Cotton Yarn From Brazil; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

(C-351-037)

Cotton Yarn From Brazil; Final Results of Countervailing Duty

Administrative Review

AGENCY: International Trade Administration/Import Administration,

Commerce.

ACTION: Notice of final results of countervailing duty administrative

review.

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SUMMARY: On January 3, 1994, the Department of Commerce published the

preliminary results of its administrative review of the countervailing

duty order on cotton yarn from Brazil (59 FR 68). We have now completed

that review and determine the net subsidy to be 0.30 percent ad valorem

for all firms during the period January 1, 1992 through December 31,

1992. In accordance with 19 CFR 355.7, any rate less than 0.50 percent

ad valorem is de minimis.

EFFECTIVE DATE: March 4, 1994.

FOR FURTHER INFORMATION CONTACT: Gayle Longest or Kelly Parkhill,

Office of Countervailing Compliance, International Trade

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

telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On January 3, 1994, the Department of Commerce (the Department)

published in the Federal Register (59 FR 68) the preliminary results of

its administrative review of the countervailing duty order on cotton

yarn from Brazil (42 FR 14089; March 15, 1977). The Department has now

completed that 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 Brazilian yarn,

carded but not combed, wholly of cotton. During the review period, such

merchandise was classifiable under item numbers 5205.11.10, 5205.11.20,

5205.12.10, 5205.12.20, 5205.13.10, 5205.13.20, 5205.14.10, 5205.14.20,

5205.15.10, 5205.15.20, 5205.31.00, 5205.32.00, 5205.33.00, 5205.34.00,

and 5205.35.00 of the Harmonized Tariff Schedule (HTS). 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, eight companies and the following seven programs: (1) Income Tax

Exemption for Export Earnings; (2) Reductions of Taxes and Import

Duties through BEFIEX; (3) SUDENE Regional Tax Exemption; (4) CACEX

(Carteira de Comercio Exterior) Working Capital Financing for Exports;

(5) Preferential Export Financing under CIC-OPCRE of the Banco do

Brasil; (6) Preferential Financing for Industrial Enterprises by the

Banco do Brasil (FST and EGF loans); and (7) IPI (Tax on Industrialized

Products) for Imports of Machinery or Equipment Under Decree Law 2324.

Calculation Methodology for Assessment and Cash Deposit Purposes

In calculating the benefits received during the review period, we

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

(53 FR 52325; December 27, 1988). First, we calculated a country-wide

rate, weight-averaging the subsidy rates of the eight companies subject

to review to determine the overall subsidy from all countervailing

programs benefitting exports of the subject merchandise to the United

States. Because the overall weighted-average country-wide rate was de

minimis, as defined by 19 CFR 355.7, we did not proceed any further in

our analysis.

Analysis of Comments Received

We gave interested parties an opportunity to comment on the

preliminary results. We received no comments.

Final Results of Review

As a result of our review, we determine the net subsidy to be 0.30

percent ad valorem for all firms during the period January 1, 1992

through December 31, 1992. In accordance with 19 CFR 355.7, any rate

less than 0.50 percent ad valorem is de minimis.

Therefore, the Department will instruct the Customs Service to

liquidate, without regard to countervailing duties, all shipments of

this merchandise exported on or after January 1, 1992 and on or before

December 31, 1992.

The Department will instruct the Customs Service to continue to

suspend liquidation on all shipments of this merchandise entered, or

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

publication of this notice. Because the net subsidy is de minimis,

however, the cash deposit on such shipments will be zero. These

instructions 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 Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR

355.22.

Dated: February 25, 1994.

Joseph A. Spetrini

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-5037 Filed 3-3-94; 8:45 am]

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