Notice of Preliminary Results, Partial Rescission of Antidumping Duty Administrative Review and Revocation of the Antidumping Duty Order in Part: Eighth Administrative Review of the Antidumping Duty Order on Certain Pasta from Italy, 42303-42309 [05-14526]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 70, Number 140 (Friday, July 22, 2005)]
[Notices]
[Pages 42303-42309]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14526]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-475-818)


Notice of Preliminary Results, Partial Rescission of Antidumping 
Duty Administrative Review and Revocation of the Antidumping Duty Order 
in Part: Eighth Administrative Review of the Antidumping Duty Order on 
Certain Pasta from Italy

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to requests by interested parties, the Department 
of Commerce (``the Department'') is conducting an administrative review 
of the antidumping duty order on certain pasta (``pasta'') from Italy 
for the period of review (``POR'') July 1, 2003, through June 30, 2004.
    We preliminarily determine that during the POR, Barilla G.e.R. 
Fratelli,

[[Page 42304]]

S.p.A. (``Barilla'') (formerly Barilla Alimentare, S.p.A.), Corticella 
Molini e Pastifici S.p.A. and its affiliate Pasta Combattenti S.p.A. 
(collectively, ``Corticella''),\1\ Industrie Alimentare Colavita, 
S.p.A. and its affiliate Fusco S.r.L. (collectively, ``Indalco''),\2\ 
Pastificio Riscossa F.lli Mastromauro, S.r.L. (``Riscossa''), and 
Pastificio F.lli Pagani S.p.A. (``Pagani'') sold subject merchandise at 
less than normal value (``NV''). If these preliminary results are 
adopted in the final results of this administrative review, we will 
instruct U.S. Customs and Border Protection (``CBP'') to assess 
antidumping duties equal to the difference between the export price 
(``EP'') or constructed export price (``CEP'') and NV.
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    \1\ During the seventh administrative review, an analysis of the 
record evidence indicated that Corticella and its toll producer, 
Coopertive Lomellina Cerealicoltori S.r.l. (CLC) were affiliated and 
the Department collapsed those companies for purposes of that 
review. The facts are the same for this POR; therefore, we have also 
treated them as a single entity for this review. See Notice of Final 
Results of the Seventh Administrative Review of the Antidumping Duty 
Order on Certain Pasta From Italy and Determination to Revoke in 
Part, 70 FR 6832 (February 9, 2005).
    \2\ During the sixth administrative review, an analysis of the 
record evidence indicated that Industrie Alimentare Colavita, S.p.A. 
and its affiliate Fusco S.r.L. were affiliated and the Department 
collapsed those companies for purposes of that review. The facts are 
the same for this POR; therefore, we have also treated them as a 
single entity for this review. Notice of Preliminary Results and 
Partial Rescission of Antidumping Duty Administrative Review and 
Intent Not to Revoke in Part: For the Sixth Administrative Review of 
the Antidumping Duty Order on Certain Pasta from Italy, 68 FR 47020, 
47022 (August 7, 2003).
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    We preliminarily determine that during the POR, Pastificio Antonio 
Pallante S.r.L. and its affiliate Vitelli Food LLC (``Pallante'') did 
not make sales of the subject merchandise at less than NV (i.e., sales 
were made at a de minimis dumping margin). If these preliminary results 
are adopted in the final results of this administrative review, we will 
instruct CBP to liquidate appropriate entries without regard to 
antidumping duties.
    Furthermore, requests for review of the antidumping duty order for 
the following companies were withdrawn: Pastificio Carmine Russo S.p.A. 
and its affiliate, Pastificio DiNola S.p.A. (collectively, ``Russo''). 
Because the withdrawal requests were timely and there were no other 
requests for review of the companies, we are rescinding the review for 
these companies. See 19 CFR 351.213(d)(1).
    Finally, we preliminarily intend to revoke the antidumping duty 
order with respect to subject merchandise produced and exported by 
Pallante because Pallante sold the merchandise at not less than NV for 
a period of at least three consecutive years. See 19 CFR 351.222 (b)(2) 
and the ``Revocation'' section of this notice. In prior reviews, 
Pallante and Industrie Alimentari Molisane S.r.L. (``IAM'') were found 
to be affiliated, and were treated as a single entity (``collapsed'') 
because of common ownership, common sales activities, and family 
relationships. Pertinent facts concerning the affiliation of these two 
companies have changed. The record evidence of this review no longer 
supports a finding that Pallante and IAM are affiliated and, thus, 
there is no basis to collapse these two entities.\3\ Therefore, this 
revocation will apply solely to Pallante.
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    \3\ See Pallante and IAM Affiliation Memo from the Team to 
Melissa G. Skinner, July 15, 2005.
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    Interested parties are invited to comment on these preliminary 
results, partial rescission, and revocation. Parties who submit 
comments in this segment of the proceeding should also submit with 
them: (1) a statement of the issues and (2) a brief summary of the 
comments. Further, parties submitting written comments are requested to 
provide the Department with an electronic version of the public version 
of any such comments on diskette.

EFFECTIVE DATE: July 22, 2005.

FOR FURTHER INFORMATION CONTACT: Dennis McClure, Stephanie Moore or 
Preeti Tolani, AD/CVD Operations, Office 3, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-5973, (202) 482-3692 or (202) 482-0395, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 24, 1996, the Department published in the Federal Register 
the antidumping duty order on pasta from Italy; see Notice of 
Antidumping Duty Order and Amended Final Determination of Sales at Less 
Than Fair Value: Certain Pasta From Italy, 61 FR 38547. On July 1, 
2004, we published in the Federal Register the notice of Antidumping or 
Countervailing Duty Order, Finding, or Suspended Investigation: 
Opportunity To Request Administrative Review, 69 FR 39903.
    We received requests for review from petitioners\4\ and from seven 
individual Italian exporters/producers of pasta, in accordance with 19 
CFR 351.213(b)(2). In addition, on July 30, 2004, Pallante and Pagani 
requested that the Department revoke the antidumping duty order with 
respect to their companies. See ``Revocation'' section of this notice.
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    \4\ New World Pasta Company; Dakota Growers Pasta Company; and 
American Italian Pasta Company.
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    On August 30, 2004, we published the notice of initiation of this 
antidumping duty administrative review covering the period July 1, 
2003, through June 30, 2004, listing these seven companies as 
respondents: Barilla, Indalco, Riscossa, Russo, Corticella, Pagani, and 
Pallante.\5\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Requests for Revocation in Part, 69 FR 52857 
(August 30, 2004) (``Initiation Notice'').
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    \5\ Although the Department initiated this review on ten 
companies, included within that number were companies found to be 
affiliated in prior reviews, namely Corticella/Combattenti and 
Indalco/Fusco.
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    On December 7, 2004, the Department extended the due date for the 
preliminary results of review from April 4, 2005, to July 18, 2005. See 
Certain Pasta from Italy: Extension of Time Limits for the Preliminary 
Results of Antidumping Duty Administrative Review, 69 FR 74493 
(December 14, 2004).
    During the months from January to June 2005, the Department issued 
supplemental questionnaires to each respondent, as applicable.
    We conducted verification of the cost and sales information as 
follows: 1) Pagani sales verification from April 25 through April 29, 
2005, and cost verification from May 16 through May 20, 2005; and 2) 
Pallante cost verification from May 23 through May 27, 2005, and sales 
verification from June 6 through June 10, 2005. We also verified the 
CEP information submitted by Pallante from June 20 through June 22, 
2005.

Partial Rescission

    On October 19, 2004, Russo withdrew its request for administrative 
review of the antidumping duty order. Because the request was timely 
filed, i.e., with 30 days of publication of the Initiation Notice, and 
because there were no other requests for review of the above-mentioned 
company, we rescinded the review with respect to Russo in accordance 
with 19 CFR 351.213(d)(1). See Certain Pasta from Italy: Notice of 
Partial Rescission of Antidumping Duty Administrative Review, 69 FR 
74494 (December 14, 2004).

Scope of the Order

    Imports covered by this order are shipments of certain non-egg dry 
pasta in packages of five pounds four ounces or less, whether or not 
enriched or

[[Page 42305]]

fortified or containing milk or other optional ingredients such as 
chopped vegetables, vegetable purees, milk, gluten, diastasis, 
vitamins, coloring and flavorings, and up to two percent egg white. The 
pasta covered by this scope is typically sold in the retail market, in 
fiberboard or cardboard cartons, or polyethylene or polypropylene bags 
of varying dimensions.
    Excluded from the scope of this order are refrigerated, frozen, or 
canned pastas, as well as all forms of egg pasta, with the exception of 
non-egg dry pasta containing up to two percent egg white. Also excluded 
are imports of organic pasta from Italy that are accompanied by the 
appropriate certificate issued by the Instituto Mediterraneo Di 
Certificazione, by Bioagricoop Scrl, by QC&I International Services, by 
Ecocert Italia, by Consorzio per il Controllo dei Prodotti Biologici, 
or by Associazione Italiana per l'Agricoltura Biologica.
    The merchandise subject to this order is currently classifiable 
under item 1902.19.20 of the Harmonized Tariff Schedule of the United 
States (``HTSUS''). Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the 
merchandise subject to the order is dispositive.

Verification

    As provided in section 782(i) of Tariff Act of 1930, as amended 
(``the Act''), we conducted verification of the sales and cost 
information provided by Pagani and Pallante, and the CEP information 
provided by Pallante. We used standard verification procedures, 
including on-site inspection of the manufacturers' facilities and 
examination of relevant sales and financial records. Our verification 
results are detailed in the company-specific verification reports 
placed in the case file in the Central Records Unit (``CRU'') located 
in room B-099 of the main Department building. We made minor revisions 
to certain sales and cost data based on verification findings. See the 
company-specific verification reports and calculation memoranda, in the 
CRU.

Product Comparisons

    In accordance with section 771(16) of the Act, we first attempted 
to match contemporaneous sales of products sold in the United States 
and comparison markets that were identical with respect to the 
following characteristics: (1) pasta shape; (2) type of wheat;
    (3) additives; and (4) enrichment. When there were no sales of 
identical merchandise in the home market to compare with U.S. sales, we 
compared U.S. sales with the most similar product based on the 
characteristics listed above, in descending order of priority. When 
there were no appropriate comparison market sales of comparable 
merchandise, we compared the merchandise sold in the United States to 
constructed value (``CV''), in accordance with section 773(a)(4) of the 
Act.
    For purposes of the preliminary results, where appropriate, we have 
calculated the adjustment for differences in merchandise based on the 
difference in the variable cost of manufacturing (``VCOM'') between 
each U.S. model and the most similar home market model selected for 
comparison.

Comparisons to Normal Value

    To determine whether sales of certain pasta from Italy were made in 
the United States at less than NV, we compared the EP or CEP to the NV, 
as described in the ``Export Price and Constructed Export Price'' and 
``Normal Value'' sections of this notice. In accordance with section 
777A(d)(2) of the Act, we calculated monthly weighted-average prices 
for NV and compared these to individual U.S. transactions. See the 
company-specific verification reports and calculation memoranda, 
available in the CRU.

Export Price and Constructed Export Price

    For the price to the United States, we used, as appropriate, EP or 
CEP, in accordance with sections 772(a) and (b) of the Act. We 
calculated EP when the merchandise was sold by the producer or exporter 
outside of the United States directly to the first unaffiliated 
purchaser in the United States prior to importation and when CEP was 
not otherwise warranted based on the facts on the record. We calculated 
CEP for those sales for which a person in the United States, affiliated 
with the foreign exporter or acting for the account of the exporter, 
made the sale to the first unaffiliated purchaser in the United States 
of the subject merchandise. We based EP and CEP on the packed cost-
insurance-freight (``CIF''), ex-factory, free-on-board (``FOB''), or 
delivered prices to the first unaffiliated customer in, or for 
exportation to, the United States. When appropriate, we made 
adjustments to these prices to reflect billing adjustments, discounts, 
and rebates.
    In accordance with section 772(c)(2) of the Act, we made 
deductions, where appropriate, for movement expenses including inland 
freight from plant or warehouse to port of exportation, insurance to 
port of exportation, domestic brokerage, handling and loading charges, 
export duties, international freight, marine insurance, U.S. inland 
freight expenses, warehousing, and U.S. duties. In addition, when 
appropriate, we increased EP or CEP as applicable, by an amount equal 
to the countervailing duty rate attributed to export subsidies in the 
most recently completed administrative review, in accordance with 
section 772(c)(1)(C) of the Act.
    In a ``voluntary'' submission to the Department, Pagani claimed an 
adjustment for ``interest revenue'' for certain U.S. sales during the 
POR. Petitioners objected to this adjustment on the grounds that the 
revenue had been received after the POR, and claimed that it was not a 
bona fide adjustment. We collected detailed information about this 
claimed adjustment and also examined it at verification. Based on our 
analysis of Pagani's submissions, we determine that Pagani has not 
adequately demonstrated that the underlying payments were related 
either to interest revenue or to the sales during the POR to which they 
were allocated. Therefore, we have disallowed this adjustment for 
purposes of the preliminary results.\6\
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    \6\ See Pagani's Analysis Memorandum for a detailed discussion.
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    For CEP, in accordance with section 772(d)(1) of the Act, when 
appropriate, we deducted from the starting price those selling expenses 
that were incurred in selling the subject merchandise in the United 
States, including direct selling expenses (advertising, cost of credit, 
warranties, banking, slotting fees, and commissions paid to 
unaffiliated sales agents). In addition, we deducted indirect selling 
expenses that related to economic activity in the United States. These 
expenses include certain indirect selling expenses incurred by 
affiliated U.S. distributors. We also deducted from CEP an amount for 
profit in accordance with sections 772(d)(3) and (f)(2)(D) of the Act.
    Barilla, Corticella, Indalco, Pagani, and Riscossa reported resales 
to the United States of subject merchandise purchased in Italy from 
unaffiliated producers. In those situations in which an unaffiliated 
producer of the subject pasta knew at the time of the sale that the 
merchandise was destined for the United States, the relevant basis for 
the EP would be the price between that producer and the respondent. See 
Dynamic Random Access Memory Semiconductors of One Megabit or Above 
From the Republic of Korea: Final Results of Antidumping Duty 
Administrative Review, Partial Rescission of Administrative Review

[[Page 42306]]

and Notice of Determination Not to Revoke Order, 63 FR 50867, 50876 
(September 23, 1998). In the instant review, we determine that it is 
reasonable to assume that the unaffiliated producers knew or had reason 
to know at the time of sale that the ultimate destination of the 
merchandise was the United States because virtually all enriched pasta 
is sold to the United States. See, e.g., Notice of Preliminary Results 
and Partial Rescission of Antidumping Duty Administrative Review and 
Intent Not to Revoke in Part: For the Sixth Administrative Review of 
the Antidumping Duty Order on Certain Pasta from Italy, 68 FR 47020, 
47028 (August 7, 2003); Notice of Preliminary Results and Partial 
Rescission of Antidumping Duty Administrative Review: Certain Pasta 
from Italy, 63 FR 42368, 42370 (August 7, 1998). Accordingly, 
consistent with our methodology in prior reviews (see id.), when a 
respondent purchased pasta from other producers and we were able to 
identify resales of this merchandise to the United States, we excluded 
these sales of the purchased pasta from the margin calculation for that 
respondent.
    Where the purchased pasta was commingled with the respondent's 
production and the respondent could not identify the portion of subject 
merchandise purchased from unaffiliated producers, we included the sale 
in our margin calculation. Inasmuch as the percentage of pasta 
purchased by any single respondent was an insignificant part of its 
U.S. sales database and the respondent was unable to identify the 
volume of purchased pasta in sales of commingled merchandise, we 
determined to include such sales in our margin calculations.

Normal Value

A. Selection of Comparison Markets

    To determine whether there was a sufficient volume of sales in the 
home market to serve as a viable basis for calculating NV, we compared 
each respondent's volume of home market sales of the foreign like 
product to the volume of its U.S. sales of the subject merchandise. 
Pursuant to sections 773(a)(1)(B) and (C) of the Act, because each 
respondent had an aggregate volume of home market sales of the foreign 
like product that was greater than five percent of its aggregate volume 
of U.S. sales of the subject merchandise, we determined that the home 
market was viable for all producers.

B. Arm's-Length Test

    Barilla, Corticella, Pagani, and Pallante reported sales of the 
foreign like product to affiliated end-users and an affiliated 
resellers.\7\ The Department calculates NV based on a sale to an 
affiliated party only if it is satisfied that the price to the 
affiliated party is comparable to the price at which sales are made to 
parties not affiliated with the producer or exporter, i.e., sales at 
arm's length. See 19 CFR 351.403(c). To test whether these sales were 
made at arm's length, we compared the starting prices of sales to 
affiliated and unaffiliated customers net of all movement charges, 
direct selling expenses, discounts and packing. In accordance with the 
Department's current practice, if the prices charged to an affiliated 
party were, on average, between 98 and 102 percent of the prices 
charged to unaffiliated parties for merchandise identical or most 
similar to that sold to the affiliated party, we consider the sales to 
be at arm's-length prices and included such sales in the calculation of 
NV. See 19 CFR 351.403(c). Conversely, where sales to the affiliated 
party did not pass the arm's-length test, all sales to that affiliated 
party were excluded from the NV calculation. See Antidumping 
Proceedings: Affiliated Party Sales in the Ordinary Course of Trade, 67 
FR 69186 (Nov. 15, 2002).
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    \7\ We note that sales from Barilla, Corticella, Pagani, and 
Pallante to all affiliated customers constitute less than 5% of 
their total sales in the foreign market and we did not require the 
companies to report the sales from the affiliated resellers to the 
unaffiliated customers.
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C. Cost of Production Analysis

1. Calculation of Cost of Production (COP)

    We conducted a COP analysis of Barilla, Corticella, Indalco, 
Pagani, Pallante, and Riscossa, pursuant to section 773(b) of the Act, 
to determine whether the respondents' comparison market sales were made 
below the COP. We calculated the COP based on the sum of the cost of 
materials and fabrication for the foreign like product, plus amounts 
for selling, general, and administrative expenses (``SG&A'') and 
packing, in accordance with section 773(b)(3) of the Act. We relied on 
the COP data submitted by each respondent in its cost questionnaire 
responses, except in specific instances where based on our review of 
the submissions and, in some instances, our verification findings, we 
find that an adjustment is required, as discussed below:
Pagani
    1. We increased Pagani's total cost of manufacture (``COM'') to 
correct an error in Pagani's yield calculation.
    2. We increased Pagani's general and administrative (``G&A'') 
expenses to include certain unreported expenses.
    3. We increased Pagani's reported G&A expenses by adding its 
parent's general expenses to Pagani's.
    See Memorandum from Nancy M. Decker to Neal M. Halper regarding 
Pagani's Cost of Production and Constructed Value Calculation 
Adjustments for the Preliminary Results (July 15, 2005).
Pallante
    1. We increased Pallante's total COM to correct an error in 
Pallante's yield calculation and to include certain unreported 
expenses.
    2. We increased Pallante's reported G&A expenses to include certain 
unreported expenses.
    3. We increased Pallante's reported total packing costs to include 
certain unreported expenses.
    See Memorandum from James Balog to Neal M. Halper regarding 
Pallante's Cost of Production and Constructed Value Calculation 
Adjustments for the Preliminary Results (July 15, 2005).

2. Test of Comparison Market Prices

    As required under section 773(b)(2) of the Act, we compared the 
weighted-average COP to the per-unit price of the comparison market 
sales of the foreign like product to determine whether these sales had 
been made at prices below the COP within an extended period of time in 
substantial quantities, and whether such prices were sufficient to 
permit the recovery of all costs within a reasonable period of time. We 
determined the net comparison market prices for the sales-below-cost 
test by subtracting from the gross unit price any applicable movement 
charges, discounts, rebates, direct and indirect selling expenses (also 
excluded from the COP), and packing expenses.

3. Results of COP Test

    Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20 
percent of sales of a given product were at prices less than the COP, 
we did not disregard any below-cost sales of that product because we 
determined that the below-cost sales were not made in ``substantial 
quantities.'' Where 20 percent or more of a respondent's sales of a 
given product during the POR were at prices less than the COP, we 
determined such sales to have been made in ``substantial quantities.'' 
See section 773(b)(2)(C) of the Act. The sales were made within an

[[Page 42307]]

extended period of time in accordance with section 773(b)(2)(B) of the 
Act, because they were made over the course of the POR. In such cases, 
because we compared prices to POR-average costs, we also determined 
that such sales were not made at prices which would permit recovery of 
all costs within a reasonable period of time, in accordance with 
section 773(b)(2)(D) of the Act. Based on this methodology, for 
Barilla, Corticella, Indalco, Pagani, Pallante, and Riscossa, for 
purposes of this administrative review, we disregarded certain below-
cost sales and used the remaining sales as the basis for determining 
NV, in accordance with section 773(b)(1) of the Act. See the company-
specific calculation memoranda on file in the CRU, for our calculation 
methodology and results.

D. Calculation of Normal Value Based on Comparison Market Prices

    We calculated NV based on ex-works, FOB or delivered prices to 
comparison market customers. We made deductions from the starting 
price, when appropriate, for handling, loading, inland freight, 
warehousing, inland insurance, billing adjustments, discounts, and 
rebates. In accordance with sections 773(a)(6)(A) and (B) of the Act, 
we added U.S. packing costs and deducted comparison market packing, 
respectively. In addition, we made circumstance-of-sale (``COS'') 
adjustments for direct expenses, including imputed credit expenses, 
advertising, warranty expenses, commissions, and bank charges, in 
accordance with section 773(a)(6)(C)(iii) of the Act.
    We also made adjustments, in accordance with 19 CFR 351.410(e), for 
indirect selling expenses incurred in the home market or U.S. where 
commissions were granted on sales in one market but not in the other, 
the ``commission offset.'' Specifically, where commissions are incurred 
in one market, but not in the other, we will limit the amount of such 
adjustment to the amount of either the selling expenses incurred in the 
one market or the commissions allowed in the other market, whichever is 
less.
    When comparing U.S. sales with comparison market sales of similar, 
but not identical, merchandise, we also made adjustments for physical 
differences in the merchandise, in accordance with section 
773(a)(6)(C)(ii) of the Act and 19 CFR 351.411. We based this 
adjustment on the difference in the VCOM for the foreign like product 
and subject merchandise, using POR-average costs.
    Sales of pasta purchased by the respondents from unaffiliated 
producers and resold in the comparison market were treated in the same 
manner described above in the ``Export Price and Constructed Export 
Price'' section of this notice.

E. Calculation of Normal Value Based on Constructed Value

    When we could not determine the NV based on comparison market sales 
because there were no contemporaneous sales of a comparable product, we 
compared the EP to CV. In accordance with section 773(e) of the Act, we 
calculated CV based on the sum of the COM of the product sold in the 
United States, plus amounts for SG&A expenses, profit, and U.S. packing 
costs. In accordance with section 773(e)(2)(A) of the Act, we based 
SG&A expenses and profit on the amounts incurred in connection with the 
production and sale of the foreign like product in the comparison 
market.
    For price-to-CV comparisons, we made adjustments to CV for COS 
differences, in accordance with section 773(a)(8) of the Act and 19 CFR 
351.410. We made COS adjustments by deducting direct selling expenses 
incurred on comparison market sales and adding U.S. direct selling 
expenses.

F. Level of Trade

    In accordance with section 773(a)(1)(B) of the Act, we determined 
NV based on sales in the comparison market at the same level of trade 
(``LOT'') as the EP and CEP sales, to the extent practicable. When 
there were no sales at the same LOT, we compared U.S. sales to 
comparison market sales at a different LOT. When NV is based on CV, the 
NV LOT is that of the sales from which we derive SG&A expenses and 
profit.
    Pursuant to 19 CFR 351.412, to determine whether comparison market 
sales are at a different LOT, we examine stages in the marketing 
process and selling functions along the chain of distribution between 
the producer and the unaffiliated (or arm's-length) customers. If the 
comparison market sales are at a different LOT and the differences 
affect price comparability, as manifested in a pattern of consistent 
price differences between the sales on which NV is based and comparison 
market sales at the LOT of the export transaction, we will make an LOT 
adjustment under section 773(a)(7)(A) of the Act.
    Finally, if the NV LOT is more remote from the factory than the CEP 
LOT and there is no basis for determining whether the differences in 
LOT between NV and CEP affected price comparability, we will grant a 
CEP offset, pursuant to section 773(a)(7)(B) of the Act. See Notice of 
Final Determination of Sales at Less Than Fair Value: Certain Cut-to-
Length Carbon Steel Plate from South Africa, 62 FR 61731, 61732-33 
(November 19, 1997). Specifically in this review, we did not make an 
LOT adjustment for any respondent. However, we are preliminarily 
granting a CEP offset for Barilla and Pallante.
    For a detailed description of our LOT methodology and a summary of 
company-specific LOT findings for these preliminary results, see the 
company-specific calculation memoranda, all on file in the CRU.

Currency Conversion

    For purposes of these preliminary results, we made currency 
conversions in accordance with section 773A(a) of the Act, based on the 
official exchange rates published by the Federal Reserve Bank.

Revocation

    On July 30, 2004, Pallante and Pagani submitted requests for 
revocation of the antidumping duty order with respect to their sales of 
the subject merchandise pursuant to 19 CFR 351.222(b). The Department 
``may revoke, in whole or in part'' an antidumping duty order upon 
completion of a review under section 751 of the Act. While Congress has 
not specified the procedures that the Department must follow in 
revoking an order, the Department has developed a procedure for 
revocation that is described in 19 CFR 351.222. This regulation 
requires that one or more exporters and producers covered by the order 
and desiring revocation submit the following: (1) a certification that 
the company has sold the subject merchandise at not less than NV in the 
current review period and that the company will not sell at less than 
NV in the future; (2) a certification that the company sold the subject 
merchandise in each of the three years forming the basis of the request 
in commercial quantities; and (3) an agreement to immediate 
reinstatement of the order if the Department concludes that the 
company, subsequent to the revocation, has sold subject merchandise at 
less than NV. See 19 CFR 351.222(e)(1). Both Pallante and Pagani 
provided the certifications and agreements required by 19 CFR 
351.222(e)(1).
    Upon receipt of such a request, the Department, pursuant to 19 CFR 
351.222(b)(2), will consider the following in determining whether to 
revoke the order in part: (1) whether the

[[Page 42308]]

producer or exporter requesting revocation has sold subject merchandise 
at not less than NV for a period of at least three consecutive years; 
(2) whether the continued application of the antidumping duty order is 
otherwise necessary to offset dumping; and (3) whether the producer or 
exporter requesting revocation in part has agreed in writing to the 
immediate reinstatement of the order, as long as any exporter or 
producer is subject to the order, if the Department concludes that the 
exporter or producer, subsequent to revocation, sold the subject 
merchandise at less than NV.
    Both Pallante and Pagani had de minimis or zero dumping margins in 
the two preceding years. See Notice of Final Results of the Sixth 
Administrative Review of the Antidumping Duty Order on Certain Pasta 
from Italy and Determination Not to Revoke in Part, 69 FR 6255, 6257 
(February 10, 2004) and Notice of Final Results of Antidumping Duty 
Administrative Review and Determination Not to Revoke in Part: Certain 
Pasta from Italy, 68 FR 6882, 6883 (February 11, 2003), respectively. 
However, in the current review we preliminarily find that Pagani sold 
subject merchandise at less than NV. See July 15, 2005, Memorandum to 
the File, RE: Preliminary Calculation Memorandum for Pagani. Because we 
preliminarily find that Pagani made sales of subject merchandise at 
less than NV, we preliminarily intend not to revoke the antidumping 
duty order with respect to Pagani. Regarding Pallante, the Department 
preliminarily finds a de minimis rate for the current review. See July 
15, 2005, Memorandum to the File, RE: Preliminary Calculation 
Memorandum for Pallante. Therefore, we preliminarily find that Pallante 
sold subject merchandise at not less than NV for three consecutive 
years as required under 19 CFR 351.222(b).
    In determining whether three years of no dumping establishes a 
sufficient basis to make a revocation determination, the Department 
must be able to determine that the company continued to participate 
meaningfully in the U.S. market during each of the three years at 
issue, i.e., that the company made sales in commercial quantities 
during each of those years. See Certain Corrosion-Resistant Carbon 
Steel Flat Products and Certain Cut-to-Length Carbon Steel Plate From 
Canada; Final Results of Antidumping Duty Administrative Reviews and 
Determination To Revoke in Part, 64 FR 2173, 2175 (January 13, 1999); 
see also Pure Magnesium From Canada; Final Results of Antidumping Duty 
Administrative Review and Determination Not to Revoke Order in Part, 64 
FR 12977, 12979 (March 16, 1999); and Notice of Final Results of 
Antidumping Duty Administrative Review and Determination Not to Revoke 
the Antidumping Order: Brass Sheet and Strip from the Netherlands, 65 
FR 742 (January 6, 2000). The Department preliminarily finds that 
Pallante sold subject merchandise to the United States in commercial 
quantities during each of the consecutive three years within the 
meaning of 19 CFR 351.222(e)(1)(ii). See the July 7, 2005, Pallante 
Sales Verification Report at Exhibits S-27 and VF-19; see also 
Pallante's March 22, 2005, Questionnaire Response at Exhibit 1. 
Therefore, we reasonably conclude that the de minimis margins 
calculated for Pallante in the last three years are reflective of the 
company's normal commercial experience. Because Pagani sold at less 
than NV during the 2003 to 2004 POR, the Department did not determine 
whether Pagani sold in commercial quantities during each of the last 
three years.
    With respect to 19 CFR 351.222(b)(2)(i)(C), in considering whether 
continued application of the order is necessary to offset dumping, 
``the Department may consider trends in prices and costs, investment, 
currency movements, production capacity, as well as all other market 
and economic factors relevant to a particular case.'' Proposed 
Regulation Concerning the Revocation of Antidumping Duty Orders, 64 FR 
29818, 29820 (June 3, 1999). Based upon sales over three consecutive 
years resulting in de minimis margins, the Department presumes that the 
company requesting revocation is not likely to resume selling subject 
merchandise at less than NV in the near future unless the Department 
has been presented with evidence to demonstrate that dumping would 
likely resume if the order were revoked. In this proceeding, we have 
not received any evidence that demonstrates that Pallante would likely 
resume dumping in the future if the order were revoked. Therefore, we 
preliminarily determine that the order is no longer necessary to offset 
dumping for Pallante.
    Because all requirements under the regulation have been satisfied, 
if these preliminary findings are affirmed in our final results, we 
intend to revoke the antidumping duty order with respect to subject 
merchandise produced and exported by Pallante. Also, in accordance with 
19 CFR 351.222(f)(3), if these findings are affirmed in our final 
results, we will terminate the suspension of liquidation for any such 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the first day after the period under review, and will instruct 
CBP to refund any cash deposit.

Preliminary Results of Review

    As a result of our review, we preliminarily determine that the 
following percentage weighted-average margins exist for the period July 
1, 2003, through June 30, 2004:

------------------------------------------------------------------------
                Manufacturer/exporter                  Margin (percent)
------------------------------------------------------------------------
Barilla.............................................               16.39
Corticella..........................................                3.41
Indalco.............................................                4.10
Pagani..............................................                2.76
Pallante............................................     0.38 de minimis
Riscossa............................................                2.03
------------------------------------------------------------------------

    The Department will disclose calculations performed within five 
days of the date of publication of this notice to the parties of this 
proceeding, in accordance with 19 CFR 351.224(b). An interested party 
may request a hearing within 30 days of publication of these 
preliminary results. See 19 CFR 351.310(c). Any hearing, if requested, 
ordinarily will be held 44 days after the date of publication, or the 
first working day thereafter. Interested parties may submit case briefs 
no later than 30 days after the date of publication of these 
preliminary results of review. Rebuttal briefs, limited to issues 
raised in such briefs, may be filed no later than 35 days after the 
date of publication. Parties who submit arguments are requested to 
submit with the argument (1) a statement of the issue, and (2) a brief 
summary of the argument. Further, parties submitting written comments 
are requested to provide the Department with an additional copy of the 
public version of any such comments on diskette. The Department will 
issue the final results of this administrative review, which will 
include the results of its analysis of issues raised in any such 
comments, or at a hearing, if requested, within 120 days of publication 
of these preliminary results.

Assessment Rate

    Pursuant to 19 CFR 351.212(b), the Department calculated an 
assessment rate for each importer of the subject merchandise. Upon 
issuance of the final results of this administrative review, if any 
importer-specific assessment rates calculated in the final results are 
above de minimis (i.e., at or above 0.5 percent), the Department will 
issue appraisement instructions directly to CBP to assess antidumping 
duties on appropriate entries by applying the assessment rate to the 
entered value of the merchandise. For assessment purposes, we 
calculated

[[Page 42309]]

importer-specific assessment rates for the subject merchandise by 
aggregating the dumping margins for all U.S. sales to each importer and 
dividing the amount by the total entered value of the sales to that 
importer. Where appropriate, to calculate the entered value, we 
subtracted international movement expenses (e.g., international 
freight) from the gross sales value.

Cash Deposit Requirements

    To calculate the cash deposit rate for each producer and/or 
exporter included in this administrative review, we divided the total 
dumping margins for each company by the total net value for that 
company's sales during the review period.
    The following deposit rates will be effective upon publication of 
the final results of this administrative review for all shipments of 
pasta from Italy entered, or withdrawn from warehouse, for consumption 
on or after the publication date, as provided by section 751(a)(2)(C) 
of the Act: (1) The cash deposit rates for the companies listed above 
will be the rates established in the final results of this review, 
except if the rate is less than 0.5 percent and, therefore, de minimis, 
the cash deposit will be zero; (2) for previously reviewed or 
investigated companies not listed above, the cash deposit rate will 
continue to be the company-specific rate published for the most recent 
final results in which that manufacturer or exporter participated; (3) 
if the exporter is not a firm covered in this review, a prior review, 
or the original less-than-fair-value (``LTFV'') investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent final results for the manufacturer of the merchandise; 
and (4) if neither the exporter nor the manufacturer is a firm covered 
in this or any previous review conducted by the Department, the cash 
deposit rate will be 11.26 percent, the ``All Others'' rate established 
in the LTFV investigation. See Notice of Antidumping Duty Order and 
Amended Final Determination of Sales at Less Than Fair Value: Certain 
Pasta from Italy, 61 FR 38547 (July 24, 1996).
    These cash deposit requirements, when imposed, shall remain in 
effect until publication of the final results of the next 
administrative review.

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and increase the 
subsequent assessment of the antidumping duties by the amount of 
antidumping duties reimbursed.
    These preliminary results of this administrative review are issued 
and published in accordance with sections 751(a)(1) and 777(i)(1) of 
the Act.

    Dated: July 15, 2005.
Susan H. Kuhbach,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-14526 Filed 7-21-05; 8:45 am]
BILLING CODE: 3510-DS-S