Viscose Rayon Staple Fiber From Sweden Preliminary Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

[C-401-056]

Viscose Rayon Staple Fiber From Sweden 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 has conducted an administrative

review of the countervailing duty order on viscose rayon staple fiber

from Sweden. We preliminarily determined the net subsidy to be 0.26

percent ad valorem for the period January 1, 1991 through December 31,

1991. In accordance with 19 CFR 355.7, any rate less than 0.50 percent

ad valorem is de minimis. We invite interested parties to comment on

these preliminary results.

EFFECTIVE DATE: October 17, 1994.

FOR FURTHER INFORMATION CONTACT:

Brian Albright or Maria MacKay, Office of Countervailing Compliance,

International Trade Administration, U.S. Department of Commerce,

Washington, DC 20230; telephone (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On May 6, 1992, the Department of Commerce (the Department)

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

Administrative Review'' (57 FR 19412) of the countervailing duty order

on viscose rayon staple fiber from Sweden (44 FR 28319; May 15, 1979).

Svenska Rayon AB, a producer and exporter of viscose rayon staple

fiber, made a timely request that we conduct an administrative review

of the order for the period January 1, 1991 through December 31, 1991.

We initiated the review on June 18, 1992 (57 FR 27212). The Department

is conducting this administrative review in accordance with section

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

Scope of Review

Imports covered by this review are shipments of Swedish regular

viscose rayon staple fiber and high-wet modulus (modal) viscose rayon

staple fiber. Such merchandise is classifiable under item number

5504.10.00 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 one program. The only known Swedish producer/exporter of this

merchandise to the United States is Svenska Rayon AB (Svenska).

Analysis of Program

Elderly Employment Compensation Program

The Swedish government provided a subsidy to certain companies

within the textile and apparel industries through a special employment

contribution for older workers. This program provided compensation to a

company based upon the number of hours worked by employees over 50

years of age. A company participating in the program had to agree not

to dismiss or release redundant employees of any age for any reason

other than normal attrition. Payments were calculated on the basis of

28 Swedish kroner per hour for employees over age 50 who were involved

in production. The payment could not exceed 15 percent of the company's

total labor costs. In prior administrative reviews of this order, this

program was determined to be countervailable because the program was

available only to certain companies within the textile and apparel

industry. (See e.g., Viscose Rayon Staple Fiber From Sweden;

Preliminary Results of Countervailing Duty Administrative Review (57 FR

6493; February 25, 1992) and Viscose Rayon Staple Fiber From Sweden;

Final Results of Countervailing Duty Administrative Review (57 FR

12912; April 14, 1992)).

Svenska received its last payment under this program in July 1982.

In January 1983, the Swedish government excluded the rayon fiber

industry, including Svenska, from this program. We have calculated the

benefit stream using the declining balance methodology. We allocated

the benefits from the grant received in 1982 over the 10-year average

useful life of assets in the rayon fiber industry, according to the

``Asset Guideline Classes'' of the Internal Revenue Service. As in

prior reviews of the subject merchandise, we used Svenska's 1982

weighted cost of capital as the discount rate.

We divided the benefit attributable to the review period by the

value of Svenska's total revenue during the review period. On this

basis, we preliminarily determine the benefit from this program to be

0.26 percent ad valorem.

Preliminary Results of Review

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

subsidy to be 0.26 percent ad valorem for the period January 1, 1991

through December 31, 1991. In accordance with 19 CFR 355.7, any rate

less than 0.50 percent ad valorem is de minimis.

If the final results of this review remain unchanged from these

preliminary results, the Department intends to instruct the Customs

Service to liquidate, without regard to countervailing duties, all

shipments of this merchandise exported on or after January 1, 1991 and

on or before December 31, 1991.

Further, upon completion of this review the Department intends to

instruct the Customs Service to collect a cash deposit of estimated

countervailing duties of zero, as provided for by section 751(a)(1) of

the Act, on all shipments of this merchandise from Sweden entered, or

withdrawn from warehouse, for consumption on or after the date of

publication of the final results of this administrative review.

Parties to the proceeding may request disclosure of the calculation

methodology. Interested parties may request a hearing not later than 10

days after the date of publication of this notice. 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 19

C.F.R. 355.38(e).

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, under 19 C.F.R. 355.38(c), are due.

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 or at a hearing.

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: October 7, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-25633 Filed 10-14-94; 8:45 am]

BILLING CODE 3510-DS-M