[Federal Register Volume 65, Number 97 (Thursday, May 18, 2000)]
[Notices]
[Pages 31515-31517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12580]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-063]


Certain Iron-Metal Castings from India: Final Results of 
Countervailing Duty Administrative Review

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

ACTION: Notice of final results of countervailing duty administrative 
review.

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SUMMARY: On November 12, 1999, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
of administrative review of the countervailing duty order on certain 
iron-metal castings from India for the period January 1, 1997 through 
December 31, 1997 (64 FR 61592). The Department has now completed this 
administrative review in accordance with section 751(a) of the Tariff 
Act of 1930, as amended (the Act).
    We have not made changes in the subsidy calculations from the 
preliminary results. For information on the net subsidy for each 
reviewed company, and for all non-reviewed companies, see the Final 
Results of Review section of this notice. We will instruct the U.S. 
Customs Service (Customs) to assess countervailing duties as detailed 
in the Final Results of Review section of this notice.

EFFECTIVE DATE: May 18, 2000.

FOR FURTHER INFORMATION CONTACT: Robert Copyak, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Room 4012, Washington, D.C. 
20230; telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act (URAA) effective January 1, 1995. The 
Department is conducting this administrative review in accordance with 
section 751(a) of the Act. All citations to the Department's 
regulations reference 19 CFR part 351 (1998), unless otherwise 
indicated. Because the request for this administrative review was filed 
before January 1, 1999, the Department's substantive countervailing 
duty regulations, which were published in the Federal Register on 
November 25,

[[Page 31516]]

1998 (see CVD Regulations, 63 FR 65348), do not govern this review.

Background

    On November 12, 1999, the Department published the preliminary 
results of administrative review of the countervailing duty order on 
certain iron metal castings from India. See Notice of Preliminary 
Results and Partial Recission of Countervailing Duty Administrative 
Review: Certain Iron-Metal Castings from India, 64 FR 61592 (November 
12, 1999) (Preliminary Results). Pursuant to 19 CFR 351.213(b), this 
review covers only those producers/exporters of the subject merchandise 
for which a review was specifically requested. The producers/exporters 
of the subject merchandise for which this review was requested are:

AGV Exports,
Agarwal Hardware,
Ambika Exports,
Bengal Export Corporation,
Bengal Iron Corporation,
Bhagyadevi Factory,
Calcutta Ferrous Ltd.,
Carnation Enterprise Pvt. Ltd.,
Carnation Industries,\1\
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    \1\ Carnation Industries was formerly Carnation Enterprise Pvt. 
Ltd.
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Commex Corporation,
Crescent Foundry Co. Pvt. Ltd.,
Delta Enterprises,
Delta Corporation Ltd.,
Dinesh Brothers Pvt. Ltd.,
Dugar International,
Edcons Castings,
Essen International,
Ganapati Suppliers,
Global Intertrade,
Hargolal & Sons,
Hindustahn Malleables & Forgings Ltd.,
J.K. Udyog,
Kajaria Iron Castings Ltd.,\2\
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    \2\ Kajaria Iron Castings Ltd. was formerly Kajaria Iron 
Castings Pvt. Ltd.
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Kajaria Iron Castings Pvt. Ltd.,
Kauntia Exports,
Kejriwal Iron & Steel Works,
Kiswok Industries Pvt. Ltd.,\3\
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    \3\ Kiswok Industries Pvt. Ltd. was formerly Kejriwal Iron & 
Steel Works.
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Metflow Corporation Pvt. Ltd.,
Nandikeshwari Iron Foundry Pvt. Ltd.,
Orissa Metal Industries,
Overseas Iron Foundry Pvt. Ltd.,
Rangilal & Sons,
RBA Exports,
R.B. Agarwalla & Company,
R.B. Agarwalla & Company Pvt. Ltd.,
RR Enterprise,
RSI Limited,
RS Ispat Pvt. Ltd.,
Samitex Corporation,
Sammitex,
Serampore Industries Pvt. Ltd.,
Shakti Isabgel Industries,
Shree Hanuman Foundry & Engineering Co. Ltd.,
Shree Rama Enterprises,
Shree Uma Foundries Pvt. Ltd.,
Siko Exports,
Sitaram Maohogarhia & Sons Pvt. Ltd.,
Sociedad J.B. Nagar,
SSL Exports,
Super Iron Foundry,
Tara Engineering Works,
Thames Engineering,
Tirupati International Pvt. Ltd.,
Tirupati Trading Company,
Trident Industries,
Trident International,
Uma Iron & Steel, and
Victory Castings Ltd.

    The following companies, for which a review was requested, 
certified that they either do not produce or did not export the subject 
merchandise to the United States during the period of review (POR): AGV 
Exports, Agarwal Hardware Works & Foundries Pvt. Ltd., Ambika Exports, 
Bengal Iron Corporation, Bhagyadevi Factory, Delta Enterprises, Edcons 
Castings Pvt. Ltd., Essen International, Hargolal & Sons, Hindustahn 
Malleables & Forgings Ltd., J.K. Udyog, Kauntia Exports, Metflow 
Corporation Pvt. Ltd., Orissa Metal Industries, Overseas Iron Foundry 
Pvt. Ltd., RBA Exports, R.B. Agarwalla & Company Pvt. Ltd., RR 
Enterprise, RS Ispat Pvt. Ltd., Samitex Corporation, Sammitex, Shree 
Hanuman Foundry & Engineering Co. Ltd., Shree Rama Enterprises, Shree 
Uma Foundries Pvt. Ltd., Siko Exports, Sitaram Madhogarhia & Sons Pvt. 
Ltd., Tara Engineering Works, Tirupati International Pvt. Ltd., and 
Tirupati Trading Company. In addition, the Government of India (GOI) 
certified that the following companies either do not exist or do not 
export the subject merchandise to the United States: Dugar 
International, Global Intertrade, Shakti Isabgel Industries, Sociedad 
J.B. Nagar, and Trident Industries. Therefore, in accordance with 
section 351.213(d)(3) of the Department's regulations, we rescinded the 
review with respect to these companies at the time of the preliminary 
results.

See Preliminary Results, 64 FR at 61592

    We invited interested parties to comment on the preliminary 
results. On December 13, 1999, case briefs were submitted by the 
Engineering Export Promotion Council of India and the exporters of 
certain iron-metal castings from India (respondents), and the Municipal 
Castings Fair Trade Council and its members (petitioners). On December 
20, 1999, rebuttal briefs were submitted by the respondents and 
petitioners. None of the interested parties requested a hearing. This 
review covers 29 programs.

Scope of the Review

    Imports covered by this administrative review are shipments of 
Indian manhole covers and frames, clean-out covers and frames, and 
catch basin grates and frames. These articles are commonly called 
municipal or public works castings and are used for access or drainage 
for public utility, water, and sanitary systems. During the review 
period, such merchandise was classifiable under the Harmonized Tariff 
Schedule (HTS) item numbers 7325.10.0010 and 7325.10.0050. The HTS item 
numbers are provided for convenience and Customs purposes. The written 
description remains dispositive.

Verification

    As provided in section 782(i) of the Act, we verified information 
submitted by the GOI and certain producers/exporters of the subject 
merchandise. We followed standard verification procedures, including 
meeting with government and company officials and examining relevant 
accounting and financial records and other original source documents. 
Our verification results, which were issued on September 9, 1999, are 
outlined in the verification reports, the public versions of which are 
on file in the Central Records Unit (CRU), Room B-099 of the Main 
Commerce Building.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) from Holly A. Kuga, Acting Deputy 
Assistant Secretary, Import Administration, to Troy H. Cribb, Acting 
Assistant Secretary for Import Administration, dated concurrent with 
this notice, which is hereby adopted by this notice. A list of issues 
which parties have raised and to which we have responded, all of which 
are addressed in the Decision Memorandum, is attached to this notice as 
Appendix I. Parties can find a complete discussion of all issues raised 
in this review and the corresponding recommendations in this public 
memorandum which is on file in the CRU. In addition, a complete version 
of the Decision Memorandum can be accessed directly on the web at 
www.ita.doc.gov/import__admin/records/frn. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Use of Facts Available

    For a discussion of our application of facts available, see the 
``Facts Available''

[[Page 31517]]

section of the Decision Memorandum, which is on file in the CRU and 
available on the web at www.ita.doc.gov/import__admin/records/frn.

Changes Since the Preliminary Results

    We have not made any changes to the subsidy rate calculations from 
the preliminary results.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual subsidy rate for each producer/exporter subject to this 
review. We will instruct Customs to assess countervailing duties as 
indicated below on all appropriate entries. For the period January 1, 
1997 through December 31, 1997, we determine the net subsidy rates for 
the reviewed companies to be as follows:

------------------------------------------------------------------------
                                                            Ad valorem
                   Producers/exporters                         rates
                                                           (percentages)
------------------------------------------------------------------------
Bengal Export Corporation...............................            8.35
Calcutta Ferrous Ltd....................................            9.28
Calcutta Iron Foundry...................................            0.42
Carnation Industries Ltd................................            0.72
Commex Corporation......................................            2.71
Crescent Foundry Co. Pvt. Ltd...........................            0.84
Delta Corporation Ltd...................................           27.65
Dinesh Brothers (Pvt.) Ltd..............................            1.71
Ganapati Suppliers Pvt. Ltd.............................            5.17
Kajaria Iron Castings Ltd...............................            5.19
Kiswok Industries Pvt. Ltd..............................           14.90
Nandikeshwari Iron Foundry Pvt. Ltd.....................           13.72
Rangilal & Sons.........................................            0.00
R.B. Agarwalla & Company................................            3.56
RSI Limited.............................................            0.90
Seramapore Industries Pvt. Ltd..........................            1.51
SSL Exports.............................................           27.65
Super Iron Foundry......................................            1.08
Thames Engineering......................................           27.65
Trident International...................................           27.65
Uma Iron & Steel Company................................            2.10
Victory Castings Ltd....................................            1.88
------------------------------------------------------------------------

Revocation of CVD Order

    As a result of the International Trade Commission's determination 
that revocation of this countervailing duty order would not likely lead 
to continuation or recurrence of material injury to an industry in the 
United States in the reasonably foreseeable future, the Department, 
pursuant to section 751(d)(2) of the Act, revoked the countervailing 
duty order on iron metal castings from India. See Revocation of 
Countervailing Duty Order: Iron Metal Castings from India, 64 FR 61602 
(November 12, 1999). Pursuant to section 751(c)(6)(A)(iv) of the Act 
and 19 CFR 351.222(i)(2)(ii), the effective date of revocation was 
January 1, 2000. Accordingly, the Department instructed Customs to 
discontinue suspension of liquidation and collection of cash deposits 
on entries of the subject merchandise entered or withdrawn from 
warehouse on or after January 1, 2000. The Department, however, will 
conduct administrative reviews of subject merchandise entered prior to 
the effective date of revocation in response to appropriately filed 
requests for review.

Administrative Protective Order

    This notice also serves as a final 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. 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 in accordance with 
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).

    Dated: May 10, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.

Appendix I--Issues Addressed in the Decision Memorandum

Methodology and Background Information

I. Applicable Statute and Regulations
II. Facts Available
III. Benchmark Rate

Analysis of Programs

I. Programs Conferring Subsidies
    A. Pre-Shipment Export Financing
    B. Post-Shipment Export Financing
    C. Exemption of Export Credit from Interest Taxes
    D. Income Tax Deductions Under Section 80 HHC
    E. Import Mechanisms (Sale of Licenses)
    F. Passbook Scheme
    G. Duty Entitlement Passbook Scheme
II. Programs Determined To Be Not Countervailable
    A. Long-Term Financing from ``All-India Development Banks''
    B. Long-Term Loan from the West Bengal Industrial Finance 
Corporation
    C. Leasing of Land from the Regional Government of West Bengal
III. Programs Found To Be Not Used
    A. West Bengal Incentive Scheme 1993
    1. State Capital Investment Subsidy
    B. Market Development Assistance
    C. Rediscounting of Export Bills Abroad
    D. International Price Reimbursement Scheme
    E. Cash Compensatory Support Program
    F. Programs Operated by the Small Industries Development Bank of 
India
    G. Export Promotion Replenishment Scheme
    H. Export Promotion Capital Goods Scheme
    I. Benefits for Export Oriented Units and Export Processing 
Zones
    J. Special Imprest Licenses
    K. Special Benefits
    L. Duty Drawback on Excise Taxes
    M. Payment of Premium Against Advance Licenses
    N. Pre-Shipment Export Financing in Foreign Currency
    O. Subsidies Provided by the State of Orissa
    P. Advance Licenses
IV. Other Program Examined
    A. Bridge Loan
V. Programs Found Not To Exist
    A. State Value-Added Tax ``Set-Off'' Program
    B. Interest Rate Surcharge Exemption
VI. Analysis of Comments
    A. Cash Credit Benchmark Interest Rate
    B. Leasing of Land
    C. Long-Term Financing
    D. Benefit Provided Under the Passbook Scheme
    E. Section 80HHC--Tax Savings Relating to Subject Castings
    F. Double-Counting of Subsidies
    G. Overdue Penalty Interest Paid

[FR Doc. 00-12580 Filed 5-17-00; 8:45 am]
BILLING CODE 3510-DS-P