[Federal Register Volume 74, Number 21 (Tuesday, February 3, 2009)]
[Notices]
[Pages 5922-5924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2238]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-819]


Certain Pasta from Italy: Final Results of the Eleventh (2006) 
Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (``the Department'') has 
completed its administrative review of the countervailing duty order on 
certain pasta from Italy for the period January 1, 2006 through 
December 31, 2006. We find that De Matteis Agroalimentare S.p.A. (``De 
Matteis''), Pastificio Lucio Garofalo S.p.A. (``Garofalo''), and F.lli 
De Cecco di Filippo Fara San Martino S.p.A. (``De Cecco'') received 
countervailable subsidies, and that Pastificio Felicetti SrL 
(``Felicetti'') did not receive any countervailable subsidies. The 
final net subsidy rates for the reviewed companies are listed below in 
the section entitled ``Final Results of Review.''

EFFECTIVE DATE: February 3, 2009.

FOR FURTHER INFORMATION CONTACT: Andrew McAllister or Brandon 
Farlander, AD/CVD Operations, Office 1, Import Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-1174 and (202) 482-0182, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 2008, the Department published in the Federal Register 
its preliminary results of the administrative review of the 
countervailing duty order on certain pasta from Italy for the period 
January 1, 2006, through December 31, 2006. See Certain Pasta from 
Italy: Preliminary Results of the 11th (2006) Countervailing Duty 
Administrative Review, 73 FR 45721 (Aug. 6, 2008) (``Preliminary 
Results'').
    Since the signing of the Preliminary Results, we sent a 
supplemental questionnaire to the Government of Italy (``GOI'') on July 
31, 2008, and received the GOI response on August 13, 2008. We invited 
interested parties to comment on the preliminary results. A case brief 
was received from Garofalo on September 5, 2008. No rebuttal briefs 
were received, and the Department did not conduct a hearing in this 
review because none was requested.
    Based on our analysis of the supplemental questionnaire response 
from the GOI, we have revised the net subsidy rates for De Matteis, 
Garofalo, and De Cecco. Therefore, the final results differ from the 
preliminary results.

Period of Review

    The period of review (``POR'') for which we are measuring subsidies 
is January 1, 2006, through December 31, 2006.

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, 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 1117 of the main Department building. In addition, 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,

[[Page 5923]]

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 
Department's CRU.
    The merchandise subject to review is currently classifiable under 
items 1901.90.90.95 and 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 Tariff Act 
of 1930, as amended (``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).

Information Considered Since the Preliminary Results

    In the seventh administrative review and the preliminary results of 
this review, we found the following social security reductions and 
exemptions (sgravi) programs countervailable: Law 223/91, Article 8, 
Paragraph 2 and Article 25, Paragraph 9. We provided the GOI with two 
opportunities to demonstrate that these programs are not 
countervailable but the GOI did not respond to the industry usage 
portion of these supplemental questionnaires.
    For another social security benefit (provided under Legislative 
Decree 276/03), we stated in the preliminary results that we needed 
additional information. However, the GOI did not provide industry usage 
data in response to our post-preliminary questionnaire. Moreover, based 
on our review of the record evidence, we find that Legislative Decree 
276/03 is a continuation of one or more other programs determined to be 
countervailable in the seventh administrative review (Law 25/55 or Law 
56/87).
    Based on the above, we find that the GOI has not provided 
sufficient information that would lead us to reconsider our prior 
findings that Social Security benefits under Law 223/91, Article 8, 
Paragraph 2 and Law 223/91, Article 25, Paragraph 9 are 
countervailable. Further, we find that, based upon record evidence, 
Legislative Decree 276/03 provides for a continuation of subsidy 
benefits which we previously determined were countervailable. 
Therefore, we are treating these benefits as countervailable subsidies 
for the final results.
    For additional details, see January 27, 2009, Issues and Decision 
Memorandum for the Eleventh (2006) Countervailing Duty Administrative 
Review of Certain Pasta from Italy (``Decision Memorandum'').
    As a result of the Department's finding with respect to Legislative 
Decree 276/03, there has been one change since the Preliminary Results 
which affects the subsidy rate for De Matteis, De Cecco, and Garofalo. 
See Decision Memorandum.
    All issues raised in the case brief filed by Garofalo are addressed 
in the Decision Memorandum, which is hereby adopted by this notice. 
Attached to this notice as an appendix is a list of the issues which 
this interested party raised and to which we have responded in the 
Decision Memorandum. Parties can find a complete discussion of all 
issues raised in this review and the corresponding recommendations in 
this public memorandum, which is on file in the Department's CRU. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Web at http://ia.ita.doc.gov/frn/index.html. The paper 
copy and electronic version of the Decision Memorandum are identical in 
content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated 
individual subsidy rates for De Matteis, Garofalo, and De Cecco. For 
the revised rate calculations, see Memorandum to the File, ``2006 Final 
Results Calculation Memorandum for De Matteis Agroalimentare S.p.A.,'' 
dated January 27, 2009 (``De Matteis Final Calc Memo''); Memorandum to 
the File, ``2006 Final Results Calculation Memorandum for F.lli De 
Cecco di Filippo Fara San Martino S.p.A.,'' dated January 27 , 2009 
(``De Cecco Final Calc Memo''); and Memorandum to the File, ``2006 
Final Results Calculation Memorandum for Pastificio Lucio Garofalo 
S.p.A.,'' dated January 27, 2009 (``Garofalo Final Calc Memo''). For a 
complete analysis of the programs found to be countervailable and the 
basis for the Department's determination, see the Decision Memorandum.
    For the period January 1, 2006, through December 31, 2006, we find 
the net subsidy rates for the producers/exporters under review to be 
those specified in the chart shown below:

------------------------------------------------------------------------
                  Producer/Exporter                    Net Subsidy Rate
------------------------------------------------------------------------
De Matteis Agroalimentare S.p.A.....................               2.69%
Pastificio Lucio Garofalo S.p.A.....................               1.62%
F.lli De Cecco di Filippo Fara San Martino S.p.A....               0.88%
Pastificio Felicetti SrL............................               0.00%
All-Others Rate.....................................               3.85%
------------------------------------------------------------------------

    The calculations will be disclosed to the interested parties in 
accordance with 19 CFR 351.224(b).
    Because the countervailing duty rate for Felicetti is zero, we will 
instruct U.S.

[[Page 5924]]

Customs and Border Protection (``CBP'') to liquidate entries for 
Felicetti during the period January 1, 2006, through December 31, 2006, 
without regard to countervailing duties in accordance with 19 CFR 
351.106(c). For De Matteis, Garofalo, and De Cecco, the Department will 
instruct CBP to assess countervailing duties at these net subsidy 
rates. The Department will issue appropriate instructions directly to 
CBP 15 days after publication of these final results of review.
    For all other companies that were not reviewed (except Barilla G. e 
R. F.lli S.p.A. and Gruppo Agricoltura Sana S.r.l., which are excluded 
from the order, and Pasta Lensi S.r.l. which was revoked from the 
order), the Department has directed CBP to assess countervailing duties 
on all entries between January 1, 2006, and December 31, 2006, at the 
rates in effect at the time of entry.
    The Department also intends to instruct CBP to collect cash 
deposits of estimated countervailing duties at the rates shown above on 
all shipments of the subject merchandise that are entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
the final results of this administrative review. Since the 
countervailable subsidy rate for Felicetti is zero, the Department will 
instruct CBP to continue to suspend liquidation of entries, but to 
collect no cash deposits.
    For all non-reviewed firms (except Barilla G. e R. F.lli S.p.A. and 
Gruppo Agricoltura Sana S.r.l., which are excluded from the order, and 
Pasta Lensi S.r.l. which was revoked from the order), we will instruct 
CBP to collect cash deposits of estimated countervailing duties at the 
most recent company-specific or all-others rate applicable to the 
company. These rates shall apply to all non-reviewed companies until a 
review of a company assigned these rates is requested.
    This notice 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 or 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.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: January 27, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

APPENDIX

List of Comments and Issues in the Decision Memorandum

Comment 1: Garofalo's Benchmark Rate for Its 1998 Loan under Law 64/86
Comment 2: Garofalo's Discount Rate for Grants under Law 64/86
[FR Doc. E9-2238 Filed 2-2-08; 8:45 am]
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