping duty order on certain pasta (``pasta'') from 
Italy for the period of review (``POR'') July 1, 2003 through June 30, 
2004. We preliminarily determine that during the POR, Atar did not sell 
subject merchandise at less than normal value (``NV''). Much of the 
information upon which we relied to analyze the bona fides of Atar's 
sales to the United States is business proprietary, therefore our full 
analysis is set forth in the Memorandum to Barbara E. Tillman, Acting 
Deputy Assistant Secretary for Import Administration, Pasta from Italy: 
New Shipper Review of Atar S.r.L. (Atar), dated February 22, 2005 (Atar 
Memo), which is on file in the Central Records Unit (``CRU''), room B-
099 of the main Commerce Building. Interested parties are invited to 
comment on these preliminary results.
    If these preliminary results are adopted in the final results of 
this new shipper review, we will instruct U.S. Customs and Border 
Protection (``CBP'') to liquidate without regard to antidumping duties.

DATES: Effective Date: March 1, 2005.

FOR FURTHER INFORMATION CONTACT: Dennis McClure or Maura Jeffords, AD/
CVD Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5973 or (202) 482-3146, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 24, 1996, the Department published in the Federal Register 
the antidumping duty order on pasta from Italy. See Notice of 
Antidumping Duty Order and Amended Final Determination of Sales at Less 
Than Fair Value: Certain Pasta from Italy, 61 FR 38547. On July 30, 
2004, we received a request from Atar to initiate a new shipper review 
of Atar's U.S. sales of pasta from Italy. On September 1, 2004, the 
Department published the notice of initiation of this new shipper 
antidumping duty review covering the period July 1, 2003 through June 
30, 2004. See Certain Pasta from Italy: Notice of Initiation of New 
Shipper Antidumping Duty Review, 69 FR 53413 (Sept. 1, 2004).
    On September 1, 2004, we sent a questionnaire to Atar and 
instructed Atar to respond to Sections A-E of the questionnaire, as 
appropriate. On October 22, 2004, Atar submitted its response to 
Sections A, C, and D of the original questionnaire. On November 5, 
2004, Atar submitted its cost reconciliation under Section D of the 
questionnaire.
    On November 8 and 10, 2004, the Department issued supplemental 
questionnaires to Atar. On December 1, 2004, we received Atar's 
response to the supplemental questionnaires. On December 27, 2004, the 
Department received a supplemental questionnaire response relating to 
Atar's quantity and value reconciliation requested in Section A of the 
questionnaire.
    On December 7, 2004, we sent Atar a verification outline. We 
conducted verification of Atar's sales and cost information from 
January 10, 2005 through January 14, 2005.

Scope of Order

    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

[[Page 9922]]

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.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(``the Act''), we conducted verification of the sales and cost 
information provided by Atar. We used standard verification procedures, 
including examination of relevant sales and financial records. Our 
verification results are detailed in the verification reports placed in 
the case file in the CRU. We made certain minor revisions to certain 
sales and cost data based on verification findings. See January 25, 
2005, Memorandum to James Terpstra from Dennis McClure and Maura 
Jeffords, regarding Verification of the Sales and Cost Response of Atar 
S.r.L. (``Atar'') in the New Shipper Review of the Antidumping Duty 
Order of Certain Pasta from Italy (``Sales and Cost Verification 
Report'').

Product Comparisons

    In accordance with section 771(16) of the Act, we matched 
contemporaneous sales of products sold in the United States with 
constructed value (``CV'') based on the following characteristics: (1) 
Pasta shape; (2) type of wheat; (3) additives; and (4) enrichment.

Comparisons to Normal Value

    Because we could not determine the NV of the subject merchandise 
based on a comparison market price, under section 773(a)(1) of the Act, 
in accordance with section 773(a)(4) of the Act, we compared the export 
price (``EP'') to the CV, as described in the ``Export Price'' and 
``Normal Value'' sections of this notice to determine whether sales of 
certain pasta from Italy were made in the United States at less than 
NV. See Atar's Sales and Cost Verification Report and February 22, 
2005, Memorandum to James Terpstra from Dennis McClure and Maura 
Jeffords, Analysis Memorandum for Atar S.r.L., available in the CRU.

Export Price

    For the price to the United States, we used EP in accordance with 
section 772(a) of the Act. We calculated EP because all of Atar's U.S. 
sales of subject merchandise were sold directly to the first 
unaffiliated purchaser in the United States prior to importation. We 
based EP on the packed free-on-board (``FOB'') prices to the first 
unaffiliated customer in, or for exportation to, the United States.
    In accordance with section 772(c)(2) of the Act, we made 
deductions, where appropriate, for movement expenses including foreign 
brokerage and handling. In addition, when appropriate, we increased EP 
by an amount equal to the countervailing duty rate attributed to export 
subsidies established in the countervailing duty investigation, in 
accordance with section 772(c)(1)(C) of the Act.

Normal Value

A. Selection of Comparison Markets

    To determine whether there was a sufficient volume of sales in the 
home market to serve as a viable basis for calculating NV, we compared 
Atar's volume of home market sales of the foreign like product to the 
volume of its U.S. sales of the subject merchandise. Pursuant to 
sections 773(a)(1)(B) and 773(a)(1)(C) of the Act, we determined that 
Atar did not have an aggregate volume of home market sales of the 
foreign like product that was greater than five percent of its 
aggregate volume of U.S. sales of the subject merchandise. Atar did not 
have any third-country market sales of the subject merchandise. As a 
result, we determined that Atar did not have a viable comparison 
market.

B. Calculation of Normal Value Based on Constructed Value

    In accordance with section 773(e) of the Act, we calculated CV 
based on the sum of the cost of manufacturing (``COM'') of the product 
sold in the United States, plus amounts for SG&A expenses, profit, and 
U.S. packing costs. Because Atar was a producer of subject merchandise 
through a tolling arrangement, we based the COM on the price Atar paid 
for the raw materials from its unaffiliated suppliers and the price 
Atar paid for the processing. In accordance with section 773(e)(2)(B) 
(i) and (ii) of the Act, we based SG&A expenses on Atar's actual 
expenses incurred during its 2004 fiscal year and profit on publicly 
available information related to other pasta companies which sell 
subject merchandise in Italy.
    For price-to-CV comparisons, we made adjustments to CV for 
circumstance-of-sale (``COS'') differences, in accordance with section 
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410. We made COS 
adjustments by adding U.S. direct selling expenses.

Currency Conversion

    For purposes of these preliminary results, we made currency 
conversions in accordance with section 773A(a) of the Act, based on the 
official exchange rates published by the Federal Reserve.

Preliminary Results of New Shipper Review

    As a result of our review, we preliminarily determine that the 
following percentage weighted-average margin exists for Atar for the 
period July 1, 2003 through June 30, 2004:

------------------------------------------------------------------------
                                                                Margin
                      Producer/exporter                        (percent)
------------------------------------------------------------------------
Produced and Exported by Atar S.r.L.........................        0.00
------------------------------------------------------------------------

    The Department will disclose the calculations performed within five 
days of the date of publication of this notice to the parties of this 
proceeding in accordance with 19 CFR 351.224(b). An interested party 
may request a hearing within 30 days of publication of these 
preliminary results. See 19 CFR 351.310(c). Any hearing, if requested, 
ordinarily will be held 44 days after the date of publication of these 
preliminary results, or the first working day thereafter. Interested 
parties may submit case briefs no later than 30 days after the date of 
publication of these preliminary results. See 19 CFR 351.309(c)(ii). 
Rebuttal briefs limited to issues raised in such briefs, may be filed 
no later than 35 days after the date of publication. See 19 CFR 
351.309(d).
    Parties who submit arguments are requested to submit with the 
argument (1) a statement of the issue and (2) a brief summary of the 
argument. Further, parties submitting briefs are requested to provide 
the Department with an additional copy of the public version of any 
such briefs on diskette. The Department will issue the final results of 
this review, which will include the results of its analysis of issues 
raised in any such comments, or at a hearing, if requested, within 120 
days of publication of these preliminary results.

Assessment Rate

    Pursuant to 19 CFR 351.212(b), the Department will calculate an 
assessment rate for each importer of the subject merchandise produced 
by Atar. Upon issuance of the final results of this new shipper review, 
if any importer-specific assessment rates calculated in the final 
results are above de minimis (i.e., at or above 0.5 percent), the 
Department will issue appraisement instructions directly to CBP to 
assess antidumping duties on appropriate entries by applying the

[[Page 9923]]

assessment rate to the entered value of the merchandise. For assessment 
purposes, we will calculate importer-specific assessment rates for the 
subject merchandise produced by Atar 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. Where appropriate, 
to calculate the entered value, we will subtract international movement 
expenses (e.g., brokerage and handling) from the gross sales value.

Cash Deposit Requirements

    To calculate the cash deposit rate for Atar, we divided the total 
dumping margin by the total net value for that company's sales during 
the review period. The following deposit rate will be effective upon 
publication of the final results of this new shipper review for 
shipments of certain pasta from Italy entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided by section 751(a)(2)(C) of the Act: For subject merchandise 
produced and exported by Atar, the cash deposit rate will be the rate 
established in the final results of this review, except if the rate is 
less than 0.5 percent and, therefore, de minimis, the cash deposit will 
be zero. This cash deposit requirement, when imposed, shall remain in 
effect until publication of the final results of the next 
administrative review.

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping and/or countervailing duties prior to 
liquidation of the relevant entries during this review period. Failure 
to comply with this requirement could 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 administrative review is issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 22, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX I

    Unpublished Memorandum
[FR Doc. E5-820 Filed 2-28-05; 8:45 am]
BILLING CODE 3510-DS-P