Leather Wearing Apparel From Mexico; Preliminary Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

INTERNATIONAL TRADE ADMINISTRATION

[(C-201-001)]

Leather Wearing Apparel From Mexico; Preliminary Results of

Countervailing Duty Administrative Review

AGENCY: International Trade Administration/Import Administration

Commerce.

ACTION: Notice of preliminary results of countervailing duty

administrative review.

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SUMMARY: The Department of Commerce is conducting an administrative

review of the countervailing duty order on leather wearing apparel from

Mexico. We preliminarily determine the net subsidy rate to be zero for

the 65 companies listed in the Appendix and 13.35 percent ad valorem

for all other companies for the period January 1, 1992 through December

31, 1992. We invite interested parties to comment on these results.

EFFECTIVE DATE: May 17, 1994.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Dana Mermelstein,

Office of Countervailing Compliance, International Trade

Administration, U.S. Department of Commerce, Washington DC 20230;

telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On April 9, 1993, the Department of Commerce (the Department)

published in the Federal Register a notice of ``Opportunity to Request

Administrative Review'' (58 FR 18374) of the countervailing duty order

on leather wearing apparel from Mexico (46 FR 21357; April 10, 1981).

On April 30, 1993, the Amalgamated Clothing and Textile Workers Union

(ACTWU), whose members produce leather wearing apparel, requested an

administrative review of the order. We initiated the review, covering

the period January 1, 1992 through December 31, 1992, on May 27, 1993

(58 FR 30769).

Scope of Review

Imports covered by this review are shipments of Mexican leather

wearing apparel. These products include leather coats and jackets for

men, boys, women, girls, and infants, and other leather apparel

products including leather vests, pants, and shorts. Also included are

outer leather shells and parts and pieces of leather wearing apparel.

This merchandise is currently classifiable under Harmonized Tariff

Schedule (HTS) item numbers 4203.10.4030, 4203.10.4060, 4203.10.4085

and 4203.10.4095. The HTS item numbers are provided for convenience and

Customs purposes. The written description remains dispositive.

The review covers the period January 1, 1992 through December 31,

1992 and eight programs.

Analysis of Programs

In the questionnaire responses, the Government of Mexico (GOM)

certified that 65 producers/exporters of the subject merchandise did

not receive benefits from any of the programs under review during the

review period (the list of these 65 companies is provided in the

Appendix). As a result, we preliminarily determine that those

producers/exporters of leather wearing apparel did not receive benefits

from the following programs during the 1992 review period:

(A) BANCOMEXT Loans and Export Financing.

(B) Certificates of Fiscal Promotion (CEPROFI).

(C) FOGAIN.

(D) FONEI.

(E) State Tax Incentives.

(F) PITEX.

(G) Import Duty Reductions and Exemptions.

(H) Article 15 Loans.

Best Information Available

IM-146 import statistics published by the U.S. Census Bureau show

that the value of subject merchandise imported from Mexico under the

HTS item numbers listed above during the review period is $5,490,000.

Both the official export statistics reported by the GOM and the sum of

total exports of the subject merchandise exported to the United States

during the review period reported by the responding companies comprise

only a small fraction of this figure. The GOM was unable to reconcile

this discrepancy. (See April 22, 1994 Memorandum for the 1992

Administrative Review of Leather Wearing Apparel from Mexico, on file

in the public file of the Central Records Unit, room B-099.) Although

the GOM was requested to provide information on all exporters of the

subject merchandise to the United States, the exporters identified by

the GOM account for substantially less than 100 percent of exports of

the subject merchandise to the United States. Therefore, in accordance

with section 776(c) of the Tariff Act of 1930, as amended (the Act), we

are assigning to any exporters of subject merchandise not listed in the

Appendix, a rate based on best information available (BIA). As BIA, we

used the highest total subsidy rate calculated in any previous

administrative review of this order or in the investigation. On this

basis, we preliminarily determine the rate for all exporters not listed

in the Appendix to be 13.35 percent ad valorem. See Leather Wearing

Apparel from Mexico; Final Results of Administrative Review of

Countervailing Duty Order (48 FR 13474; March 31, 1983).

Calculation of Country-Wide Rate

In calculating the subsidy rates during the review period, we

followed the methodology described in the preamble to 19 CFR 355.20(d)

(53 FR 52306 and 52325; December 27, 1988). To calculate a country-wide

rate, we weight-averaged the rate for the 65 companies for which the

GOM provided certifications of non-use with the BIA rate for the

remaining value of U.S. imports.

In determining the weights used, the Department used the sum of the

65 responding companies' exports of the subject merchandise to the

United States. This figure was then subtracted from the total value of

imports of subject merchandise to the United States. The resulting

difference is the value for exports to the United States of the subject

merchandise that we assigned to all other companies.

The 65 responding companies' weights were the ratio of the value of

their exports of the subject merchandise to the United States to the

total value of the subject merchandise imported into the United States.

For the non-respondent companies, the weight used was the ratio of

their assigned value of exports of the subject merchandise to the

United States to the total value of imports of the subject merchandise

into the United States.

The Department then multiplied the respondent companies' ratio by

the calculated ad valorem rate found for the programs determined to be

bounties or grants (i.e., zero); we multiplied the non-respondent

companies' ratio by the 13.35 percent BIA rate. By adding the two

results, the Department calculated a weighted average country-wide rate

of 9.01 percent.

Following the Department's practice, all companies with a rate

significantly different from the weighted average country-wide rate

were removed before calculating the all-other country-wide rate.

Because the rate for the respondent companies is significantly

different, they were removed and will receive their respective rates of

zero. As the only remaining companies, the non-respondents' rate of

13.35 percent necessarily comprises the all-other country-wide rate.

Therefore, the non-respondent companies (all those not listed in the

Appendix) will receive the all-other country-wide rate of 13.35 percent

ad valorem for subject merchandise exported during the review period.

Preliminary Results of Review

As a result of our review, we preliminarily determine the net

subsidy rate to be zero for the 65 companies listed in the Appendix and

13.35 percent ad valorem for all other companies during the period

January 1, 1992 through December 31, 1992.

Upon completion of this review, the Department intends to instruct

the Customs Service to assess countervailing duties as follows for

subject merchandise exported on or after January 1, 1992, and on or

before December 31, 1992: Zero on shipments from any of the 65

companies listed in the Appendix; and 13.35 percent of the f.o.b.

invoice price on shipments from all other companies.

The Department also intends to instruct the Customs Service to

waive cash deposits of estimated countervailing duties, as provided by

section 751(a)(1) of the Act, on shipments of this merchandise from the

companies listed in the Appendix, and to collect a cash deposit of

13.35 percent of the f.o.b. invoice price on shipments from all other

companies from Mexico entered, or withdrawn from warehouse, for

consumption on or after the date of publication of the final results of

this administrative review.

Interested parties may request a hearing not later than 10 days

after the date of publication of this notice (See 19 CFR 355.38(b)).

Interested parties may submit written arguments in case briefs on these

preliminary results within 30 days of the date of publication. Rebuttal

briefs, limited to arguments raised in case briefs, may be submitted

seven days after the time limit for filing the case brief. Any hearing,

if requested, will be held seven days after the scheduled date for

submission of rebuttal briefs. Copies of case briefs and rebuttal

briefs must be served on interested parties in accordance with section

355.38(e) of the Commerce regulations.

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 are due (See 19 CFR 355.34(b)(1)(iii)).

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 in accordance with

section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 355.22.

Dated: May 9, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

Appendix

1. Alfredo Costuras Originales S.A. De C.V.

2. Aeroenvios De Mexico S.A. De C.V.

3. Articulos De Piel De Guadalajara S.A. De C.V.

4. Bemisa S.A. De C.V.

5. Calzado Emege S.A. De C.V.

6. Cornell Piel S.A. De C.V.

7. Exclusive Design In Leather Felle S. De R.L.

8. Articulos Charros Y Vaqueros S.A. De C.V.

9. Importaciones Y Exportaciones Anaf S.A. De C.V.

10. Lusomoda De Mexico S.A. De C.V.

11. Loredano S.A. De C.V.

12. Manufacturera California S.A. De C.V.

13. Melmex S. De R.L.

14. Originales Hechos A Mano S.A. De C.V.

15. Price Club De Mexico S.A. De C.V.

16. Procopiel Exotica S.A. De C.V.

17. Pelet Jalisco-Baja California S.A. De C.V.

18. Servicio Harley Davidaon S.A. De C.V.

19. San Sebastian Curte S.A. De C.V.

20. Tapetes Tipicos S.A. De C.V.

21. United Parcel Service De Mexico S.A. De C.V.

22. Zuid De Mexico S.A. De C.V.

23. Pedro Alarcon Roman

24. Juan Martin Aguilla Alvarez

25. Rosa Isela Bocanegra Morales

26. Agustin Carillo Castillo

27. Gregoria Deitz Groswirte

28. Maria Azucena Flores Martinez

29. Rocio Gallardo

30. Jose Garcia

31. Enrique Garcia Avila

32. Antonio Garcia Gonzalez

33. Juan Manuel Garcia Gonzalez

34. Jose De Jesus Gonzalez De La Torre

35. Vicente Haro Navarro

36. Lino Salvador Hernandez Gonzalez

37. Jose De Jesus Hernandez Herrera

38. M. Teresa De Jesus Hernandez Rodriguez

39. Francisco Javier Hurtado Vasquez

40. Antonio Hurtado

41. J. Cruz Lopez Avila

42. Noe Martinez Bautista

43. Roberto Martinez Castillo

44. Guillermo Martinez Fernandez

45. Bartolo Morales Hernandez

46. Ismael Mora Hernandez

47. J. Cruz Orozco Alviso

48. Adolfo Penilla

49. Rosa Ramos

50. Salvador Rios Bueno

51. Jose Luis Rodriguez Juarez

52. J. Guadalupe Rodriguez Ortiz

53. Leonel Salceda Toledo

54. Martin Humberto Serrano Robles

55. Alejandro Sidransky Marcus

56. Marco Antonio Sotelo Salazar

57. Jose Sotelo

58. Juan Antonio Torres Torres

59. Laura Vilches Mares

60. Ricardo Zaragoza Gutierrez

61. Teresa Zedillo Lagos

62. George Zohn Tracktman

63. Exclusivos Baez

64. Commercializadora Cevis S.A. De C.V.

65. Cia. Exportadora De Chapala S.A. De C.V.

[FR Doc. 94-11970 Filed 5-16-94; 8:45 am]

BILLING CODE 3510-DS-P