[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Proposed Rules]
[Pages 80-82]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32332]



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DEPARTMENT OF COMMERCE

International Trade Administration

19 CFR Parts 353, 355, and 356

[Docket No. 941264-4364]
RIN: 0625-AA45


Antidumping Duties; Countervailing Duties; Article 1904 of the 
North American Free Trade Agreement

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Advance notice of proposed rulemaking and request for public 
comments.

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SUMMARY: The Department of Commerce (``the Department'') intends to 
initiate a rulemaking proceeding to conform the Department's existing 
antidumping duty, countervailing duty, and NAFTA Article 1904 
regulations to the Uruguay Round Agreements Act, which implemented the 
results of the Uruguay Round multilateral trade negotiations. In 
addition to conforming changes, the Department will be considering 
other changes to the procedural and substantive provisions of the 
antidumping and countervailing duty regulations. The overall objectives 
of this rulemaking proceeding will be to: (1) translate the principles 
of the implementing legislation into specific and predictable rules, 
thereby facilitating the administration of these laws and providing 
greater predictability for private parties affected by these laws; (2) 
simplify and streamline the Department's administration of antidumping 
and countervailing duty proceedings; (3) codify existing administrative 
practice, to the extent such codification is appropriate and is 
consistent with the first and second objectives; and (4) resolve any 
inconsistencies in the Department's administrative practice.

DATES: The Department will consider written comments if received not 
later than February 3, 1995. The Department will also consider written 
responses to written comments if received not later than February 24, 
1995.

ADDRESSES: Address written comments to Susan G. Esserman, Assistant 
Secretary for Import Administration, Central Records Unit, Room B-099, 
U.S. Department of Commerce, Pennsylvania Avenue and 14th Street, N.W., 
Washington, DC 20230. Comments should be addressed: Attention: Advance 
Notice of Proposed Rulemaking/Uruguay Round Agreements Act. Each person 
submitting a comment should include his or her name and address, and 
give reasons for any recommendation.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, (202) 482-4412, or 
David Mason Jr., (202) 482-4969.

SUPPLEMENTARY INFORMATION:

Background

    On December 7, 1994, President Clinton signed the Uruguay Round 
Agreements Act, Pub.L. 103-465 (``the URAA''), into law. The URAA 
implements the results of the Uruguay Round multilateral trade 
negotiations. Among the agreements negotiated as part of the Uruguay 
Round are the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 (``the Antidumping Agreement'') and 
the Agreement on Subsidies and Countervailing Measures (``the Subsidies 
Agreement''). The URAA, among other things, conforms the U.S. 
antidumping and countervailing duty laws to the requirements of the 
Antidumping Agreement and the Subsidies Agreement.
    The Department is initiating a rulemaking proceeding to conform the 
Department's existing regulations on antidumping duties, countervailing 
duties, and Article 1904 of the North American Free Trade Agreement to 
the provisions of the URAA. Although the Department expects that in 
many instances amendments to existing regulations will be of a 
conforming nature only, in the Statement of Administrative Action 
accompanying H.R. 5110 (H.R. Doc. No. 316, Vol. 1, 103d Cong., 2d Sess. 
(1994)), the Administration committed the Department to flesh out 
through regulation certain provisions of the bill.
    In addition to regulations implementing the URAA, the Department 
intends to use this opportunity to proceed further with certain 
rulemaking proceedings on which work was suspended pending the 
completion of the Uruguay Round. These proceedings are listed below. In 
the Semiannual Unified Agenda of Federal Regulations, published on 
April 25, 1994 (59 FR 20136), the Department indicated that these 
rulemaking proceedings had been withdrawn, but that it intended to 
address the subject matter covered by these rulemaking proceedings as 
part of a new, consolidated rulemaking proceeding which, among other 
things, would conform the antidumping and countervailing duty 
regulations to anticipated legislation implementing the Uruguay Round. 
The withdrawn rulemaking proceedings were:
    <bullet> Antidumping Duties [RIN: 0625-AA29]: On February 1, 1989 
(54 FR 5092), the Department published an Advance Notice of Proposed 
Rulemaking concerning regulations that would have codified existing 
administrative practice with respect to the identification and 
measurement of dumping.
    <bullet> Countervailing Duties [RIN: 0625-AA31]: On May 31, 1989 
(54 FR 23366), the Department published a Notice of Proposed Rulemaking 
that would have codified existing administrative practice with respect 
to the identification and measurement of subsidies.
    <bullet> Antidumping and Countervailing Duties; Significant 
Ministerial Errors [RIN: 0625-AA35]: On January 10, 1992 (57 FR 1131), 
the Department published a Notice of Proposed Rulemaking setting forth 
the circumstances in which the Department would correct significant 
ministerial errors made in preliminary antidumping and countervailing 
duty determinations.
    <bullet> Antidumping Duties; Methodologies for Assessment 
Instructions [RIN: 0625-AA36]: On December 5, 1991 (56 FR 6396), the 
Department published an Advance Notice of Proposed Rulemaking regarding 
regulations which would have changed and/or codified existing 
administrative practice to simplify and streamline the collection of 
estimated antidumping duties and the assessment of antidumping duties.
    <bullet> Antidumping Duties; Calculation of Weighted Average 
Dumping Margin [RIN: 0625-AA39]: The Department had considered 
initiating a rulemaking proceeding which would have addressed a problem 
in the Department's calculation of weighted-average dumping margins 
caused by the Department's treatment of adjustments for indirect taxes. 
See 59 FR 20156-57.
    <bullet> Antidumping Duties; Period of Investigation [RIN: 0625-
AA41]: The Department had considered initiating a rulemaking proceeding 
to amend the Department's antidumping regulations with respect to the 
period covered by an antidumping investigation. See 59 FR 20157. 
[[Page 81]] 
    <bullet> Procedures for Imposing Sanctions for Providing False 
Certifications in an Antidumping or Countervailing Duty Proceedings 
[RIN: 0625-AA42]: The Department had considered initiating a rulemaking 
proceeding that would have established standards for finding 
certifications to be false, the sanctions that could be imposed, and 
the procedures for imposing sanctions. See 59 FR 20157-58.
    As part of its consolidated rulemaking proceeding, the Department 
intends to review the subject matter of the withdrawn rulemaking 
proceedings in light of the URAA and other developments in the 
antidumping and countervailing duty laws. One of the purposes of this 
review will be to determine whether the problems identified in the 
above rulemaking proceedings remain, and, if so, whether they should be 
addressed by regulations.
    The overall objectives of this consolidated rulemaking proceeding 
will be to: (1) translate the principles of the URAA into specific and 
predictable rules, thereby facilitating the administration of these 
laws and providing greater predictability for private parties affected 
by these laws; (2) simplify and streamline, to the extent permitted by 
law, the Department's administration of antidumping and countervailing 
duty proceedings; (3) codify existing administrative practice, to the 
extent such codification is appropriate and is consistent with the 
first and second objectives; and (4) resolve any inconsistencies in the 
Department's administrative practice.

Timetable

    The Department intends to issue a comprehensive set of proposed 
regulations by June 30, 1995. These comprehensive regulations will 
address the objectives described above, and an opportunity for public 
comment will be provided. The Department intends to issue a 
comprehensive set of final regulations by January 1, 1996. These final 
regulations will replace the interim-final regulations described in the 
following paragraph.
    The URAA became effective January 1, 1995, and applies to 
investigations initiated as a result of petitions filed on or after 
that date, and administrative reviews requested on or after that date. 
To facilitate the administration of the new law, the Department intends 
to issue interim-final regulations that will amend the existing 
regulations where they are clearly at odds with the URAA, and where 
regulations are essential to administration of the new law. These 
interim-final regulations will be effective upon publication and will 
govern the Department's handling of antidumping and countervailing duty 
proceedings pending the promulgation of final rules described above. 
The interim-final regulations will make plain that where the URAA, as 
amplified by the Statement of Administrative Action, is in conflict 
with the existing regulations, the new statute will prevail.

Request for Comments

    The conclusion of the Uruguay Round and the enactment of 
implementing legislation offer an appropriate time for the Department 
and the public to reexamine the Department's existing antidumping and 
countervailing duty regulations. The objectives described above 
encompass all aspects of the Department's administration of the 
antidumping and countervailing duty laws.
    However, it should be emphasized that the Department has not 
reached any conclusions concerning any of these subjects. Instead, 
before issuing proposed regulations, the Department wishes to receive 
public comments on all aspects of the Department's administration of 
the antidumping and countervailing duty laws. The Department believes 
that such public comment will improve its understanding of the issues 
and problems that need to be addressed. Therefore, interested persons 
are invited to address any issue of law, policy, or procedure, and to 
suggest appropriate amendments to the antidumping duty, countervailing 
duty, and NAFTA regulations for consideration by the Department.

Format and Number of Copies

    Parties should submit comments in the following format: (1) number 
each comment in accordance with the number designated for that issue as 
indicated in the list of issues set forth below; (2) begin each comment 
on a separate page; (3) concisely state the issue identified and 
discussed in the comment; and (4) provide a brief summary of the 
comment (a maximum of 3 sentences) and label this section ``summary of 
the comment.''
    To simplify the processing and distribution of these comments, 
parties are encouraged to submit documents in electronic form 
accompanied by an original and one paper copy. All documents filed in 
electronic form must be on DOS formatted 3.5'' diskettes, and must be 
prepared in either WordPerfect format or a format that the WordPerfect 
program can convert and import into WordPerfect. Each comment submitted 
should be on a separate file on the diskette and labeled by the number 
designated for that issue based upon the list of issues outlined below.
    Comments received on diskette by the due date will be made 
available to the public on Internet. In addition, the Department will 
make comments available to the public on 3.5'' diskettes at cost, and 
paper copies available for reading and photocopying in Room B-099 of 
the Central Records Unit. Questions concerning file formatting, 
document conversion, Internet address, or other filing requirements 
should be addressed to Andrew Lee Beller, Director of Central Records, 
(202) 482-1248.

Classification of Issues for Comment

Countervailing Duty Issues

    1. Grants, loans, equity, loan guarantees, and debt forgiveness 
(including benchmarks and discount rates);
    2. Tax programs (not including rebates of indirect taxes on export, 
which is included in category number five below);
    3. Government provision/procurement (including adequate 
remuneration);
    4. Indirect subsidies, privatization, and upstream subsidies;
    5. Export subsidies (e.g., subsidies included in the Illustrative 
List);
    6. Import substitution subsidies, worker benefits, and subsidies on 
agricultural products;
    7. Specificity and infrastructure;
    8. Green light subsidies and subsidies enforcement;
    9. Allocation;
    10. CVD methodology issues other than those outlined above.

Antidumping Issues

    11. Comparison Methodology:
    a. Viablility, third-country sales, intermediate country sales, and 
tolling;
    b. Constructed export price deductions and value-added deductions;
    c. Normal value adjustments;
    d. Level of trade matching, level of trade adjustments, and 
constructed export price offset;
    12. Start-up;
    13. Profit and selling, general and administrative expenses in 
constructed value;
    14. Sales below cost of production and constructed value generally;
    15. Currency conversion;
    16. Price averaging;
    17. Anticircumvention;
    18. Affiliated parties (address separately for AD and 
CVD); [[Page 82]] 
    19. AD methodology issues other than those outlined above;

Procedural Issues

    20. Initiation of petitions;
    21. Evidence;
    22. Facts available;
    23. De Minimis (address separately for AD and CVD);
    24. Reviews, other than five-year reviews (if specific to AD or 
CVD, please specify);
    25. Five-year reviews and revocation;
    26. Repeal of Section 303;
    27. Regional industries;
    28. Critical circumstances;
    29. Simplification;
    30. Business proprietary information and administrative protective 
orders;
    31. Ministerial errors;
    32. Procedural issues other than those outlined above;
    33. Other issues.

List of Subjects in 19 CFR Parts 353, 355, and 356

    Business and industry, Foreign trade, Imports, Trade practices.

    Dated: December 27, 1994.
Barbara R. Stafford,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-32332 Filed 12-30-94; 8:45 am]
BILLING CODE 3510-DS-P