Industrial Phosphoric Acid From Israel; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

[C-508-605]

Industrial Phosphoric Acid From Israel; Final Results of

Countervailing Duty Administrative Review

AGENCY: International Trade Administration/Import Administration,

Department of Commerce.

ACTION: Notice of final results of countervailing duty administrative

review.

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SUMMARY: On October 28, 1993, the Department of Commerce published the

preliminary results of its administrative review of the countervailing

duty order on industrial phosphoric acid from Israel (58 FR 57986). We

have now completed the review and determine the net subsidy to be 6.98

percent ad valorem for all firms during the period January 1, 1991

through December 31, 1991.

EFFECTIVE DATE: February 3, 1994.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Cameron Cardozo,

Office of Countervailing Compliance, International Trade

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

telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On October 28, 1993, the Department of Commerce (the Department)

published in the Federal Register (58 FR 57986) the preliminary results

of its administrative review of the countervailing duty order on

industrial phosphoric acid from Israel (52 FR 31057; August 19, 1987)

covering the period January 1, 1991 through December 31, 1991. The

Department has now completed this administrative review in accordance

with section 751 of the Tariff Act of 1930, as amended (the Act).

Scope of Review

Imports covered by this review are shipments of Israeli industrial

phosphoric acid. During the review period, such merchandise was

classifiable under item number 2809.20.00 of the Harmonized Tariff

Schedule (HTS). The HTS item number is provided for convenience and

Customs purposes. The written description remains dispositive.

The review covers the period January 1, 1991 through December 31,

1991 and nine programs. Negev Phosphates, Ltd. (NPL), which merged with

Rotem Fertilizers Ltd. on December 31, 1991 after operating

independently throughout the review period, was the only known producer

exporting the subject merchandise from Israel to the United States

during the 1991 review period.

Analysis of Comments Received

We gave interested parties an opportunity to comment on the

preliminary results. We received a written comment from the

respondents, the Government of Israel (GOI) and NPL, and a written

rebuttal comment from the petitioners, the Monsanto Company and FMC

Corporation.

Comment: Respondents argue that the cash deposit rate should be

reduced by the amount of benefit attributable to the Exchange Rate Risk

Insurance Scheme (EIS) because the program was terminated prior to the

publication of these final results. The GOI and NPL state that most EIS

claims will be paid by the end of 1993 as indicated in the GOI response

to the Department's questionnaire. The GOI and NPL also point to the

reduction in benefits that exporters received from this program in this

review period compared to those received in the prior administrative

review. Thus, respondents claim that it is unreasonable to base the

deposit rate for future entries on benefits received in 1991, given the

program's declining benefits and termination with limited residual

benefits.

Petitioners point out that the exact timing of NPL's receipt of

benefits under the EIS will depend on variables such as the time

necessary for shipment of the goods and EIS processing of the claim.

According to petitioners, these uncertainties preclude the

determination of a fixed date for actual termination of benefits to be

received by NPL. As a result, EIS benefits should continue to be

reflected in the cash deposit rate.

Department's Position: We disagree with the respondents. The

Department's regulations require the Department to instruct the Customs

Service to collect a cash deposit of estimated countervailing duties on

future entries. The Department normally uses as an estimate of

countervailing duties on future entries the assessment rate found in

the final results of review (see 19 CFR 355.22(c)(10)).

Although the EIS program was terminated, it is clear that some

payments may continue to be received beyond the date of EIS termination

by exporters who entered into EIS contracts before termination of the

program. In situations in which a government terminates a program but

residual benefits may continue to be bestowed under the terminated

program, it is the Department's practice not to adjust the deposit

rate. See Cotton Yarn from Brazil; Preliminary Results of

Administrative Review (56 FR 47456, 47457; September 19, 1991) and

Cotton Yarn from Brazil; Final Results of Administrative Review (57 FR

1454; January 14, 1992). In order to adjust the cash deposit rate as a

result of a program-wide change, the Secretary must be able to measure

the change in the level of countervailable subsidies provided under the

program in question (see section 355.50(a)(2) and (d)(1) of

Countervailing Duties; Notice of Proposed Rulemaking and Request for

Public Comments (54 FR 23366; May 31, 1989). Therefore, because

residual benefits from the EIS program may continue to be provided

after the date of our preliminary results and cannot be measured, we

have not adjusted the cash deposit rate as a result of the termination

of the EIS program.

Final Results of Review

After reviewing all of the comments received, we determine the net

subsidy to be 6.98 percent ad valorem for all companies during the

period January 1, 1991 through December 31, 1991.

Therefore, the Department will instruct the Customs Service to

assess countervailing duties of 6.98 percent of the f.o.b. invoice

price on all shipments of this merchandise exported on or after January

1, 1991 and on or before December 31, 1991.

Further, the Department will instruct the Customs Service to

collect a cash deposit of 6.98 percent of the f.o.b. invoice price on

all shipments of this merchandise entered, or withdrawn from warehouse,

for consumption on or after the date of publication of this notice.

This cash deposit shall remain in effect until publication of the

final results of the next administrative review.

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: January 28, 1994.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-2449 Filed 2-2-94; 8:45 am]

BILLING CODE 3510-DS-P