[Federal Register: February 5, 2007 (Volume 72, Number 23)]
[Notices]
[Page 5271-5273]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05fe07-34]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-475-819]
Certain Pasta From Italy: Final Results of Expedited Five-Year
(``Sunset'') Review of the Countervailing Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce
SUMMARY: On October 2, 2006, the Department of Commerce (``the
Department'') published in the Federal Register the notice of
initiation of the second five-year sunset review of the countervailing
duty order on certain pasta (``pasta'') from Italy, pursuant to section
751(c) of the Tariff Act of 1930, as amended (``the Act''). See
Initiation of Five-year (``Sunset'') Reviews, 71 FR 57921 (October 2,
2006) (``Second Sunset Review''). The Department has conducted an
expedited sunset review of this order pursuant to section 751(c)(3)(B)
of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2). As a result of this
sunset review, the Department finds that revocation of the
countervailing duty order is likely to lead to continuation or
recurrence of a countervailable subsidy at the levels indicated in the
``Final Results of Review'' section of this notice.
EFFECTIVE DATE: February 5, 2007.
FOR FURTHER INFORMATION CONTACT: Audrey R. Twyman or Brandon Farlander,
AD/CVD Operations, Office 1, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Ave., NW., Washington, DC 20230; telephone: (202) 482-3534
or (202) 482-0182, respectively.
SUPPLEMENTARY INFORMATION:
Background
The countervailing duty order which covers pasta from Italy was
published in the Federal Register on July 24, 1996. See Notice of
Countervailing Duty Order and Amended Final Affirmative Countervailing
Duty Determination: Certain Pasta (``Pasta'') From Italy, 61 FR 38544
(July 24, 1996). On October 2, 2006, the Department initiated the
second sunset review of this order, pursuant to section 751(c) of the
Act. See Second Sunset Review. The Department received a notice of
intent to participate from the following domestic parties: A. Zerega's
Sons, Inc.; American Italian Pasta Company; Dakota Growers Pasta
Company, Inc.; New World Pasta Company; and Philadelphia Macaroni
Company (collectively, ``domestic interested parties''), within the
deadline specified in 19 CFR 351.218(d)(1)(i). The companies claimed
interested party status under section 771(9)(C) of the Act, as
manufacturers of a domestic-like product in the United States.
On October 12, 2006, the Department received a request for a 12-day
extension of time from the Government of Italy (``GOI'') to submit its
substantive response. The Department partially granted the GOI's
request and extended the deadline for filing a substantive response to
November 8, 2006. The same extension was also granted to the domestic
interested parties, per their request. On November 8, 2006, the
Department received complete substantive responses to the notice of
initiation from the domestic interested parties and from the GOI. On
November 2, 2006, we received a complete substantive response to the
notice of initiation from the Delegation of the European Commission
(``EC'').
The Department did not receive any substantive responses from any
Italian producers or exporters of the merchandise covered by this
order. Based on the fact that a government's response alone, normally,
is not sufficient for full sunset reviews in which the orders are not
done on an aggregate basis, we determined to conduct an expedited (120
day) sunset review of this order. See section 751(c)(3)(A) of the Act
and 19 CFR 351.218(e)(1)(ii)(C)(2). See, e.g., Final Results of
Expedited Sunset Reviews of Countervailing Duty Orders: Pure Magnesium
and Alloy Magnesium from Canada, 70 FR 67140 (November 4, 2005). See
also Letter to Robert Carpenter, Director, Office of Investigations,
International Trade Commission, from Wendy Frankel, Director, Import
Administration, Department of Commerce, regarding inadequate response
to the notice of initiation from respondent interested parties
(November 21, 2006); and Memorandum from Saliha Loucif, International
Trade Compliance Analyst, to Susan Kuhbach, Office Director, Import
Administration, Department of Commerce, regarding
``Adequacy Determination of the Second Sunset Review of the
Countervailing Duty Order on Certain Pasta from Italy,'' (November 21,
2006).
On January 19, 2007, the Department placed the calculation of the
all others rate from the investigation onto the record of this sunset
review and allowed parties to comment. We received comment from
domestic interested parties on January 24, 2007. No hearing was held
because none was requested.
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 this scope is typically sold in the retail market, in
fiberboard or cardboard cartons, or polyethylene or polypropylene bags
of varying dimensions.
Excluded from the scope of 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 Italia, Consorzio per il Controllo dei Prodotti Biologici,
Associazione Italiana per l'Agricoltura Biologica, or Codex S.r.l. In
addition,
[[Page 5272]]
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 this 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'') in Room B-099 of the
main Department building. Further, 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 (ICEA) are also excluded from this 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 CRU.
The merchandise subject to review is currently classifiable under
item 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.
Scope Rulings
The Department has issued the following scope rulings to date:
(1) On August 25, 1997, the Department issued a scope ruling that
multicolored pasta, imported in kitchen display bottles of decorative
glass that are sealed with cork or paraffin and bound with raffia, is
excluded from the scope of the antidumping and countervailing duty
orders. See Memorandum from Edward Easton to Richard Moreland, dated
August 25, 1997, which is on file in the CRU.
(2) On July 30, 1998, the Department issued a scope ruling finding
that multipacks consisting of six one-pound packages of pasta that are
shrink-wrapped into a single package are within the scope of the
antidumping and countervailing duty orders. See Letter from Susan H.
Kuhbach to Barbara P. Sidari, dated July 30, 1998, which is available
in the CRU.
(3) On October 26, 1998, the Department self-initiated a scope
inquiry to determine whether a package weighing over five pounds as a
result of allowable industry tolerances is within the scope of the
antidumping and countervailing duty orders. On May 24, 1999, we issued
a final scope ruling finding that, effective October 26, 1998, pasta in
packages weighing or labeled up to (and including) five pounds four
ounces is within the scope of the antidumping and countervailing duty
orders. See Memorandum from John Brinkmann to Richard Moreland, dated
May 24, 1999, which is available in the CRU.
(4) On April 27, 2000, the Department self-initiated an anti-
circumvention inquiry to determine whether Pastificio Fratelli Pagani
S.p.A.'s importation of pasta in bulk and subsequent repackaging in the
United States into packages of five pounds or less constitutes
circumvention with respect to the antidumping and countervailing duty
orders on pasta from Italy pursuant to section 781(a) of the Act and 19
CFR 351.225(b). See Certain Pasta from Italy: Notice of Initiation of
Anti-Circumvention Inquiry of the Antidumping and Countervailing Duty
Orders, 65 FR 26179 (May 5, 2000). On September 19, 2003, we published
an affirmative finding of the anti-circumvention inquiry. See Anti-
Circumvention Inquiry of the Antidumping and Countervailing Duty Orders
on Certain Pasta from Italy: Affirmative Final Determinations of
Circumvention of Antidumping and Countervailing Duty Orders, 68 FR
54888 (September 19, 2003).
Analysis of Comments Received
All issues raised in substantive responses by parties in this
sunset review are addressed in the ``Issues and Decision Memo for the
Expedited Sunset Review of the Countervailing Duty Order on Certain
Pasta from Italy; Final Results,'' (``Decision Memo''), from Stephen J.
Claeys, Deputy Assistant Secretary for Import Administration, to David
M. Spooner, Assistant Secretary for Import Administration, dated
January 30, 2007, which is hereby adopted by this notice. The issues
discussed in the Decision Memo include the likelihood of continuation
or recurrence of a countervailable subsidy, the net countervailable
subsidy rate likely to prevail if the order were revoked, and the
nature of the subsidies.
Parties can find a complete discussion of all issues raised in this
sunset review and the corresponding recommendation in this public
memorandum which is on file in B-099, the Central Records Unit, of the
main Commerce building. In addition, a complete version of the Decision
Memo can be accessed directly on the Department's Web page at http://ia.ita.doc.gov/frn/index.html.
The paper copy and electronic version of
the Decision Memo are identical in content.
Final Results of Review
The Department determines that revocation of the countervailing
duty order on pasta from Italy is likely to lead to continuation or
recurrence of countervailable subsidies at the following countervailing
duty rates:
------------------------------------------------------------------------
Net subsidy rate
Manufacturer/exporter (percent)
------------------------------------------------------------------------
Agritalia, S.r.l..................................... 3.96
Agrrighi S.p.A. Industrie Alimentari................. 3.85
De Matteis Agroalimentare S.p.A...................... 3.48
Delverde, S.r.l...................................... 6.76
F.lli De Cecco di Filippo Fara S. Martino S.p.A...... 3.40
Industria Alimentare Colavita, S.p.A................. 3.01
Isola del Grano S.r.L................................ 10.70
Italpast S.p.A....................................... 10.70
Italpasta S.r.L...................................... 3.85
La Molisana Alimentari S.p.A......................... 4.82
Labor S.r.L.......................................... 10.70
Molino e Pastificio De Cecco S.p.A. Pescara.......... 3.40
Pastificio Guido Ferrara............................. 2.34
Pastificio Campano, S.p.A............................ 3.47
Pastificio Riscossa F.lli Mastromauro S.r.L.......... 7.81
Tamma Industrie Alimentari di Capitanata............. 6.76
``All Others''....................................... 4.52
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[[Page 5273]]
Notification Regarding Administrative Protective Orders
This notice also serves as the only reminder to parties subject to
administrative protective orders (``APO'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
notification of the return or destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a violation which is
subject to sanction.
We are issuing and publishing this determination and notice in
accordance with sections 751(c), 752, and 777(i) of the Act.
Dated: January 30, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-1816 Filed 2-2-07; 8:45 am]
BILLING CODE 3510-DS-P