Certain Agricultural Tillage Tools From Brazil; Preliminary Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-406]

Certain Agricultural Tillage Tools From Brazil; Preliminary

Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of Countervailing Duty

administrative review.

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SUMMARY: The Department of Commerce (``the Department'') is conducting

an administrative review of the countervailing duty order on certain

agricultural tillage tools from Brazil for the period January 1, 1996

through December 31, 1996. For information on the net subsidy for

Marchesan Implementos Agricolas, S.A. (``Marchesan''), the reviewed

company, as well as for all non-reviewed companies, please see the

Preliminary Results of Review section of this notice. If the final

results remain the same as these preliminary results of administrative

review, we will instruct the U.S. Customs Service (``Customs'') to

liquidate, without regard to countervailing duties, all shipments of

the subject merchandise from

[[Page 37533]]

Marchesan, as detailed in the Preliminary Results of Review section of

this notice. Interested parties are invited to comment on these

preliminary results. (See Public Comment section of this notice.)

EFFECTIVE DATE: July 13, 1998.

FOR FURTHER INFORMATION CONTACT: Gayle Longest or Lorenza Olivas,

Office of CVD/AD Enforcement VI, 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 October 22, 1985, the Department published in the Federal

Register (50 FR 42743) the countervailing duty order on certain

agricultural tillage tools from Brazil. On October 2, 1997 the

Department published a notice of ``Opportunity to Request

Administrative Review'' (62 FR 51628) of this countervailing duty

order. On October 31, 1997, Marchesan requested an administrative

review and partial revocation of the countervailing duty order pursuant

to 19 CFR 351.222. We initiated the review, covering the period January

1, 1996 through December 31, 1996, on November 26, 1997 (62 FR 63069).

In accordance with 19 CFR 351.213(b), this review covers Marchesan, the

only producer/exporter of the subject merchandise for which a review

was requested. This review also covers five programs.

The Department considered Marchesan's revocation request and

determined that the company did not meet the requirements to be

considered for revocation from the countervailing duty order. (See

Letter to Marchesan from Barbara E. Tillman dated June 11, 1998, a

public document on file in the Central Records Unit, Room B-099 of the

Main Commerce Building). Accordingly, pursuant to 19 CFR

351.222(f)(2)(iii), we conclude that there is no reasonable basis to

believe the requirements for revocation are met.

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) of the Act. All citations to the

Department's regulations reference 19 CFR Part 351, et al. Antidumping

Duties; Countervailing Duties; Final Rule, 62 FR 27296; May 19, 1997,

unless otherwise indicated.

Scope of the Review

Imports covered by this review are shipments of certain round

shaped agricultural tillage tools (discs) with plain or notched edge,

such as colters and furrow-opener blades. During the review period,

such merchandise was classifiable under item numbers 8432.21.00,

8432.29.00 8432.80.00 and 8432.90.00 of the Harmonized Tariff Schedule

(``HTS''). The HTS item numbers are provided for convenience and

Customs purposes. The written description remains dispositive.

Analysis of Programs

I. Programs Preliminarily Determined To Be Not Used

We examined the following programs and preliminarily determine that

the producers and/or exporters of the subject merchandise did not apply

for or receive benefits under these programs during the period of

review:

A. Accelerated Depreciation for Brazilian-Made Capital Goods;

B. Preferential Financing for Industrial Enterprises by Banco do

Brasil (FST and EGF loans);

C. SUDENE Corporate Income Tax Reduction for Companies Located in

the Northeast of Brasil;

D. Preferential Financing under PROEX (formerly under Resolution 68

and 509 through FINEX);

E. Preferential Financing under FINEP.

Preliminary Results of Review

For the period January 1, 1996 through December 31, 1996, we

preliminarily determine the net subsidy for Marchesan to be zero

percent ad valorem. If the final results of this review remain the same

as these preliminary results, the Department intends to instruct

Customs to liquidate, without regard to countervailing duties,

shipments of the subject merchandise from Marchesan exported on or

after January 1, 1996, and on or before December 31, 1996.

The Department also intends to instruct Customs to collect cash

deposits of estimated countervailing duties of zero percent ad valorem,

as provided for by section 751(a)(1) of the Act, on all shipments of

this merchandise from Marchesan, entered or withdrawn from warehouse,

for consumption, on or after the date of publication of the final

results of this administrative 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, 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 CFR

351.213(b). Pursuant to 19 CFR 351.212(c), 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

request for 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).

Therefore, the cash deposit rates for all companies except those

covered by this review will be unchanged by the results of this review.

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. See Certain Agricultural Tillage Tools from Brazil:

Final Results of Countervailing Duty Administrative Review, 60 FR 48692

(September 20, 1995). These rates shall apply until a review of

companies 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.

Public Comment

Pursuant to 19 CFR 351.224(b), the Department will disclose to

parties to the proceeding any calculations performed in connection with

these preliminary results within five days after the date of

publication of this notice. Pursuant to 19 CFR 351.309,

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interested parties may submit written comments in response to these

preliminary results. Case briefs must be submitted within 30 days after

the date of publication of this notice, and rebuttal briefs, limited to

arguments raised in case briefs, must be submitted no later than five

days after the time limit for filing case briefs. Parties who submit

argument in this proceeding are requested to submit with the argument:

(1) A statement of the issue, and (2) a brief summary of the argument.

Case and rebuttal briefs must be served on interested parties in

accordance with 19 CFR 351.303(f). Also, pursuant to 19 CFR 351.310,

within 30 days of the date of publication of this notice, interested

parties may request a public hearing on arguments to be raised in the

case and rebuttal briefs. Unless the Secretary specifies otherwise, the

hearing, if requested, will be held two days after the date for

submission of rebuttal briefs, that is, thirty-seven days after the

date of publication of these preliminary results.

Representatives of parties to the proceeding may request disclosure

of proprietary information under administrative protective order no

later than 10 days after the representative's client or employer

becomes a party to the proceeding, but in no event later than the date

case briefs, under 19 CFR 351.309(c)(ii), are due. The Department will

publish the final results of this administrative review, including the

results of its analysis of issues raised in any case or rebuttal brief

or at a hearing.

This administrative review is issued and published in accordance

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

and 19 U.S.C. 1677f(i)(1)).

Dated: July 6, 1998.

Richard W. Moreland,

Acting Deputy Assistant Secretary for Import Administration.

[FR Doc. 98-18599 Filed 7-10-98; 8:45 am]

BILLING CODE 3510-DS-P