[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Notices]
[Pages 56218-56219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25660]



[[Page 56218]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-469-818]


Ripe Olives From Spain: Preliminary Affirmative Countervailing 
Duty Determination, and Alignment of Final Determination With Final 
Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of ripe olives from Spain. The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: Application November 28, 2017.

FOR FURTHER INFORMATION CONTACT: Mary Kolberg, Lana Nigro, or Jennifer 
Shore, AD/CVD Operations, Office I, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1785, (202) 482-1779, (202) 482-2778, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on July 19, 
2017.\1\ On August 30, 2017, the Department postponed the preliminary 
determination of this investigation to November 20, 2017.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
http://access.trade.gov, and is available to all parties in the Central 
Records Unit, room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed and electronic versions of the Preliminary Decision Memorandum 
are identical in content.
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    \1\ See Ripe Olives from Spain: Initiation of Countervailing 
Duty Investigation, 82 FR 33050 (July 19, 2017) (Initiation Notice).
    \2\ See Ripe Olives from Spain: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 82 FR 41210 
(August 30, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Ripe 
Olives from Spain,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are ripe olives from 
Spain. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ No interested 
party commented on the scope of the investigation as it appeared in the 
Initiation.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department preliminarily determines that there is 
a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    The Department notes that, in making these findings, it relied, in 
part, on facts available pursuant to section 776(a) of the Act because 
information necessary for our analysis was not available on the record. 
For further information, see ``Partial Use of Facts Available'' in the 
Preliminary Decision Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), the Department 
is aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of Ripe Olives from Spain, based on a request 
made by the petitioner.\7\ Consequently, the final CVD determination 
will be issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than April 3, 2018, unless 
postponed.
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    \7\ See Letter from the petitioner, ``Request for Alignment of 
Final Determination,'' dated November 16, 2017.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely 
under section 776 of the Act. In this investigation, the Department 
calculated individual estimated countervailable subsidy rates for 
Aceitunas Guadalquivir S.L.U. (Aceitunas Guadalquivir), Agro Sevilla 
Aceitunas S.Coop.And. (Agro Sevilla), Angel Camacho 
Alimentaci[oacute]n, S.L. (Camacho), that are not zero, de minimis, or 
based entirely on facts available. The Department calculated the all-
others rate using a weighted-average of the estimated subsidy rates 
calculated for the individually examined respondents using each 
company's business proprietary data for the merchandise under 
consideration.\8\
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    \8\ For a complete analysis of the data, please see the All-
Others Calculation Memorandum dated concurrently with this notice.
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Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:
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    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Aceitunas Guadalquivir S.L.U.: Coromar Inv., S.L., AG Explotaciones 
Agricolas, S.L.U., and Grupo Aceitunas Guadalquivir, S.L.
    \10\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Angel Camacho Alimentaci[oacute]n, S.L.: Grupo Angel Camacho 
Alimentac[iacute]on, Cuarterola S.L., and Cucanoche S.L.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Aceitunas Guadalquivir S.L.U.\9\........................            2.31
Agro Sevilla Aceitunas S.Coop.And.......................            2.47
Angel Camacho Alimentaci[oacute]n, S.L.\10\.............            7.24
All-Others..............................................            4.47
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the

[[Page 56219]]

Department will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit equal to the 
rates indicated above.

Disclosure

    The Department intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify the information relied upon in making its final 
determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
    International Trade Commission Notification
    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its determination. 
If the final determination is affirmative, the ITC will make its 
determination before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: November 20, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain processed 
olives, usually referred to as ``ripe olives.'' The subject 
merchandise includes all colors of olives; all shapes and sizes of 
olives, whether pitted or not pitted, and whether whole, sliced, 
chopped, minced, wedged, broken, or otherwise reduced in size; all 
types of packaging, whether for consumer (retail) or institutional 
(food service) sale, and whether canned or packaged in glass, metal, 
plastic, multi-layered airtight containers (including pouches), or 
otherwise; and all manners of preparation and preservation, whether 
low acid or acidified, stuffed or not stuffed, with or without 
flavoring and/or saline solution, and including in ambient, 
refrigerated, or frozen conditions.
    Included are all ripe olives grown, processed in whole or in 
part, or packaged in Spain. Subject merchandise includes ripe olives 
that have been further processed in Spain or a third country, 
including but not limited to curing, fermenting, rinsing, oxidizing, 
pitting, slicing, chopping, segmenting, wedging, stuffing, 
packaging, or heat treating, or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in Spain.
    Excluded from the scope are: (1) Specialty olives \12\ 
(including ``Spanish-style,'' ``Sicilian-style,'' and other similar 
olives) that have been processed by fermentation only, or by being 
cured in an alkaline solution for not longer than 12 hours and 
subsequently fermented; and (2) provisionally prepared olives 
unsuitable for immediate consumption (currently classifiable in 
subheading 0711.20 of the Harmonized Tariff Schedule of the United 
States (HTSUS)).
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    \12\ Some of the major types of specialty olives and their 
curing methods are:
     ``Spanish-style'' green olives. Spanish-style green 
olives have a mildly salty, slightly bitter taste, and are usually 
pitted and stuffed. This style of olive is primarily produced in 
Spain and can be made from various olive varieties. Most are stuffed 
with pimento; other popular stuffings are jalapeno, garlic, and 
cheese. The raw olives that are used to produce Spanish-style green 
olives are picked while they are unripe, after which they are 
submerged in an alkaline solution for typically less than a day to 
partially remove their bitterness, rinsed, and fermented in a strong 
salt brine, giving them their characteristic flavor.
     ``Sicilian-style'' green olives. Sicilian-style olives 
are large, firm green olives with a natural bitter and savory 
flavor. This style of olive is produced in small quantities in the 
United States using a Sevillano variety of olive and harvested green 
with a firm texture. Sicilian-style olives are processed using a 
brine-cured method, and undergo a full fermentation in a salt and 
lactic acid brine for 4 to 9 months. These olives may be sold whole 
unpitted, pitted, or stuffed.
     ``Kalamata'' olives: Kalamata olives are slightly 
curved in shape, tender in texture, and purple in color, and have a 
rich natural tangy and savory flavor. This style of olive is 
produced in Greece using a Kalamata variety olive. The olives are 
harvested after they are fully ripened on the tree, and typically 
use a brine-cured fermentation method over 4 to 9 months in a salt 
brine.
     Other specialty olives in a full range of colors, 
sizes, and origins, typically fermented in a salt brine for 3 months 
or more.
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    The merchandise subject to this investigation is currently 
classifiable under subheadings 2005.70.0230, 2005.70.0260, 
2005.70.0430, 2005.70.0460, 2005.70.5030, 2005.70.5060, 
2005.70.6020, 2005.70.6030, 2005.70.6050, 2005.70.6060, 
2005.70.6070, 2005.70.7000, 2005.70.7510, 2005.70.7515, 
2005.70.7520, and 2005.70.7525 HTSUS. Subject merchandise may also 
be imported under subheadings 2005.70.0600, 2005.70.0800, 
2005.70.1200, 2005.70.1600, 2005.70.1800, 2005.70.2300, 
2005.70.2510, 2005.70.2520, 2005.70.2530, 2005.70.2540, 
2005.70.2550, 2005.70.2560, 2005.70.9100, 2005.70.9300, and 
2005.70.9700. Although HTSUS subheadings are provided for 
convenience and US Customs purposes, they do not define the scope of 
the investigation; rather, the written description of the subject 
merchandise is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Partial Use of Facts Available
VII. Analysis of Programs
VIII. Calculation of the All-Others Rate
IX. ITC Notification
X. Disclosure and Public Comment
XI. Verification
XII. Conclusion

[FR Doc. 2017-25660 Filed 11-27-17; 8:45 am]
 BILLING CODE 3510-DS-P