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entered, or withdrawn from warehouse,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