Viscose Rayon Staple Fiber From Sweden; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[C-401-056]

Viscose Rayon Staple Fiber From Sweden; 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 February 9, 1998, the Department of Commerce published in

the Federal Register its preliminary results of administrative review

of the countervailing duty order on viscose rayon staple fiber from

Sweden for the period January 1, 1996 through December 31, 1996 (63 FR

6534). The Department has now completed this administrative review in

accordance with section 751(a) of the Tariff Act of 1930, as amended.

For information on the net subsidy for each reviewed company, and for

all non-reviewed companies, please see the Final Results of Review

section of this notice. We will instruct the U.S. Customs Service to

assess countervailing duties as detailed in the Final Results of Review

section of this notice.

EFFECTIVE DATE: June 17, 1998.

FOR FURTHER INFORMATION CONTACT: Stephanie Moore or Eric Greynolds,

Office of CVD/AD Enforcement VI, 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

Pursuant to 19 C.F.R. 355.22(a), this review covers only those

producers or exporters of the subject merchandise for which a review

was specifically requested. Accordingly, this review covers Svenska

Rayon AB (Svenska). This review also covers the period January 1, 1996

through December 31, 1996, and six programs.

We published the preliminary results on February 9, 1998 (63 FR

6534). We invited interested parties to comment on the preliminary

results. We received no comments from any of the parties.

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute are

references to the provisions of the Tariff Act of 1930, as amended by

the Uruguay Round Agreements Act (URAA) effective January 1, 1995 (the

Act). The Department is conducting this administrative review in

accordance with section 751(a)(1)(A) of the Act. In addition, unless

otherwise indicated, all citations to the Department's regulations are

to 19 C.F.R. part 355 (1997).

Scope of the Review

Imports covered by this review are shipments from Sweden of regular

viscose rayon staple fiber and high-wet modulus (modal) viscose rayon

staple fiber. Such merchandise is classifiable under item number

5504.10.00 of the Harmonized Tariff Schedule (HTS). The HTS item is

provided for convenience and Customs purposes. The written description

remains dispositive.

Analysis of Programs

Based upon the responses to our questionnaire, we determine the

following:

I. Program Found to Confer Subsidies

Recruitment Subsidy Program

In the preliminary results, based on facts available, we found that

this program conferred countervailable subsidies on the subject

merchandise. We did not receive any comments on this program from the

interested parties, and our review of the record has not led us to

change our findings from the preliminary results. Accordingly, the net

subsidy for this program of 0.06 percent ad valorem remains unchanged

from the preliminary results.

II. Programs Found to be Not Used

In the preliminary results, we found that Svenska did not apply for

or receive benefits under the following programs:

A. Grants for Temporary Employment for Public Works

B. Regional Development Grant

C. Transportation Grants

D. Location-of-Industry Loans

We did not receive any comments on these programs from the

interested parties, and our review of the record has not led us to

change our findings from the preliminary results.

III. Program Found to be Terminated

In the preliminary results, we found the following program to be

terminated and that no residual benefits were being provided:

A. Manpower Reduction Grants Program

We did not receive any comments on this program from the interested

parties, and our review of the record has not led us to change our

findings from the preliminary results.

Final Results of Review

In accordance with 19 C.F.R. 355.22(c)(4)(ii), we calculated an

individual subsidy rate for each producer/exporter subject to this

administrative review. For the period January 1, 1996 through December

31, 1996, we determined the net subsidy for Svenska to be 0.06 percent

ad valorem.

As provided for in the Act, any rate less than 0.5 percent ad

valorem in an administrative review is de minimis. See section

703(b)(4)(A) of the Act. Accordingly, we will instruct the U.S. Customs

Service (``Customs'') to liquidate without regard to countervailing

duties all shipments of this merchandise exported on or after January

1, 1996, and on or before December 31, 1996. The Department will also

instruct Customs to collect a cash deposit of estimated countervailing

duties of zero percent ad valorem, as provided for by section 751(a) of

the Act, on all shipments of this merchandise from Svenska, entered, or

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

publication of the final results of this review.

Because the URAA replaced the general rule in favor of a country-

wide rate with a general rule in favor of individual rates for

investigated and reviewed companies (see section 777A(e) of the Act),

the procedures for establishing countervailing duty rates, including

those for non-reviewed companies, are now essentially the same as those

in antidumping cases, except as provided for in section 777A(e)(2)(B)

of the Act. The requested review will normally cover only those

companies specifically named. See 19 C.F.R. 355.22(a). Pursuant to 19

C.F.R. 355.22(g), for all companies for which a review was not

requested, duties must be assessed at the cash deposit rate, and cash

deposits must continue to be collected at the rate previously ordered.

As such, the countervailing duty cash deposit rate applicable to a

company can no longer change, except pursuant to a review of that

company. See Federal-Mogul Corporation and The Torrington Company v.

United States, 822 F.Supp. 782 (CIT 1993) and Floral Trade Council v.

United States, 822 F.Supp. 766 (CIT 1993) (interpreting 19 C.F.R.

353.22(e), the antidumping regulation on automatic assessment, which is

virtually identical to 19 C.F.R. 355.22(g)). Therefore, the cash

deposit rates for all companies except those covered by this review

will be unchanged by the results of this review.

[[Page 33054]]

We will instruct Customs to continue to collect cash deposits for

non-reviewed companies at the most recent company-specific or country-

wide rate applicable to the company. Accordingly, the cash deposit

rates that will be applied to non-reviewed companies covered by this

order will be the rate for that company established in the most

recently completed administrative proceeding conducted under the URAA.

If such a review has not been conducted, the rate established in the

most recently completed administrative proceeding pursuant to the

statutory provisions that were in effect prior to the URAA amendments

is applicable. These rates shall apply to all non-reviewed companies

until a review of a company assigned these rates is requested. In

addition, for the period January 1, 1996 through December 31, 1996, the

assessment rates applicable to all non-reviewed companies covered by

this order are the cash deposit rates in effect at the time of entry.

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 is issued and published in accordance

with sections 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 1675(a)(1)

and 19 U.S.C. 1677 f (i)).

Dated: June 8, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 98-16105 Filed 6-16-98; 8:45 am]

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