[Federal Register Volume 61, Number 102 (Friday, May 24, 1996)]
[Notices]
[Pages 26162-26163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13169]



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DEPARTMENT OF COMMERCE
[C-201-017]


Bricks From Mexico; Amended Revocation of the Countervailing Duty 
Order and Amended Final Results of Countervailing Duty Administrative 
Review

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

ACTION: Amended Revocation of the Countervailing Duty Order and Amended 
Final Results of Countervailing Duty Administrative Review.

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SUMMARY: On September 6, 1995, the Court of Appeals for the Federal 
Circuit (the CAFC) held in Ceramica Regiomontana v. United States, 
Court No. 95-1026 (Fed. Cir., Sept. 6, 1995) (Ceramica) that the 
Department of Commerce (the Department) lacks statutory authority to 
impose countervailing duties on dutiable goods imported by Mexico after 
April 23, 1985, absent an injury determination. On April 18, 1996, 
pursuant to the Ceramica decision, the Court of International Trade 
(CIT) remanded to the Department the case Productos De Barro 
Industrializados, S.A. de C.V. (Court No. 88-10-00808), which was 
stayed pending the Ceramica decision. In the remand, the court ordered 
the Department to (1) revoke the countervailing duty order on bricks 
from Mexico effective April 23, 1985, the date Mexico was designated as 
a ``country under the Agreement''; and (2) instruct the U.S. Customs 
Service to refund any estimated countervailing duties at issue in this 
case that were deposited during the period April 23, 1985 through 
December 31, 1986. In accordance with the CIT's order, we are hereby 
amending the revocation of the countervailing duty order on bricks from 
Mexico to be effective April 23, 1985, instead of August 24, 1986 (54 
FR 53163; December 27, 1989).
    In addition, pursuant to Ceramica S.A. v. United States, Slip Op. 
96-74, Court No. 59-06-00323 (May 5, 1994), the CIT ordered the 
Department to recalculate the country-wide rate for entries of bricks 
from Mexico exported by Productos de Barro Industrializados, S.A. de 
C.V. (Productos de Barro) that were entered between July 1, 1984 and 
April 22, 1985, by weight-averaging the benefits received by all 
companies by their proportion of exports to the United States, 
inclusive of zero rate firms and de minimis firms as well as all other 
firms with significantly different rates. In accordance with the CIT's 
remand, we are hereby amending the final results of the countervailing 
duty administrative review. The recalculated rate applicable to 
unliquidated entries exported by Productos de Barro is 2.92 percent ad 
valorem for the period July 1, 1984 through December 31, 1984 and 3.10 
percent ad valorem for the period January 1, 1985 through April 22, 
1985.

EFFECTIVE DATE: May 24, 1996.

FOR FURTHER INFORMATION CONTACT: Gayle Longest or Kelly Parkhill at the 
Office of Countervailing Compliance, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230; 
telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On September 30, 1989 (53 FR 38314), the Department published the 
final results of administrative review of the countervailing duty order 
on bricks from Mexico, covering the review period July 1, 1984, through 
December 31, 1985. For purposes of the final results, the Department 
calculated the ``all others'' countervailing duty rate by weight 
averaging the benefits received by companies, excluding zero rate and 
de minimis firms. The resultant countervailing duty rate applicable to 
non-de minimis firms was 3.32 percent ad valorem during July 1, 1984 
through December 31, 1984, and 4.21 percent ad valorem during January 
1, 1985 through December 31, 1985.
    On December 27, 1989, the Department published the final results of 
changed circumstances countervailing duty administrative review and 
revocation of the countervailing duty order on bricks from Mexico 
revoking the countervailing duty order as of August 24, 1986.
    The respondents challenged the Department's final results of the 
administrative review in the CIT with respect to (1) the calculation of 
the country-wide countervailing duty rate, and (2) the effective date 
of the revocation of the countervailing duty order on bricks from 
Mexico. The CIT stayed these cases pending the resolution of the 
identical issues raised in Ceramica, a case involving the 
countervailing duty order on ceramic tile from Mexico.
    On September 6, 1995, the CAFC ruled in Ceramica that, absent an 
injury determination by the ITC, the Department may not assess 
countervailing duties under section 1303(a)(1) on entries from Mexico 
of dutiable merchandise which occurred on or after April 23, 1985, the 
date Mexico was designated as a ``country under the Agreement'' for 
purposes of 19 U.S.C. Sec. 1671. On February 21, 1996, the Department 
implemented the CAFC's ruling in the case of Mexican ceramic tile. (61 
FR 6630) On April 18, 1996, the CIT ordered the Department to apply the 
CAFC's decision in Ceramica to bricks from Mexico. Accordingly, the CIT 
ordered that the Department (1) Amend the effective date of the 
revocation of the order on bricks from Mexico to April 23, 1985, and 
(2) recalculate ``the countervailing duty rate for plaintiff's entries 
of bricks from Mexico that were entered between July 1, 1984 and April 
22, 1985, by weight-averaging the benefits received by all companies by 
their proportion of exports to the United States, inclusive of zero 
rate firms and de minimis firms as well as all other firms with 
significantly different rates'' pursuant to the methodology set forth 
in Ipsco v. United States, 899 F.2d 1192 (Fed. Cir. 1990).''

Amended Revocation and Final Remand Results

    Pursuant to the CIT's order of April 18, 1996, the Department is 
hereby amending the revocation of the countervailing duty order on 
bricks from Mexico to be effective for all entries made on or after 
April 23, 1985. We will instruct the U.S. Customs Service to liquidate 
all unliquidated entries of the subject merchandise entered or 
withdrawn from warehouse, for consumption on or after April 23, 1985, 
without regard to countervailing duties. We will instruct the U.S. 
Customs Service to refund with interest any estimated countervailing 
duties collected with respect to those entries. We note that the 
requirements for a cash deposit of estimated countervailing duties were 
previously terminated in conjunction with the revocation under section 
751 (b) and (c) of the Act.
    Furthermore, the Department has complied with the CIT's order and 
recalculated the ``all others'' countervailing duty rates applicable to 
entries exported by Productos de Barro by weight-averaging the benefits 
received by all of the companies, including the de minimis or zero rate 
firms as well as companies with significantly different rates, that 
were subject to the review covering the period July 1, 1984 through 
December

[[Page 26163]]

31, 1985. The resultant rate for Productos de Barro for the period July 
1, 1984 through December 31, 1984 is 2.92 percent ad valorem, and for 
the period January 1, 1985 through December 31, 1985 is 3.10 percent ad 
valorem. Accordingly, we are hereby amending the final results of the 
administrative review for the period July 1, 1984 through December 31, 
1985. However, as discussed above, we will order assessment only on 
entries through April 22, 1985, the date prior to the effective date of 
the revocation.
    The Department shall determine, and the Customs Service shall 
assess, countervailing duties on all appropriate entries. The 
Department will issue appraisement instructions directly to the Customs 
Service.
    This notice is in accordance with section 516(a)(e) of the Act.

    Dated: May 17, 1996.
Paul L. Joffe,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-13169 Filed 5-23-96; 8:45 am]
BILLING CODE 3510-DS-P