Antidumping Duties; Countervailing Duties; Article 1904 of the North American Free Trade Agreement

DEPARTMENT OF COMMERCE

International Trade Administration

19 CFR Parts 353, 355, and 356

[Docket No. 941264-4364]

RIN: 0625-AA45

Antidumping Duties; Countervailing Duties; Article 1904 of the

North American Free Trade Agreement

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Advance notice of proposed rulemaking and request for public

comments.

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SUMMARY: The Department of Commerce (``the Department'') intends to

initiate a rulemaking proceeding to conform the Department's existing

antidumping duty, countervailing duty, and NAFTA Article 1904

regulations to the Uruguay Round Agreements Act, which implemented the

results of the Uruguay Round multilateral trade negotiations. In

addition to conforming changes, the Department will be considering

other changes to the procedural and substantive provisions of the

antidumping and countervailing duty regulations. The overall objectives

of this rulemaking proceeding will be to: (1) translate the principles

of the implementing legislation into specific and predictable rules,

thereby facilitating the administration of these laws and providing

greater predictability for private parties affected by these laws; (2)

simplify and streamline the Department's administration of antidumping

and countervailing duty proceedings; (3) codify existing administrative

practice, to the extent such codification is appropriate and is

consistent with the first and second objectives; and (4) resolve any

inconsistencies in the Department's administrative practice.

DATES: The Department will consider written comments if received not

later than February 3, 1995. The Department will also consider written

responses to written comments if received not later than February 24,

1995.

ADDRESSES: Address written comments to Susan G. Esserman, Assistant

Secretary for Import Administration, Central Records Unit, Room B-099,

U.S. Department of Commerce, Pennsylvania Avenue and 14th Street, N.W.,

Washington, DC 20230. Comments should be addressed: Attention: Advance

Notice of Proposed Rulemaking/Uruguay Round Agreements Act. Each person

submitting a comment should include his or her name and address, and

give reasons for any recommendation.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, (202) 482-4412, or

David Mason Jr., (202) 482-4969.

SUPPLEMENTARY INFORMATION:

Background

On December 7, 1994, President Clinton signed the Uruguay Round

Agreements Act, Pub.L. 103-465 (``the URAA''), into law. The URAA

implements the results of the Uruguay Round multilateral trade

negotiations. Among the agreements negotiated as part of the Uruguay

Round are the Agreement on Implementation of Article VI of the General

Agreement on Tariffs and Trade 1994 (``the Antidumping Agreement'') and

the Agreement on Subsidies and Countervailing Measures (``the Subsidies

Agreement''). The URAA, among other things, conforms the U.S.

antidumping and countervailing duty laws to the requirements of the

Antidumping Agreement and the Subsidies Agreement.

The Department is initiating a rulemaking proceeding to conform the

Department's existing regulations on antidumping duties, countervailing

duties, and Article 1904 of the North American Free Trade Agreement to

the provisions of the URAA. Although the Department expects that in

many instances amendments to existing regulations will be of a

conforming nature only, in the Statement of Administrative Action

accompanying H.R. 5110 (H.R. Doc. No. 316, Vol. 1, 103d Cong., 2d Sess.

(1994)), the Administration committed the Department to flesh out

through regulation certain provisions of the bill.

In addition to regulations implementing the URAA, the Department

intends to use this opportunity to proceed further with certain

rulemaking proceedings on which work was suspended pending the

completion of the Uruguay Round. These proceedings are listed below. In

the Semiannual Unified Agenda of Federal Regulations, published on

April 25, 1994 (59 FR 20136), the Department indicated that these

rulemaking proceedings had been withdrawn, but that it intended to

address the subject matter covered by these rulemaking proceedings as

part of a new, consolidated rulemaking proceeding which, among other

things, would conform the antidumping and countervailing duty

regulations to anticipated legislation implementing the Uruguay Round.

The withdrawn rulemaking proceedings were:

Antidumping Duties [RIN: 0625-AA29]: On February 1, 1989

(54 FR 5092), the Department published an Advance Notice of Proposed

Rulemaking concerning regulations that would have codified existing

administrative practice with respect to the identification and

measurement of dumping.

Countervailing Duties [RIN: 0625-AA31]: On May 31, 1989

(54 FR 23366), the Department published a Notice of Proposed Rulemaking

that would have codified existing administrative practice with respect

to the identification and measurement of subsidies.

Antidumping and Countervailing Duties; Significant

Ministerial Errors [RIN: 0625-AA35]: On January 10, 1992 (57 FR 1131),

the Department published a Notice of Proposed Rulemaking setting forth

the circumstances in which the Department would correct significant

ministerial errors made in preliminary antidumping and countervailing

duty determinations.

Antidumping Duties; Methodologies for Assessment

Instructions [RIN: 0625-AA36]: On December 5, 1991 (56 FR 6396), the

Department published an Advance Notice of Proposed Rulemaking regarding

regulations which would have changed and/or codified existing

administrative practice to simplify and streamline the collection of

estimated antidumping duties and the assessment of antidumping duties.

Antidumping Duties; Calculation of Weighted Average

Dumping Margin [RIN: 0625-AA39]: The Department had considered

initiating a rulemaking proceeding which would have addressed a problem

in the Department's calculation of weighted-average dumping margins

caused by the Department's treatment of adjustments for indirect taxes.

See 59 FR 20156-57.

Antidumping Duties; Period of Investigation [RIN: 0625-

AA41]: The Department had considered initiating a rulemaking proceeding

to amend the Department's antidumping regulations with respect to the

period covered by an antidumping investigation. See 59 FR 20157.

[[Page 81]]

Procedures for Imposing Sanctions for Providing False

Certifications in an Antidumping or Countervailing Duty Proceedings

[RIN: 0625-AA42]: The Department had considered initiating a rulemaking

proceeding that would have established standards for finding

certifications to be false, the sanctions that could be imposed, and

the procedures for imposing sanctions. See 59 FR 20157-58.

As part of its consolidated rulemaking proceeding, the Department

intends to review the subject matter of the withdrawn rulemaking

proceedings in light of the URAA and other developments in the

antidumping and countervailing duty laws. One of the purposes of this

review will be to determine whether the problems identified in the

above rulemaking proceedings remain, and, if so, whether they should be

addressed by regulations.

The overall objectives of this consolidated rulemaking proceeding

will be to: (1) translate the principles of the URAA into specific and

predictable rules, thereby facilitating the administration of these

laws and providing greater predictability for private parties affected

by these laws; (2) simplify and streamline, to the extent permitted by

law, the Department's administration of antidumping and countervailing

duty proceedings; (3) codify existing administrative practice, to the

extent such codification is appropriate and is consistent with the

first and second objectives; and (4) resolve any inconsistencies in the

Department's administrative practice.

Timetable

The Department intends to issue a comprehensive set of proposed

regulations by June 30, 1995. These comprehensive regulations will

address the objectives described above, and an opportunity for public

comment will be provided. The Department intends to issue a

comprehensive set of final regulations by January 1, 1996. These final

regulations will replace the interim-final regulations described in the

following paragraph.

The URAA became effective January 1, 1995, and applies to

investigations initiated as a result of petitions filed on or after

that date, and administrative reviews requested on or after that date.

To facilitate the administration of the new law, the Department intends

to issue interim-final regulations that will amend the existing

regulations where they are clearly at odds with the URAA, and where

regulations are essential to administration of the new law. These

interim-final regulations will be effective upon publication and will

govern the Department's handling of antidumping and countervailing duty

proceedings pending the promulgation of final rules described above.

The interim-final regulations will make plain that where the URAA, as

amplified by the Statement of Administrative Action, is in conflict

with the existing regulations, the new statute will prevail.

Request for Comments

The conclusion of the Uruguay Round and the enactment of

implementing legislation offer an appropriate time for the Department

and the public to reexamine the Department's existing antidumping and

countervailing duty regulations. The objectives described above

encompass all aspects of the Department's administration of the

antidumping and countervailing duty laws.

However, it should be emphasized that the Department has not

reached any conclusions concerning any of these subjects. Instead,

before issuing proposed regulations, the Department wishes to receive

public comments on all aspects of the Department's administration of

the antidumping and countervailing duty laws. The Department believes

that such public comment will improve its understanding of the issues

and problems that need to be addressed. Therefore, interested persons

are invited to address any issue of law, policy, or procedure, and to

suggest appropriate amendments to the antidumping duty, countervailing

duty, and NAFTA regulations for consideration by the Department.

Format and Number of Copies

Parties should submit comments in the following format: (1) number

each comment in accordance with the number designated for that issue as

indicated in the list of issues set forth below; (2) begin each comment

on a separate page; (3) concisely state the issue identified and

discussed in the comment; and (4) provide a brief summary of the

comment (a maximum of 3 sentences) and label this section ``summary of

the comment.''

To simplify the processing and distribution of these comments,

parties are encouraged to submit documents in electronic form

accompanied by an original and one paper copy. All documents filed in

electronic form must be on DOS formatted 3.5'' diskettes, and must be

prepared in either WordPerfect format or a format that the WordPerfect

program can convert and import into WordPerfect. Each comment submitted

should be on a separate file on the diskette and labeled by the number

designated for that issue based upon the list of issues outlined below.

Comments received on diskette by the due date will be made

available to the public on Internet. In addition, the Department will

make comments available to the public on 3.5'' diskettes at cost, and

paper copies available for reading and photocopying in Room B-099 of

the Central Records Unit. Questions concerning file formatting,

document conversion, Internet address, or other filing requirements

should be addressed to Andrew Lee Beller, Director of Central Records,

(202) 482-1248.

Classification of Issues for Comment

Countervailing Duty Issues

1. Grants, loans, equity, loan guarantees, and debt forgiveness

(including benchmarks and discount rates);

2. Tax programs (not including rebates of indirect taxes on export,

which is included in category number five below);

3. Government provision/procurement (including adequate

remuneration);

4. Indirect subsidies, privatization, and upstream subsidies;

5. Export subsidies (e.g., subsidies included in the Illustrative

List);

6. Import substitution subsidies, worker benefits, and subsidies on

agricultural products;

7. Specificity and infrastructure;

8. Green light subsidies and subsidies enforcement;

9. Allocation;

10. CVD methodology issues other than those outlined above.

Antidumping Issues

11. Comparison Methodology:

a. Viablility, third-country sales, intermediate country sales, and

tolling;

b. Constructed export price deductions and value-added deductions;

c. Normal value adjustments;

d. Level of trade matching, level of trade adjustments, and

constructed export price offset;

12. Start-up;

13. Profit and selling, general and administrative expenses in

constructed value;

14. Sales below cost of production and constructed value generally;

15. Currency conversion;

16. Price averaging;

17. Anticircumvention;

18. Affiliated parties (address separately for AD and

CVD); [[Page 82]]

19. AD methodology issues other than those outlined above;

Procedural Issues

20. Initiation of petitions;

21. Evidence;

22. Facts available;

23. De Minimis (address separately for AD and CVD);

24. Reviews, other than five-year reviews (if specific to AD or

CVD, please specify);

25. Five-year reviews and revocation;

26. Repeal of Section 303;

27. Regional industries;

28. Critical circumstances;

29. Simplification;

30. Business proprietary information and administrative protective

orders;

31. Ministerial errors;

32. Procedural issues other than those outlined above;

33. Other issues.

List of Subjects in 19 CFR Parts 353, 355, and 356

Business and industry, Foreign trade, Imports, Trade practices.

Dated: December 27, 1994.

Barbara R. Stafford,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-32332 Filed 12-30-94; 8:45 am]

BILLING CODE 3510-DS-P