[Federal Register: June 29, 2006 (Volume 71, Number 125)]
[Notices]               
[Page 37056-37057]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29jn06-32]                         

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DEPARTMENT OF COMMERCE

International Trade Administration

(C-507-501)

 
Certain In-shell Pistachios from the Islamic Republic of Iran: 
Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On February 22, 2006, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
in the countervailing duty (CVD) administrative review of certain in-
shell pistachios from Iran. See Certain In-shell Pistachios from the 
Islamic Republic of Iran: Preliminary Results of Countervailing Duty 
Administrative Review, 71 FR 9091 (Preliminary Results). The Department 
has now completed this administrative review in accordance with section 
751(a) of the Tariff Act of 1930, as amended (the Act).
    Based on information received since the Preliminary Results and our 
analysis of the comments received, the Department has not revised the 
net subsidy rate for Tehran Negah Nima Trading Company, Inc., trading 
as Nima Trading Company (Nima), the respondent company in this 
proceeding. For further discussion of our positions, see the ``Issues 
and Decision Memorandum'' from Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, to David M. Spooner, Assistant 
Secretary for Import Administration, concerning the ``Final Results of 
Countervailing Duty Administrative Review: Certain In-shell Pistachios 
from the Islamic Republic of Iran'' (Decision Memorandum) dated June 
22, 2006. The final net subsidy rate for the reviewed company is listed 
below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: June 29, 2006.

FOR FURTHER INFORMATION CONTACT: Darla Brown, AD/CVD Operations, Office 
3, Import Administration, U.S. Department of Commerce, Room 4014, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On November 7, 2005, the Department published in the Federal 
Register its Preliminary Results. We invited interested parties to 
comment on these results. Since the preliminary results, we received 
case briefs from petitioners\1\ on March 24, 2006. Neither Nima nor the 
Government of Iran (GOI) submitted a brief.
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    \1\ Petitioners include the California Pistachios Commission 
(CPC) and its members and a domestic interested party, Cal Pure 
Pistachios, Inc. (Cal Pure).
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    In accordance with 19 CFR 351.213(b), this administrative review 
covers only those producers or exporters for which a review was 
specifically requested. Accordingly, this administrative review covers 
Nima for the period of review (POR) January 1, 2004, through December 
31, 2004.

Scope of the Order

    For purposes of this order, the product covered is in-shell 
pistachio nuts from which the hulls have been removed, leaving the 
inner hard shells and edible meat, as currently classifiable in the 
Harmonized Tariff Schedules of the United States (HTSUS) under item 
number 0802.50.20.00. The HTSUS subheading is provided for convenience 
and customs purposes. The written description of the scope is 
dispositive.

Analysis of Comments Received

    For a discussion of the programs and the issues raised in the 
briefs by parties to this review, see the Decision Memorandum, which is 
hereby adopted by this notice. A listing of the issues which parties 
raised and to which we have responded, which are in the Decision 
Memorandum, is attached to this notice as Appendix I. Parties can find 
a complete discussion of the issues raised in this review and the 
corresponding recommendations in this public memorandum, which is on 
file in the Central Records Unit (CRU), room B-099 of the main Commerce 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the World Wide Web at http://ia.ita.doc.gov/frn.
 The paper copy and electronic version of the 

Decision Memorandum are identical in content.

Use of Facts Available

    The Department has concluded that the GOI and Nima did not act to 
the best of their abilities in providing responses to the Department, 
in accordance with sections 776(a) and 776(b) of the Act. Specifically, 
neither the GOI nor Nima submitted questionnaire responses to the 
Department. By failing to respond to our questionnaire, Nima and the 
GOI have failed to provide information regarding subsidy programs in 
Iran, as well as Nima's sales, in the manner explicitly requested by 
the Department. Therefore, we must resort to the facts otherwise 
available pursuant to section 776(a) of the Act. Furthermore, in 
selecting from among the facts available, the Department has determined 
that an adverse inference is warranted, pursuant to section 776(b) of 
the Act because, despite the Department's efforts, Nima and the GOI did 
not respond to our questionnaires.
    In the instant case, the Department is relying on information from 
Final Affirmative Countervailing Duty Determination and Countervailing 
Duty Order: In-shell Pistachios from Iran, 51 FR 8344 (March 11, 1986) 
(In-shell Pistachios); Certain In-Shell Pistachios and Certain Roasted 
In-Shell Pistachios from the Islamic Republic of Iran: Final Results of 
New Shipper Countervailing Duty Reviews, 68 FR 4997 (January 31, 2003) 
(Pistachios New Shipper Reviews); and Certain In-shell Pistachios from 
the Islamic Republic of Iran: Final Results

[[Page 37057]]

of Countervailing Duty Administrative Review, 70 FR 54027 (September 
13, 2005) (2003 In-shell Pistachios).
    If the Department relies on secondary information (e.g., data from 
a petition) as facts available, section 776(c) of the Act provides that 
the Department shall, ``to the extent practicable,'' corroborate such 
information using independent sources reasonably at its disposal.\2\ 
The SAA further provides that to corroborate secondary information 
means that the Department will satisfy itself that the secondary 
information to be used has probative value. See also 19 CFR 351.308(d) 
(describing the corroboration of secondary information).
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    \2\ The Statement of Administrative Action accompanying the URAA 
clarifies that information from the petition is ``secondary 
information.'' See Statement of Administrative Action, URAA, H. Doc. 
No. 316, Vol. 1, 103d Cong. (1994) (SAA) at 870.
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    Thus, in those instances in which it determines to apply adverse 
facts available, the Department, in order to satisfy itself that such 
information has probative value, will examine, to the extent 
practicable, the reliability and relevance of the information used. 
However, unlike other types of information, such as publicly available 
data on the national inflation rate of a given country or national 
average interest rates, there typically are no independent sources for 
data on company-specific benefits resulting from countervailable 
subsidy programs. The only source for such information normally is 
administrative determinations. In the instant case, no evidence has 
been presented or obtained which contradicts the reliability of the 
evidence relied upon in previous segments of this proceeding.
    With respect to the relevance aspect of corroboration, the 
Department will consider information reasonably at its disposal as to 
whether there are circumstances that would render benefit data not 
relevant. Where circumstances indicate that the information is not 
appropriate as adverse facts available, the Department will not use it. 
See Fresh Cut Flowers from Mexico; Final Results of Antidumping Duty 
Administrative Review, 61 FR 6812 (February 22, 1996). In the instant 
case, no evidence has been presented or obtained which contradicts the 
relevance of the benefit data relied upon in previous segments of this 
proceeding. Thus, in the instant case, the Department finds that the 
information used has been corroborated to the extent practicable.
    For further discussion, see the ``Use of Facts Available'' section 
of the Decision Memorandum.

Final Results of Review

    In accordance with section 777A(e)(1) of the Act and 19 CFR 
351.221(b)(5), we calculated an ad valorem subsidy rate for Nima, the 
only producer/exporter subject to this review, for the POR, calendar 
year 2004.

------------------------------------------------------------------------
                  Producer/Exporter                    Net Subsidy Rate
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Tehran Negah Nima Trading Company, Inc., trading as     71.10 percent ad
 Nima Trading Company (Nima)........................             valorem
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    As Nima is the exporter but not the producer of subject 
merchandise, the Department's final results of review apply only to 
subject merchandise exported by Nima and produced by any company which 
produces the subject merchandise. See 19 CFR 351.107(b) (providing that 
the Department may establish a combination rate for each combination of 
exporter and its supplying producer).
    Therefore, we will issue the following cash deposit requirements, 
within 15 days of publication of the final results of the instant 
review, for all shipments of subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the date of publication: 
(1) For merchandise exported by Nima, the cash deposit rate will be 
71.10 percent ad valorem, i.e., the rate calculated in the final 
results of the instant administrative review; (2) if the exporter is 
not a firm covered in this review, a prior review, or the original CVD 
investigation, but the producer is, the cash deposit rate will be the 
rate established for the most recent period for the producer of the 
merchandise; and (3) if neither the exporter nor producer is a firm 
covered in this review, a prior review, or the original investigation, 
the cash deposit rate will continue to be 99.52 percent ad valorem, the 
``All Others'' rate from the final determination in the original 
investigation.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    This administrative review and notice are issued and published in 
accordance with sections 751(a)(1), 751(a)(3) and 777(i)(1) of the Act 
and 19 CFR 351.221(b)(5).

    Dated: June 22, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I - Issues and Decision Memorandum

I. Methodology and Background Information
Use of Facts Available
II. Analysis of Programs
Programs Determined to Be Countervailable
1. Provision of Fertilizer and Machinery
2. Provision of Credit
3. Tax Exemptions
4. Provision of Water and Irrigation Equipment
5. Technical Support
6. Duty Refunds on Imported Raw or Intermediate Materials Used in the 
Production of Export Goods
7. Program to Improve Quality of Exports of Dried Fruit
8. Iranian Export Guarantee Fund
9. GOI Grants and Loans to Pistachio Farmers
10. Crop Insurance for Pistachios
III. Total Ad Valorem Rate
IV. Analysis of Comments
Comment 1: Combination Rate
Comment 2: Additional Subsidy Programs
[FR Doc. E6-10223 Filed 6-28-06; 8:45 am]

BILLING CODE 3510-DS-S