Initiation of Anti-Circumvention Inquiry on Antidumping Duty Order on Certain Pasta From Italy

DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-818]

Initiation of Anti-Circumvention Inquiry on Antidumping Duty

Order on Certain Pasta From Italy

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of initiation of anti-circumvention inquiry.

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SUMMARY: On the basis of an application filed with the Department of

Commerce, we are initiating an anti-circumvention inquiry to determine

whether an Italian producer of pasta is circumventing the antidumping

duty order on certain pasta from Italy issued July 24, 1996.

EFFECTIVE DATE: December 15, 1997.

FOR FURTHER INFORMATION CONTACT: Edward Easton or John Brinkmann,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, NW,

Washington, D.C. 20230; telephone: (202) 482-1777 or (202) 482-5288,

respectively.

SUPPLEMENTARY INFORMATION:

Background

On October 23, 1997, the Department of Commerce (``the

Department'') received an application filed by the petitioners in the

above-referenced case, requesting that the Department conduct an anti-

circumvention investigation, pursuant to section 781(a) of the Tariff

Act of 1930, as amended (``the Act''), with respect to the antidumping

duty order on certain pasta from Italy (``the order'') issued July 24,

1996 (61 FR 38547). The petitioners allege that Barilla S.r.L.

(``Barilla'') is circumventing the order by importing pasta into the

United States in bulk, defined as packages of greater than five pounds

(2.27 kilograms), and repackaging the pasta into packages of five

pounds or less for resale in the United States. Inasmuch as the scope

of the order covers only pasta in packages of five pounds or less, the

petitioners claim that Barilla's repackaging operations in the United

States have allowed it to import pasta into the United States free of

any antidumping duties. The petitioners assert that all the elements

necessary for an affirmative determination under Section 781(a) of the

Act are present.

On November 19, 1997, Barilla filed comments replying to the

petitioners' circumvention allegations. On December 2, 1997,

petitioners filed comments in response to Barilla's November 19, 1997

submission. Barilla rebutted the petitioners' December 2, 1997 comments

in a submission filed December 3, 1997.

Initiation of Anti-Circumvention Proceeding

In accordance with section 781(a) of the Act, the Department may

include merchandise completed or assembled in the United States within

the scope of an existing order when the following four conditions are

met: (A) The merchandise sold in the United States is of the same class

or kind as any other merchandise that is the subject to the antidumping

duty order; (B) such merchandise sold in the United States is completed

or assembled in the United States from parts or components produced in

the foreign country with respect to which such order applies; (C) the

process of assembly or completion in the United States is minor or

insignificant; and (D) the value of the parts or components produced in

the foreign country to which the antidumping duty order applies is a

significant portion of the total value of the merchandise sold in the

United States.

In determining whether to include parts or components in the order,

the Act states at section 781(a)(3) that the Department must take into

account: (1) the pattern of trade, including sourcing patterns; (2)

whether the manufacturer or exporter of the parts or components is

affiliated with the person who assembles or completes the merchandise

sold in the United States; and (3) whether imports into the United

States of the parts or components produced in such foreign country have

increased after the initiation of the investigation which resulted in

the issuance of such order or finding.

Based upon our review of the foregoing allegations and supporting

information submitted in the application and in Barilla's submission,

and with respect to the preceding criteria, we find that the

application contains all of the elements that warrant an anti-

circumvention inquiry (see, December 8, 1997 Memorandum from Richard

Moreland to Robert S. LaRussa). Therefore, we are initiating an anti-

circumvention inquiry concerning the antidumping duty order on pasta

from Italy pursuant to section 781(a) of the Act and 19 CFR 351.225 of

the Department's regulations.

We intend to notify the International Trade Commission (``ITC'') in

the event of an affirmative preliminary determination of circumvention,

in accordance with 19 CFR 351.225(f)(7).

The Department will not order the suspension of liquidation at this

time. However, in accordance with 19 CFR 351.225(l)(2), the Department

will instruct the U.S. Customs Service to suspend liquidation in the

event of an affirmative preliminary determination of circumvention.

This notice is issued pursuant to section 781 of the Act (19 U.S.C.

1677j) and 19 CFR 351.225.

Dated: December 8, 1997.

Richard W. Moreland,

Acting Assistant Secretary for Import Administration.

[FR Doc. 97-32629 Filed 12-12-97; 8:45 am]

BILLING CODE 3510-DS-P