[Federal Register Volume 63, Number 133 (Monday, July 13, 1998)]
[Notices]
[Pages 37532-37534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18599]


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DEPARTMENT OF COMMERCE

International Trade Administration
[C-351-406]


Certain Agricultural Tillage Tools From Brazil; Preliminary 
Results of Countervailing Duty Administrative Review

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

ACTION: Notice of preliminary results of Countervailing Duty 
administrative review.

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SUMMARY: The Department of Commerce (``the Department'') is conducting 
an administrative review of the countervailing duty order on certain 
agricultural tillage tools from Brazil for the period January 1, 1996 
through December 31, 1996. For information on the net subsidy for 
Marchesan Implementos Agricolas, S.A. (``Marchesan''), the reviewed 
company, as well as for all non-reviewed companies, please see the 
Preliminary Results of Review section of this notice. If the final 
results remain the same as these preliminary results of administrative 
review, we will instruct the U.S. Customs Service (``Customs'') to 
liquidate, without regard to countervailing duties, all shipments of 
the subject merchandise from

[[Page 37533]]

Marchesan, as detailed in the Preliminary Results of Review section of 
this notice. Interested parties are invited to comment on these 
preliminary results. (See Public Comment section of this notice.)

EFFECTIVE DATE: July 13, 1998.

FOR FURTHER INFORMATION CONTACT: Gayle Longest or Lorenza Olivas, 
Office of CVD/AD Enforcement VI, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
2786.

SUPPLEMENTARY INFORMATION:

Background

    On October 22, 1985, the Department published in the Federal 
Register (50 FR 42743) the countervailing duty order on certain 
agricultural tillage tools from Brazil. On October 2, 1997 the 
Department published a notice of ``Opportunity to Request 
Administrative Review'' (62 FR 51628) of this countervailing duty 
order. On October 31, 1997, Marchesan requested an administrative 
review and partial revocation of the countervailing duty order pursuant 
to 19 CFR 351.222. We initiated the review, covering the period January 
1, 1996 through December 31, 1996, on November 26, 1997 (62 FR 63069). 
In accordance with 19 CFR 351.213(b), this review covers Marchesan, the 
only producer/exporter of the subject merchandise for which a review 
was requested. This review also covers five programs.
    The Department considered Marchesan's revocation request and 
determined that the company did not meet the requirements to be 
considered for revocation from the countervailing duty order. (See 
Letter to Marchesan from Barbara E. Tillman dated June 11, 1998, a 
public document on file in the Central Records Unit, Room B-099 of the 
Main Commerce Building). Accordingly, pursuant to 19 CFR 
351.222(f)(2)(iii), we conclude that there is no reasonable basis to 
believe the requirements for revocation are met.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act (``URAA'') effective January 1, 1995 
(``the Act''). The Department is conducting this administrative review 
in accordance with section 751(a) of the Act. All citations to the 
Department's regulations reference 19 CFR Part 351, et al. Antidumping 
Duties; Countervailing Duties; Final Rule, 62 FR 27296; May 19, 1997, 
unless otherwise indicated.

Scope of the Review

    Imports covered by this review are shipments of certain round 
shaped agricultural tillage tools (discs) with plain or notched edge, 
such as colters and furrow-opener blades. During the review period, 
such merchandise was classifiable under item numbers 8432.21.00, 
8432.29.00 8432.80.00 and 8432.90.00 of the Harmonized Tariff Schedule 
(``HTS''). The HTS item numbers are provided for convenience and 
Customs purposes. The written description remains dispositive.

Analysis of Programs

I. Programs Preliminarily Determined To Be Not Used

    We examined the following programs and preliminarily determine that 
the producers and/or exporters of the subject merchandise did not apply 
for or receive benefits under these programs during the period of 
review:

    A. Accelerated Depreciation for Brazilian-Made Capital Goods;
    B. Preferential Financing for Industrial Enterprises by Banco do 
Brasil (FST and EGF loans);
    C. SUDENE Corporate Income Tax Reduction for Companies Located in 
the Northeast of Brasil;
    D. Preferential Financing under PROEX (formerly under Resolution 68 
and 509 through FINEX);
    E. Preferential Financing under FINEP.

Preliminary Results of Review

    For the period January 1, 1996 through December 31, 1996, we 
preliminarily determine the net subsidy for Marchesan to be zero 
percent ad valorem. If the final results of this review remain the same 
as these preliminary results, the Department intends to instruct 
Customs to liquidate, without regard to countervailing duties, 
shipments of the subject merchandise from Marchesan exported on or 
after January 1, 1996, and on or before December 31, 1996.
    The Department also intends to instruct Customs to collect cash 
deposits of estimated countervailing duties of zero percent ad valorem, 
as provided for by section 751(a)(1) of the Act, on all shipments of 
this merchandise from Marchesan, entered or withdrawn from warehouse, 
for consumption, on or after the date of publication of the final 
results of this administrative 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) and 
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 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 Certain Agricultural Tillage Tools from Brazil: 
Final Results of Countervailing Duty Administrative Review, 60 FR 48692 
(September 20, 1995). These rates shall apply until a review of 
companies assigned these rates is requested. In addition, for the 
period January 1, 1996 through December 31, 1996, 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.

Public Comment

    Pursuant to 19 CFR 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 351.309,

[[Page 37534]]

interested parties may submit written comments in response to these 
preliminary results. 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 
argument in this proceeding are requested to submit with the argument: 
(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 351.303(f). Also, pursuant to 19 CFR 351.310, 
within 30 days of the 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 for 
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 
case briefs, under 19 CFR 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 
or at a hearing.
    This administrative review is 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(i)(1)).

    Dated: July 6, 1998.
Richard W. Moreland,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 98-18599 Filed 7-10-98; 8:45 am]
BILLING CODE 3510-DS-P