[Federal Register Volume 71, Number 218 (Monday, November 13, 2006)]
[Notices]
[Pages 66165-66167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-19108]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-507-601]


Certain In-shell Roasted Pistachios from the Islamic Republic of 
Iran: Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 7, 2006, the Department of Commerce (the

[[Page 66166]]

Department) published the preliminary results in the countervailing 
duty (CVD) administrative review of certain in-shell roasted pistachios 
from Iran. The Department has now completed this administrative review 
in accordance with section 751(a) of the Tariff Act of 1930, as amended 
(the Act).
    Based on information received since the preliminary results and our 
analysis of the comments received, the Department has not revised the 
net subsidy rate for Tehran Negah Nima Trading Company, Inc., trading 
as Nima Trading Company (Nima), the respondent company in this 
proceeding. The final net subsidy rate for the reviewed company is 
listed below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: November 13, 2006.

FOR FURTHER INFORMATION CONTACT: Darla Brown, AD/CVD Operations, Office 
3, Import Administration, U.S. Department of Commerce, Room 4012, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On July 7, 2006, the Department published in the Federal Register 
the preliminary results in the CVD review of certain in-shell roasted 
pistachios from Iran. See Certain In-shell Roasted Pistachios from the 
Islamic Republic of Iran: Preliminary Results of Countervailing Duty 
Administrative Review, 71 FR 38622 (July 7, 2006) (Preliminary 
Results). We invited interested parties to comment on these results. 
Since the preliminary results, we received case briefs from 
petitioner\1\ and from a domestic interested party\2\ on August 7, 
2006. Neither Nima nor the Government of Iran (GOI) submitted a case or 
rebuttal brief.
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    \1\ The California Pistachio Commission (CPC) and its members.
    \2\ Cal Pure Pistachios, Inc. (Cal Pure).
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    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 for the period of review (POR) January 1, 2004, through December 
31, 2004.

Scope of the Order

    The product covered by this order is all roasted in-shell pistachio 
nuts, whether roasted in Iran or elsewhere, from which the hull has 
been removed, leaving the inner hard shells and the edible meat, as 
currently classifiable in the Harmonized Tariff Schedule of the United 
States (HTSUS) under item number 0802.50.20.00. The written description 
of the scope of this proceeding is dispositive.

Analysis of Comments Received

    For a discussion of the programs and the issues raised in the 
briefs by parties to this review, see the ``Issues and Decision 
Memorandum'' from Stephen J. Claeys, Deputy Assistant Secretary for 
Import Administration, to David M. Spooner, Assistant Secretary for 
Import Administration, concerning the ``Final Results of Countervailing 
Duty Administrative Review: Certain In-shell Roasted Pistachios from 
the Islamic Republic of Iran'' (Decision Memorandum) dated November 6, 
2006, which is hereby adopted by this notice. A listing of the issues 
that parties raised and to which we have responded, included in the 
Decision Memorandum, is attached to this notice as Appendix I. Parties 
can find a complete discussion of the issues raised in this review and 
the corresponding recommendations in this public memorandum, which is 
on file in the Central Records Unit (CRU), room B-099 of the main 
Commerce building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Use of Facts Available

    The Department has concluded that the GOI and Nima did not act to 
the best of their abilities in providing responses to the Department, 
in accordance with sections 776(a) and 776(b) of the Act. Specifically, 
neither the GOI nor Nima submitted questionnaire responses to the 
Department. By failing to respond to our questionnaire, Nima and the 
GOI have failed to provide information regarding subsidy programs in 
Iran, and regarding Nima's sales, in the manner explicitly requested by 
the Department. Therefore, we must resort to the facts otherwise 
available pursuant to section 776(a) of the Act. Furthermore, in 
selecting from among the facts available, the Department has determined 
that an adverse inference is warranted, pursuant to section 776(b) of 
the Act because, despite the Department's efforts, Nima and the GOI did 
not respond to our questionnaire and requests for information.
    In the instant case, the Department is relying on information from 
Final Affirmative Countervailing Duty Determination and Countervailing 
Duty Order: Roasted In-Shell Pistachios from Iran, 51 FR 35679 (October 
7, 1986) (Roasted Pistachios); Certain In-Shell Pistachios and Certain 
Roasted In-Shell Pistachios from the Islamic Republic of Iran: Final 
Results of New Shipper Countervailing Duty Reviews, 68 FR 4997 (January 
31, 2003) (Pistachios New Shipper Reviews); and Certain In-shell 
Roasted Pistachios from the Islamic Republic of Iran: Final Results of 
Countervailing Duty Administrative Review, 71 FR 27682 (May 12, 2006) 
(2003 Roasted Pistachios).
    If the Department relies on secondary information (e.g., data from 
a petition) as facts available, section 776(c) of the Act provides that 
the Department shall, ``to the extent practicable,'' corroborate such 
information using independent sources reasonably at its disposal.\3\ 
The SAA further provides that to corroborate secondary information 
means that the Department will satisfy itself that the secondary 
information to be used has probative value. See also 19 CFR 351.308(d) 
(describing the corroboration of secondary information).
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    \3\ The Statement of Administrative Action accompanying the URAA 
clarifies that information from the petition is ``secondary 
information.'' See Statement of Administrative Action, URAA, H. Doc. 
No. 316, Vol. 1, 103d Cong. (1994) (SAA) at 870.
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    Thus, in those instances in which it determines to apply adverse 
facts available, the Department, in order to satisfy itself that such 
information has probative value, will examine, to the extent 
practicable, the reliability and relevance of the information used. 
With regard to the reliability aspect of corroboration, unlike other 
types of information, such as publicly available data on the national 
inflation rate of a given country or national average interest rates, 
there typically are no independent sources for data on company-specific 
benefits resulting from countervailable subsidy programs. The only 
source for such information normally is administrative determinations. 
In the instant case, no evidence has been presented or obtained which 
contradicts the reliability of the evidence relied upon in previous 
segments of this proceeding.
    With respect to the relevance aspect of corroboration, the 
Department will consider information reasonably at its disposal as to 
whether there are circumstances that would render benefit data not 
relevant. Where circumstances indicate that the information is not 
appropriate as adverse facts available, the Department will not use it. 
See Fresh Cut Flowers from Mexico; Final Results of Antidumping Duty 
Administrative Review, 61 FR 6812 (February 22, 1996). In the instant 
case, no evidence has been presented or

[[Page 66167]]

obtained which contradicts the relevance of the benefit data relied 
upon in previous segments of this proceeding. Thus, in the instant 
case, the Department finds that the information used has been 
corroborated to the extent practicable.
    For further discussion, see the ``Use of Facts Available'' section 
of the Decision Memorandum.

Final Results of Review

    In accordance with sections 777A(e)(1) and 751(a)(1)(A) of the Act 
and 19 CFR 351.221(b)(5), we calculated an ad valorem subsidy rate for 
Nima, the only producer/exporter subject to this review, for the POR, 
calendar year 2004.

------------------------------------------------------------------------
                                                            Net Subsidy
                    Producer/Exporter                          Rate
------------------------------------------------------------------------
Tehran Negah Nima Trading Company, Inc., trading as Nima   66.50 percent
 Trading Company (Nima).................................      ad valorem
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    As Nima is the exporter but not the producer of subject 
merchandise, the Department's final results of review apply only to 
subject merchandise exported by Nima and produced by any company which 
produces the subject merchandise. See 19 CFR 351.107(b) (providing that 
the Department may establish a combination rate for each combination of 
exporter and its supplying producer).
    Therefore, we will issue the following cash deposit requirements, 
within 15 days of publication of the final results of the instant 
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, the cash deposit rate will be 
66.50 percent ad valorem, i.e., the rate calculated in the final 
results of the instant administrative review; (2) 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 (3) if neither the exporter nor the producer is a firm 
covered in this review, a prior review, or the original investigation, 
the cash deposit rate will continue to be 317.89 percent ad valorem, 
the ``All Others'' rate from the final determination in the original 
investigation. We will also issue assessment instructions to U.S. 
Customs and Border Protection (CBP) 15 days after the date of 
publication of these final results of review.
    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(a)(3). Timely written 
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 is a sanctionable violation.
    This administrative review and notice are issued and published in 
accordance with sections 751(a)(1), 751(a)(3) and 777(i)(1) of the Act 
and 19 CFR 351.221(b)(5).

    Dated: November 6, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I - Issues and Decision Memorandum

I. Methodology and Background Information
Use of Facts Available>
II. Analysis of Programs

Programs Determined to Be Countervailable

    1. Provision of Fertilizer and Machinery
    2. Provision of Credit
    3. Tax Exemptions
    4. Provision of Water and Irrigation Equipment
    5. Technical Support
    6. Duty Refunds on Imported Raw or Intermediate Materials Used in 
the Production of Export Goods
    7. Program to Improve Quality of Exports of Dried Fruit
    8. Iranian Export Guarantee Fund
    9. GOI Grants and Loans to Pistachio Farmers
    10. Crop Insurance for Pistachios
III. Total Ad Valorem Rate
IV. Analysis of Comments
    Comment 1: Adverse Facts Available Rate
    Comment 2: Additional Subsidy Programs
[FR Doc. E6-19108 Filed 11-9-06; 8:45 am]
BILLING CODE 3510-DS-S