NOTICES
DEPARTMENT OF COMMERCE
[C-357-048]
Certain Textiles and Textile Products From Argentina; Preliminary Results of
Administrative Review of Countervailing Duty Order
Thursday, October 11, 1984
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AGENCY: International Trade Administration/Import Administration,
Commerce.
ACTION: Notice of Preliminary Results of Administrative Review of Countervailing
Duty Order.
SUMMARY: The Department of Commerce has conducted an administrative review of the
countervailing duty order on certain textiles and textile products from Argentina,
specifically men's and boys' woolen apparel. The review covers the period January 1,
1983, through December 31, 1983.
As a result of the review, the Department has preliminarily determined that there was no
bounty or grant conferred during the period of
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review. Interested parties are invited to comment on these preliminary results.
EFFECTIVE DATE: October 11, 1984.
FOR FURTHER INFORMATION CONTACT: Lorenza Olivas or Richard W. Moreland, Office
of Compliance, International Trade Administration, U.S. Department of Commerce,
Washington, D.C. 20230; telephone: (202) 377-2786.
SUPPLEMENTARY INFORMATION:
Background
On September 21, 1983, the Department of Commerce ("the Department") published in the
Federal Register (48 FR 43071) the final results of its last administrative review of the
countervailing duty order on certain textiles and textile products from Argentina
(47 FR 53421, November 16, 1978) and announced its intent to conduct the next
administrative review. As required by section 751 of the Tariff Act of 1930 ("the Tariff
Act"), the Department has now conducted that administrative review.
Scope of the Review
Imports covered by the review are shipments of Argentine men's and boys' woolen
apparel. Such merchandise is currently classifiable under the items of the Tariff Schedules
of the United States Annotated ("TSUSA") listed in the Appendix to this notice.
The review covers the period January 1, 1983, through December 31, 1983, and two
programs: (1) The reembolso, a cash rebate of indirect taxes; and (2) a preferential
pre-export financing program.
Analysis of Programs
(1) Reembolso
The reembolso is a cash rebate of taxes, paid upon exportation of merchandise, as a
percentage of the f.o.b. invoice price. Although the Government of Argentina rebates
upon exportation all indirect taxes borne by the exported product, the Tariff Act and the
Commerce Regulations allow the rebate of only the following: (1) Indirect taxes borne by
inputs which are physically incorporated in the exported product (see Annex 1.1 of part
355 of the Commerce Regulations) and (2) indirect taxes levied at the final stage (see
Annex 1.2 of part 355 of the Commerce Regulations). If the tax rebate upon export
exceeds the total amount of allowable indirect taxes described above, the Department
considers the difference to be an overrebate of indirect taxes and, therefore, a subsidy.
Based on our analysis of the most recent tax incidence study conducted by the Argentine
government, we found that indirect taxes on physically incorporated inputs and final sage
indirect taxes on men's and boys' woolen apparel amount to 19.33 percent ad valorem.
To calculate the net subsidy on men's and boys' woolen apparel, we allowed the rebate of
indirect taxes on raw materials, which constitute the bulk of the taxes. In addition we
allowed the rebate of final stage indirect taxers, such as excise taxes. We disallowed taxes
on labor, on "indirect expenditures" and on other items not physically incorporated.
During the period of review, the reembolso rate for men's and boys' woolen garments was
five percent (Resolution No. 8 of the Ministry of Commerce, July 5, 1982). Because the
reembolso does not exceed the total allowable indirect taxes of 19.33 percent, we
preliminarily find that there was no overrebate of indirect taxes in 1983.
(2) Preferential Financing
The preferential financing program makes pre-export loans, in pesos indexed to U.S.
dollars, available to exporters at an interest rate of one percent. Such funds are available
for a period of up to 180 days, and are to be repaid no later than 60 days after the export
date. The funds are provided by the Central Bank of Argentina and disbursed by private
commercial banks to individual borrowers.
For men's and boys' woolen apparel, the Central Bank limited potential loan amounts to
60 percent of the contracted f.o.b. price. However, because the Government of
Argentina has informed us that this program was not used during 1983 for men's and
boys' woolen apparel exports to the United States, we preliminarily determine that there
was no benefit conferred under the preferential financing program during the period of
review.
Preliminary Results of Review
As a result of the review, we preliminarily determine the total bounty or grant conferred
during the period of review to be zero percent. The Department intends to instruct the
Customs Service to liquidate entries of this merchandise exported on or after January 1,
1983, and on or before December 31, 1983, without regard to countervailing duties.
Further, the Department intends to instruct the Customs Service not to collect a cash
deposit of estimated countervailing duties, as provided for by section 751(a)(1) of the
Tariff Act, on any shipments of this merchandise entered, or withdrawn from warehouse,
for consumption on or after the date of publication of the final results of this
administrative review. This deposit requirement shall remain in effect until publication of
the final results of the next administrative review.
Interested parties may submit written comments on these preliminary results within 30
days of the date of publication of this notice and may request disclosure and/or a hearing
within 10 days of the date of publication. Any hearing, if requested, will be held 45 days
after the date of publication or the first workday thereafter. Any request for an
administrative protective order must be made no later than 5 days after the date of
publication. The Department will publish the final results of this administrative review
including the results of its analysis of issues raised in any such written comments or at a
hearing.
This administrative review and notice are in accordance with section 751(a)(1) of the
Tariff Act (19 U.S.C. 1675(a)(1)) and § 355.41 of the Commerce Regulations (19 CFR
355.41).
Dated: October 4, 1984.
Alan F. Holmer,
Deputy Assistant Secretary, Import Administration.
Appendix
Wearing Apparel
372.0800 (b)
372.1020 (a)(b)
372.1050 (a)(b)
372.2500 (for male infants)
372.3000 (b)
372.3500 (b)
372.4000 (b)
372.4500 (b)
373.0500 of wool
373.1500
376.0800 (b)
378.3510 (b)
378.4000 (b)
378.4500 (b)
379.1100
379.1300
379.1510 through 379.1530
379.1710 through 379.1750
379.2010
379.2020
379.3520 (a)
379.6615 (a)
379.6934 through 379.6958 (a)
379.7100
379.7240 through 379.7295
379.7400
379.7510
379.7530
379.7605 through 379.7650
379.7810 through 379.7850
379.7900
379.8100
379.8311 through 379.8360
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379.8410
379.8420
379.8615 (a)
379.8715 (a)
379.9815 (a)
(a) Wool articles classified under this TSUSA item number are covered by this notice if
they are included in the textile category system used by the United States to monitor and
administer the U.S. textile trade agreements made pursuant to the Arrangement
Regarding International Trade in Textiles, December 20, 1973, 25 U.S.T. 1001, TIAS
7840.
(b) If the item is for men and boys, it is included in this notice. The term "men and boys"
should be interpreted in accordance with the applicable headnotes to the schedule part
and subpart in which the TSUSA number falls. Where the phrase is not covered by such
headnotes, items, classified under TSUSA number which can be used by either sex are
covered by this notice. Items under TSUSA numbers identifiable as being intended
exclusively for women and/or girls are not covered by this notice.
[FR Doc. 84-26893 Filed 10-10-84; 8:45 am]
BILLING CODE 3510-DS-M