[Federal Register: October 4, 2001 (Volume 66, Number 193)]
[Notices]
[Page 50613-50615]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-357-813]
Final Affirmative Countervailing Duty Determination: Honey From
Argentina
AGENCY: Import Administration, International Trade Administration
Department of Commerce.
ACTION: Notice of final affirmative countervailing duty investigation.
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SUMMARY: On March 13, 2001, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determination in the countervailing duty investigation of honey from
Argentina. Based on our analysis of the questionnaire responses,
verification, and the comments submitted by the parties, we determine
that subsidies are being conferred on the manufacture, production and
export of honey from Argentina. The subsidy rates in this final
determination differ from those in the preliminary determination. The
revised final subsidy rates for the investigated producers/exporters
are listed below in the ``Suspension of Liquidation'' section of this
notice.
EFFECTIVE DATE: October 4, 2001.
FOR FURTHER INFORMATION CONTACT: Thomas Gilgunn at (202) 482-4236,
Holly Hawkins at (202) 482-0414 or Christian Hughes at (202) 482-0648,
Office of AD/CVD Enforcement VII, Group III, Import Administration,
International Trade Administration, U.S. Department of Commerce, Room
7866, 14th Street and Constitution Avenue, NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the Tariff Act of 1930, as amended. In addition, unless
otherwise indicated, all citations to the Department's regulations are
to the regulations codified at 19 CFR part 351 (2000).
Background
On March 13, 2001, the Department published the results of its
preliminary determination in the investigation of Honey From Argentina.
See Honey from Argentina: Preliminary Affirmative Countervailing Duty
Determination and Alignment with Final Antidumping Determination on
Honey from the People's Republic of China, 66 FR 14521 (Preliminary
Determination). We invited interested parties to comment on the
Preliminary Determination.
On April 3, 2001, we issued a supplemental questionnaire to the
Government of Argentina. We received a response to this questionnaire
on April 30, 2001. On May 7, 2001, we received comments from
petitioners regarding the verification of the questionnaire responses.
Verification of the questionnaire responses provided by the Government
of Argentina (GOA) was conducted May 30 through June 11, 2001. We also
met with an independent banker in Argentina during this time period.
On May 31, 2001, we postponed the final determination in this
investigation until September 24, 2001, pursuant to the postponement of
the final determination in the companion antidumping duty investigation
of honey from the People's Republic of China with which this
investigation had
[[Page 50614]]
previously been aligned. See Notice of Postponement of Final
Determination of Sales at Less Than Fair Value: Honey from Argentina
and the People's Republic of China and Postponement of Final
Countervailing Duty Determination: Honey from Argentina, 66 FR 30413
(June 6, 2001).
The GOA and petitioners submitted timely case and rebuttal briefs
in this investigation.
Although the deadline for this determination was originally
September 24, 2001, in light of the events of September 11, 2001 and
the subsequent closure of the Federal Government for reasons of
security, the time frame for issuing this determination has been
extended by two days.
Scope of the Investigation
The merchandise subject to this investigation is natural honey,
artificial honey containing more than 50 percent natural honeys by
weight, preparations of natural honey containing more than 50 percent
natural honeys by weight, and flavored honey. The subject merchandise
includes all grades and colors of honey whether in liquid, creamed,
combs, cut comb, or chunk form, and whether packaged for retail or in
bulk form.
The merchandise subject to this investigation is currently
classifiable under subheadings 0409.00.00, 1702.90, and 2106.90.99 of
the Harmonized Tariff Schedule of the United States (HTSUS). Although
the HTSUS subheadings are provided for convenience and U.S. Customs
Service (Customs) purposes, the Department's written description of the
merchandise under investigation is dispositive.
Analysis of Comments Received
The programs under investigation, as well as the issues raised in
the case and rebuttal briefs submitted in this countervailing duty
investigation are discussed and addressed in the Issues and Decision
Memorandum in the Final Affirmative Countervailing Duty Determination:
Honey from Argentina, from Joseph A. Spetrini, Deputy Assistant
Secretary for AD/CVD Enforcement III, to Faryar Shirzad, Assistant
Secretary for Import Administration, dated September 26, 2001,
(Decision Memorandum) which is hereby adopted by this notice. Attached
to this notice as an appendix is a list of the programs under
investigation, as well as a list of the issues which parties have
raised and to which we have responded in the Decision Memorandum.
Parties can find a complete discussion of the programs and issues
raised in this investigation, and the corresponding recommendations in
this public memorandum, which is on file in the Department's Central
Records Unit, in room B-099. In addition, the Decision Memorandum can
be accessed directly on the World Wide Web at http://ia.ita.doc.gov,
under the heading ``Federal Register Notices.'' The paper copy and
electronic version of the Decision Memorandum are identical in content.
Suspension Agreement
On August 24, 2001, the Department and the Government of Argentina
initialed a proposed suspension agreement and the Department gave
interested parties until September 14, 2001 to comment on the proposed
agreement. However, the Department and the Government of Argentina did
not sign a final suspension agreement on honey from Argentina by the
deadline date of September 26, 2001. Consequently, we have not
addressed petitioners' and the GOA's comments on the proposed
suspension agreement.
Suspension of Liquidation
In accordance with section 777A(e)(2)(B) of the Act, we have
calculated an aggregate or industry-wide rate for all of the producers/
exporters of honey under investigation. We have determined that the
total estimated countervailable subsidy rate is 4.53 percent ad
valorem. However, due to a program-wide change, we have established a
cash deposit rate of 5.85 percent ad valorem in accordance with section
351.526(a) of the Department's regulations.
In accordance with our preliminary affirmative determination, we
instructed Customs to suspend liquidation of all entries of honey from
Argentina, which were entered or withdrawn from warehouse for
consumption on or after March 13, 2001, the date of the publication of
our preliminary determination in the Federal Register, and to require a
cash deposit or bond for such entries of the merchandise in the amounts
indicated in the Preliminary Determination. In accordance with section
703(d) of the Act, we instructed Customs to discontinue the suspension
of liquidation for merchandise entered on or after August 18, 2001, but
to continue the suspension of liquidation of entries made between March
12, 2001 and August 18, 2001.
We will reinstate suspension of liquidation under section 706(a) of
the Act for all entries if the ITC issues a final affirmative injury
determination, and we will require a cash deposit of estimated
countervailing duties for such entries of merchandise in the amount
indicated above. This suspension of liquidation, if reinstated, will be
effective on the date of publication of the countervailing duty order.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated and all
estimated duties deposited or securities posted as a result of the
suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided that the ITC
confirms that it will not disclose such information, either publically
or under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated. If however,
the ITC determines that such injury does exist, we will issue a
countervailing duty order.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Failure to comply is a violation of the APO.
This determination and notice are issued and published in
accordance with sections 705(d) and 777(i) of the Act.
Dated: September 26, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I--Issues and Decision Memorandum
I. Subsidies Valuation Information
A. Aggregation
B. Green Box Claims
C. Allocation Period
D. Discount Rates and Benchmark Loan Rates
E. Denominators
II. Programs Determined to Confer Subsidies
A. Federal Programs
1. Argentine Internal Tax Reimbursement/Rebate Program
(Reintegro)
[[Page 50615]]
2. BNA Pre-Financing of Exports Regime for the Agriculture
Sector
3. Regional Productive Revitalization: National Program for the
Promotion and Development of Local Productive Initiative
(Dinamizacion Productiva Regional Nacional de Promocion y Fomenta de
la Iniciativa Productiva Local)
B. Provincial Government Programs
1. Buenos Aires Honey Program
a. Line of Credit for Working Capital
b. Line of Credit for the Acquisition of Capital Goods
c. Technical Assistance
2. Province of Chaco Line of Credit Earmarked for the Honey
Sector
3. Province of San Luis Honey Development Program
a. Leasing Agreements
b. CFI Lines of Credit
III. Programs Determined Not to Confer Subsidies
A. Federal Programs
1. BNA Line of Credit for Working Capital and Investment
Purposes
2. Global Credit Program for Micro and Small Businesses
3. Credit for Small Business Ventures
4. National Income Tax Exemption Pursuant to Article 20(1) of
Law 20,628
5. Law 22,913 Emergency Aid/Emergency Agricultural and Livestock
Law
6. BICE Norm 007: Line of Credit Offered to Finance Industrial
Investment Projects, and Projects to Restructure and/or Modernize
the Argentine Industry
7. PROAPI
B. Provincial Government Program
Exemption from Municipal Gross Income Tax Contingent on Export
Activity Pursuant to Article 116(12) of Law 150 (Buenos Aires Gross
Income Tax Exemption)
IV. Programs Determined to be Not Used
A. Federal Programs
1. BICE Norm 011: Financing of Production of Goods Destined for
Export
2. BNA Line of Credit to the Agricultural Producers of the
Patagonia (Regulation Annex to Circular BNA No. 10,111/1)
3. BNA Financing for the Acquisition of Goods of Argentine
Origin Line of Credit for the Acquisition of Industrial and
Agricultural Machinery, Silos and Transportation Vehicles
4. ``Production Pole'' Program for Honey Producers
5. Enterprise Restructuring Program (PRE)
6. Government Backed Loan Guarantees (SGR)
7. Fundacion Export*Ar
B. Provincial Government Programs
1. Province of Chubut Honey Program under Law No. 4430/98
2. Province of Santiago del Estero: Creditos de Confianza (Trust
Credits)
3. Entre Rios Honey Program: Law No. 7435/84
V. Federal Programs Determined to be Terminated
A. Federal Programs
1. PROMEX Consortium for Honey Exportation
2. Regional Promotional Scheme-Reimbursement ``Patagonico'':
Exemption of Import Duties on Capital Goods
B. Provincial Program
Formosa Honey Program/Undomesticated Bee Development Project
VI. Programs Determined Not to Exist
A. Federal Programs
1. BNA Warrant-Based Export Financing
2. Honey-Specific Line of Credit Program for the Pre-Financing
of Development Expenses Associated with Export Sales
B. Provincial Government Programs
1. La Pampa Lines of Credit
2. Province of San Luis: Creditos de Confianza (Trust Credits)
VII. Analysis of Comments
Comment 1: Initiation Standard
Comment 2: Denominator
Comment 3: Argentine Internal Tax Reimbursement/Rebate Program
(Reintegro)
Comment 4: The System for Determining the Reintegro
Comment 5: The Credibility of the EcoLatina Report
Comment 6: The EcoLatina Report: Examination of the Indirect Tax
Incidence for the Argentine Honey Sector
Comment 7: The EcoLatina Report: Indirect Taxes
Comment 8: Buenos Aires Honey Program: Specificity of the Line
of Credit for Working Capital
Comment 9: Buenos Aires Honey Program: Specificity of the Line
of Credit for the Acquisition of Capital Goods
Comment 10: Buenos Aires Honey Program: Benchmark Rate
Comment 11: Chaco Line of Credit Earmarked for the Honey Sector
Comment 12: San Luis Honey Development Program:
Countervailability of the Leasing Component
Comment 13: San Luis Honey Development Program: Leasing
Component Calculations
Comment 14: CFI Credit for Small Business Ventures Program Loans
to the Honey Sector and De Jure Specificity
Comment 15: CFI Financing: De Jure/De Facto Specificity
Comment 16: CFI Credit for Small Business Ventures in the
Province of San Luis: Link between Programs
Comment 17: Countervailability of BICE Norm 007
Comment 18: PROAPI'S Sales of Fertilized Queen Bees: Adequacy of
Remuneration
Comment 19: Use of BNA Loan Programs
Comment 20: Countervailability of Fundacion Export*Ar Program
Comment 21: Warrant-Based Financing
VIII. Total Ad Valorem Subsidy Rate
IX. Recommendation
[FR Doc. 01-24923 Filed 10-3-01; 8:45
BILLING CODE 3510-DS-P