[Federal Register Volume 70, Number 66 (Thursday, April 7, 2005)]
[Notices]
[Pages 17653-17655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1614]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-507-501]


Certain In-shell Pistachios From the Islamic Republic of Iran: 
Preliminary Results of Countervailing Duty Administrative Review

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

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the countervailing duty (CVD) order on certain 
in-shell (raw) pistachios from the Islamic Republic of Iran (Iran) for 
the period January 1, 2003, through December 31, 2003. For information 
on the net subsidy rate for the reviewed company, please see the 
``Preliminary Results of Review'' section of this notice. Interested 
parties are invited to comment on these preliminary results. (See the 
``Public Comment'' section of this notice).

DATES: Effective Date: April 7, 2005.

FOR FURTHER INFORMATION CONTACT: Darla Brown, AD/CVD Operations, Office 
3, Import Administration, U.S. Department of Commerce, Room 4014, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone 
(202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On March 11, 1986, the Department published in the Federal Register 
the countervailing duty order on certain in-shell (raw) pistachios from 
Iran. See Final Affirmative Countervailing Duty Determination and 
Countervailing Duty Order: In-shell Pistachios from Iran, 51 FR 8344 
(March 11, 1986) (In-shell Pistachios). On March 1, 2004, the 
Department published a notice of opportunity to request an 
administrative review of this CVD order. See Antidumping or 
Countervailing Duty Order, Finding, or Suspended Investigation; 
Opportunity To Request Administrative Review, 69 FR 9584 (March 1, 
2004). On March 19, 2004, we received a timely request for an 
administrative review from Tehran Negah Nima Trading Company, Inc., 
trading as Nima Trading Company (Nima), the respondent company in this 
proceeding. On April 28, 2004, we initiated an administrative review of 
the CVD order on in-shell (raw) pistachios from Iran covering the 
period of review (POR) January 1, 2003, through December 31, 2003. See 
Initiation of Antidumping and Countervailing Duty Administrative 
Reviews, 69 FR 23170 (April 28, 2004).
    On May 11, 2004, we issued our initial questionnaire to the 
Government of Iran (GOI) and Nima. On June 14, 2004, petitioners \1\ 
filed an entry of appearance, request for verification, and request for 
a duty absorption determination. On June 24, 2004, in a letter to 
petitioners, we declined to conduct a duty absorption determination in 
this CVD administrative review.
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    \1\ Petitioners are comprised of members of the California 
Pistachio Commission (CPC).
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    On July 6, 2004, and July 8, 2004, the GOI and Nima, respectively, 
submitted questionnaire responses.
    On July 23, 2004, petitioners submitted a request for extension to 
file new subsidy allegations. On July 28, 2004, we granted petitioners 
a two-week extension to file new subsidy allegations in this 
administrative review. On August 11, 2004, petitioners submitted new 
subsidy allegations.
    On August 18, 2004, we issued supplemental questionnaires to the 
GOI and Nima. On September 1, 2004, and September 15, 2004, the GOI and 
Nima, respectively, submitted supplemental questionnaire responses.

[[Page 17654]]

    On October 18, 2004, we extended the period for the completion of 
the Preliminary Results pursuant to section 751(a)(3)(A) of the Tariff 
Act of 1930, as amended (the Act). See Certain In-shell Pistachios from 
the Islamic Republic of Iran: Extension of Time Limit for Preliminary\ 
Results of Countervailing Duty Administrative Review, 69 FR 61341 
(October 18, 2004).
    On October 27, 2004, we initiated investigations of three of 
petitioners' new subsidy allegations. For additional information, see 
the October 27, 2004, New Subsidy Allegations memorandum to Melissa G. 
Skinner, Director, AD/CVD Operations, Office 3, from the Team (New 
Subsidies Memo), on file in the Central Records Unit, Room B-099 of the 
Main Commerce Building (CRU).
    On November 4, 2004, we issued a second supplemental questionnaire 
to Nima, and on November 15, 2004, we issued a second supplemental 
questionnaire to the GOI. On November 29, 2004, we received a response 
from Nima to our second supplemental questionnaire. On December 13, 
2004, we received a response from the GOI to our second supplemental 
questionnaire. On January 31, 2005, we issued a third supplemental 
questionnaire to the GOI. On February 28, 2005, we received a response 
from the GOI to our third supplemental questionnaire.
    In accordance with 19 CFR 351.213(b), this administrative review 
covers only those producers or exporters for which a review was 
specifically requested. Accordingly, this administrative review covers 
Nima and ten programs.

Scope of Order

    The product covered by this order is in-shell (raw) pistachio nuts 
from which the hulls have been removed, leaving the inner hard shells 
and edible meat, as currently classifiable in the Harmonized Tariff 
Schedules of the United States (HTSUS) under item number 0802.50.20.00. 
The HTSUS subheadings are provided for convenience and customs 
purposes. The written description of the scope of this proceeding is 
dispositive.

Analysis of Programs

I. Programs Preliminarily Determined To Be Not Used

    Based on the information supplied by Nima on behalf of itself and 
its grower, Razi Domghan Agricultural and Animal Husbandry Company 
(Razi), we preliminarily determine that the programs listed below were 
not used during the POR. For further discussion of the Iranian Export 
Guarantee Fund, GOI Grants and Loans to Pistachio Farmers, and Crop 
Insurance for Pistachios programs, see the October 27, 2004, New 
Subsidies Memo.
    A. Provision of Fertilizer and Machinery.
    B. Provision of Credit.
    C. Tax Exemptions.
    D. Provision of Water and Irrigation Equipment.
    E. Technical Support.
    F. Duty Refunds on Imported Raw or Intermediate Materials Used in 
the Production of Export Goods.
    G. Program to Improve Quality of Exports of Dried Fruit.
    H. Iranian Export Guarantee Fund.
    I. GOI Grants and Loans to Pistachio Farmers.
    J. Crop Insurance for Pistachios.

Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we have calculated an 
individual subsidy rate for Nima, the only producer/exporter subject to 
this administrative review, for the POR, i.e., calendar year 2003. We 
preliminarily determine that the total estimated net countervailable 
subsidy rate is 0.00 percent ad valorem.
    As Nima is the exporter but not the producer of subject 
merchandise, the Department's final results of review will apply to 
subject merchandise exported by Nima and produced by Nima's supplier of 
pistachios, Razi. See 19 CFR 351.107(b). Therefore, we intend to issue 
the following cash deposit requirements, effective upon publication of 
the notice of final results of review for all shipments of subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication: (1) For merchandise exported by Nima and 
produced by Razi, the cash deposit rate will be the ad valorem rate 
calculated in the final results of the instant administrative review; 
(2) for merchandise exported by Nima and produced by Maghsoudi Farms, 
the cash deposit rate will be 23.18 percent, the rate calculated for 
Nima and Maghsoudi Farms in the new shipper reviews (see Certain In-
Shell Pistachios (C-507-501) and Certain Roasted In-Shell Pistachios 
(C-507-601) from the Islamic Republic of Iran: Final Results of New 
Shipper Countervailing Duty Reviews, 68 FR 4997 (January 31, 2003) (New 
Shipper Reviews); (3) for merchandise exported by Nima but not produced 
by Razi or Maghsoudi Farms, the cash deposit rate will be the ``all 
others'' rate established in the original CVD investigation (see 51 FR 
8344 (March 11, 1986)); (4) if the exporter is not a firm covered in 
this review, a prior review, or the original CVD investigation, but the 
producer is, the cash deposit rate will be the rate established for the 
most recent period for the producer of the merchandise; and (5) if 
neither the exporter nor producer is a firm covered in this review or 
the original investigation, the cash deposit rate for all other 
producers or exporters of the subject merchandise will continue to be 
99.52 percent ad valorem. This rate is the ``all others'' rate from the 
final determination in the original investigation.
    If the final results of this review remain the same as these 
preliminary results, the Department intends to instruct U.S. Customs 
and Border Protection (CBP), within 15 days of publication of the final 
results of this review, to liquidate without regard to countervailing 
duties all shipments of subject merchandise exported by Nima and 
produced by Razi, entered, or withdrawn from warehouse, for consumption 
during the POR. Should the final results of this review remain the same 
as these preliminary results, the Department also will instruct CBP not 
to collect cash deposits of estimated countervailing duties on all 
shipments of the subject merchandise exported by Nima and produced by 
Razi, entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of the final results of this review.
    Because the Uruguay Round Agreements Act (URAA) replaced the 
general rule in favor of a country-wide rate with a general rule in 
favor of individual rates for investigated and reviewed companies, the 
procedures for establishing countervailing duty rates, including those 
for non-reviewed companies, are now essentially the same as those in 
antidumping cases, except as provided for in section 777A(e)(2)(B) of 
the Act. The requested review will normally cover only those companies 
specifically named. See 19 CFR 351.213(b). Pursuant to 19 CFR 
351.212(c), for all companies for which a review was not requested, 
duties must be assessed and cash deposits must continue to be 
collected, at the cash deposit rate previously ordered. As such, the 
countervailing duty cash deposit rate applicable to a company can no 
longer change, except pursuant to a request for a review of that 
company. See Federal-Mogul Corporation and The Torrington Company v. 
United States, 822 F. Supp. 782 (CIT 1993), and Floral Trade Council v. 
United States, 822 F. Supp. 766 (CIT 1993) (interpreting 19 CFR 
353.22(e), the old antidumping regulation on automatic assessment, 
which is identical to the current

[[Page 17655]]

regulation, 19 CFR 351.212(c)(1)(ii)). Therefore, the cash deposit 
rates for all companies except those covered by this review will be 
unchanged by the results of this review.
    We will instruct CBP to continue to collect cash deposits for non-
reviewed companies at the most recent company-specific or country-wide 
rate applicable to the company. Accordingly, the cash deposit rates 
that will be applied to non-reviewed companies covered by this order 
will be the rate for that company established in the most recently 
completed administrative proceeding. See Certain In-Shell Pistachios 
from the Islamic Republic of Iran: Final Results of Countervailing Duty 
Administrative Review, 68 FR 41310 (July 11, 2003). These cash deposit 
rates shall apply to all non-reviewed companies until a review of a 
company assigned these rates is requested.

Verification

    In accordance with section 782(i)(3) of the Act, we intend to 
verify the information submitted by respondents prior to making our 
final determination.

Public Comment

    Pursuant to 19 CFR 351.224(b), the Department will disclose to 
parties to the proceeding any calculations performed in connection with 
these preliminary results within five days after the date of the public 
announcement of this notice. Pursuant to 19 CFR 351.309, interested 
parties may submit written comments in response to these preliminary 
results. Unless otherwise indicated by the Department, case briefs must 
be submitted within 30 days after the publication of these preliminary 
results. Rebuttal briefs, which are limited to arguments raised in case 
briefs, must be submitted no later than five days after the time limit 
for filing case briefs, unless otherwise specified by the Department. 
Parties who submit argument in this proceeding are requested to submit 
with the argument: (1) A statement of the issue, and (2) a brief 
summary of the argument. Parties submitting case and/or rebuttal briefs 
are requested to provide the Department copies of the public version on 
disk. Case and rebuttal briefs must be served on interested parties in 
accordance with 19 CFR 351.303(f). Also, pursuant to 19 CFR 351.310, 
within 30 days of the date of publication of this notice, interested 
parties may request a public hearing on arguments to be raised in the 
case and rebuttal briefs. Unless the Secretary specifies otherwise, the 
hearing, if requested, will be held two days after the date for 
submission of rebuttal briefs.
    Representatives of parties to the proceeding may request disclosure 
of proprietary information under administrative protective order no 
later than 10 days after the representative's client or employer 
becomes a party to the proceeding, but in no event later than the date 
the case briefs, under 19 CFR 351.309(c)(ii), are due. The Department 
will publish the final results of this administrative review, including 
the results of its analysis of issues raised in any case or rebuttal 
brief or at a hearing.
    This administrative review and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: March 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-1614 Filed 4-6-05; 8:45 am]
BILLING CODE 3510-DS-P