[Federal Register Volume 69, Number 244 (Tuesday, December 21, 2004)]
[Notices]
[Pages 76450-76455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27912]


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DEPARTMENT OF COMMERCE

International Trade Administration

C-357-813


Honey from Argentina: Preliminary Results of Countervailing Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the countervailing duty order on honey from 
Argentina for the period January 1, 2003, through December 31, 2003. If 
the final results remain the same as the preliminary results of this 
review, we will instruct U.S. Customs and Border Protection (CBP) to 
assess countervailing duties as detailed in the ``Preliminary Results 
of Administrative Review'' section of this notice. Interested parties 
are invited to comment on the preliminary results of this 
administrative review. (See the ``Public Comment'' section of this 
notice).

EFFECTIVE DATE: December 21, 2004.

FOR FURTHER INFORMATION CONTACT: Thomas Gilgunn or Dara Iserson, AD/CVD 
Operations, Office 6, U.S. Department of Commerce, Room 7867, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone 
(202) 482-4236 or (202) 482-4052, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 10, 2001, the Department published in the Federal 
Register the countervailing duty order on honey from Argentina. See 
Notice of Countervailing Duty Order: Honey From Argentina, 66 FR 63673. 
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 the Sioux Honey Association (petitioners), the 
Department initiated an administrative review for the period January 1, 
2003 through December 31, 2003. See Initiation of Antidumping and 
Countervailing Duty Administrative Reviews and Request for Revocation 
in Part, 69 FR 3117 (January 22, 2004) (Initiation Notice).
    On March 3, 2004, we issued a questionnaire to the GOA. On April 
24, 2004, the GOA submitted its questionnaire response. On June 9, 
2004, the Department issued a supplemental questionnaire to the GOA. 
The GOA submitted its response to the supplemental questionnaire on 
June 28, 2004. On August 2, 2004, we extended the preliminary results 
from
    September 1, 2004, until not later than December 13, 2004. See 
Notice of Extension of Time Limit for the Preliminary Results of 
Countervailing Duty Administrative Review: Honey From Argentina, 69 FR 
48222 (August 9, 2004). On September 23, 2004, the Department issued a 
second supplemental questionnaire to the GOA. The GOA submitted its 
response to the supplemental questionnaire on October 5, 2004. On 
October 20, 2004, the Department issued a third supplemental 
questionnaire to the GOA. The GOA submitted its response to the 
supplemental questionnaire on November 5, 2004.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), we intend to conduct verification of the GOA's questionnaire 
responses following the issuance of the preliminary results.

Scope of the 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 customs purposes, the 
Department's written description of the merchandise covered by this 
order is dispositive.

Subsidies Valuation Information

A. Aggregation

    Under section 777A(e)(2)(B) of the Act, the Department may 
calculate a single country-wide rate applicable to all exporters if the 
Department determines it is not practicable to determine individual 
countervailable subsidy rates due to the large number of exporters or 
producers involved in the investigation or review. In the 
countervailing duty (CVD) investigation of honey from Argentina, the 
Department solicited information from the GOA on an aggregate or 
industry-wide basis in accordance with section 777A(e)(2)(B) of the 
Act, rather than from individual producers and exporters, due to the 
large number of producers and exporters of honey in Argentina. See 
Memorandum to the File, Countervailing Duty Investigation of Honey from 
Argentina: Conducting the Investigation on an Aggregate Basis, dated 
November 22, 2000. We also conducted the first administrative review on 
an aggregate basis. See Honey from Argentina: Final Results of 
Countervailing Duty Administrative Review, 69 FR 29518 (May 24, 2004). 
As noted above, in accordance with 19 CFR Sec.  351.213(b)(2), the GOA 
requested an administrative review of this countervailing duty order. 
(See Initiation Notice.) No individual exporters requested the review 
pursuant to 19 CFR Sec.  351.213(b). Accordingly, the Department is 
conducting this review of the order on an aggregate basis and will 
calculate a single country-wide subsidy rate for 2003 to be applied to 
all exports of the subject merchandise. See section 777A(e)(2)(B) of 
the Act.

[[Page 76451]]

Allocation Period

    The average useful life (``AUL'') period for the honey industry as 
described in 19 CFRSec.  351.524(d)(2) is ten years according to the 
U.S. Internal Revenue Service's 1977 Class Life Asset Depreciation 
Range System. No party in this proceeding has disputed this allocation
    period.

Benchmark Interest Rates and Discount Rates

    In selecting benchmark interest rates for use in calculating the 
benefits conferred by the various loan programs under review, we would 
normally look for the interest rate a borrower had received on a 
comparable commercial loan. See 19 CFR Sec.  351.505(a)(3)(i). However, 
since we are conducting this review on the aggregate level, and we are 
not examining individual companies, we have sought information on the 
national average interest rates for comparable commercial loans. See 19 
CFR Sec.  351.505(a)(3)(ii). The GOA provided information compiled by 
the Central Bank of Argentina showing the national average interest 
rates for various types of financing: long-term, fixed-rate, 
denominated in Argentine pesos and in foreign currencies. For each loan 
program found to be countervailable, we have selected a benchmark from 
the information provided depending upon the terms and characteristics 
of the particular loan program.
    We are directed by 19 CFR Sec.  351.524(d)(3) regarding the 
selection of a discount rate for the purposes of allocating non-
recurring subsidies over time. Since we are conducting this 
investigation on an aggregate basis under section 777A(e)(2)(B) of the 
Act, we are using, as the discount rate, the average cost of long-term 
fixed-rate loans in Argentina as reported by the GOA. See 19 CFR Sec.  
351.524(d)(3)(i)(B).

Denominator Issues

    The GOA has provided information for 2003 relating to the total 
volume of honey produced in Argentina; the volume and value, in U.S. 
dollars, of total honey exports; and, the volume and value, in U.S. 
dollars, of exports of honey to the United States. The GOA has also 
broken down, where possible, the export volumes and values according to 
the province in which the honey was produced. However, the GOA was 
unable to provide information relating to total domestic sales of honey 
for 2003. As a proxy for total sales information, the GOA provided data 
showing the volume of honey production by province during 2003. 
However, the GOA stated that it could not provide the value of 
production for 2003. Consistent with the investigation and first 
administrative review, we calculated a proxy for the value of the total 
production reported by the GOA using the volume and value data provided 
for exports to the United States. See Notice of Final Affirmative 
Countervailing Duty Determination: Honey from Argentina, 66 FR 50613 
(October 4, 2001) (Honey Final Determination), and the accompanying 
Issues and Decision Memorandum (Honey Issues Memo), at 
``Denominators.'' We divided the value of Argentine honey exports to 
the United States by the volume of those exports to calculate a per 
kilogram value in U.S. dollars. We then multiplied this per kilogram 
value by the provincial production data provided to arrive at the value 
of total Argentine honey production during 2003. We have used this 
total production value as our denominator when calculating the subsidy 
from domestic subsidy programs provided by the GOA, and we have used 
the relevant provincial production value as our denominator when 
calculating the subsidy from domestic subsidies provided at the 
provincial level. We have used the total or provincial export values, 
as appropriate, as our denominators when calculating the subsidy from 
programs we have determined to be export subsidies.
    To determine the final subsidy from each provincial program that is 
attributable to exports of honey to the United States, we applied the 
same methodology that we applied in Honey Final Determination and Honey 
Final Results: First Administrative Review: (1) for provinces for which 
we have reported data on the volume and value of honey production that 
was exported, we weight-averaged the subsidies from each provincial 
program by multiplying each subsidy by the province's share of total 
honey exports, by value, to the United States during the POR; and (2) 
for provincial domestic subsidy programs in provinces that do not have 
reported exports of honey to the United States during the POR, but do 
have reported honey production during the POR, and for which the GOA 
did not specifically report that the province had no exports to the 
United States, we divided the benefits by the total value of Argentine 
honey production during the POR. Where the countervailable subsidy rate 
for a program was less than 0.005 percent ad valorem, the program was 
not included in calculating the country-wide countervailing duty rate.
    As noted above, Argentine honey production and exports have been 
valued in U.S. dollars. As detailed below, certain Argentine peso-
denominated loan programs provided benefits to Argentine honey 
producers and exporters in Argentine pesos. In such instances, we 
converted those Argentine peso-denominated benefits into U.S. dollars 
using the official exchange rate data provided by the GOA.

Analysis of Programs

I. Programs Preliminarily Determined To Be Countervailable

A. Federal Programs

1. Regional Productive Revitalization Program

    The GOA established the ``Regional Productive Revitalization: 
National Program for the Promotion and Development of Local Productive 
Initiative'' (Regional Productive Revitalization Program) to strengthen 
the economies of small and medium-sized towns in the Argentine 
interior. The program was established in 1995 with funds from the 
national treasury allocated for use by the provinces. Although the 
program was administered at the national government level, its 
objective was to address financial emergencies and regional economic 
devastation in the provinces. The program discontinued granting new 
credits in the beginning of 1999. However, it remains operational as 
long as the loans granted are outstanding and continue to be serviced. 
The Regional Productive Revitalization Program provided credit for the 
acquisition of capital goods, technology, working capital, training 
needs, and technical assistance. During the time the program was fully 
operational, two Argentine peso-denominated long-term loans were made 
to honey producers. One of these loans had a balance outstanding during 
2003.
    In Honey Final Determination and Honey Final Results: First 
Administrative Review, we determined that the Regional Productive 
Revitalization Program was countervailable as a regional subsidy. See 
Honey Issues Memo, at ``Regional Productive Revitalization: National 
Program for the Promotion and Development of Local Productive 
Initiative.'' There is no new information or evidence of changed 
circumstances which would warrant reconsidering this finding.

[[Page 76452]]

    Loans under this program provide a financial contribution under 
section 771(5)(D) of the Act in the form of a transfer of funds. To 
determine whether there was a benefit, we compared the interest rate 
charged on the loan provided under this program to the commercial 
interest rate for loans that most closely resemble loans under this 
program. (See ``Benchmark Interest Rates and Discount Rates'' above.) 
Based on this comparison, the amount that the recipient paid was less 
than the amount the recipient would have paid on a comparable 
commercial loan that could actually be obtained on the market. Thus, 
this line of credit provides a benefit under section 771(5)(E) of the 
Act.
    Consistent with our approach in Honey Final Determination and Honey 
Final Results: First Administrative Review, we are treating these two 
loans differently for the purposes of calculating the benefit. For the 
loan with an outstanding balance in 2003, we calculated the Argentine 
peso-denominated benefit by multiplying the average loan balance 
outstanding during 2003 by the difference between the loan interest 
rate charged and the benchmark interest rate. (This loan was fully 
repaid during the POR). For our benchmark interest rate, we selected 
from the information provided by the Central Bank of Argentina, a rate 
for the type of loans that most closely resembled the terms of this 
program. See ``Benchmark Interest Rates and Discount Rates'' above.
    For the second loan, in Honey Final Determination, we determined 
that this loan had been forgiven during 1999, the period of 
investigation (POI), and we therefore, treated the amount of debt 
forgiven as a grant conferred in that year. See 19 CFR Sec.  351.508. 
To calculate the benefit, we allocated the resulting Argentine peso-
denominated grant amount over the AUL of 10 years. See section entitled 
``Allocation Period'' above. We used an appropriate discount rate, as 
discussed in the ``Benchmark Interest Rates and Discount Rates'' 
section, above. To calculate the subsidy rate for this program, we 
summed the Argentine peso-denominated benefit amounts attributable to 
the first loan and the Argentine peso-denominated benefit for the POR 
from the forgiven loan that we are treating as a grant. We then 
converted the total benefit amount to U.S. dollars using the official 
exchange rate data provided by the GOA and divided this amount by the 
U.S. dollar-denominated value of honey produced in Argentina during 
2003 to calculate a countervailable subsidy rate of 0.010 percent ad 
valorem for 2003.

2. BNA Financing for the Acquisition of Goods of Argentine Origin

    The financing for the Acquisition of Goods of Argentine origin 
program was established by the Banco de la Naci[oacute]n Argentina 
(BNA), a bank owned by the GOA, pursuant to Annex B to the BNA Circular 
No. 10715/I. This line of credit is offered by BNA to companies 
purchasing capital equipment manufactured in Argentina (defined as 
having a maximum foreign component of 40 percent). Financing is 
provided for up to five years, in an amount equal to 80 percent of the 
purchase price of the equipment not to exceed US$500,000. There was one 
U.S. dollar-denominated loan granted under this program to a honey 
producer in 2001 which had a balance outstanding during 2003.
    In Honey Final Results: First Administrative Review, we found that 
the BNA Financing for the Acquisition of Goods of Argentine Origin was 
specific as an import substitution subsidy under section 771(5A)(c) of 
the Act because this financing was available only for the purchase of 
Argentine-origin goods. There is no new information or evidence of 
changed circumstances which would warrant reconsidering this 
specificity finding.
    Loans under this program provide a financial contribution under 
section 771(5)(D) of the Act in the form of a transfer of funds. To 
determine whether there was a benefit, we compared the interest rate 
charged on the loan provided under this program to the commercial 
interest rate for loans that most closely resemble loans under this 
program. (See ``Benchmark Interest Rates and Discount Rates'' above.) 
Based on this comparison, the amount that the recipient paid was less 
than the amount the recipient would have paid on a comparable 
commercial loan that could actually be obtained on the market. Thus, 
this line of credit provides a benefit under section 771(5)(E) of the 
Act.
    As discussed in Honey Final Results: First Administrative Review, 
the Republic of Argentina followed a currency board system under its 
Convertibility Law of maintaining parity between the Argentine peso and 
the U.S. dollar until January 2002. On January 6, 2002, Emergency Law 
No. 25,561 (Law 25,561) ended the one Argentine peso-one U.S. dollar 
relationship. In addition, Article 6, paragraph 2 of Law 25,561 and 
Decree 214/2002 established the mandatory restructuring of foreign 
currency-denominated debts\1\ at a relationship of one U.S. dollar-one 
Argentine peso. This loan was converted from U.S. dollars to Argentine 
pesos under Law 25,567 and Decree 214/2002.
    Because this loan was converted from U.S. dollars to Argentine 
pesos on January 29, 2002, pursuant to Law 25,567 and Decree 214/2002, 
in our Honey Final Results: First Administrative Review we considered 
that there was, in effect, a new long-term fixed rate Argentine peso-
denominated loan made in 2002. As such, consistent with our approach in 
Honey Final Results: First Administrative Review, we calculated the 
countervailable subsidy for 2003 in three steps: 1) we multiplied the 
average Argentine peso-denominated outstanding loan balance during the 
POR by the difference between the interest rate charged under the 
program and the appropriate benchmark interest rate for Argentine peso-
denominated loans made during 2002; 2) we converted the 2003 Argentine 
peso-denominated benefit into U.S. dollars using the official annual 
average exchange rate data provided by the GOA; 3) we divided this U.S. 
dollar-denominated amount by the U.S. dollar value of total honey 
production in Argentina during 2003. Using this methodology, we 
preliminarily find the countervailable subsidy from this program to be 
less than 0.005 percent ad valorem for 2003. Using this methodology, we 
determine the countervailable subsidy from this program to be less than 
0.005 percent ad valorem.
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    \1\ Law 25,567 and Decree 214/2002 converted all foreign 
currency-denominated debts except those directly related to the 
financing of exports.
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B. Provincial Programs

1. Province of San Luis Honey Development Program

    The San Luis Honey Development Program promoted honey production to 
supplement the income of disadvantaged people in underdeveloped areas 
in the province of San Luis through credit lines. These long-term, 
fixed rate, and Argentine peso-denominated loans were made as part of a 
series of annual campaigns which took place from 1994 through 1999.
    In Honey Final Determination and Honey Final Results: First 
Administrative Review, the Department found the Province of San Luis 
Honey Development Program to be a countervailable subsidy. There is no 
new information or evidence of changed

[[Page 76453]]

circumstances which would warrant reconsideration of this finding.
    In Honey Final Determination and Honey Final Results: First 
Administrative Review, we treated loans made under this program as 
loans that had been forgiven during 1999, the POI. See 19 CFR Sec.  
351.508(a). In the instant review, the GOA reported that the Province 
of San Luis had not received any interest payments or principal 
payments from beneficiaries during the POR. Therefore, consistent with 
our methodology in the investigation and the first administrative 
review, we have summed the amounts disbursed through the program for 
the years 1994 through 1999, plus the accrued interest through 1999, 
when the loans were effectively forgiven. We then allocated this sum 
over the 10-year AUL. We used the 1999 annual average of long-term, 
fixed, peso-denominated interest rates as our discount rate. See 
``Benchmark Interest Rates and Discount Rates,'' and ``Allocation 
Period'' sections, above.
    For the purposes of establishing the countervailable subsidy rate 
for 2003, we converted the Argentine peso-denominated benefit 
attributable to 2003 into U.S. dollars using the official exchange 
rates provided by the GOA. We then divided this amount by the U.S. 
dollar value of honey production in the Province of San Luis during 
2003. We then determined the countervailable subsidy attributable to 
subject merchandise from this program by multiplying the calculated 
subsidy rate by the percentage that honey from San Luis represents of 
total honey exports to the United States during 2003. Thus, the 
countervailable subsidy rate attributable to this program for 2003 is 
0.015 percent ad valorem.

2. Province of Chaco Line of Credit Earmarked for the Honey Sector

    The Chaco government's Line of Credit Earmarked for the Honey 
Sector (Chaco Honey Program) funded efforts to increase honey 
production in the province. The Chaco government offered long-term, 
fixed rate, Argentine peso-denominated loans to purchase hives, as well 
as loans to improve access to new bee breeds and for honey extraction 
rooms. These loans were made as part of a series of annual campaigns 
which took place in 1995, 1997, and 1999.
    In Honey Final Determination and Honey Final Results: First 
Administrative Review, we determined that loans made through the Chaco 
Honey Program were de jure specific in accordance to section 
771(5A)(D)(i) of the Act. See Honey Issues Memo, at ``Province of Chaco 
Line of Credit Earmarked for the Honey Sector.'' There is no new 
information or evidence of changed circumstances which would warrant 
the reconsideration of this specificity finding.
    Loans under this program provide a financial contribution under 
section 771(5)(D) of the Act in the form of a transfer of funds. 
Consistent with Honey Final Results: First Administrative Review, we 
calculated outstanding balances for these loans to include outstanding 
interest which accrued on these loans. In order to determine whether a 
benefit existed, we compared the interest rate charged on loans 
provided under this program to the commercial interest rates for loans 
that most closely resemble loans under this program. Because these are 
long-term, fixed rate, Argentine peso-denominated loans, we selected 
from information provided by the GOA a long-term benchmark from: 1995 
to apply to the 1995 tranche; 1997 to apply to the 1997 tranche; and 
1999 to apply to the 1999 tranche. Based on this comparison, there is a 
difference in the amount the recipient of the loan pays on the loan and 
the amount the recipient would have paid on a comparable commercial 
loan that the recipient could have actually obtained on the market. 
Thus, these loans provide a benefit, under section 771(5)(E)(ii)of the 
Act.
    We calculated the amount of the benefit for 2003 in the following 
steps: 1) we multiplied the average, outstanding, Argentine peso-
denominated loan balances for 2003 by the interest rate differential; 
2) we converted the resulting Argentine peso-denominated benefit into 
U.S. dollars using the official exchange rates provided by the GOA; 3) 
because the GOA was unable to demonstrate that no honey produced in 
Chaco was exported to the United States in 2003, we divided this U.S. 
dollar-denominated benefit by the U.S. dollar value of honey production 
in Argentina during 2003. Thus, the countervailable subsidy rate for 
2003 applicable to the Chaco Honey Program is 0.015 percent ad valorem.

3. Buenos Aires Honey Program

    In 1996, the Province of Buenos Aires created the Buenos Aires 
Honey Development Program (BAHP) to increase provincial honey 
production and improve production efficiency and quality. Through the 
program, the Banco de la Provincia de Buenos Aires (Banco Provincia or 
BAPRO), a bank owned by the government of the Province of Buenos Aires, 
provides two types of credit lines to honey producers in the province: 
the Line of Credit for Working Capital and the Line of Credit for the 
Acquisition of Capital Goods. Eligibility for both credit lines 
requires honey producers to enroll in the Province's Registry of Honey 
Producers. In addition, the Province of Buenos Aires provided Technical 
Assistance at no charge to honey producers.
    In the underlying investigation, we found all three elements of the 
BAHP to provide countervailable subsidies. See Honey Issues Memo, at 
``Buenos Aires Honey Program.'' There is no new information or evidence 
of changed circumstances which would warrant reconsideration of this 
finding. However, the GOA reported, and we verified in the first 
administrative review, that no technical assistance was provided under 
the BAHP during the 2001-2003. See Honey Final Results: First 
Administrative Review.
    No new loans were granted to honey producers during the POR under 
either the working capital or capital goods elements of this program. 
However, there were capital goods loans made prior to the POR, which 
had outstanding balances during the POR.
    The Line of Credit for the Acquisition of Capital Goods under the 
BAHP was implemented by the Banco Provincia through Circular ``A'' No. 
13,854 in July 1997, pursuant to an agreement between the Banco 
Provincia and Banco de Inversion y Comercio Exterior S.A. (BICE), and 
utilizes funding provided through the BICE Norms 006 and 006/1. The 
BICE is a GOA entity, that functions as a ``second tier'' bank, lending 
money to other banks (both commercial and other government-owned or 
controlled banks) for the purpose of implementing government lending 
programs.
    Under this line of credit, beekeepers are eligible to receive long-
term financing for the acquisition of capital goods including beehives, 
new nuclei, inert material, and extraction and processing material, 
among other goods. Financing for this line of credit carries a maximum 
repayment term of five years. Interest rates are based on LIBOR, plus a 
spread added by the BICE, and a spread added by the Banco Provincia. 
The spreads given by both the BICE and Banco Provincia vary depending 
upon the repayment schedule of the loan. Although, all of the loans 
that had outstanding loan balances during the POR were originally 
provided in U.S. dollars, these balances were converted to Argentine 
pesos on January 29, 2002, in accordance with Law 25,567 and Decree 
214/2002.
    In the instant review, the GOA reported that the Banco Provincia 
classified certain loans made under this line of credit as active with 
outstanding

[[Page 76454]]

balances payable during 2003. The GOA also reported the Banco Provincia 
had categorized other loans with balances outstanding in 2003 as in 
default or cancelled. In addition, the GOA reported that certain loans 
with outstanding balances payable during 2003 had been assigned to a 
trust created by the Province of Buenos Aires for defaulted loans.
    For loans that the Banco Provincia considered to be active, we 
calculated the Argentine peso-denominated benefit for the loan by 
multiplying the average loan balance outstanding during 2003 by the 
difference between the loan interest rate charged and the benchmark 
interest rate. For our benchmark interest rate, we selected, from the 
information provided by the Central Bank of Argentina, a rate for the 
type of loans that most closely resembled the terms of this program. 
See ``Benchmark Interest Rates and Discount Rates'' above.
    As noted above, the GOA reported the Banco Provincia had 
categorized certain loans with balances outstanding in 2003 as in 
default, cancelled, or as having been ``assigned to trust created by 
the Province of Buenos Aires for defaulted loans.'' We therefore find 
that these loans had been forgiven during 2003 and treated the amount 
of debt forgiven as a grant conferred in 2003. See 19 CFR Sec.  
351.508. To calculate the benefit, we have allocated the resulting 
Argentine peso-denominated grant amount over the AUL of 10 years. See 
section entitled ``Allocation Period'' above. We have used an 
appropriate discount rate, as discussed in the ``Benchmark Interest 
Rates and Discount Rates'' section, above.
    We calculated the total countervailable subsidy for 2003 from the 
Buenos Aires Honey program as follows: 1) we summed the Argentine peso-
denominated benefits attributable to active loans and forgiven debt and 
converted the sum into U.S. dollars using the official exchange rates 
provided by the GOA; 2) we divided this total 2003 benefit by the value 
of honey production in the Province of Buenos Aires during 2003; and 3) 
we determined the subsidy attributable to subject merchandise from this 
program by multiplying the calculated subsidy rate by the percentage 
that honey from the Province of Buenos Aires represents of total honey 
exports to the United States during 2003. See section entitled 
``Denominator Issues'' above. Thus, we preliminarily determine the 
countervailable subsidy rate from the Buenos Aires Honey Program for 
2003 is 0.038 percent ad valorem.

II. Programs Preliminarily Determined to be Not Used

    We preliminarily determine that Argentine producers and exporters 
of honey to the United States did not apply for or receive benefits 
under the following programs during the POR.

A. Federal Programs

    1. Argentine Internal Tax Reimbursement/Rebate Program (Reintegro)
    2. BICE Norm 001: Financing of Production of Goods Destined for 
Export
    3. BICE Norm 007: Line of Credit Offered to Finance Industrial 
Investment Projects to Restructure and Modernize the Argentine Industry
    4. BNA Line of Credit to the Agricultural Producers of the 
Patagonia
    5. BNA Pre-Financing of Exports Regime for the Agricultural Sector
    6. Production Pole Program for Honey Producers
    7. Enterprise Restructuring Program
    8. SGRs - Government Backed Loans Guarantees
    9. Fundacion Export AR
    10. PROAPI

B. Provincial Programs

    1. Buenos Aires Honey Program
    a. The Line of Credit for Working Capital
    b. Technical Assistance
    2. Province of Entre Rios Honey Program
    3. Province of Chubut: Province of Chubut Law No. 4430/98
    4. Province of Santiago del Estero Creditos de Confinanzas (Trust 
Credits)

III. Programs Preliminarily Determined To Be Terminated

Factor de Convergencia (Convergence Factor)
    Under this program exporters could claim a payment from the GOA for 
a percentage of the FOB value of the exports. The GOA paid exporters an 
amount determined according to a formula accounting for the exchange 
rate between the U.S. dollar and the Euro. The GOA reported that the 
Convergence Factor program was terminated on January 25, 2002 by Decree 
191/2002 and that there were no residual benefits. The GOA also 
reported that a replacement program has not been implemented. 19 CFR 
Sec.  351.526(b) defines a program-wide change as a change that is not 
limited to a single firm and was effectuated by an official act such as 
a decree. We note that GOA has reported that Decree 191/2002 terminated 
the Convergence Factor programs for all exports. As such, in accordance 
with 19 CFR Sec.  351.526(b), we preliminarily find that the 
Convergence Factor program was terminated in 2002, and that there are 
no residual benefits attributable to the POR.

Preliminary Results of Administrative Review

    In accordance with section 777A(e)(2)(B) of the Act, we have 
calculated the subsidy rates on an aggregate or industry-wide basis for 
exports of subject merchandise in this administrative review. We 
preliminarily determine the total net countervailable subsidy rate is 
0.08 percent ad valorem for 2003, which is de minimis.
    If upon issuance of the final results of this administrative review 
the subsidy rate remains de minimis, the Department will instruct CBP 
to liquidate shipments of honey from Argentina entered, or withdrawn 
from warehouse, for consumption from January 1, 2003, through December 
31, 2003, without regard to countervailing duties. Also, the rate of 
cash deposit of estimated countervailing duties will be set at zero 
percent ad valorem for all shipments of honey from Argentina entered, 
or withdrawn from warehouse, for consumption on or after the 
publication of the final results of this administrative review. The 
Department will issue appropriate assessment instructions directly to 
the CBP within 15 days of publication of the final results of this 
review.

Public Comment

    Pursuant to 19 CFR Sec.  351.224(b), the Department will disclose 
to parties to the proceeding any calculations performed in connection 
with these preliminary results within five days after the date of 
publication of this notice. Pursuant to 19 CFR Sec.  351.309, 
interested parties may submit written comments in response to these 
preliminary results. Unless otherwise extended, case briefs must be 
submitted within 30 days after the date of publication of this notice, 
and rebuttal briefs, limited to arguments raised in case briefs, must 
be submitted no later than five days after the time limit for filing 
case briefs. Parties who submit arguments in this proceeding are 
requested to submit with the briefs: (1) a statement of the issue, and 
(2) a brief summary of the argument. Case and rebuttal briefs must be 
served on interested parties in accordance with 19 CFR Sec.  
351.303(f). Also, pursuant to 19 CFR Sec.  351.310, within 30 days of 
the

[[Page 76455]]

date of publication of this notice, interested parties may request a 
public hearing on arguments to be raised in the case and rebuttal 
briefs. Unless the Secretary specifies otherwise, the hearing, if 
requested, will be held two days after the date of submission of 
rebuttal briefs, that is, thirty-seven days after the date of 
publication of these preliminary results.
    Representatives of parties to the proceeding may request disclosure 
of proprietary information under administrative protective order no 
later than 10 days after the representative's client or employer 
becomes a party to the proceeding, but in no event later than the date 
the case briefs, under 19 CFR Sec.  351.309(c)(ii), are due. The 
Department will publish the final results of this administrative 
review, including the results of its analysis of issues raised in any 
case or rebuttal brief.
    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. 1677f(1)).

    Dated: December 13, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-27912 Filed 12-20-02; 8:45 am]
BILLING CODE 3510-DS-P