Certain Apparel From Argentina; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

[C-357-404]

Certain Apparel From Argentina; Final Results of Countervailing

Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of final results of countervailing duty administrative

review.

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SUMMARY: On August 16, 1995, the Department of Commerce (the

Department) published in the Federal Register its preliminary results

of administrative review of the countervailing duty order on certain

apparel from Argentina for the period January 1, 1991 through December

31, 1991. We have completed this review and determine the net subsidy

to be zero for Agrest, S.A. (Agrest), Comercio Internacional, S.A.

(Comercio), IVA, S.A. (IVA), and Leger, S.A. (Leger), 15.87 percent ad

valorem for Pulloverfin, S.A. (Pulloverfin) and 0.76 percent ad valorem

for all other companies. We will instruct the U.S. Customs Service to

assess countervailing duties as indicated above.

EFFECTIVE DATE: October 6, 1995.

FOR FURTHER INFORMATION CONTACT: Judy Kornfeld or Lorenza Olivas,

Office of Countervailing Compliance, Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street and Constitution Avenue, NW., Washington, DC 20230; telephone:

(202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On August 16, 1995, the Department published in the Federal

Register (60 FR 42530) the preliminary results of its administrative

review of the countervailing duty order on certain apparel from

Argentina. The Department has now completed this administrative review

in accordance with section 751 of the Tariff Act of 1930, as amended

(the Act). We invited interested parties to comment on the preliminary

results. We received no comments. The review covers the period January

1, 1991 through December 31, 1991. The review involves 5 companies and

10 programs.

Applicable Statute and Regulations

The Department is conducting this administrative review in

accordance with section 751(a) of the Act. Unless otherwise indicated,

all citations to the statute and to the Department's regulations are in

reference to the provisions as they existed on December 31, 1994.

However, references to the Department's Countervailing Duties; Notice

of Proposed Rulemaking and Request for Public Comments, 54 FR 23366

(May 31, 1989) (Proposed Regulations), are provided solely for further

explanation of the Department's countervailing duty practice. Although

the Department has withdrawn the particular rulemaking proceeding

pursuant to which the Proposed Regulations were issued, the subject

matter of these regulations is being considered in connection with an

ongoing rulemaking proceeding which, among other things, is intended to

conform the Department's regulations to the Uruguay Round Agreements

Act. See 60 FR 80 (Jan. 3, 1995).

Scope of the Review

The subject merchandise is certain apparel from Argentina. During

the review period, this merchandise was classifiable under the

following HTS numbers, which are based on the amended conversion of the

scopes of the countervailing duty order. See Certain Textile Mill

Products From Mexico, Certain Apparel From Argentina, and Certain

Apparel From Thailand (58 FR 4151; January 13, 1993).

6104.41.00, 6104.43.10, 6104.44.10, 6104.51.00, 6104.53.10, 6104.61.00,

6104.63.15, 6105.10.00, 6105.20.20, 6106.10.00, 6106.20.10, 6106.90.10,

6109.90.20, 6110.10.20, 6110.20.20, 6111.10.00, 6112.41.00, 6112.49.00,

6115.20.00, 6115.91.00, 6115.93.10, 6115.99.14, 6116.91.00, 6116.93.15,

6201.12.20, 6202.11.00, 6202.13.30, 6202.91.10, 6202.91.20, 6202.92.20,

6202.93.40, 6203.22.30, 6203.42.40, 6204.11.00, 6204.13.10, 6204.19.10,

6204.21.00, 6204.31.20, 6204.33.40, 6204.39.20, 6204.41.20, 6204.42.30,

6204.43.30, 6204.44.30, 6204.51.00, 6204.53.20, 6204.59.20, 6204.61.00,

6204.63.25, 6204.69.20, 6205.10.20, 6206.20.30, 6206.40.25, 6209.10.00,

6209.20.10, 6209.20.50, 6209.90.30, 6211.12.30, 6211.41.00, 6214.30.00,

6214.40.00.

Best Information Available (BIA) for Pulloverfin

Section 776(c) of the Act requires the Department to use BIA

``whenever a party or any other person refuses or is unable to produce

information requested in a timely manner and in the form required, or

otherwise significantly impedes an investigation.''

In determining what rate to use as BIA, the Department follows a

two-tiered methodology. The Department normally assigns lower BIA rates

for those respondents who cooperated in an

[[Page 52381]]

administrative review (tier two) and rates based on more adverse

assumptions for respondents who do not cooperate in the review, or who

significantly impede the proceeding (tier one). Cf. Allied Signal

Aerospace Co. v. United States, 996 F. 2d 1185 (Fed. Cir. 1993), aff'd,

28 F. 3d 1188, cert. denied, 1995 U.S. lexis 100 (1995) (Allied-

Signal). See also Final Results of Countervailing Duty Administrative

Review: AFBs from Singapore (58 FR 47122; September 7, 1993).

In this review, Pulloverfin did not respond to the Department's two

requests for information; therefore, we are assigning Pulloverfin a

tier one rate based on BIA. The rate we are applying is 15.87 percent

ad valorem. This rate reflects the rate Pulloverfin received in the

investigation (see Final Affirmative Countervailing Duty Determinations

and Countervailing Orders: Certain Textile Mill Products and Apparel

from Argentina (50 FR 9846; March 12, 1985)).

Calculation Methodology for Assessment and Cash Deposit Purposes

We calculated the net subsidy on a country-wide basis by first

calculating the subsidy rate for each company subject to the

administrative review. We then weight-averaged the rate received by

each company using as the weight its share of total Argentine exports

to the United States of subject merchandise, including all companies,

even those with de minimis and zero rates. We then summed the

individual companies' weight-averaged rates to determine the subsidy

rate from all programs benefitting exports of subject merchandise to

the United States.

Since the country-wide rate calculated using this methodology was

above de minimis, as defined by 19 CFR Sec. 355.7 (1994), we proceeded

to the next step, and examined the net subsidy rate calculated for each

company to determine whether individual company rates differed

significantly from the weighted-average country-wide rate, pursuant to

19 CFR Sec. 355.22(d)(3). All companies subject to the review had

significantly different net subsidy rates during the review period

pursuant to 19 CFR Sec. 355.22(d)(3). These companies are treated

separately for assessment and cash deposit purposes. All other

companies are assigned the country-wide rate. See Ceramica Regiomontana

S.A. v. United States, 853 F Supp. 431, 439 (CIT 1994).

Analysis of Programs

Based upon our analysis of the questionnaire response we determine

the following:

I. Programs Conferring Bounties or Grants

Rebate of Indirect Taxes (Reembolso/Reintegro)

In the preliminary results we found this program to be

countervailable. However, the program conferred no benefits on the

subject merchandise during the period of review (POR). Since we

received no comments on our preliminary results, our findings remain

unchanged in these final results.

II. Programs Found Not to be Used

In the preliminary results we found that the producers and/or

exporters of the subject merchandise did not apply for or receive

benefits under the following programs during the period of review:

A. Tax Deduction Under Decree 173/85

B. Exemption from Stamp Taxes Under Decree 186/74

C. Industrial Parks

D. Low Cost Loans for Projects Outside Buenos Aires

E. Tucaman Regional Tax Incentives

F. Patagonion Regional Tax Incentives

G. Incentives for Exports from Southern Ports

H. Corrientes Regional Tax Incentive

I. Export Financing

Since we received no comments on our preliminary results, our findings

remain unchanged in these final results.

Final Results of Review

For the period January 1, 1991 through December 31, 1991, we

determine the net subsidy to be zero for Agrest, Comercio, IVA and

Leger, 15.87 percent ad valorem for Pulloverfin and 0.76 percent ad

valorem for all other companies.

The Department will instruct the U.S. Customs Service to assess the

following countervailing duties:

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Manufacturer/exporter Rate

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Agrest, Comercio, IVA and Leger............................... 0.00

Pulloverfin................................................... 15.87

All other companies........................................... 0.76

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The Department will instruct the U.S. Customs Service to collect a

cash deposit of estimated countervailing duties of zero percent of the

F.O.B. invoice price on all shipments of the subject merchandise from

Agrest, Comercio, IVA and Leger, and to collect a cash deposit of 15.87

percent ad valorem of the F.O.B. invoice price on all shipments of the

subject merchandise from Pulloverfin and 0.76 percent ad valorem of the

F.O.B. invoice price on shipments of the subject merchandise from all

other companies entered, or withdrawn from warehouse, for consumption

on or after the date of publication of the final results of this

administrative review.

This notice serves as a reminder to parties subject to

administrative protective order (APO) of their responsibility

concerning the disposition of proprietary information disclosed under

APO in accordance with 19 C.F.R. 355.34(d). Timely written notification

of return/destruction of APO materials or conversion to judicial

protective order is hereby requested. Failure to comply with the

regulations and the terms of an APO is a sanctionable violation.

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: September 29, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-24932 Filed 10-5-95; 8:45 am]

BILLING CODE 3510-DS-P