69 FR 29518, May 24, 2004

DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-813]

Honey from Argentina: 
Final Results of Countervailing Duty Administrative Review

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

SUMMARY: On December 15, 2003, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
of administrative review of the countervailing duty order on honey from 
Argentina for the period January 1, 2001 through December 31, 2002. We 
are now issuing the final results.
    Based on our analysis of the comments received, we have made no 
changes to the net countervailable subsidy rates for 2001 and 2002. 
Therefore, the final results do not differ from the preliminary 
results. The final net countervailable subsidy rates are listed below 
in the section entitled ``Final Results of Administrative Review.''

EFFECTIVE DATE: May 24, 2004.

FOR FURTHER INFORMATION CONTACT: Thomas Gilgunn or Addilyn Chams-
Eddine, Office of AD/CVD Enforcement VII, Import Administration, U.S. 
Department of Commerce, Room 4012, 14th Street and Constitution Avenue, 
N.W., Washington, D.C. 20230; telephone (202) 482-4236 or (202) 482-
0648, respectively.

SUPPLEMENTARY INFORMATION:

Background

    In response to requests for an administrative review of the 
countervailing duty (CVD) order on honey from Argentina from the 
Government of Argentina (GOA) and the American Honey Producers 
Association and Sioux Honey Association (petitioners), the Department 
initiated an administrative review for the period January 1, 2001 
through December 31, 2001. See Initiation of Antidumping and 
Countervailing Duty Administrative

[[Page 29519]]

Reviews and Request for Revocation in Part, 68 FR 3009 (January 22, 
2003) (Initiation Notice).
    In its request for review, the GOA requested ``that the period of 
review be extended to include calendar year 2002.'' Based on our 
analysis of the GOA's request and the comments received from the 
petitioners and the GOA on this issue, the Department expanded the 
period of review to include 2002. Accordingly, this administrative 
review covers calendar years January 1, 2001 through December 31, 2001 
and January 1, 2002 through December 31, 2002.\1\ (See memorandum from 
Thomas Gilgunn to Joseph A Spetrini ``Honey from Argentina: Expansion 
of the Period of Review in the First Administrative Review of the 
Countervailing Duty Order,'' dated February 21, 2003, on file in the 
Central Records Unit (CRU) located in room B-099 of the Main Commerce 
Building.)
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    \1\ For the purposes of these final results, we have analyzed 
data for the period January 1, 2001 through December 31, 2001 to 
determine the countervailable subsidy rate for exports of subject 
merchandise made during the periods in 2001 when liquidation of 
entries was suspended. In addition, we have analyzed data for the 
period January 1, 2002 through December 31, 2002 to determine the 
countervailable subsidy rate for exports during that period and to 
establish the cash deposit rate for subsequent exports of subject 
merchandise.
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    On December 15, 2003, the Department published in the Federal 
Register the preliminary results of the administrative review of the 
countervailing duty order on honey from Argentina. See Honey from 
Argentina: Preliminary Results of Countervailing Duty Administrative 
Review, 68 FR 69660 (December 15, 2003) (Preliminary Results). On 
January 14, 2004, the Government of Argentina (GOA) and petitioners 
submitted case briefs regarding the Department's Preliminary Results. 
Both the GOA and petitioners filed rebuttal briefs on January 20, 2004. 
On March 31, 2004, the Department extended the deadline for completion 
of the final results of the administrative review of the countervailing 
duty order on honey from Argentina to May 17, 2004. See Notice of 
Extension of Time Limit for the Final Results of Countervailing Duty 
Administrative Review: Honey from Argentina, 69 FR 16895 (March 31, 
2004).

Scope of the Countervailing Duty Order

    The merchandise covered by this order is 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 order 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 Bureau of Customs and 
Border Protection (CBP) purposes, the Department's written description 
of the merchandise covered by this order is dispositive.

Analysis of Comments Received

    All issues raised by the interested parties in their case and 
rebuttal briefs are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memorandum) dated May 17, 2004, which is hereby adopted by 
this notice. A list of the issues which parties have raised is attached 
to this notice as Appendix I. 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 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://www.ia.ita.doc.gov under the heading "Federal Register Notices."
The paper copy and the electronic version of the Decision Memorandum 
are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we have made no 
changes to the net countervailable subsidy rates for 2001 and 2002, or 
to the rate of cash deposit of estimated countervailing duties which 
will apply to entries of honey from Argentina made on or after the date 
of publication of these final results of review. For a complete 
discussion of the Department's determination with respect to the 
programs under review as well as of the methodologies applied in 
analyzing these programs please see the memorandum ``Honey From 
Argentina: Issues and Decision Memorandum in the Final Results of 
Countervailing Duty Administrative Review,'' dated May 17, 2004 
(Decision Memo).

Final Results of Administrative Review

    In accordance with section 777A(e)(2)(B) of the Act, we have 
calculated the net countervailable subsidy rates on an aggregate or 
industry-wide basis for exports of subject merchandise in this 
administrative review. We have calculated separate rates for 2001 and 
for 2002. Accordingly, we determine the total net countervailable 
subsidy rate to be 5.77 percent ad valorem for 2001 and 0.57 percent ad 
valorem for 2002.
    The Department will instruct U.S. Customs and Border Protection 
(CBP) to liquidate shipments of honey from Argentina entered, or 
withdrawn from warehouse, for consumption on or after March 13, 2001 
and on or before July 10, 2001, and on or after December 10, 2001 and 
on or before December 31, 2001 at 5.77 percent ad valorem. Shipments of 
honey from Argentina entered, or withdrawn from warehouse, for 
consumption on or after January 1, 2002 and on or before December 31, 
2002 will be liquidated at 0.57 percent ad valorem. The Department will 
also instruct CBP to collect cash deposits of estimated countervailing 
duties at 0.57 percent ad valorem for all shipments of honey from 
Argentina entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of these final results of administrative 
review. The Department will issue appropriate assessment instructions 
directly to the CBP within 15 days of publication of these final 
results of review.

Return or Destruction of Propriety Information

    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 Sec.  351.305. 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 sanctionable violation.
    This administrative review and notice are issued and published in 
accordance with section 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 
1675(a)(1) and 19 U.S.C. 1677(f)(1).

    Dated: May 17, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix 1

Issues Discussed in Decision Memorandum

Methodology and Background Information

I. Subsidies Valuation Information
    A. Aggregation
    B. Allocation Period
    C. Benchmark Interest Rate and Discount Rate

[[Page 29520]]

II. Analysis of Programs
    A. Programs Determined to be Countervailable
       1. Federal Programs
          a. Argentine Internal Tax Reimbursement/Rebate Program (Reintegro)
          b. Factor de Convergencia (Convergence Factor)
          c. Regional Productive Revitalization: National Program for the 
             Promotion and Development of Local Productive Initiative (Regional 
             Productive Revitalization Program)
          d. BNA Financing for the Acquisition of Goods of Argentine Origin
       2. Provincial Government Programs
          a. Province of San Luis Honey Development Program
          b. Province of Chaco Line of Credit Earmarked for the Honey Sector
          c. Buenos Aires Honey Program
             i. Line of Credit for Working Capital
             ii. Line of Credit for the Acquisition of Capital Goods
    B. Program Determined To Be Not Countervailable
       Provincial Program
       Convenio Programa MIPyMEs Bonarenses 2000 and the Convenio Programa 
       MIPyMEs Agropecarias Bonarense 2000
    C. Programs Determined Not To Be Used
       1. Federal Programs
          a. BICE Norm 011: Financing of Production of Goods Destined for Export
          b. BICE Norm 007: BICE Norm 007: Line of Credit Offered to Finance 
             Industrial Investment Projects to Restructure and Modernize the 
             Argentine Industry
          c. BNA Line of Credit to the Agricultural Producers of the Patagonia
          d. BNA Pre - Financing of Exports Regime for the Agricultural Sector
          e. Production Pole Program for Honey Producers
          f. Enterprise Restructuring Program
          g. SGRs - Government Backed Loans Guarantees
          h. Fundacion Export *AR
             i. PROAPI
       2. Provincial Programs
          a. Province of Entre Rios Honey Program
          b. Province of Chubut: Province of Chabut Law No. 4430/98
          c. Province of Santiago del Estero: Creditos de Confinanzas (Trust Credits)

III. Total Ad Valorem Rates

IV. Analysis of the Issues
    Issue 1: Use of Facts Available
    Issue 2: Use of Adverse Fact Available
    Issue 3: Basis of Adverse Fact Available
    Issue 4: Determination of Assessment and Cash Deposit Rates

[FR Doc. 04-11675 Filed 5-21-04; 8:45 am]