Leather Wearing Apparel From Mexico; Initiation of Changed Circumstances Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

[C-201-001]

Leather Wearing Apparel From Mexico; Initiation of Changed

Circumstances Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of initiation of changed circumstances countervailing

duty administrative review.

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SUMMARY: On August 25, 1994, the Department of Commerce (the

Department) published in the Federal Register the final results of

administrative review of the countervailing duty order on leather

wearing apparel from Mexico, covering the period January 1, 1992,

through December 31, 1992 (59 FR 43815). On December 1, the Government

of Mexico (GOM) requested a changed circumstances countervailing duty

administrative review. The GOM stated in its request for a changed

circumstances review that it had overlooked two exporters when

reporting its list of Mexican leather wearing apparel exporters that

received no subsidies to the Department. We are initiating a changed

circumstances review to reexamine the cash deposit rate for those two

companies, Maquiladora Pieles Pitic, S.A. de C.V. (MPP) and Finapiel de

Mexico, S.A. de C.V. (Finapiel).

EFFECTIVE DATE: December 21, 1994.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Dana Mermelstein,

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 April 10, 1981, the Department published in the Federal Register

(46 FR 21357) a countervailing duty order on leather wearing apparel

from Mexico. On August 25, 1994, the Department published in the

Federal Register (59 FR 43815) the final results of the administrative

review covering the period January 1, 1992, through December 31, 1992.

In those final results, 65 companies which the GOM certified did not

receive benefits from the programs under review received a cash deposit

rate of zero. All other companies received a cash deposit rate of 13.35

percent of the f.o.b. invoice price on all shipments of the subject

merchandise, based on the use of best information available.

On October 21, 1994, in a submission requesting that the Department

administratively correct its final results to include MPP and Finapiel

as zero-rate companies, the GOM explained that the exports of MPP were

misclassified under an incorrect tariff number and Finapiel's exports

were inadvertently registered to a ``non-specified'' company due to

clerical errors by Mexican Customs. Subsequently, on December 1, 1994,

the GOM requested a changed circumstances review pursuant to 19 C.F.R.

355.22(h) (1994) to review the cash deposit rate applicable to MPP and

Finapiel. According to the request for a changed circumstances review,

MPP and Finapiel were excluded from the list of GOM-certified zero-

benefit recipients submitted to the Department in the recently

completed administrative review due to an oversight by the GOM. In its

request for a changed circumstances review, the GOM provided company

and government certifications that MPP and Finapiel did not apply for

or receive any net subsidy during the first three quarters of 1994 from

the programs that were previously found countervailable or not-used and

will not apply for or receive any such net subsidy in the future, in

accordance with 19 C.F.R. 355.22(a)(2) (1994). The GOM also stated that

it has taken steps to ensure that the type of oversight which occurred

in this case will not be repeated in future administrative reviews.

Initiation

The Department is initiating this review to examine the cash

deposit rate applicable to MPP and Finapiel. If we determine that MPP

and Finapiel did not receive a net subsidy on leather wearing apparel

during the first three quarters of 1994, we will change the cash

deposit rate for those companies to zero and instruct U.S. Customs

officials to collect zero cash deposits on shipments of this

merchandise exported by MPP and Finapiel.

The Department notes that the GOM misclassified the exports of MPP

and Finapiel under an incorrect tariff number and an incorrect company

registration number, respectively. As a result, the GOM was unable to

report MPP's and Finapiel's export information to the Department and

did not notify MPP and Finapiel of the 1992 administrative proceeding.

Because they were not notified, those companies could not participate

in the review. Further, those companies did not (according to their

certifications) apply for or receive any net subsidy during the first

three quarters of 1994. Therefore, due to the unique facts in this

case, the Department has determined that changed circumstances exist

sufficient to warrant a review pursuant to section 751(b) of the Tariff

Act of 1930, as amended (the Act) (19 U.S.C. 1675(b)), and 19 C.F.R.

355.22(h).

We are hereby notifying the public that we are initiating a changed

circumstances countervailing duty administrative review on leather

wearing apparel from Mexico. This notice is published in accordance

with section 751(b) of the Act and 19 C.F.R. 355.22(h)(1)(i).

Dated: December 15, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-31355 Filed 12-20-94; 8:45 am]

BILLING CODE 3510-DS-P