This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

33920

Vol. 6, No. 123

Tuesday, June 26, 2001

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR PART 159

RIN 1515–AC84

Distribution of Continued Dumping

and Subsidy Offset to Affected

Domestic Producers

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Proposed rule.

SUMMARY: This document proposes to

amend the Customs Regulations, to

implement the Continued Dumping and

Subsidy Offset Act of 2000, by

prescribing the administrative

procedures, including the time and

manner, under which antidumping and

countervailing duties assessed on

imported products would be distributed

to affected domestic producers as an

offset for certain qualifying

expenditures. This distribution to the

affected producers is known as the

continued dumping and subsidy offset.

DATES: Comments must be received on

or before July 26, 2001.

ADDRESSES: Written comments may be

addressed to and inspected at the

Regulations Branch, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT:

Jeffrey J. Laxague, Office of Regulations

and Rulings, (202–927–0505).

SUPPLEMENTARY INFORMATION:

Background

Antidumping duties are imposed

upon imported merchandise that the

U.S. Department of Commerce has

found is, or is likely to be, sold in the

United States at less than its fair value.

Countervailing duties are imposed upon

imported merchandise that the

Department of Commerce determines

benefit from subsidies bestowed by a

foreign government. In all antidumping

cases, and in most countervailing duty

cases, these duties are only assessed if

the U.S. International Trade

Commission determines that the

imported goods cause material injury or

the threat of material injury to a

domestic industry. The rules and

procedures concerning proceedings

leading to orders or findings under

which antidumping and countervailing

duties are assessed are found in 19

U.S.C. 1671 et seq., in part 207 of the

regulations of the U.S. International

Trade Commission (19 CFR chapter II,

part 207), and in part 351 of the

regulations of the International Trade

Administration, U.S. Department of

Commerce (19 CFR chapter III, part

351).

The Continued Dumping and Subsidy

Offset Act of 2000 (‘‘CDSOA’’) was

enacted on October 28, 2000, as part of

the Agriculture, Rural Development,

Food and Drug Administration, and

Related Agencies Appropriations Act,

2001 (‘‘Act’’) (Pub. L. 106–387; 114 Stat.

1549). The provisions of the CDSOA are

contained in Title X (sections 1001–

1003) of the Act.

The CDSOA, in section 1003 of the

Act, amended Title VII of the Tariff Act

of 1930, by adding a new section 754

(codified at 19 U.S.C. 1675c) in order to

provide that assessed duties received

pursuant to a countervailing duty order,

an antidumping duty order, or an

antidumping duty finding under the

Antidumping Act of 1921, would be

distributed by Customs to affected

domestic producers for certain

qualifying expenditures that these

producers incur after the issuance of

such an antidumping duty order or

finding, or countervailing duty order.

This distribution is called the continued

dumping and subsidy offset.

Affected Domestic Producers

An affected domestic producer

eligible for a distribution of

countervailing or antidumping duties

assessed under an order or finding

would include any manufacturer,

producer, farmer, rancher or worker

representative (including any

association of such persons) that

remained in operation, and that was a

petitioner or an interested party that

supported a petition for the issuance of

an antidumping duty order, a finding

under the Antidumping Act of 1921, or

a countervailing duty order.

However, a company, business or

person that had ceased production of

the product covered by an order or

finding could not be an affected

domestic producer eligible to receive a

distribution.

Also, a company, business or person

would not be an affected domestic

producer entitled to a distribution of

assessed antidumping and

countervailing duties if that company,

business or person had been acquired by

a company or business that was related

to a company that had opposed the

antidumping or countervailing duty

investigation that led to the order or

finding.

In this regard, as defined in section

754(b)(5) of the Tariff Act of 1930 (19

U.S.C. 1675c(b)(5)), a company,

business or person would be considered

to be related to another company,

business or person if: (1) the company,

business or person directly or indirectly

controlled or was controlled by the

other company, business or person; (2)

a third party directly or indirectly

controlled both companies, businesses

or persons; or (3) both companies,

businesses or persons directly or

indirectly controlled a third party and

there was reason to believe that the

relationship caused the first company,

business or person to act differently

than a nonrelated party. As concerns

items 1–3, one party would be

considered to directly or indirectly

control another party if the party was

legally or operationally in a position to

exercise restraint or direction over the

other party.

List of Affected Domestic Producers

The U.S. International Trade

Commission (USITC) is responsible for

ascertaining and timely forwarding to

Customs a list of the affected domestic

producers in connection with each

order or finding that would potentially

be eligible to receive an offset. This list

would consist of those petitioners for

each order or finding as well as those

parties that indicated support of a

petition for the order or finding. The

resolution of any dispute regarding a

particular list of affected domestic

producers in any given case would be

the province of the USITC, and not

Customs.

It is noted that the USITC has

supplied Customs with an initial list of

affected domestic producers for the

approximately 400 individual

antidumping and countervailing duty

cases currently ongoing, comprising

over 2,000 affected domestic parties

Federal Register / Vol. 6, No. 123 / Tuesday, June 26, 2001 / Proposed Rules 33921

potentially eligible to receive an offset.

This list has been posted on the

Customs website (http://

www.customs.gov/news/fed-reg/

notices/dumping.pdf). Continued

updates to this list will be processed as

necessary.

Qualifying Expenditures for Which

Distribution May Be Made

A qualifying expenditure by an

affected domestic producer against

which a distribution of assessed

antidumping and countervailing duties

could be made would encompass those

expenditures that were incurred after

the issuance of an antidumping duty

order or finding or a countervailing duty

order, provided that such expenditures

fell within any of the following

categories: manufacturing facilities;

equipment; research and development;

personnel training; acquisition of

technology; health care benefits for

employees paid for by the employer;

pension benefits for employees paid for

by the employer; environmental

equipment, training, or technology;

acquisition of raw materials and other

inputs; and working capital or other

funds needed to maintain production.

Customs Rulemaking

By this document, Customs proposes

to amend the Customs Regulations to

add a new subpart F to part 159 (19 CFR

part 159, subpart F; §§ 159.61–159.64)

that would principally prescribe the

procedures, including the time and

manner, and the required information

necessary for the distribution of

antidumping and countervailing duties

assessed under an appropriate order or

finding, that would be payable as a

continued dumping and subsidy offset

to those affected domestic producers for

their qualifying expenditures, in

accordance with section 754 of the

Tariff Act of 1930, as amended (19

U.S.C. 1675c).

It is noted that 19 U.S.C. 1675c covers

all antidumping and countervailing

duty assessments made on or after

October 1, 2000, in connection with all

antidumping duty orders or findings, or

countervailing duty orders, in effect as

of January 1, 1999, or issued thereafter.

Notice of Intent To Distribute Offset

As a first step in the distribution

process, at least 60 days prior to the end

of a fiscal year, Customs would be

responsible for publishing in the

Federal Register a notice of intention to

distribute the offset for that fiscal year,

and including in the notice the list of

affected domestic producers, based

upon the list supplied by the USITC,

that would be potentially eligible to

receive the distribution.

The notice of intention to distribute

the offset will also refer to: the case

name and number of the particular

order or finding concerned; and the

instructions for filing a certification to

claim a distribution.

Certifications

To obtain a distribution of the offset,

each affected domestic producer would

have to submit a certification under

oath, in triplicate, or electronically as

authorized by Customs, to the Assistant

Commissioner, Office of Regulations

and Rulings, Headquarters, or designee,

that must be received within 60 days

after the date of publication of the

notice in the Federal Register,

indicating that the producer desires to

receive a distribution. The certification

must demonstrate that the producer is

eligible to receive a distribution as an

affected domestic producer, and it must

enumerate the qualifying expenditures

incurred by the producer since the

issuance of an order or finding for

which a distribution has not previously

been made.

More specifically, while there is no

established format for a certification, the

certification must identify the date of

the Federal Register notice under which

it is submitted, and the case name and

the number of the particular order or

finding cited in the Federal Register

notice.

The certification must be executed

and dated by a party legally authorized

to bind the producer, and it must

include the following identifying

information: the name of the producer

and any name qualifier, if applicable

(for example, any other name under

which the producer does business or is

also known); the address of the

producer (if a post office box, the

secondary street address must also be

included); the Internal Revenue Service

(IRS) number (with suffix) of the

producer, employer identification

number, or social security number, as

applicable; the specific business

organization of the producer

(corporation, partnership, sole

proprietorship); and the name(s) of any

individual(s) designated by the

producer as the contact person(s)

concerning the certification, together

with the phone number(s) and/or

facsimile transmission number(s) and

electronic mail (email) address(es) for

the person(s). Parties wishing to receive

their disbursement via electronic

payment must also include their

financial institution’s Transit Routing

Identification Number and applicable

Bank Account Number.

In addition, the certification must

enumerate: the total amount of

qualifying expenditures currently and

previously certified by the producer,

and the amount certified by category;

the total amount of those expenditures

for which there has been a prior

distribution; and the net amount of the

current claim (the total amount

currently and previously certified minus

the total amount for which there has

been a previous distribution).

Furthermore, the certification must

contain a statement that the producer

desires to receive a distribution and is

eligible to receive the distribution as an

affected domestic producer. Also, the

producer must affirm that the amount

claimed as an offset does not involve

any qualifying expenditures for which

distribution has previously been made.

Moreover, the statement must include

information as to whether or not the

producer has ceased to operate or has

ceased production of the product

covered by the particular order or

finding under which the distribution is

sought. Additionally, the producer must

state whether or not it has been acquired

by a company or business that is related

to a company, as defined in section

754(b)(5), Tariff Act of 1930 (19 U.S.C.

1675c(b)(5)), that opposed the

antidumping or countervailing duty

investigation that resulted in the order

or finding under which the distribution

is sought. If any of the foregoing

conditions are not met, the producer

would not qualify as an affected

domestic producer.

Customs is especially interested in

receiving public comment as to whether

it should adopt the position that the

name of the certifying producer and the

total amount being certified will be

considered information available for

disclosure to the public.

A certification that is submitted and

timely received in response to a notice

of distribution may be reviewed before

acceptance to ensure that all

informational requirements are

complied with and that any amounts set

forth in the certification for current and

prior qualifying expenditures, including

the amount claimed for distribution,

appear to be correct. A certification that

is found to be incorrect or incomplete

will be returned to the producer and the

deficiencies will be identified. It is the

sole responsibility of the producer to

ensure that the certification is correct,

complete and satisfactory so as to

demonstrate the entitlement of the

producer to the distribution requested.

Failure to ensure that a correct,

complete and satisfactory certification is

filed within 60 days after the date of

publication of the notice in the Federal

33922 Federal Register / Vol. 6, No. 123 / Tuesday, June 26, 2001 / Proposed Rules

Register will result in the producer not

receiving a distribution.

Verification

Customs reserves the right to

determine whether certifications will be

verified through audit or otherwise.

Because certifications may be subject to

verification, parties are required to

maintain records supporting their

claims for a period of three years after

the filing of the certification.

Special Accounts, Clearing Accounts

As directed in the legislation (19

U.S.C. 1675c(e)), Customs will establish

a Special Account for each antidumping

duty order or finding or countervailing

duty order, into which antidumping or

countervailing duties liquidated

pursuant to the order or finding will be

deposited.

To facilitate this process, Customs is

also establishing a Clearing Account

into which all estimated antidumping or

countervailing duties will initially be

deposited, that are collected under an

entry, but that are not yet available for

distribution because their liquidation

has not been achieved. However, once

antidumping or countervailing duties

are liquidated, these duties will be

transferred from the Clearing Account to

the Special Account established for that

order or finding. When transferred to

the appropriate Special Account, the

antidumping or countervailing duties

will be considered to be received by

Customs and distributions will be made

from that Special Account.

Interest on Special Accounts, Clearing

Accounts

In accordance with Federal

appropriations law, and Treasury

guidelines on Special Accounts

governed by this law, funds in such

accounts are not interest-bearing unless

specified by Congress. Likewise, funds

being held in Clearing Accounts are not

interest-bearing unless specified by

Congress. Therefore, no interest will

accrue in these accounts. However, if

there is interest paid by the importer on

any antidumping or countervailing

duties billed in the liquidation process

for the import entries, that interest will

be transferred to the Clearing Account

or Special Account, as appropriate.

Distribution of Assessed Duties

Received as Continued Dumping and

Subsidy Offset

Under 19 U.S.C. 1675c(c), the

Commissioner of Customs is authorized

to prescribe procedures for distributing

the continued dumping and subsidy

offset. Section 1675c(c) also requires

that this distribution be made, not later

than 60 days after the first day of a fiscal

year, from those antidumping or

countervailing duties assessed and

received during the preceding fiscal

year. In the same vein, 19 U.S.C.

1675c(d)(3) authorizes the

Commissioner to distribute all funds

from assessed duties received in the

preceding fiscal year.

Antidumping and countervailing

duties are assessed on imported

merchandise as instructed by the U.S.

Department of Commerce (Commerce),

19 U.S.C. 1671e(a)(1) and 1673e(a)(1),

such assessment to occur within six

months after Customs receives notice

from Commerce of the removal of a

suspension of liquidation required by

statute or court order under 19 U.S.C.

1504(d). These statutory provisions

distinguish assessments of antidumping

or countervailing duties from the mere

deposit of estimated duties which

occurs at entry. See, e.g., 19 U.S.C.

1671e(a)(3) and 1673e(a)(3)).

When instructed by Commerce,

Customs assesses the final amount of

antidumping or countervailing duties

accruing on an entry for imported

merchandise, which is accomplished by

liquidating the subject entry. 19 U.S.C.

1500. The term ‘‘liquidation’’ is defined

in this context as the final computation

or ascertainment of the duties accruing

on an entry. 19 CFR 159.1.

In brief, antidumping or

countervailing duties accruing on

imported merchandise are not assessed

until each entry covering the

merchandise is liquidated. Prior to

liquidation, any estimated antidumping

or countervailing duties that may have

been deposited on an entry are first

placed into the Clearing Account and

are not available for distribution. Once

an entry has been liquidated, the

estimated antidumping or

countervailing duties in the Clearing

Account for that entry are assessed and

then received by Customs into the

appropriate Special Account.

Once assessed and received into a

Special Account, duties will become

available for distribution as part of the

continued dumping and subsidy offset

and will be distributed within 60 days

of the beginning of the following fiscal

year. In the case of entries that are

reliquidated at lower antidumping or

countervailing rates than originally

liquidated, the difference will be

refunded to importers from funds in the

corresponding Clearing Account and/or

Special Account during subsequent

fiscal years. If Customs determines that

funds in the Clearing Account or

Special Account are insufficient to

support a refund, affected domestic

producers who previously received

distributions under the Special Account

will be billed. The amount of each

affected domestic producer’s bill will be

directly proportional to the total offset

amount previously received. Customs

will use all available collection methods

to collect outstanding bills, including,

but not limited to, administrative offset.

Interest will begin to accrue on unpaid

bills beginning 30 days from the bill

date.

When entries are reliquidated at

higher rates than originally liquidated,

importers will be billed for the

difference. These duties will be

distributed within 60 days of the

beginning of the following fiscal year in

which they were received into the

Special Account.

If the total amount of the net claims

contained in certifications filed under a

given notice of distribution does not

exceed the amount of the offset

available for distribution in a given

fiscal year, the certified net claim for

each affected producer will be paid, and

the balance remaining will be returned

to the Clearing Account, where it will be

retained for the sole purpose of future

importer refunds. In the alternative, if

the net claims exceed the available

offset for a fiscal year, such offset will

be subject to a pro rata allocation to

each of the affected domestic producers

based upon the total of the net claims

certified.

Finally, before the last distribution

may be made under an order or finding

that has terminated, all remaining

entries covered by the order or finding

must have been finally liquidated, no

longer subject to reliquidation, and all

duties assessed under the entries must

have been fully collected (19 U.S.C.

1675c(e)(4)(B)). Any funds remaining in

the Special Account following the final

distribution will be transferred to the

General Fund.

Illustrations of the Process for

Distributing the Offset

To demonstrate the process of

distributing the continued dumping and

subsidy offset, the following

illustrations are provided:

I. For entries of merchandise, subject

to antidumping and countervailing duty

(AD/CVD) orders, that are imported

prior to the October 1, 2000, effective

date for CDSOA:

A. If the entries are liquidated prior to

10–1–2000, there is no offset

disbursement of the AD/CV duties.

Example: Merchandise was entered in July

1999, and was liquidated in September 2000.

B. If the entries are liquidated after

10–1–2000, the liquidated AD/CV duties

will be disbursed.

Federal Register / Vol. 6, No. 123 / Tuesday, June 26, 2001 / Proposed Rules 33923

1. For no change liquidation and

partial refund liquidations: the

liquidated AD/CV duties will be

disbursed, based on the fiscal year of the

date of liquidation.

Example: Merchandise was entered in

August 1999, and was liquidated in

November 2000. The AD/CVD duties will be

disbursed no later than November 2001.

2. For liquidations that bill additional

duty and interest: The total amount of

liquidated AD/CV duties and the

interest paid will be disbursed. The

amount of AD/CV duty already

collected by Customs at the time of

liquidation will be disbursed based on

the fiscal year of the date of liquidation.

The additional AD/CV duty and interest

paid will be disbursed based on the

fiscal year of the date of payment.

Example: Merchandise was entered in

September 2000, and was liquidated in

September 2001. The AD/CV duties already

collected at the time of liquidation will be

disbursed no later than November 2001. If

the bill for additional duties and interest is

paid in December 2001, those funds will be

disbursed no later than November 2002.

II. For entries of merchandise, subject

to AD/CVD orders, that are imported

after 10–1–2000:

A. For no change liquidations and

partial refund liquidations: the

liquidated AD/CV duties will be

disbursed, based on the fiscal year of the

date of liquidation.

Example: Merchandise was entered in

December 2000, and was liquidated in

January 2002. The liquidated AD/CV duties

will be disbursed no later than November

2002.

1. For liquidations that bill additional

AD/CV duties and interest: the total

liquidated AD/CV duties and interest

paid will be disbursed. The amount of

AD/CV duties already collected by

Customs at the time of liquidation will

be disbursed based on the fiscal year of

the date of liquidation. The additional

AD/CV duty and interest paid will be

disbursed based on the fiscal year of the

date of payment.

Example: Merchandise was entered in May

2001, and was liquidated in August 2002.

The AD/CV duties already collected at the

time of liquidation will be disbursed no later

than November 2002. If the additional AD/

CV duty and interest is paid in November

2002, those funds will be disbursed no later

than November 2003.

III. For entries of merchandise,

imported after 10–1–2000, that are

subject to terminated AD/CVD orders:

All AD/CV duties and interest collected

pursuant to the final liquidation

instructions for a terminated case will

be disbursed, but only after all

liquidations are final and all claims

have been settled; this will not occur in

the fiscal year of liquidation, but in a

subsequent fiscal year.

Example: Merchandise imported in May

2002, the case is terminated in July 2003, and

the entry is liquidated in August 2003. Final

AD/CV duties will be disbursed no sooner

than August 2004, assuming no claims are

pending on that entry or that case.

Refunds Due Importers Based on

Reliquidations

Until the liquidation of an entry

becomes final, the duties assessed on

the entry may be subject to reliquidation

as the result of 19 U.S.C. 1501, 1514,

1520, or court order. Such a

reliquidation would operate as a new

liquidation and an abandonment of any

prior liquidation of the amount of the

duties due.

Consequently, should liquidated

duties that have been distributed to

affected domestic producers thereafter

be subject to a reliquidation that results

in a refund of duties being due to an

importer, such refund will be made to

the importer from duties that are

deposited in the Clearing Account and/

or the Special Account established for

that order or finding, as described

below, during the next fiscal year

immediately following the fiscal year in

which the distributed duties were

liquidated. However, for the last fiscal

year during which a Special Account is

established under an order or finding,

and prior to the termination of the

Special Account, no final distribution

may be made from this Account until all

remaining entries covered by the order

or finding have been finally liquidated,

and are no longer subject to

reliquidation, and all duties assessed

under the entries have been fully

collected or properly accounted for by

Customs (19 U.S.C. 1675c(e)(4)(B)).

Overpayment of Distribution to

Affected Domestic Producer

Any overpayment of a distribution

made by Customs to an affected

domestic producer will be subject to

billing and other collection methods,

including, but not limited to,

administrative offsets resulting from a

reliquidation.

Distribution Final and Conclusive on

All Parties

Except in the case of an overpayment

made by Customs to an affected

domestic producer, any distribution

from a Special Account established

under section 1675c(e)(1) for an

antidumping duty order or finding, or a

countervailing duty order, that is made

by Customs in accordance with section

1675c(d)(3) to an affected domestic

producer, based upon the certification

that this producer has filed, will be final

and conclusive on the affected domestic

producer.

Annual Report

Although it is not mandated in the

legislation (19 U.S.C. 1675c), Customs

intends to issue an annual report on the

disbursements. This report will be

available to the public via the Customs

website.

Comments

Before adopting this proposal,

consideration will be given to any

written comments that are timely

submitted to Customs. Customs

specifically requests comments on the

clarity of this proposed rule and how it

may be made easier to understand. In

addition, as already stated above,

Customs is especially interested in

receiving public comment as to whether

it should adopt the position that the

name of the certifying producer and the

total amount being certified will be

considered information available for

disclosure to the public. Comments

submitted will be available for public

inspection in accordance with the

Freedom of Information Act (5 U.S.C.

552), § 1.4 of the Treasury Department

Regulations (31 CFR 1.4), and

§ 103.11(b), Customs Regulations (19

CFR 103.11(b)), on regular business days

between the hours of 9:00 a.m. and 4:30

p.m. at the Regulations Branch, U.S.

Customs Service, 1300 Pennsylvania

Avenue, NW., 3rd Floor, Washington,

DC.

Regulatory Flexibility Act and

Executive Order 12866

The proposed amendments would

implement the terms and conditions of

the Continued Dumping and Subsidy

Offset Act of 2000, which applies to

antidumping and countervailing duties

assessed on or after October 1, 2000.

Pursuant to the provisions of the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.), it is certified that, if adopted,

the proposed amendments will not have

a significant economic impact on a

substantial number of small entities.

Nor do the proposed amendments meet

the criteria for a ‘‘significant regulatory

action’’ as specified in E.O. 12866.

Paperwork Reduction Act

The collection of information in this

notice of proposed rulemaking has been

submitted to the Office of Management

and Budget (OMB) for review in

accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507).

This collection of information is

contained in § 159.63. This information

33924 Federal Register / Vol. 6, No. 123 / Tuesday, June 26, 2001 / Proposed Rules

is necessary in order to enable, and to

expedite, the distribution of the

continued dumping and subsidy offset

to the affected domestic producers. The

likely respondents and/or recordkeepers

are domestic business organizations,

such as manufacturers, producers,

ranchers, farmers and worker

representatives (including associations

of such persons).

Estimated total annual reporting and/

or recordkeeping burden: One hour.

Estimated average annual burden per

respondent/recordkeeper: One hour.

Estimated number of respondents

and/or recordkeepers: One.

Estimated annual frequency of

responses: One.

Comments on the collection of

information should be sent to the Office

of Management and Budget, Attention:

Desk Officer of the Department of the

Treasury, Office of Information and

Regulatory Affairs, Washington, DC

20503. A copy should also be sent to the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC 20229.

Comments should be submitted within

the same time frame that comments are

due regarding the substance of the

proposal.

Comments are invited on: (a) Whether

the collection is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

(b) the accuracy of the agency’s estimate

of the burden of the collection of the

information; (c) ways to enhance the

quality, utility, and clarity of the

information to be collected; (d) ways to

minimize the burden of the collection of

information on respondents, including

through the use of automated collection

techniques or other forms of information

technology; and (e) estimates of capital

or startup costs and costs of operations,

maintenance, and purchase of services

to provide information.

Part 178, Customs Regulations (19

CFR part 178), containing the list of

approved information collections,

would be appropriately revised upon

adoption of the proposal as a final rule.

List of Subjects in 19 CFR Part 159

Antidumping (Liquidation of duties),

Countervailing duties (Liquidation of

duties), Customs duties and inspection,

Liquidation of entries for merchandise.

Proposed Amendments to the

Regulations

It is proposed to amend part 159,

Customs Regulations (19 CFR part 159),

as set forth below.

PART 159—LIQUIDATION OF DUTIES

1. The general authority citation for

part 159 continues to read as follows,

and it is proposed to add an authority

citation for Subpart F to read as follows:

Authority: 19 U.S.C. 66, 1500, 1504, 1624.

* * * Subpart F also issued under 19 U.S.C.

1675c.

* * * * *

2. It is proposed to amend part 159 by

adding a new subpart F to read as

follows:

Sec.

Subpart F—Continued Dumping and

Subsidy Offset

§ 159.61 General.

§ 159.62 Notice of Distribution.

§ 159.63 Certifications.

§ 159.64 Distribution of offset.

Subpart F—Continued Dumping and

Subsidy Offset

§ 159.61 General.

(a) Continued dumping and subsidy

offset. Under section 754 of the Tariff

Act of 1930, as amended by Pub. L. 106–

387, 114 Stat. 1549 (19 U.S.C. 1675c),

known as the Continued Dumping and

Subsidy Offset Act of 2000, assessed

duties received on or after October 1,

2000 under a countervailing duty order,

an antidumping duty order, or a finding

under the Antidumping Act of 1921,

will be distributed, as provided under

this subpart, to affected domestic

producers for certain qualifying

expenditures that these affected

domestic producers incur after the

issuance of such an antidumping duty

order or finding, or countervailing duty

order. This distribution is called the

continued dumping and subsidy offset.

(b) Affected domestic producer

defined. Except as otherwise provided

in paragraphs (b)(1) and (b)(2) of this

section, an ‘‘affected domestic

producer’’ under paragraph (a) of this

section means any manufacturer,

producer, farmer, rancher or worker

representative (including any

association of such persons) that

remains in operation, and that was a

petitioner or an interested party that

supported a petition concerning an

antidumping duty order, a finding

under the Antidumping Act of 1921, or

a countervailing duty order that was

entered. It is the responsibility of the

U.S. International Trade Commission

(USITC) to ascertain and timely forward

to Customs a list of the domestic

producers potentially eligible to receive

a distribution in connection with each

order or finding.

(1) Product no longer produced. A

company, business or person that has

ceased production of the product

covered by the antidumping duty order

or finding, or countervailing duty order,

is not an affected domestic producer

under this section.

(2) Acquisition by related company.

(i) Related company defined. A

company, business or person is not an

affected domestic producer if that

company, business, or person has been

acquired by another company or

business that is related to a company

that opposed the antidumping or

countervailing duty investigation that

led to the order or finding. For purposes

of this paragraph, a company, business

or person is related to another company,

business or person if:

(A) The company, business or person

directly or indirectly controls or is

controlled by the other company,

business or person;

(B) A third party directly or indirectly

controls both companies, businesses or

persons; or

(C) Both companies, businesses or

persons directly or indirectly control a

third party and there is reason to believe

that the relationship causes the first

company, business or person to act

differently than a nonrelated party.

(ii) Control of one party by another.

For purposes of paragraphs (b)(2)(i)(A)

through (b)(2)(i)(C) of this section, one

party would be considered to directly or

indirectly control another party if the

party was legally or operationally in a

position to exercise restraint or

direction over the other party.

(c) Qualifying expenditures. A

qualifying expenditure which may be

offset by a distribution of assessed

antidumping and countervailing duties

encompasses those expenditures that

are incurred after the issuance of an

antidumping duty order or finding or a

countervailing duty order, provided that

such expenditures fall within any of the

following categories:

(1) Manufacturing facilities;

(2) Equipment;

(3) Research and development;

(4) Personnel training;

(5) Acquisition of technology;

(6) Health care benefits for employees

paid for by the employer;

(7) Pension benefits for employees

paid for by the employer;

(8) Environmental equipment,

training, or technology;

(9) Acquisition of raw materials and

other inputs; and

(10) Working capital or other funds

needed to maintain production.

§ 159.62 Notice of distribution.

(a) Publication of notice. At least 60

days before the end of a fiscal year,

Customs will publish in the Federal

Register a notice of intention to

Federal Register / Vol. 6, No. 123 / Tuesday, June 26, 2001 / Proposed Rules 33925

distribute assessed duties received as

the continued dumping and subsidy

offset for that fiscal year. The notice will

include the list of domestic producers,

based upon the list supplied by the

USITC (see § 159.61(b)), that would be

potentially eligible to receive the

distribution.

(b) Content of notice. The notice of

intention to distribute the offset will

also contain the following:

(1) The case name and number of the

particular order or finding concerned;

and

(2) The instructions for filing the

certification under § 159.63 in order to

claim a distribution.

§ 159.63 Certifications.

(a) Requirement and purpose for

certification. In order to obtain a

distribution of the offset, each affected

domestic producer must submit a

certification, in triplicate, or

electronically as authorized by Customs,

to the Assistant Commissioner, Office of

Regulations and Rulings, Headquarters,

or designee, that must be received

within 60 days after the date of

publication of the notice in the Federal

Register, indicating that the affected

domestic producer desires to receive a

distribution. The certification must

enumerate the qualifying expenditures

incurred by the domestic producer since

the issuance of an order or finding for

which a distribution has not previously

been made, and it must demonstrate

that the domestic producer is eligible to

receive a distribution as an affected

domestic producer.

(b) Content of certification. While

there is no established format for a

certification, the certification must

identify the date of the Federal Register

notice under which it is submitted, and

the case name and the number of the

particular order or finding cited in the

Federal Register notice. The

certification must be executed and dated

by a party legally authorized to bind the

domestic producer and state that the

information contained in the

certification is true and accurate to the

best of the certifier’s knowledge and

belief.

(1) Identifying information for

domestic producer. The certification

must include the following identifying

information related to the domestic

producer:

(i) The name of the domestic producer

and any name qualifier, if applicable

(for example, any other name under

which the domestic producer does

business or is also known);

(ii) The address of the domestic

producer (if a post office box, the

secondary street address must also be

included);

(iii) The Internal Revenue Service

(IRS) number (with suffix) of the

domestic producer, employer

identification number, or social security

number, as applicable;

(iv) The specific business organization

of the domestic producer (corporation,

partnership, sole proprietorship);

(v) The name(s) of any individual(s)

designated by the domestic producer as

the contact person(s) concerning the

certification, together with the phone

number(s) and/or facsimile transmission

number(s) and electronic mail (email)

address(es) for the person(s); and

(vi) The Transit Routing Identification

Number of the financial institution and

applicable Bank Account Number for

the domestic producer (if disbursement

is sought via electronic payment).

(2) Amount of claim. In calculating

the amount of the distribution being

claimed as an offset, the certification

must enumerate the following:

(i) The total amount of qualifying

expenditures currently and previously

certified by the domestic producer, and

the amount certified by category (see

§ 159.61(c)(1)–(10));

(ii) The total amount of those

expenditures which have been the

subject of any prior distribution under

section 754, Tariff Act of 1930, as

amended (19 U.S.C. 1675c); and

(iii) The net amount for new and

remaining qualifying expenditures being

claimed in the current certification (the

total amount currently and previously

certified as noted in paragraph (b)(2)(i)

of this section minus the total amount

the subject of any prior distribution as

noted in paragraph (b)(2)(ii) of this

section).

(3) Statement of eligibility to receive

distribution. The certification must

contain a statement that the domestic

producer desires to receive a

distribution and is eligible to receive the

distribution as an affected domestic

producer. The domestic producer must

affirm that the net amount certified for

distribution does not encompass any

qualifying expenditures for which

distribution has previously been made

(see paragraphs (b)(2)(ii) and (b)(2)(iii)

of this section). Further, the statement

must include information as to whether

the domestic producer remains in

operation and continues to produce the

product covered by the particular order

or finding under which the distribution

is sought (see § 159.61(b)(1)). In

addition, the domestic producer must

state whether it has been acquired by a

company or business that is related to

a company, within the meaning of

§ 159.61(b)(2)(i)(A)–(C), that opposed

the antidumping or countervailing duty

investigation that resulted in the order

or finding under which the distribution

is sought.

(c) Review and correction of

certification. A certification that is

submitted in response to a notice of

distribution and received within 60

days after the date of publication of the

notice in the Federal Register may be

reviewed before acceptance to ensure

that all informational requirements are

complied with and that any amounts set

forth in the certification for current and

prior qualifying expenditures, including

the amount claimed for distribution,

appear to be correct (see paragraph

(b)(2) of this section). A certification

that is found to be incorrect or

incomplete will be returned to the

domestic producer. It is the sole

responsibility of the domestic producer

to ensure that the certification is correct,

complete and satisfactory so as to

demonstrate the entitlement of the

domestic producer to the distribution

requested. Failure to ensure that

certification is correct, complete and

satisfactory within 60 days after the date

of publication of the notice of

distribution in the Federal Register will

result in the domestic producer not

receiving a distribution.

(d) Verification of certification;

supporting records. Customs reserves

the right to determine whether

certifications will be verified through

audit or otherwise. Because

certifications may be subject to

verification, parties are required to

maintain records supporting their

claims for a period of three years after

the filing of the certification.

§ 159.64 Distribution of offset.

(a) The creation of Special Accounts

and Clearing Accounts.

(1) Special Accounts. As directed in

the legislation (19 U.S.C. 1675c(e)),

Customs will establish Special Accounts

for each antidumping duty order or

finding or countervailing duty order,

into which funds will be transferred as

set out in paragraph (b) of this section.

All distributions to affected domestic

producers will be made from the Special

Accounts.

(2) Clearing Accounts. In order to

properly manage and account for

dumping and subsidy offsets, as well as

any requisite refunds to importers,

Customs will also establish Clearing

Accounts. All estimated antidumping

and countervailing duties received

pursuant to an antidumping or

countervailing order or finding in effect

on January 1, 1999, or thereafter, will be

deposited into a Clearing Account.

33926 Federal Register / Vol. 6, No. 123 / Tuesday, June 26, 2001 / Proposed Rules

(b) Distribution of assessed duties

received from the Special Accounts;

refunds resulting from reliquidation or

court action; and overpayments to

affected domestic producers.

(1) Distribution of assessed duties

received from the Special Accounts.

(i) No later than 60 days after the end

of a fiscal year, Customs will distribute

the assessed duties transferred from the

Clearing Accounts and received into the

Special Accounts for purposes of

distribution. The amount distributed

shall be referred to as the dumping and

subsidy offset;

(ii) Transfers from the Clearing

Accounts to the Special Accounts will

be made by Customs throughout the

fiscal year. Transfers will occur between

a Clearing Account and a Special Fund

Account when an entry upon which

antidumping or countervailing duties

are owed is properly liquidated

pursuant to an order, finding or receipt

of liquidation instructions;

(iii) The amount transferred at

liquidation to the Special Account will

be dependent upon the amount actually

collected on the entry and in the

Clearing Account. Following

liquidation, additional transfers will be

made on the liquidated entry to the

corresponding Special Account, as

additional antidumping or

countervailing duties owing are

collected.

(2) Refunds resulting from

reliquidation or court action. If any of

the underlying entries composing a

prior distribution should reliquidate for

a refund, such refund will be recovered,

to the extent possible, from the

corresponding Clearing Account and/or

Special Account balances available for

refund or distribution. Similarly,

refunds to importers resulting from any

court action involving those entries will

also be recovered, to the extent possible,

from corresponding Clearing Account

and/or Special Account balances

available for refund or distribution.

(3) Overpayments to affected domestic

producers. Overpayments to affected

domestic producers resulting from

subsequent reliquidations and/or court

actions and determined by Customs to

be not otherwise recoverable from the

corresponding Clearing Account or

Special Account as set out in paragraph

(b)(2) of this section will be collected

from the affected domestic producers.

The amount of each affected domestic

producer’s bill will be directly

proportional to the total dumping and

subsidy offset amounts that that affected

domestic producer previously received

under the related Special Account. All

available collection methods will be

used by Customs to collect outstanding

bills, including but not limited to,

administrative offset. Interest will begin

to accrue on unpaid bills 30 days from

the bill date.

(c) Payment of certified claims.

(1) If the total amount of the certified

net claims filed by affected domestic

producers does not exceed the amount

of the offset available for distribution in

the corresponding Special Account, the

certified net claim for each affected

domestic producer will be paid in full.

Any balance that remains in a Special

Account after an annual distribution has

occurred will be transferred back into

the appropriate Clearing Account.

Funds transferred back to the

appropriate Clearing Account will not

be available for future distributions to

affected domestic producers. Rather,

those amounts will be available to

Customs to pay refunds owed to

importers due to reliquidations and/or

court action. Funds transferred back to

the Clearing Account and not paid out

to importers will be transferred to the

General Fund when the corresponding

Special Account is terminated in

accordance with paragraph (d) of this

section.

(2) If the certified net claims exceed

the dumping and subsidy offset amount

available in the corresponding Special

Account, such offset will be made on a

pro rata basis based on each affected

domestic producer’s total certified

claim.

(3) In any case where the distribution

is not for the entire certified qualifying

expenditure submitted by an affected

domestic producer, the Customs Service

will, at the time of payment, provide a

written notification explaining the

reason for the entire amount not being

paid. If the affected domestic producer

believes that the reduction was the

result of clerical error or mistake by

Customs, it must file a request for

reconsideration within 10 business days

to the address given in the notification.

After considering the matter, the

Customs Service will notify the party

requesting reconsideration of its

decision. However, any adjustments

will be made only from funds remaining

in the account for that case in the

current or future fiscal years, but will be

paid prior to any future distributions.

(d) Final distribution and termination

of the Special Account.

(1) A Special Account will be

terminated and a final distribution will

occur when:

(i) The order or finding with respect

to which the account was established

has terminated; and

(ii) All entries relating to the order or

finding are liquidated, all outstanding

amounts collected or properly

accounted for by Customs, all related

protests, petitions, and court actions

fully concluded, and all refunds due to

importers on the underlying entries are

paid in full.

(2) Once the requisite requirements

set out in paragraph (d)(1) of this section

have been met, notice of a final

distribution will be issued pursuant to

§ 159.62.

(3) Amounts not timely claimed under

the notice of final distribution will be

permanently deposited into the General

Fund of the Treasury.

(e) Interest on Special Accounts and

Clearing Accounts. In accordance with

Federal appropriations law, and

Treasury guidelines on Special

Accounts, funds in such accounts are

not interest-bearing unless specified by

Congress. Likewise, funds being held in

Clearing Accounts are not interestbearing unless specified by Congress.

Therefore, no interest will accrue in

these accounts. However, statutory

interest charged on antidumping and

countervailing duties at liquidation, will

be transferred to the Clearing Account

or Special Account, as appropriate,

when collected from the importer.

(f) Distribution final and conclusive.

Except as provided in paragraphs (b)(3)

and (c)(3) of this section, any

distribution made to an affected

domestic producer under this section

shall be final and conclusive on the

affected domestic producer.

(g) Annual report. Although it is not

mandated in the law (19 U.S.C. 1675c),

Customs will issue an annual report on

the disbursements. This report will be

available to the public via the Customs

website.

Approved: June 21, 2001.

Timothy E. Skud,

Acting Deputy Assistant Secretary of the

Treasury.

Charles W. Winwood,

Acting Commissioner of Customs.

[FR Doc. 01–16020 Filed 6–25–01; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 165

[CGD09–01–055]

RIN 2115–AA97

Safety Zone: Sister Bay Marinafest

2001, Sister Bay, WI.

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.