[Federal Register Volume 72, Number 23 (Monday, February 5, 2007)]
[Notices]
[Pages 5271-5273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1816]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-819]


Certain Pasta From Italy: Final Results of Expedited Five-Year 
(``Sunset'') Review of the Countervailing Duty Order

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

SUMMARY: On October 2, 2006, the Department of Commerce (``the 
Department'') published in the Federal Register the notice of 
initiation of the second five-year sunset review of the countervailing 
duty order on certain pasta (``pasta'') from Italy, pursuant to section 
751(c) of the Tariff Act of 1930, as amended (``the Act''). See 
Initiation of Five-year (``Sunset'') Reviews, 71 FR 57921 (October 2, 
2006) (``Second Sunset Review''). The Department has conducted an 
expedited sunset review of this order pursuant to section 751(c)(3)(B) 
of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2). As a result of this 
sunset review, the Department finds that revocation of the 
countervailing duty order is likely to lead to continuation or 
recurrence of a countervailable subsidy at the levels indicated in the 
``Final Results of Review'' section of this notice.

EFFECTIVE DATE: February 5, 2007.

FOR FURTHER INFORMATION CONTACT: Audrey R. Twyman or Brandon Farlander, 
AD/CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Ave., NW., Washington, DC 20230; telephone: (202) 482-3534 
or (202) 482-0182, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The countervailing duty order which covers pasta from Italy was 
published in the Federal Register on July 24, 1996. See Notice of 
Countervailing Duty Order and Amended Final Affirmative Countervailing 
Duty Determination: Certain Pasta (``Pasta'') From Italy, 61 FR 38544 
(July 24, 1996). On October 2, 2006, the Department initiated the 
second sunset review of this order, pursuant to section 751(c) of the 
Act. See Second Sunset Review. The Department received a notice of 
intent to participate from the following domestic parties: A. Zerega's 
Sons, Inc.; American Italian Pasta Company; Dakota Growers Pasta 
Company, Inc.; New World Pasta Company; and Philadelphia Macaroni 
Company (collectively, ``domestic interested parties''), within the 
deadline specified in 19 CFR 351.218(d)(1)(i). The companies claimed 
interested party status under section 771(9)(C) of the Act, as 
manufacturers of a domestic-like product in the United States.
    On October 12, 2006, the Department received a request for a 12-day 
extension of time from the Government of Italy (``GOI'') to submit its 
substantive response. The Department partially granted the GOI's 
request and extended the deadline for filing a substantive response to 
November 8, 2006. The same extension was also granted to the domestic 
interested parties, per their request. On November 8, 2006, the 
Department received complete substantive responses to the notice of 
initiation from the domestic interested parties and from the GOI. On 
November 2, 2006, we received a complete substantive response to the 
notice of initiation from the Delegation of the European Commission 
(``EC'').
    The Department did not receive any substantive responses from any 
Italian producers or exporters of the merchandise covered by this 
order. Based on the fact that a government's response alone, normally, 
is not sufficient for full sunset reviews in which the orders are not 
done on an aggregate basis, we determined to conduct an expedited (120 
day) sunset review of this order. See section 751(c)(3)(A) of the Act 
and 19 CFR 351.218(e)(1)(ii)(C)(2). See, e.g., Final Results of 
Expedited Sunset Reviews of Countervailing Duty Orders: Pure Magnesium 
and Alloy Magnesium from Canada, 70 FR 67140 (November 4, 2005). See 
also Letter to Robert Carpenter, Director, Office of Investigations, 
International Trade Commission, from Wendy Frankel, Director, Import 
Administration, Department of Commerce, regarding inadequate response 
to the notice of initiation from respondent interested parties 
(November 21, 2006); and Memorandum from Saliha Loucif, International 
Trade Compliance Analyst, to Susan Kuhbach, Office Director, Import 
Administration, Department of Commerce, regarding
    ``Adequacy Determination of the Second Sunset Review of the 
Countervailing Duty Order on Certain Pasta from Italy,'' (November 21, 
2006).
    On January 19, 2007, the Department placed the calculation of the 
all others rate from the investigation onto the record of this sunset 
review and allowed parties to comment. We received comment from 
domestic interested parties on January 24, 2007. No hearing was held 
because none was requested.

Scope of the Order

    Imports covered by the 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 the 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, 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,

[[Page 5272]]

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. Further, based on publicly available 
information, the Department has determined that, as of March 13, 2003, 
imports of organic pasta from Italy that are accompanied by the 
appropriate certificate issued by Instituto per la Certificazione Etica 
e Ambientale (ICEA) are also excluded from this order.
    See Memorandum from Audrey Twyman to Susan Kuhbach, dated February 
28, 2006, entitled ``Recognition of Instituto per la Certificazione 
Etica e Ambientale (ICEA) as a Public Authority for Certifying Organic 
Pasta from Italy,'' which is on file in the CRU.
    The merchandise subject to review is currently classifiable under 
item 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 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.
    (4) On April 27, 2000, the Department self-initiated an anti-
circumvention inquiry to determine whether Pastificio Fratelli Pagani 
S.p.A.'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).

Analysis of Comments Received

    All issues raised in substantive responses by parties in this 
sunset review are addressed in the ``Issues and Decision Memo for the 
Expedited Sunset Review of the Countervailing Duty Order on Certain 
Pasta from Italy; Final Results,'' (``Decision Memo''), from Stephen J. 
Claeys, Deputy Assistant Secretary for Import Administration, to David 
M. Spooner, Assistant Secretary for Import Administration, dated 
January 30, 2007, which is hereby adopted by this notice. The issues 
discussed in the Decision Memo include the likelihood of continuation 
or recurrence of a countervailable subsidy, the net countervailable 
subsidy rate likely to prevail if the order were revoked, and the 
nature of the subsidies.
    Parties can find a complete discussion of all issues raised in this 
sunset review and the corresponding recommendation in this public 
memorandum which is on file in B-099, the Central Records Unit, of the 
main Commerce building. In addition, a complete version of the Decision 
Memo can be accessed directly on the Department's Web page at http://ia.ita.doc.gov/frn/index.html. The paper copy and electronic version of 
the Decision Memo are identical in content.

Final Results of Review

    The Department determines that revocation of the countervailing 
duty order on pasta from Italy is likely to lead to continuation or 
recurrence of countervailable subsidies at the following countervailing 
duty rates:

------------------------------------------------------------------------
                                                        Net subsidy rate
                Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Agritalia, S.r.l.....................................               3.96
Agrrighi S.p.A. Industrie Alimentari.................               3.85
De Matteis Agroalimentare S.p.A......................               3.48
Delverde, S.r.l......................................               6.76
F.lli De Cecco di Filippo Fara S. Martino S.p.A......               3.40
Industria Alimentare Colavita, S.p.A.................               3.01
Isola del Grano S.r.L................................              10.70
Italpast S.p.A.......................................              10.70
Italpasta S.r.L......................................               3.85
La Molisana Alimentari S.p.A.........................               4.82
Labor S.r.L..........................................              10.70
Molino e Pastificio De Cecco S.p.A. Pescara..........               3.40
Pastificio Guido Ferrara.............................               2.34
Pastificio Campano, S.p.A............................               3.47
Pastificio Riscossa F.lli Mastromauro S.r.L..........               7.81
Tamma Industrie Alimentari di Capitanata.............               6.76
``All Others''.......................................               4.52
------------------------------------------------------------------------


[[Page 5273]]

Notification Regarding Administrative Protective Orders

    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(c), 752, and 777(i) of the Act.

    Dated: January 30, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-1816 Filed 2-2-07; 8:45 am]
BILLING CODE 3510-DS-P