66 FR 42514, August 13, 2001

DEPARTMENT OF COMMERCE

International Trade Administration

[C-535-001]
 
Cotton Shop Towels From Pakistan: Final Results of Countervailing 
Duty Administrative Review

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

ACTION: Notice of final results of countervailing duty administrative 
review.

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SUMMARY: On April 9, 2001, the Department of Commerce (the Department) 
published in the Federal Register its preliminary results of 
administrative review of the countervailing duty order on cotton shop 
towel from Pakistan for the period January 1, 1999, through December 
31, 1999. See Cotton Shop Towels From Pakistan: Preliminary Results and 
Partial Rescission of Countervailing Duty Administrative Review, 66 FR 
18444 (April 9, 2001) (Preliminary Results).
    Based on our analysis of the comments received, we have not made 
changes to the net subsidy rates. Therefore, the final results do not 
differ from the preliminary results. The final net subsidy rates for 
the reviewed companies are listed below in the section entitled ``Final 
Results of Review.''

EFFECTIVE DATE: August 13, 2001.

FOR FURTHER INFORMATION CONTACT: Gayle Longest at (202) 482-3338 or 
Mark Young at (202) 482-6397, Office of AD/CVD Enforcement VI, Group 
II, Import Administration, International Trade Administration, U.S. 
Department of Commerce, Room 4012, 14th Street and Constitution Avenue, 
NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). 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 April 9, 2001, the Department published its preliminary results 
of administrative review of the countervailing duty order on cotton 
shop towels from Pakistan. See Preliminary Results. This review covers 
11 manufacturers/exporters, Mehtabi Towel Mills Ltd. (Mehtabi), Shahi 
Textiles (Shahi), Silver Textile Factory (Silver), Universal Linen 
(Universal), United Towel Exporters (United), R.I. Weaving (R.I.), Fine 
Fabrico (Fabrico), Ejaz Linen (Ejaz), Quality Linen Supply Corp. 
(Quality), Jawwad Industries (Jawwad), and Ahmed & Co. (Ahmed). The 
review covers the period January 1, 1999, through December 31, 1999, 
and seven programs.

Scope of the Review

    The merchandise subject to this review is cotton shop towels. The 
product covered in this review is provided for under item number 
6307.10.20 of the Harmonized Tariff Schedule of the United States 
(HTSUS). The HTSUS subheadings are provided for convenience and Customs 
purposes. The written description of the scope of this proceeding is 
dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) dated concurrent with this notice 
which is hereby adopted by this notice. A list of issues which parties 
have raised and to which we have responded, all of which are in the 
Decision Memorandum, 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

[[Page 42515]]

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 electronic version of the Decision Memorandum are 
identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have not made any 
changes to the subsidy rate calculations from the preliminary results.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual subsidy rate for each producer/exporter subject to this 
review. We will instruct the U.S. Customs Service (Customs) to assess 
countervailing duties as indicated below on all appropriate entries. 
For the period January 1, 1999, through December 31, 1999, we determine 
the net subsidy rates for the reviewed companies to be as follows:

------------------------------------------------------------------------
                                                              Ad valorem
                          Company                                rate
                                                              (percent)
------------------------------------------------------------------------
Mehtabi....................................................         3.68
Quality....................................................         3.68
Fabrico....................................................         3.68
Ejaz.......................................................         3.68
United.....................................................         6.60
R.I........................................................         6.60
Universal..................................................         6.60
Shahi......................................................         3.32
Ahmed......................................................         3.32
Jawwad.....................................................         2.97
Silver.....................................................        10.24
------------------------------------------------------------------------

    We will instruct Customs to assess countervailing duties as 
indicated above. The Department will also instruct Customs to collect 
cash deposits of estimated countervailing duties in the percentages 
detailed above of the f.o.b. invoice price on all shipments of the 
subject merchandise from reviewed companies, entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this review.
    Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for 
investigated and reviewed companies, the procedures for establishing 
countervailing duty rates, including those for non-reviewed companies, 
are now essentially the same as those in antidumping cases, except as 
provided for in section 777A(e)(2)(B) of the Act. The requested review 
will normally cover only those companies specifically named. See 19 CFR 
351.213(b). Pursuant to 19 CFR 351.212(c), for all companies for which 
a review was not requested, duties must be assessed at the cash deposit 
rate, and cash deposits must continue to be collected at the rate 
previously ordered. As such, the countervailing duty cash deposit rate 
applicable to a company can no longer change, except pursuant to a 
request for a review of that company. See Federal-Mogul Corporation and 
the Torrington Company v. United States, 822 F. Supp. 782 (CIT 1993); 
Floral Trade Council v. United States, 822 F. Supp. 766 (CIT 1993). 
Therefore, the cash deposit rates for all companies except those 
covered by this review will be unchanged by the results of this review.
    We will instruct Customs to continue to collect cash deposits for 
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to non-reviewed companies covered by this 
order will be the rate for that company established in the most 
recently completed administrative proceeding conducted under the Act, 
as amended by the URAA. If such a review has not been conducted, the 
rate established in the most recently completed administrative 
proceeding, pursuant to the statutory provisions that were in effect 
prior to the URAA amendments, is applicable. See Cotton Shop Towels 
From Pakistan: Final Results of Countervailing Duty Administrative 
Reviews, 62 FR 24082 (May 2, 1997). These rates shall apply to all non-
reviewed companies until a review of a company assigned these rates is 
requested. In addition, for the period January 1, 1999, through 
December 31, 1999, the assessment rates applicable to all non-reviewed 
companies covered by this order are the cash deposit rates in effect at 
the time of entry.
    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. 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 a sanctionable violation.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).

    Dated: August 7, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues Discussed in Decision Memorandum

    http://www.ia.ita.doc.gov, under the heading (``Federal Register 
Notices'').

Methodology and Background Information

I. Use of Facts Available
II. Analysis of Programs
    A. Programs Conferring Subsidies
    1. Export Finance Scheme
    2. Sales Tax Rebate Program
    3. Customs Duty Rebate Program
    4. Income Tax Reduction on Export Income Program
III. Programs Determined To Be Not Used
    A. Rebate of Excise Duty
    B. Export Credit Insurance
    C. Import Duty Rebates
IV. Total Ad Valorem Rate
V. Analysis of Comments
Comment 1--Income Tax Reduction on Export Income Program
Comment 2--Customs Duty Rebate Program
Comment 3--Sales Tax Rebate Program

[FR Doc. 01-20273 Filed 8-10-01; 8:45 am]
BILLING CODE 3510-DS-P