Certain Pasta From Italy: Preliminary Results of the 15th (2010) Countervailing Duty Administrative Review and Rescission, In Part, 45582-45587 [2012-18684]

Download as PDF 45582 Federal Register / Vol. 77, No. 148 / Wednesday, August 1, 2012 / Notices above, the Department will instruct CBP to assess antidumping or countervailing duties on those entries at a rate equal to the cash deposit of (or bond for) estimated antidumping or countervailing duties required on those entries at the time of entry, or withdrawal from warehouse, for consumption and to continue to collect the cash deposit previously ordered. For the first administrative review of any order, there will be no assessment of antidumping or countervailing duties on entries of subject merchandise entered, or withdrawn from warehouse, for consumption during the relevant provisional-measures ‘‘gap’’ period, of the order, if such a gap period is applicable to the period of review. This notice is not required by statute but is published as a service to the international trading community. Dated: July 20, 2012. Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2012–18826 Filed 7–31–12; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Reviews Import Administration, International Trade Administration, Department of Commerce. AGENCY: Background Every five years, pursuant to section 751(c) of the Tariff Act of 1930, as amended (‘‘the Act’’), the Department of Commerce (‘‘the Department’’) and the International Trade Commission automatically initiate and conduct a review to determine whether revocation of a countervailing or antidumping duty order or termination of an investigation suspended under section 704 or 734 of the Act would be likely to lead to continuation or recurrence of dumping or a countervailable subsidy (as the case may be) and of material injury. Upcoming Sunset Reviews for September 2012 The following Sunset Reviews are scheduled for initiation in September 2012 and will appear in that month’s Notice of Initiation of Five-Year Sunset Review. Department Contact tkelley on DSK3SPTVN1PROD with NOTICES Antidumping Duty Proceedings Certain Pasta from Italy (A–475–818) (3rd Review) .................................................................................... Certain Pasta from Turkey (A–489–805) (3rd Review) ................................................................................ Countervailing Duty Proceedings Certain Pasta from Italy (C–475–819) (3rd Review) .................................................................................... Certain Pasta from Turkey (C–489–806) (3rd Review) ............................................................................... Suspended Investigations No Sunset Review of suspended investigations is scheduled for initiation in September 2012. The Department’s procedures for the conduct of Sunset Reviews are set forth in 19 CFR 351.218. Guidance on methodological or analytical issues relevant to the Department’s conduct of Sunset Reviews is set forth in the Department’s Policy Bulletin 98.3— Policies Regarding the Conduct of Fiveyear (‘‘Sunset’’) Reviews of Antidumping and Countervailing Duty Orders; Policy Bulletin, 63 FR 18871 (April 16, 1998). The Notice of Initiation of Five-Year (‘‘Sunset’’) Reviews provides further information regarding what is required of all parties to participate in Sunset Reviews. Pursuant to 19 CFR 351.103(c), the Department will maintain and make available a service list for these proceedings. To facilitate the timely preparation of the service list(s), it is requested that those seeking recognition as interested parties to a proceeding contact the Department in writing within 10 days of the publication of the Notice of Initiation. Please note that if the Department receives a Notice of Intent to Participate from a member of the domestic industry within 15 days of the date of initiation, the review will continue. Thereafter, VerDate Mar<15>2010 19:53 Jul 31, 2012 Jkt 226001 any interested party wishing to participate in the Sunset Review must provide substantive comments in response to the notice of initiation no later than 30 days after the date of initiation. This notice is not required by statute but is published as a service to the international trading community. Dated: July 19, 2012. Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2012–18818 Filed 7–31–12; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE David Goldberger, (202) 482–4136. David Goldberger, (202) 482–4136. David Goldberger, (202) 482–4136. David Goldberger, (202) 482–4136. 1, 2010, through December 31, 2010. We preliminarily determine that Molino e Pastificio Tomasello S.p.A. (‘‘Tomasello’’) received countervailable subsidies during the period of review (‘‘POR’’). Interested parties are invited to comment on these preliminary results. Effective Date: August 1, 2012. FOR FURTHER INFORMATION CONTACT: Joseph Shuler or Christopher Siepmann, AD/CVD Operations, Office 1, Import Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1293 and (202) 482–7958, respectively. SUPPLEMENTARY INFORMATION: DATES: International Trade Administration Background [C–475–819] On July 24, 1996, the Department published a countervailing duty order on certain pasta (‘‘pasta’’ or ‘‘subject merchandise’’) from Italy. See Notice of Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination: Certain Pasta From Italy, 61 FR 38544 (July 24, 1996). On July 1, 2011, the Department published a notice of ‘‘Opportunity to Request Administrative Review’’ of this countervailing duty order for the POR corresponding to calendar year 2010. See Antidumping or Certain Pasta From Italy: Preliminary Results of the 15th (2010) Countervailing Duty Administrative Review and Rescission, In Part Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (‘‘Department’’) is conducting an administrative review of the countervailing duty order on certain pasta from Italy for the period January AGENCY: PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 E:\FR\FM\01AUN1.SGM 01AUN1 Federal Register / Vol. 77, No. 148 / Wednesday, August 1, 2012 / Notices Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review, 76 FR 38609, 38610 (July 1, 2011). On July 29, 2011, we received requests for administrative review from producers and exporters of subject merchandise, Industria Alimentare Filiberto Bianconi 1947 S.p.A. (‘‘Bianconi’’) and Tomasello. In accordance with 19 CFR 351.221(c)(1)(i), we published a notice of initiation of this review on August 26, 2011. See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for Revocation in Part, 76 FR 53404, 53407 (August 26, 2011). On September 20, 2011, we issued countervailing duty questionnaires to the Commission of the European Union (‘‘EU’’), the Government of Italy (‘‘GOI’’), Tomasello, and Bianconi. On October 20, 2011, Bianconi withdrew its request for administrative review. We received responses to our questionnaires in October 2011. We issued supplemental questionnaires to the GOI in February and April 2012, and we received corresponding responses in February and May 2012. We issued supplemental questionnaires to Tomasello in February and June 2012 and received corresponding responses in March and July 2012. On March 16, 2012, we extended the time limit for the preliminary results of this review. See Certain Pasta from Italy: Extension of Time Limit for the Preliminary Results of the Countervailing Duty Administrative Review, 77 FR 15718 (March 16, 2012). tkelley on DSK3SPTVN1PROD with NOTICES Period of Review The POR for which we are measuring subsidies is January 1, 2010, through December 31, 2010. Scope of the Order Imports covered by the order are shipments of certain non-egg dry pasta in packages of five pounds four ounces or less, whether or not enriched or 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 the scope of the order 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 the 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 VerDate Mar<15>2010 19:53 Jul 31, 2012 Jkt 226001 pasta from Italy that are accompanied by the appropriate certificate issued by the Instituto Mediterraneo Di Certificazione, Bioagricoop S.r.l., QC&I International Services, Ecocert Italila, Consorzio per il Controllo dei Prodotti Biologici, Associazione Italiana per l’Agricoltura Biologica, or Codex S.r.l. In addition, based on publicly available information, the Department has determined that, as of August 4, 2004, imports of organic pasta from Italy that are accompanied by the appropriate certificate issued by Bioagricert S.r.l. are also excluded from the order. See Memorandum from Eric B. Greynolds to Melissa G. Skinner, dated August 4, 2004, which is on file in the Department’s Central Records Unit (‘‘CRU’’), room 7046 of the main Commerce building. In addition, based on publicly available information, the Department has determined that, as of March 13, 2003, imports of organic pasta from Italy that are accompanied by the appropriate certificate issued by Instituto per la Certificazione Etica e Ambientale are also excluded from the order. See Memorandum from Audrey Twyman to Susan Kuhbach, dated February 28, 2006, entitled ‘‘Recognition of Instituto per la Certificazione Etica e Ambientale (ICEA) as a Public Authority for Certifying Organic Pasta from Italy,’’ which is on file in the Department’s CRU. Pursuant to the Department’s May 12, 2011 changed circumstances review, effective January 1, 2009, gluten-free pasta is also excluded from the scope of the CVD order. See Certain Pasta From Italy: Final Results of Countervailing Duty Changed Circumstances Review and Revocation, In Part, 76 FR 27634 (May 12, 2011). The merchandise subject to review is currently classifiable under items 1901.90.90.95 and 1902.19.20 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise subject to the order is dispositive. Partial Rescission of the Administrative Review Pursuant to 19 CFR 351.213(d)(1), the Secretary will rescind an administrative review, in whole or in part, if a party that requested the review withdraws the request within 90 days of the date of publication of the initiation notice of the requested review. On October 20, 2011, Bianconi timely withdrew its request for review. Because no other parties requested a review of Bianconi’s exports to the United States, the Department hereby rescinds the administrative review of certain pasta PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 45583 with respect to Bianconi in accordance with 19 CFR 351.213(d)(1). The Department intends to issue assessment instructions to U.S. Customs and Border Protection (‘‘CBP’’) 15 days after publication of this notice for any entries from Bianconi during the POR. The Department will instruct CBP to assess countervailing duties at rates equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, in accordance with 19 CFR 351.212(c)(1)(i). Use of Facts Otherwise Available and Adverse Inferences Sections 776(a)(1) and (2) of the Tariff Act of 1930, as amended (‘‘the Act’’), provide that the Department shall apply ‘‘facts otherwise available’’ if necessary information is not on the record or an interested party or any other person: (A) Withholds information that has been requested; (B) fails to provide information within the deadlines established, or in the form and manner requested by the Department, subject to subsections (c)(1) and (e) of section 782 of the Act; (C) significantly impedes a proceeding; or (D) provides information that cannot be verified as provided by section 782(i) of the Act. Section 776(b) of the Act further provides that the Department may use an adverse inference in applying the facts otherwise available when a party has failed to cooperate by not acting to the best of its ability to comply with a request for information. The Department’s practice when selecting an adverse rate from among the possible sources of information is to ensure that the result is sufficiently adverse ‘‘as to effectuate the statutory purposes of the adverse facts available rule to induce respondents to provide the Department with complete and accurate information in a timely manner.’’ See Notice of Final Determination of Sales at Less than Fair Value: Static Random Access Memory Semiconductors From Taiwan, 63 FR 8909, 8932 (February 23, 1998). The Department’s practice also ensures ‘‘that the party does not obtain a more favorable result by failing to cooperate than if it had cooperated fully.’’ See Statement of Administrative Action accompanying the Uruguay Round Agreements Act, H.R. Doc. No. 103–316, vol. 1, at 870 (1994) (‘‘SAA’’). GOI—Measure 3.14 of the POR Sicilia 2000/2006 The Department found that Tomasello received countervailable subsidies under Measure 3.14 of the POR Sicilia 2000/2006 in the preceding E:\FR\FM\01AUN1.SGM 01AUN1 tkelley on DSK3SPTVN1PROD with NOTICES 45584 Federal Register / Vol. 77, No. 148 / Wednesday, August 1, 2012 / Notices administrative review, relying on adverse facts available due to the GOI’s failure to provide certain information about the specificity of this program’s benefits. See Certain Pasta From Italy: Final Results of the 2009 Countervailing Duty Administrative Review, 77 FR 7129, 7130 (February 10, 2012) (‘‘Pasta 14 Final Results’’) and accompanying Issues and Decision Memorandum (‘‘IDM’’) at 13. For the preliminary results in the instant administrative review, we provided the GOI opportunities to provide necessary information concerning the specificity of this program’s benefits. The GOI reported that Article 38 of Regional Law 32/2000 grants aid to small- and medium-sized enterprises in industry, craft and services sectors located in Sicily for projects of industrial research in the field covered by Measure 3.14 of the POR Sicilia 2000/2006. See GOI’s February 29, 2012, supplemental questionnaire response. However, the GOI failed to identify the industries or enterprises that received benefits under this program and the corresponding amounts given to them (‘‘usage data’’). Because the GOI’s response did not provide us with required information to determine specificity for this program, we requested this information a second time. The GOI filed a timely response, but again did not provide the requested information concerning usage data. See GOI’s May 17, 2012, supplemental questionnaire response. The statute identifies specificity as one of three necessary elements of a countervailable subsidy. See sections 771(5)(A) and 771(5A) of the Act. We normally rely on information from the government to determine whether a program is specific. See, e.g., Certain Magnesia Carbon Bricks From the People’s Republic of China: Final Affirmative Countervailing Duty Determination, 75 FR 45472 (August 2, 2010) and accompanying IDM at Comment 6. Although it was given multiple opportunities, the GOI’s responses left us without the necessary information to determine whether Measure 3.14 of the POR Sicilia 2000/ 2006 is countervailable. We preliminarily determine that the GOI has withheld necessary information that was requested of it for this program. Because the record is incomplete for this program, the Department must rely on ‘‘facts available.’’ See sections 776(a)(1), 776(a)(2)(A) and 776(a)(2)(B) of the Act. Moreover, the GOI has failed to cooperate by not acting to the best of its ability to comply with our request for information, so we are applying an adverse inference in our use of facts VerDate Mar<15>2010 19:53 Jul 31, 2012 Jkt 226001 available. See section 776(b) of the Act. Due to the GOI’s failure to provide information necessary for our determination about this program, we are drawing an adverse inference and determine that benefits under Measure 3.14 of the POR Sicilia 2000/2006 are specific. See section 771(5A) of the Act. An analysis of this program is found in the ‘‘Analysis of Programs’’ section below. Section 776(c) of the Act provides that, when the Department relies on secondary information rather than on information obtained in the course of an investigation or review, it shall, to the extent practicable, corroborate that information from independent sources that are reasonably at its disposal. Secondary information is defined as ‘‘information derived from the petition that gave rise to the investigation or review, the final determination concerning the subject merchandise, or any previous review under section 751 of the Act concerning the subject merchandise.’’ SAA at 870. The facts available decisions described above do not rely on secondary information. Our determination regarding the specificity of this program is based on the unwillingness of the GOI to provide necessary information pertaining to the access to, or the distribution of, the subsidies. The corroboration requirement of section 776(c) of the Act is, therefore, not applicable to the use of facts available in this review. Subsidies Valuation Information Allocation Period Pursuant to 19 CFR 351.524(b), benefits from non-recurring subsidies are allocated over a period corresponding to the average useful life (‘‘AUL’’) of the renewable physical assets used to produce the subject merchandise. The Department’s regulations create a rebuttable presumption that the AUL will be taken from the U.S. Internal Revenue Service’s Class Life Asset Depreciation Range System (‘‘IRS Tables’’). See 19 CFR 351.524(d)(2). For pasta, the most recent IRS Tables prescribe an AUL of 12 years. Neither the responding company nor other interested parties objected to this allocation period. Therefore, we have used a 12-year allocation period. Attribution of Subsidies Pursuant to 19 CFR 351.525(b)(6), the Department will attribute subsidies received by companies with crossownership to the combined sales of those companies. Tomasello reported that all of its shareholders are members PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 of the Tomasello family, either directly or by marriage. See Tomasello’s October 27, 2011, questionnaire response at 4. Tomasello reports that it has no holding companies or any other affiliated companies. See id. at 2. Therefore, we are attributing Tomasello’s subsidies to the sales of Tomasello only. Benchmarks for Long-Term Loans and Discount Rates Loan Benchmarks Pursuant to 19 CFR 351.505(a), the Department will use the actual cost of comparable borrowing by a company as a loan benchmark, when available. According to 19 CFR 351.505(a)(2), a comparable commercial loan is defined as one that, when compared to the government-provided loan in question, has similarities in the structure of the loan (e.g., fixed interest rate v. variable interest rate), the maturity of the loan (e.g., short-term v. long-term), and the currency in which the loan is denominated. Because no comparable commercial loans were taken out by Tomasello in the years in which the GOI agreed to provide the subsidies, we used a national average interest rate for comparable commercial loans, pursuant to 19 CFR 351.505(a)(3)(ii). See Certain Pasta From Italy: Preliminary Results of the 14th (2009) Countervailing Duty Administrative Review, 76 FR 48130, 48133 (August 8, 2011) (‘‘Pasta Prelim 14’’), unchanged in Certain Pasta From Italy: Final Results of the Countervailing Duty Administrative Review, 77 FR 7129 (February 10, 2012). Consistent with past practice in this proceeding, for years prior to 1995, we used the Bank of Italy reference rate adjusted upward to reflect the mark-up an Italian commercial bank would charge a corporate customer. See, e.g., Certain Pasta From Italy: Preliminary Results and Partial Rescission of the Eighth Countervailing Duty Administrative Review, 70 FR 17971 (April 8, 2005), unchanged in Certain Pasta from Italy: Final Results of the Eighth Countervailing Duty Administrative Review, 70 FR 37084 (June 28, 2005). For benefits received in 1995–2004, we used the Italian Bankers’ Association (‘‘ABI’’) prime interest rate (as reported by the Bank of Italy), increased by the average spread charged by banks on loans to commercial customers plus an amount for bank charges. See Certain Pasta from Italy: Preliminary Results of the 12th (2007) Countervailing Duty Administrative Review, 74 FR 25489, 25491 (May 28, 2009) (‘‘12th (2007) Administrative Review Preliminary Results’’), unchanged in Certain Pasta E:\FR\FM\01AUN1.SGM 01AUN1 Federal Register / Vol. 77, No. 148 / Wednesday, August 1, 2012 / Notices from Italy: Final Results of the 12th (2007) Countervailing Duty Administrative Review, 74 FR 47204 (September 15, 2009). The Bank of Italy ceased reporting this rate in 2004. See 12th (2007) Administrative Review Preliminary Results, 74 FR at 25491, unchanged in the final results. Because the ABI prime rate was no longer reported after 2004, for 2005–2010, we have used the ‘‘Bank Interest Rates on Euro Loans: Outstanding Amounts, Non-Financial Corporations, Loans With Original Maturity More Than Five Years’’ published by the Bank of Italy and provided by the GOI in its October 27, 2011, questionnaire response at Exhibits 3–7. We increased this rate by the mark-up and bank charges described above. Discount Rate Benchmarks Consistent with 19 CFR 351.524(d)(3)(i)(A), we have used, as our discount rate, the long-term interest rate calculated according to the methodology described above for the year in which the government agreed to provide the subsidy. Analysis of Programs tkelley on DSK3SPTVN1PROD with NOTICES Programs Preliminarily Determined To Be Countervailable A. Industrial Development Grants Under Law 488/92 The Department countervailed this program in the previous administrative review. See Pasta Prelim 14, 76 FR at 48134, unchanged in the final results. No new information has been placed on the record of this review that would cause us to depart from this treatment. See Live Swine from Canada; Final Results of Countervailing Duty Administrative Reviews, 61 FR 52408, 52420 (October 7, 1996) (‘‘{I}t is wellestablished that where the Department has determined that a program is (or is not) countervailable, it is the Department’s policy not to reexamine the issue of that program’s countervailability in subsequent reviews unless new information or evidence of changed circumstances is submitted which warrants reconsideration.’’). Tomasello reported no new grants under this program during the POR. See Tomasello’s October 27, 2011, questionnaire response at 11. However, we have previously treated the grants under this program as ‘‘non-recurring’’ and allocated the benefits over time. See Pasta Prelim 14, 76 FR at 48135, unchanged in the final results; and 19 CFR 351.524(b). Consequently, because the grants received by Tomasello under Law 488/92 in prior years exceeded 0.5 percent of its sales in the years in which VerDate Mar<15>2010 19:53 Jul 31, 2012 Jkt 226001 the grants were approved, we allocated the benefits over time using the grant methodology described in 19 CFR 351.524(d). We divided the amounts allocated to the POR by Tomasello’s total sales in the POR. On this basis, we preliminarily determine the countervailable subsidy from the Law 488/92 industrial development grants to be 1.86 percent ad valorem for Tomasello. See Memorandum from Joseph Shuler, International Trade Analyst to the File, entitled ‘‘2010 Preliminary Results Calculation Memorandum for Molino e Pastificio Tomasello, S.p.A.,’’ dated concurrently with this notice (‘‘Tomasello Preliminary Calc Memo’’). B. Measure 3.14 of the POR Sicilia 2000/ 2006 Measure 3.14 of the POR Sicilia 2000/ 2006 is a regional development program designed to encourage stable economic growth in southern Italy. See GOI’s February 29, 2012, supplemental questionnaire response at 5. Measure 3.14 of the POR Sicilia 2000/2006 provides assistance in the form of grants to companies that undertake approved industrial research projects. Tomasello reported that it received no grants under this program during the POR. See Tomasello’s October 27, 2011, questionnaire response at 10–11. However, Tomasello received grants under Measure 3.14 of the POR Sicilia 2000/2006 from 2007 to 2009. See Pasta 14 Final Results, 77 FR at 7130. As described above in the ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ section, although given opportunities to do so, the GOI has not provided requested information concerning the specificity of this program. Therefore, we preliminarily determine as adverse facts available that grants received by Tomasello under Measure 3.14 of the POR Sicilia 2000/ 2006 are specific. We also determine preliminarily that these grants are a direct transfer of funds from the GOI bestowing a benefit in the amount of the grant. See section 771(5)(D)(i) of the Act and 19 CFR 351.504(a). Recipients of grants under this program must file a separate application for each project they seek funding for and cannot expect funding on an ongoing basis. See Pasta Prelim 14, 76 FR at 48135, unchanged in the final results. Therefore, we are preliminarily treating these grants as ‘‘non-recurring.’’ See 19 CFR 351.524(b). Consequently, because the grants received by Tomasello under Measure 3.14 of the POR Sicilia 2000/2006 exceeded 0.5 percent of its sales in the years in which the grants were approved, we allocated PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 45585 the benefits over time using the grant methodology described in 19 CFR 351.524(d). We divided the amount allocated to the POR by Tomasello’s total sales in the POR. On this basis, we preliminarily determine the countervailable subsidy from the Measure 3.14 of the POR Sicilia 2000/2006 grants to be 0.23 percent ad valorem. See Tomasello Preliminary Calc Memo. C. European Social Fund The Department countervailed this program in the previous administrative review. See Pasta Prelim 14, 76 FR at 48136, unchanged in the final results. Tomasello reported no new or additional assistance under this program for the POR. See Tomasello’s October 27, 2011, questionnaire response at 14. The Department normally considers the benefits from worker training programs to be recurring. See CFR 351.524(c)(1). However, consistent with the Department’s determination in the countervailing duty investigation of wire rod from Italy that these grants relate to specific, individual projects, and consistent with the previous administrative review of certain pasta from Italy, we have treated these grants as non-recurring because each required separate government approval. See Pasta Prelim 14, 76 FR at 48136, unchanged in the final results; see also Final Affirmative Countervailing Duty Determination: Certain Stainless Steel Wire Rod From Italy, 63 FR 40474, 40487 (July 29, 1998). Accordingly, we have followed the methodology described in 19 CFR 351.524(b) and, because the grants received by Tomasello under this program exceeded 0.5 percent of its sales in the year in which the grants were approved, we used the grant methodology described in 19 CFR 351.524(d) to allocate the benefit. We divided the amount allocated to the POR by Tomasello’s total sales in the POR. On this basis, we preliminarily determine the countervailable subsidy from the European Social Fund grants to be 0.11 percent ad valorem for Tomasello. See Tomasello Preliminary Calc Memo. D. Article 14 of Law 46/1982 (Fondo Innovazione Tecnologica) The Department countervailed this program in the previous administrative review. See Pasta Prelim 14, 76 FR at 48137–48138, unchanged in the final results. Tomasello reported no new loans or grants under this program for E:\FR\FM\01AUN1.SGM 01AUN1 45586 Federal Register / Vol. 77, No. 148 / Wednesday, August 1, 2012 / Notices the POR. See Tomasello’s October 27, 2011, questionnaire response at 12. We have previously treated the grants under this program as ‘‘non-recurring,’’ and allocated the benefits over time. See Pasta 14 Final Results and accompanying IDM at 17, where we previously found Tomasello’s grants under this program to be non-recurring. See also 19 CFR 351.524(b). Consequently, because the grant received by Tomasello under Article 14 of Law 46/1982 previously excluded 0.5 percent of its sales in the year the grant was approved, we allocated the benefit over time using the grant methodology described in 19 CFR 351.524(d). We divided the amount allocated to the POR by Tomasello’s total sales in the POR. On this basis, we preliminarily determine the countervailable subsidy from Law 46/1982 research grant to be 0.19 percent ad valorem for Tomasello. See Tomasello Preliminary Calc Memo. With respect to the loan received by Tomasello under Article 14 of Law 46/ 1982, we calculated the countervailable benefit by computing the difference between the payments Tomasello made on the loan during the POR and the payments Tomasello would have made on a benchmark loan. See the ‘‘Benchmarks for Long-Term Loans and Discount Rates’’ section of this notice above. We divided the benefit received by Tomasello by its total sales in the POR. On this basis, we preliminarily determine the countervailable subsidy from Law 46/1982 research loan to be 0.04 percent ad valorem for Tomasello. See Tomasello Preliminary Calc Memo. tkelley on DSK3SPTVN1PROD with NOTICES E. Article 23 of Legislative Decree 38/ 2000 The Department countervailed this loan program in the previous administrative review. See Pasta Prelim 14, 76 FR at 48138–48139, unchanged in the final results. Based on the information submitted by Tomasello about its principal and interest payments during the POR, we calculated the countervailable benefit by computing the difference between the payments Tomasello made and the payments it would have made on a benchmark loan. See Tomasello’s July 4, 2012, supplemental questionnaire response at Exhibit 1, 19 CFR 351.505(c)(2), and the ‘‘Benchmarks for Long-Term Loans and Discount Rates’’ section above. We divided the POR benefit by Tomasello’s total sales in the POR. On this basis, we preliminarily determine the countervailable subsidy from loans under Article 23 of Legislative Decree 38/2000 to be 0.06 VerDate Mar<15>2010 19:53 Jul 31, 2012 Jkt 226001 percent ad valorem for Tomasello. See Tomasello Preliminary Calc Memo. Programs Preliminarily Determined To Not Be Used We examined the following programs and preliminarily determine that Tomasello did not apply for or receive benefits under these programs during the POR: A. Industrial Development Loans Under Law 64/86 B. Grant Received Pursuant to the Community Initiative Concerning the Preparation of Enterprises for the Single Market (‘‘PRISMA’’) C. European Regional Development Fund (‘‘ERDF’’) Programma Operativo Plurifondo (‘‘P.O.P.’’) Grant D. European Regional Development Fund (‘‘ERDF’’) Programma Operativo Multiregionale (‘‘P.O.M.’’) Grant E. Certain Social Security Reductions and Exemptions—Sgravi (including Law 223/91, Article 8, Paragraph 4 and Article 25, Paragraph 9; and Law 196/97) F. Law 236/93 Training Grants G. Law 1329/65 Interest Contributions (‘‘Sabatini Law’’) (Formerly LumpSum Interest Payment Under the Sabatini Law for Companies in Southern Italy) H. Development Grants Under Law 30 of 1984 I. Law 908/55 Fondo di Rotazione Iniziative Economiche (Revolving Fund for Economic Initiatives) Loans J. Brescia Chamber of Commerce Training Grants K. Ministerial Decree 87/02 L. Law 10/91 Grants to Fund Energy Conservation M. Export Restitution Payments N. Export Credits Under Law 227/77 O. Capital Grants Under Law 675/77 P. Retraining Grants Under Law 675/77 Q. Interest Contributions on Bank Loans Under Law 675/77 R. Preferential Financing for Export Promotion Under Law 394/81 S. Urban Redevelopment Under Law 181 T. Industrial Development Grants Under Law 183/76 U. Interest Subsidies Under Law 598/94 V. Duty-Free Import Rights W. Law 113/86 Training Grants X. European Agricultural Guidance and Guarantee Fund Y. Law 341/95 Interest Contributions on Debt Consolidation Loans (Formerly Debt Consolidation Law 341/95) Z. Interest Grants Financed by IRI Bonds AA. Article 44 of Law 448/01 BB. Law 289/02 PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 (1) Article 63—Increase in Employment CC. Law 662/96—Patti Territoriali DD. Law 662/96—Contratto di Programma EE. Tax Credits Under Article 280 of law 296/2006 FF. Interest Contributions Under Regional Law 34/1988 GG. Law 317/91 Benefits for Innovative Investments HH. Industrial Development Grants Under Law 341/95 II. Industrial Development Grants Under Law 64/86 JJ. Interest Contributions Under Law 488/92 KK. Law 289/02, Article 62, Investments in Disadvantaged Areas LL. Social Security Reductions and Exemptions—Sgravi (1) Law 407/90 III. Previously Terminated Programs A. Regional Tax Exemptions Under IRAP B. VAT Reductions Under Laws 64/86 and 675/55 C. Corporate Income Tax (‘‘IRPEG’’) Exemptions D. Remission of Taxes on Export Credit Insurance Under Article 33 of Law 227/77 E. Export Marketing Grants Under Law 304/90 F. Tremonti Law 383/01 G. Social Security Reductions and Exemptions—Sgravi (1) Article 44 of Law 448/01 (2) Law 337/90 (3) Law 863/84 (4) Law 196/97 Preliminary Results of Review In accordance with 19 CFR 351.221(b)(4)(i), we calculated an individual subsidy rate for the respondent, Tomasello. For the period January 1, 2010, through December 31, 2010, we preliminarily find the net subsidy rates for the producers/exporters under review to be as follows: Producer/exporter Molino e Pastificio Tomasello S.p.A. ................................ Net subsidy rate 2.49% Assessment Rates If these preliminary results are adopted in our final results of this review, the Department will instruct CBP to assess countervailing duties on all shipments at the net subsidy rates listed above for all entries by Tomasello. For all other companies that were not reviewed (except Barilla G. e R. F.lli S.p.A. and Gruppo Agricoltura Sana E:\FR\FM\01AUN1.SGM 01AUN1 Federal Register / Vol. 77, No. 148 / Wednesday, August 1, 2012 / Notices S.r.l., which are excluded from the order, and Pasta Lensi S.r.l., which was revoked from the order), the Department has directed CBP to assess countervailing duties on all entries between January 1, 2010, and December 31, 2010, at the rates in effect at the time of entry. The Department intends to issue appropriate assessment instructions directly to CBP 15 days after publication of the final results of this review. tkelley on DSK3SPTVN1PROD with NOTICES Cash Deposit Instructions The Department also intends to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts shown above. For all nonreviewed firms (except Barilla G. e R. F.lli S.p.A. and Gruppo Agricoltura Sana S.r.l., which are excluded from the order, and Pasta Lensi S.r.l., which was revoked from the order), we will instruct CBP to collect cash deposits of estimated countervailing duties at the most recent company-specific or allothers rate applicable to the company. These rates shall apply to all nonreviewed companies until a review of a company assigned these rates is requested. These cash deposit requirements, when imposed, shall remain in effect until further notice. Disclosure and 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 the public announcement of this notice. Pursuant to 19 CFR 351.309(c)(ii), interested parties may submit written arguments in case briefs within 30 days of the date of publication of this notice. Rebuttal briefs, limited to issues raised in case briefs, may be filed no later than five days after the date of filing the case briefs, in accordance with 19 CFR 351.309(d). Any case briefs and rebuttal briefs must be filed via the Department’s electronic records system, IA ACCESS, in accordance with 19 CFR 351.303. Parties who submit case briefs or rebuttal briefs in this proceeding are requested to submit with each argument: (1) A statement of the issue, and (2) a brief summary of the argument with an electronic version included. Copies of case briefs and rebuttal briefs must be served on interested parties in accordance with 19 CFR 351.303(f). Interested parties may request a hearing within 30 days after the date of publication of this notice, pursuant to 19 CFR 351.310(c). The Department will publish a notice of the final results of this administrative VerDate Mar<15>2010 19:53 Jul 31, 2012 Jkt 226001 review within 120 days from the publication of these preliminary results, in accordance with section 751(a)(3) of the Act. We are issuing and publishing these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4). Dated: July 24, 2012. Paul Piquado, Assistant Secretary for Import Administration. [FR Doc. 2012–18684 Filed 7–31–12; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–601] Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China: Initiation of Antidumping Duty New Shipper Review Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (‘‘Department’’) has determined that a request for a new shipper review (‘‘NSR’’) of the antidumping duty order on tapered roller bearings (‘‘TRBs’’) from the People’s Republic of China (‘‘PRC’’) meets the statutory and regulatory requirements for initiation. The period of review (‘‘POR’’) for this NSR is June 1, 2011, through May 31, 2012. DATES: Effective Date: August 1, 2012. FOR FURTHER INFORMATION CONTACT: Demitri Kalogeropoulos, AD/CVD Operations, Office 8, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230; telephone: 202–482–2623. SUPPLEMENTARY INFORMATION: AGENCY: Background The notice announcing the antidumping duty order on TRBs from the PRC was published in the Federal Register on June 15, 1987.1 On June 28, 2012, pursuant to section 751(a)(2)(B)(i) of the Tariff Act of 1930, as amended (‘‘Act’’), and 19 CFR 351.214(b), the Department received an NSR request from Zhejiang Zhengda Bearing Co., Ltd. (‘‘Zhejiang Zhengda’’). Zhejiang 1 See Antidumping Duty Order; Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, From the People’s Republic of China, 52 FR 22667 (June 15, 1987) (‘‘Order’’). PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 45587 Zhengda’s request was made in June 2012, which is the anniversary month of the Order.2 In its submission, Zhejiang Zhengda certified that it is the exporter and producer of the subject merchandise upon which the request was based. Pursuant to section 751(a)(2)(B)(i)(I) of the Act and 19 CFR 351.214(b)(2)(i), Zhejiang Zhengda certified that it did not export TRBs to the United States during the period of investigation (‘‘POI’’). In addition, pursuant to section 751(a)(2)(B)(i)(II) of the Act and 19 CFR 351.214(b)(2)(iii)(A), Zhejiang Zhengda certified that, since the initiation of the investigation, it has not been affiliated with a PRC exporter or producer who exported TRBs to the United States during the POI, including those not individually examined during the investigation. As required by 19 CFR 351.214(b)(2)(iii)(B), Zhejiang Zhengda also certified that its export activities were not controlled by the central government of the PRC. In addition to the certifications described above, pursuant to 19 CFR 351.214(b)(2)(iv), Zhejiang Zhengda submitted documentation establishing the following: (1) The date on which Zhejiang Zhengda first shipped TRBs for export to the United States and the date on which the TRBs were first entered, or withdrawn from warehouse, for consumption; (2) the volume of its first shipment; and (3) the date of its first sale to an unaffiliated customer in the United States. The Department conducted U.S. Customs and Border Protection (‘‘CBP’’) database queries in an attempt to confirm that Zhejiang Zhengda’s shipments of subject merchandise had entered the United States for consumption and that liquidation of such entries had been properly suspended for antidumping duties.3 The Department also examined whether the CBP data confirm that such entries were made during the NSR POR. The Department has identified some inconsistencies between the information provided by Zhejiang Zhengda and the CBP data currently on the record. After the initiation of this NSR, the Department intends to place additional CBP data on the record, and, if necessary, request additional information from Zhejiang Zhengda. Due to the proprietary nature of this information, please refer to the Memorandum to the File from John Ditore, ‘‘Initiation of AD New Shipper Review: Tapered Roller Bearings and 2 See 19 CFR 351.214(d). July 26, 2012 memorandum to the file regarding CBP data. 3 See E:\FR\FM\01AUN1.SGM 01AUN1

Agencies

[Federal Register Volume 77, Number 148 (Wednesday, August 1, 2012)]
[Notices]
[Pages 45582-45587]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18684]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-819]


Certain Pasta From Italy: Preliminary Results of the 15th (2010) 
Countervailing Duty Administrative Review and Rescission, In Part

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``Department'') is conducting an 
administrative review of the countervailing duty order on certain pasta 
from Italy for the period January 1, 2010, through December 31, 2010. 
We preliminarily determine that Molino e Pastificio Tomasello S.p.A. 
(``Tomasello'') received countervailable subsidies during the period of 
review (``POR''). Interested parties are invited to comment on these 
preliminary results.

DATES: Effective Date: August 1, 2012.

FOR FURTHER INFORMATION CONTACT: Joseph Shuler or Christopher Siepmann, 
AD/CVD Operations, Office 1, Import Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230; 
telephone: (202) 482-1293 and (202) 482-7958, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 24, 1996, the Department published a countervailing duty 
order on certain pasta (``pasta'' or ``subject merchandise'') from 
Italy. See Notice of Countervailing Duty Order and Amended Final 
Affirmative Countervailing Duty Determination: Certain Pasta From 
Italy, 61 FR 38544 (July 24, 1996). On July 1, 2011, the Department 
published a notice of ``Opportunity to Request Administrative Review'' 
of this countervailing duty order for the POR corresponding to calendar 
year 2010. See Antidumping or

[[Page 45583]]

Countervailing Duty Order, Finding, or Suspended Investigation; 
Opportunity To Request Administrative Review, 76 FR 38609, 38610 (July 
1, 2011). On July 29, 2011, we received requests for administrative 
review from producers and exporters of subject merchandise, Industria 
Alimentare Filiberto Bianconi 1947 S.p.A. (``Bianconi'') and Tomasello. 
In accordance with 19 CFR 351.221(c)(1)(i), we published a notice of 
initiation of this review on August 26, 2011. See Initiation of 
Antidumping and Countervailing Duty Administrative Reviews and Requests 
for Revocation in Part, 76 FR 53404, 53407 (August 26, 2011).
    On September 20, 2011, we issued countervailing duty questionnaires 
to the Commission of the European Union (``EU''), the Government of 
Italy (``GOI''), Tomasello, and Bianconi. On October 20, 2011, Bianconi 
withdrew its request for administrative review. We received responses 
to our questionnaires in October 2011. We issued supplemental 
questionnaires to the GOI in February and April 2012, and we received 
corresponding responses in February and May 2012. We issued 
supplemental questionnaires to Tomasello in February and June 2012 and 
received corresponding responses in March and July 2012.
    On March 16, 2012, we extended the time limit for the preliminary 
results of this review. See Certain Pasta from Italy: Extension of Time 
Limit for the Preliminary Results of the Countervailing Duty 
Administrative Review, 77 FR 15718 (March 16, 2012).

Period of Review

    The POR for which we are measuring subsidies is January 1, 2010, 
through December 31, 2010.

Scope of the Order

    Imports covered by the order are shipments of certain non-egg dry 
pasta in packages of five pounds four ounces or less, whether or not 
enriched or 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 the scope of the order 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 the 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, Bioagricoop S.r.l., QC&I International Services, 
Ecocert Italila, Consorzio per il Controllo dei Prodotti Biologici, 
Associazione Italiana per l'Agricoltura Biologica, or Codex S.r.l. In 
addition, based on publicly available information, the Department has 
determined that, as of August 4, 2004, imports of organic pasta from 
Italy that are accompanied by the appropriate certificate issued by 
Bioagricert S.r.l. are also excluded from the order. See Memorandum 
from Eric B. Greynolds to Melissa G. Skinner, dated August 4, 2004, 
which is on file in the Department's Central Records Unit (``CRU''), 
room 7046 of the main Commerce building. In addition, based on publicly 
available information, the Department has determined that, as of March 
13, 2003, imports of organic pasta from Italy that are accompanied by 
the appropriate certificate issued by Instituto per la Certificazione 
Etica e Ambientale are also excluded from the order. See Memorandum 
from Audrey Twyman to Susan Kuhbach, dated February 28, 2006, entitled 
``Recognition of Instituto per la Certificazione Etica e Ambientale 
(ICEA) as a Public Authority for Certifying Organic Pasta from Italy,'' 
which is on file in the Department's CRU. Pursuant to the Department's 
May 12, 2011 changed circumstances review, effective January 1, 2009, 
gluten-free pasta is also excluded from the scope of the CVD order. See 
Certain Pasta From Italy: Final Results of Countervailing Duty Changed 
Circumstances Review and Revocation, In Part, 76 FR 27634 (May 12, 
2011).
    The merchandise subject to review is currently classifiable under 
items 1901.90.90.95 and 1902.19.20 of the Harmonized Tariff Schedule of 
the United States (``HTSUS''). Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written description 
of the merchandise subject to the order is dispositive.

Partial Rescission of the Administrative Review

    Pursuant to 19 CFR 351.213(d)(1), the Secretary will rescind an 
administrative review, in whole or in part, if a party that requested 
the review withdraws the request within 90 days of the date of 
publication of the initiation notice of the requested review. On 
October 20, 2011, Bianconi timely withdrew its request for review. 
Because no other parties requested a review of Bianconi's exports to 
the United States, the Department hereby rescinds the administrative 
review of certain pasta with respect to Bianconi in accordance with 19 
CFR 351.213(d)(1). The Department intends to issue assessment 
instructions to U.S. Customs and Border Protection (``CBP'') 15 days 
after publication of this notice for any entries from Bianconi during 
the POR. The Department will instruct CBP to assess countervailing 
duties at rates equal to the cash deposit of estimated countervailing 
duties required at the time of entry, or withdrawal from warehouse, for 
consumption, in accordance with 19 CFR 351.212(c)(1)(i).

Use of Facts Otherwise Available and Adverse Inferences

    Sections 776(a)(1) and (2) of the Tariff Act of 1930, as amended 
(``the Act''), provide that the Department shall apply ``facts 
otherwise available'' if necessary information is not on the record or 
an interested party or any other person: (A) Withholds information that 
has been requested; (B) fails to provide information within the 
deadlines established, or in the form and manner requested by the 
Department, subject to subsections (c)(1) and (e) of section 782 of the 
Act; (C) significantly impedes a proceeding; or (D) provides 
information that cannot be verified as provided by section 782(i) of 
the Act. Section 776(b) of the Act further provides that the Department 
may use an adverse inference in applying the facts otherwise available 
when a party has failed to cooperate by not acting to the best of its 
ability to comply with a request for information. The Department's 
practice when selecting an adverse rate from among the possible sources 
of information is to ensure that the result is sufficiently adverse 
``as to effectuate the statutory purposes of the adverse facts 
available rule to induce respondents to provide the Department with 
complete and accurate information in a timely manner.'' See Notice of 
Final Determination of Sales at Less than Fair Value: Static Random 
Access Memory Semiconductors From Taiwan, 63 FR 8909, 8932 (February 
23, 1998). The Department's practice also ensures ``that the party does 
not obtain a more favorable result by failing to cooperate than if it 
had cooperated fully.'' See Statement of Administrative Action 
accompanying the Uruguay Round Agreements Act, H.R. Doc. No. 103-316, 
vol. 1, at 870 (1994) (``SAA'').

GOI--Measure 3.14 of the POR Sicilia 2000/2006

    The Department found that Tomasello received countervailable 
subsidies under Measure 3.14 of the POR Sicilia 2000/2006 in the 
preceding

[[Page 45584]]

administrative review, relying on adverse facts available due to the 
GOI's failure to provide certain information about the specificity of 
this program's benefits. See Certain Pasta From Italy: Final Results of 
the 2009 Countervailing Duty Administrative Review, 77 FR 7129, 7130 
(February 10, 2012) (``Pasta 14 Final Results'') and accompanying 
Issues and Decision Memorandum (``IDM'') at 13. For the preliminary 
results in the instant administrative review, we provided the GOI 
opportunities to provide necessary information concerning the 
specificity of this program's benefits.
    The GOI reported that Article 38 of Regional Law 32/2000 grants aid 
to small- and medium-sized enterprises in industry, craft and services 
sectors located in Sicily for projects of industrial research in the 
field covered by Measure 3.14 of the POR Sicilia 2000/2006. See GOI's 
February 29, 2012, supplemental questionnaire response. However, the 
GOI failed to identify the industries or enterprises that received 
benefits under this program and the corresponding amounts given to them 
(``usage data''). Because the GOI's response did not provide us with 
required information to determine specificity for this program, we 
requested this information a second time. The GOI filed a timely 
response, but again did not provide the requested information 
concerning usage data. See GOI's May 17, 2012, supplemental 
questionnaire response.
    The statute identifies specificity as one of three necessary 
elements of a countervailable subsidy. See sections 771(5)(A) and 
771(5A) of the Act. We normally rely on information from the government 
to determine whether a program is specific. See, e.g., Certain Magnesia 
Carbon Bricks From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination, 75 FR 45472 (August 2, 2010) and 
accompanying IDM at Comment 6. Although it was given multiple 
opportunities, the GOI's responses left us without the necessary 
information to determine whether Measure 3.14 of the POR Sicilia 2000/
2006 is countervailable.
    We preliminarily determine that the GOI has withheld necessary 
information that was requested of it for this program. Because the 
record is incomplete for this program, the Department must rely on 
``facts available.'' See sections 776(a)(1), 776(a)(2)(A) and 
776(a)(2)(B) of the Act. Moreover, the GOI has failed to cooperate by 
not acting to the best of its ability to comply with our request for 
information, so we are applying an adverse inference in our use of 
facts available. See section 776(b) of the Act. Due to the GOI's 
failure to provide information necessary for our determination about 
this program, we are drawing an adverse inference and determine that 
benefits under Measure 3.14 of the POR Sicilia 2000/2006 are specific. 
See section 771(5A) of the Act. An analysis of this program is found in 
the ``Analysis of Programs'' section below.
    Section 776(c) of the Act provides that, when the Department relies 
on secondary information rather than on information obtained in the 
course of an investigation or review, it shall, to the extent 
practicable, corroborate that information from independent sources that 
are reasonably at its disposal. Secondary information is defined as 
``information derived from the petition that gave rise to the 
investigation or review, the final determination concerning the subject 
merchandise, or any previous review under section 751 of the Act 
concerning the subject merchandise.'' SAA at 870.
    The facts available decisions described above do not rely on 
secondary information. Our determination regarding the specificity of 
this program is based on the unwillingness of the GOI to provide 
necessary information pertaining to the access to, or the distribution 
of, the subsidies. The corroboration requirement of section 776(c) of 
the Act is, therefore, not applicable to the use of facts available in 
this review.

Subsidies Valuation Information

Allocation Period

    Pursuant to 19 CFR 351.524(b), benefits from non-recurring 
subsidies are allocated over a period corresponding to the average 
useful life (``AUL'') of the renewable physical assets used to produce 
the subject merchandise. The Department's regulations create a 
rebuttable presumption that the AUL will be taken from the U.S. 
Internal Revenue Service's Class Life Asset Depreciation Range System 
(``IRS Tables''). See 19 CFR 351.524(d)(2). For pasta, the most recent 
IRS Tables prescribe an AUL of 12 years. Neither the responding company 
nor other interested parties objected to this allocation period. 
Therefore, we have used a 12-year allocation period.

Attribution of Subsidies

    Pursuant to 19 CFR 351.525(b)(6), the Department will attribute 
subsidies received by companies with cross-ownership to the combined 
sales of those companies. Tomasello reported that all of its 
shareholders are members of the Tomasello family, either directly or by 
marriage. See Tomasello's October 27, 2011, questionnaire response at 
4. Tomasello reports that it has no holding companies or any other 
affiliated companies. See id. at 2. Therefore, we are attributing 
Tomasello's subsidies to the sales of Tomasello only.

Benchmarks for Long-Term Loans and Discount Rates

Loan Benchmarks

    Pursuant to 19 CFR 351.505(a), the Department will use the actual 
cost of comparable borrowing by a company as a loan benchmark, when 
available. According to 19 CFR 351.505(a)(2), a comparable commercial 
loan is defined as one that, when compared to the government-provided 
loan in question, has similarities in the structure of the loan (e.g., 
fixed interest rate v. variable interest rate), the maturity of the 
loan (e.g., short-term v. long-term), and the currency in which the 
loan is denominated.
    Because no comparable commercial loans were taken out by Tomasello 
in the years in which the GOI agreed to provide the subsidies, we used 
a national average interest rate for comparable commercial loans, 
pursuant to 19 CFR 351.505(a)(3)(ii). See Certain Pasta From Italy: 
Preliminary Results of the 14th (2009) Countervailing Duty 
Administrative Review, 76 FR 48130, 48133 (August 8, 2011) (``Pasta 
Prelim 14''), unchanged in Certain Pasta From Italy: Final Results of 
the Countervailing Duty Administrative Review, 77 FR 7129 (February 10, 
2012). Consistent with past practice in this proceeding, for years 
prior to 1995, we used the Bank of Italy reference rate adjusted upward 
to reflect the mark-up an Italian commercial bank would charge a 
corporate customer. See, e.g., Certain Pasta From Italy: Preliminary 
Results and Partial Rescission of the Eighth Countervailing Duty 
Administrative Review, 70 FR 17971 (April 8, 2005), unchanged in 
Certain Pasta from Italy: Final Results of the Eighth Countervailing 
Duty Administrative Review, 70 FR 37084 (June 28, 2005). For benefits 
received in 1995-2004, we used the Italian Bankers' Association 
(``ABI'') prime interest rate (as reported by the Bank of Italy), 
increased by the average spread charged by banks on loans to commercial 
customers plus an amount for bank charges. See Certain Pasta from 
Italy: Preliminary Results of the 12th (2007) Countervailing Duty 
Administrative Review, 74 FR 25489, 25491 (May 28, 2009) (``12th (2007) 
Administrative Review Preliminary Results''), unchanged in Certain 
Pasta

[[Page 45585]]

from Italy: Final Results of the 12th (2007) Countervailing Duty 
Administrative Review, 74 FR 47204 (September 15, 2009). The Bank of 
Italy ceased reporting this rate in 2004. See 12th (2007) 
Administrative Review Preliminary Results, 74 FR at 25491, unchanged in 
the final results. Because the ABI prime rate was no longer reported 
after 2004, for 2005-2010, we have used the ``Bank Interest Rates on 
Euro Loans: Outstanding Amounts, Non-Financial Corporations, Loans With 
Original Maturity More Than Five Years'' published by the Bank of Italy 
and provided by the GOI in its October 27, 2011, questionnaire response 
at Exhibits 3-7. We increased this rate by the mark-up and bank charges 
described above.

Discount Rate Benchmarks

    Consistent with 19 CFR 351.524(d)(3)(i)(A), we have used, as our 
discount rate, the long-term interest rate calculated according to the 
methodology described above for the year in which the government agreed 
to provide the subsidy.

Analysis of Programs

Programs Preliminarily Determined To Be Countervailable

A. Industrial Development Grants Under Law 488/92
    The Department countervailed this program in the previous 
administrative review. See Pasta Prelim 14, 76 FR at 48134, unchanged 
in the final results. No new information has been placed on the record 
of this review that would cause us to depart from this treatment. See 
Live Swine from Canada; Final Results of Countervailing Duty 
Administrative Reviews, 61 FR 52408, 52420 (October 7, 1996) 
(``{I{time} t is well-established that where the Department has 
determined that a program is (or is not) countervailable, it is the 
Department's policy not to reexamine the issue of that program's 
countervailability in subsequent reviews unless new information or 
evidence of changed circumstances is submitted which warrants 
reconsideration.'').
    Tomasello reported no new grants under this program during the POR. 
See Tomasello's October 27, 2011, questionnaire response at 11. 
However, we have previously treated the grants under this program as 
``non-recurring'' and allocated the benefits over time. See Pasta 
Prelim 14, 76 FR at 48135, unchanged in the final results; and 19 CFR 
351.524(b). Consequently, because the grants received by Tomasello 
under Law 488/92 in prior years exceeded 0.5 percent of its sales in 
the years in which the grants were approved, we allocated the benefits 
over time using the grant methodology described in 19 CFR 351.524(d). 
We divided the amounts allocated to the POR by Tomasello's total sales 
in the POR.
    On this basis, we preliminarily determine the countervailable 
subsidy from the Law 488/92 industrial development grants to be 1.86 
percent ad valorem for Tomasello. See Memorandum from Joseph Shuler, 
International Trade Analyst to the File, entitled ``2010 Preliminary 
Results Calculation Memorandum for Molino e Pastificio Tomasello, 
S.p.A.,'' dated concurrently with this notice (``Tomasello Preliminary 
Calc Memo'').
B. Measure 3.14 of the POR Sicilia 2000/2006
    Measure 3.14 of the POR Sicilia 2000/2006 is a regional development 
program designed to encourage stable economic growth in southern Italy. 
See GOI's February 29, 2012, supplemental questionnaire response at 5. 
Measure 3.14 of the POR Sicilia 2000/2006 provides assistance in the 
form of grants to companies that undertake approved industrial research 
projects. Tomasello reported that it received no grants under this 
program during the POR. See Tomasello's October 27, 2011, questionnaire 
response at 10-11. However, Tomasello received grants under Measure 
3.14 of the POR Sicilia 2000/2006 from 2007 to 2009. See Pasta 14 Final 
Results, 77 FR at 7130.
    As described above in the ``Use of Facts Otherwise Available and 
Adverse Inferences'' section, although given opportunities to do so, 
the GOI has not provided requested information concerning the 
specificity of this program. Therefore, we preliminarily determine as 
adverse facts available that grants received by Tomasello under Measure 
3.14 of the POR Sicilia 2000/2006 are specific. We also determine 
preliminarily that these grants are a direct transfer of funds from the 
GOI bestowing a benefit in the amount of the grant. See section 
771(5)(D)(i) of the Act and 19 CFR 351.504(a).
    Recipients of grants under this program must file a separate 
application for each project they seek funding for and cannot expect 
funding on an ongoing basis. See Pasta Prelim 14, 76 FR at 48135, 
unchanged in the final results. Therefore, we are preliminarily 
treating these grants as ``non-recurring.'' See 19 CFR 351.524(b). 
Consequently, because the grants received by Tomasello under Measure 
3.14 of the POR Sicilia 2000/2006 exceeded 0.5 percent of its sales in 
the years in which the grants were approved, we allocated the benefits 
over time using the grant methodology described in 19 CFR 351.524(d). 
We divided the amount allocated to the POR by Tomasello's total sales 
in the POR.
    On this basis, we preliminarily determine the countervailable 
subsidy from the Measure 3.14 of the POR Sicilia 2000/2006 grants to be 
0.23 percent ad valorem. See Tomasello Preliminary Calc Memo.
C. European Social Fund
    The Department countervailed this program in the previous 
administrative review. See Pasta Prelim 14, 76 FR at 48136, unchanged 
in the final results. Tomasello reported no new or additional 
assistance under this program for the POR. See Tomasello's October 27, 
2011, questionnaire response at 14.
    The Department normally considers the benefits from worker training 
programs to be recurring. See CFR 351.524(c)(1). However, consistent 
with the Department's determination in the countervailing duty 
investigation of wire rod from Italy that these grants relate to 
specific, individual projects, and consistent with the previous 
administrative review of certain pasta from Italy, we have treated 
these grants as non-recurring because each required separate government 
approval. See Pasta Prelim 14, 76 FR at 48136, unchanged in the final 
results; see also Final Affirmative Countervailing Duty Determination: 
Certain Stainless Steel Wire Rod From Italy, 63 FR 40474, 40487 (July 
29, 1998).
    Accordingly, we have followed the methodology described in 19 CFR 
351.524(b) and, because the grants received by Tomasello under this 
program exceeded 0.5 percent of its sales in the year in which the 
grants were approved, we used the grant methodology described in 19 CFR 
351.524(d) to allocate the benefit. We divided the amount allocated to 
the POR by Tomasello's total sales in the POR.
    On this basis, we preliminarily determine the countervailable 
subsidy from the European Social Fund grants to be 0.11 percent ad 
valorem for Tomasello. See Tomasello Preliminary Calc Memo.
D. Article 14 of Law 46/1982 (Fondo Innovazione Tecnologica)
    The Department countervailed this program in the previous 
administrative review. See Pasta Prelim 14, 76 FR at 48137-48138, 
unchanged in the final results. Tomasello reported no new loans or 
grants under this program for

[[Page 45586]]

the POR. See Tomasello's October 27, 2011, questionnaire response at 
12.
    We have previously treated the grants under this program as ``non-
recurring,'' and allocated the benefits over time. See Pasta 14 Final 
Results and accompanying IDM at 17, where we previously found 
Tomasello's grants under this program to be non-recurring. See also 19 
CFR 351.524(b). Consequently, because the grant received by Tomasello 
under Article 14 of Law 46/1982 previously excluded 0.5 percent of its 
sales in the year the grant was approved, we allocated the benefit over 
time using the grant methodology described in 19 CFR 351.524(d). We 
divided the amount allocated to the POR by Tomasello's total sales in 
the POR. On this basis, we preliminarily determine the countervailable 
subsidy from Law 46/1982 research grant to be 0.19 percent ad valorem 
for Tomasello. See Tomasello Preliminary Calc Memo.
    With respect to the loan received by Tomasello under Article 14 of 
Law 46/1982, we calculated the countervailable benefit by computing the 
difference between the payments Tomasello made on the loan during the 
POR and the payments Tomasello would have made on a benchmark loan. See 
the ``Benchmarks for Long-Term Loans and Discount Rates'' section of 
this notice above. We divided the benefit received by Tomasello by its 
total sales in the POR. On this basis, we preliminarily determine the 
countervailable subsidy from Law 46/1982 research loan to be 0.04 
percent ad valorem for Tomasello. See Tomasello Preliminary Calc Memo.
E. Article 23 of Legislative Decree 38/2000
    The Department countervailed this loan program in the previous 
administrative review. See Pasta Prelim 14, 76 FR at 48138-48139, 
unchanged in the final results.
    Based on the information submitted by Tomasello about its principal 
and interest payments during the POR, we calculated the countervailable 
benefit by computing the difference between the payments Tomasello made 
and the payments it would have made on a benchmark loan. See 
Tomasello's July 4, 2012, supplemental questionnaire response at 
Exhibit 1, 19 CFR 351.505(c)(2), and the ``Benchmarks for Long-Term 
Loans and Discount Rates'' section above. We divided the POR benefit by 
Tomasello's total sales in the POR.
    On this basis, we preliminarily determine the countervailable 
subsidy from loans under Article 23 of Legislative Decree 38/2000 to be 
0.06 percent ad valorem for Tomasello. See Tomasello Preliminary Calc 
Memo.

Programs Preliminarily Determined To Not Be Used

    We examined the following programs and preliminarily determine that 
Tomasello did not apply for or receive benefits under these programs 
during the POR:

A. Industrial Development Loans Under Law 64/86
B. Grant Received Pursuant to the Community Initiative Concerning the 
Preparation of Enterprises for the Single Market (``PRISMA'')
C. European Regional Development Fund (``ERDF'') Programma Operativo 
Plurifondo (``P.O.P.'') Grant
D. European Regional Development Fund (``ERDF'') Programma Operativo 
Multiregionale (``P.O.M.'') Grant
E. Certain Social Security Reductions and Exemptions--Sgravi (including 
Law 223/91, Article 8, Paragraph 4 and Article 25, Paragraph 9; and Law 
196/97)
F. Law 236/93 Training Grants
G. Law 1329/65 Interest Contributions (``Sabatini Law'') (Formerly 
Lump-Sum Interest Payment Under the Sabatini Law for Companies in 
Southern Italy)
H. Development Grants Under Law 30 of 1984
I. Law 908/55 Fondo di Rotazione Iniziative Economiche (Revolving Fund 
for Economic Initiatives) Loans
J. Brescia Chamber of Commerce Training Grants
K. Ministerial Decree 87/02
L. Law 10/91 Grants to Fund Energy Conservation
M. Export Restitution Payments
N. Export Credits Under Law 227/77
O. Capital Grants Under Law 675/77
P. Retraining Grants Under Law 675/77
Q. Interest Contributions on Bank Loans Under Law 675/77
R. Preferential Financing for Export Promotion Under Law 394/81
S. Urban Redevelopment Under Law 181
T. Industrial Development Grants Under Law 183/76
U. Interest Subsidies Under Law 598/94
V. Duty-Free Import Rights
W. Law 113/86 Training Grants
X. European Agricultural Guidance and Guarantee Fund
Y. Law 341/95 Interest Contributions on Debt Consolidation Loans 
(Formerly Debt Consolidation Law 341/95)
Z. Interest Grants Financed by IRI Bonds
AA. Article 44 of Law 448/01
BB. Law 289/02
    (1) Article 63--Increase in Employment
CC. Law 662/96--Patti Territoriali
DD. Law 662/96--Contratto di Programma
EE. Tax Credits Under Article 280 of law 296/2006
FF. Interest Contributions Under Regional Law 34/1988
GG. Law 317/91 Benefits for Innovative Investments
HH. Industrial Development Grants Under Law 341/95
II. Industrial Development Grants Under Law 64/86
JJ. Interest Contributions Under Law 488/92
KK. Law 289/02, Article 62, Investments in Disadvantaged Areas
LL. Social Security Reductions and Exemptions--Sgravi
    (1) Law 407/90
III. Previously Terminated Programs
A. Regional Tax Exemptions Under IRAP
B. VAT Reductions Under Laws 64/86 and 675/55
C. Corporate Income Tax (``IRPEG'') Exemptions
D. Remission of Taxes on Export Credit Insurance Under Article 33 of 
Law 227/77
E. Export Marketing Grants Under Law 304/90
F. Tremonti Law 383/01
G. Social Security Reductions and Exemptions--Sgravi
    (1) Article 44 of Law 448/01
    (2) Law 337/90
    (3) Law 863/84
    (4) Law 196/97

Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual subsidy rate for the respondent, Tomasello.
    For the period January 1, 2010, through December 31, 2010, we 
preliminarily find the net subsidy rates for the producers/exporters 
under review to be as follows:

------------------------------------------------------------------------
                                                            Net subsidy
                    Producer/exporter                          rate
------------------------------------------------------------------------
Molino e Pastificio Tomasello S.p.A.....................           2.49%
------------------------------------------------------------------------

Assessment Rates

    If these preliminary results are adopted in our final results of 
this review, the Department will instruct CBP to assess countervailing 
duties on all shipments at the net subsidy rates listed above for all 
entries by Tomasello.
    For all other companies that were not reviewed (except Barilla G. e 
R. F.lli S.p.A. and Gruppo Agricoltura Sana

[[Page 45587]]

S.r.l., which are excluded from the order, and Pasta Lensi S.r.l., 
which was revoked from the order), the Department has directed CBP to 
assess countervailing duties on all entries between January 1, 2010, 
and December 31, 2010, at the rates in effect at the time of entry.
    The Department intends to issue appropriate assessment instructions 
directly to CBP 15 days after publication of the final results of this 
review.

Cash Deposit Instructions

    The Department also intends to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown above. 
For all non-reviewed firms (except Barilla G. e R. F.lli S.p.A. and 
Gruppo Agricoltura Sana S.r.l., which are excluded from the order, and 
Pasta Lensi S.r.l., which was revoked from the order), we will instruct 
CBP to collect cash deposits of estimated countervailing duties at the 
most recent company-specific or all-others rate applicable to the 
company. These rates shall apply to all non-reviewed companies until a 
review of a company assigned these rates is requested. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Disclosure and 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 the public 
announcement of this notice.
    Pursuant to 19 CFR 351.309(c)(ii), interested parties may submit 
written arguments in case briefs within 30 days of the date of 
publication of this notice. Rebuttal briefs, limited to issues raised 
in case briefs, may be filed no later than five days after the date of 
filing the case briefs, in accordance with 19 CFR 351.309(d). Any case 
briefs and rebuttal briefs must be filed via the Department's 
electronic records system, IA ACCESS, in accordance with 19 CFR 
351.303. Parties who submit case briefs or rebuttal briefs in this 
proceeding are requested to submit with each argument: (1) A statement 
of the issue, and (2) a brief summary of the argument with an 
electronic version included. Copies of case briefs and rebuttal briefs 
must be served on interested parties in accordance with 19 CFR 
351.303(f).
    Interested parties may request a hearing within 30 days after the 
date of publication of this notice, pursuant to 19 CFR 351.310(c).
    The Department will publish a notice of the final results of this 
administrative review within 120 days from the publication of these 
preliminary results, in accordance with section 751(a)(3) of the Act.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4).

    Dated: July 24, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2012-18684 Filed 7-31-12; 8:45 am]
BILLING CODE 3510-DS-P