(T.D. 79-6) The following rates of exchange are based upon rates certified to the Secretary of the Treasury by the Federal Reserve Bank of New York, pursuant to section 522 (c), Tariff Act of 1930, as amended (31 U.S.C. 372(c)), and reflect variances of 5 per centum or more from the quar- terly rate published in Treasury Decision 78-382 for the following countries. Therefore, as to entries covering merchandise exported on the dates listed, whenever it is necessary for Customs purposes to con- vert such currency into currency of the United States, conversion shall CHAPTER I-U.S. CUSTOMS SERVICE, TREASURY DEPARTMENT PART 159-LIQUIDATION OF DUTIES ACTION: Customs Service, U.S. Treasury Department. ACTION: Final countervailing duty determination. SUMMARY: This notice is to inform the public that a countervailing duty investigation has resulted in a determination that the Government of Canada has given benefits which constitute bounties or grants under the countervailing duty law on the manufacture, production, or exportation of certain fish. Both dutiable and duty-free fish are included in this determination. However, countervailing duties on the dutiable fish originating in the Atlantic regions of Canada will be waived, based upon actions of the Government of Canada to reduce significantly the bounty or grant and the other criteria for waiver in the law. The case involving duty-free fish originating in the Atlantic regions of Canada is being referred to the International Trade Commission for an injury determination. Fish originating in the rest of Canada have been determined to receive benefits that are de minimus. EFFECTIVE DATE: December 29, 1978. FOR FURTHER INFORMATION CONTACT: Charles F. Goldsmith, economist, Office of Tariff Affairs, Department of the Treasury, 15th Street and Pennsylvania Avenue NW., Washington, D.C. 20220; telephone 202-566-2323. SUPPLEMENTARY INFORMATION: On July 10, 1978, a notice of "Initiation of Countervailing Duty Investigation and Preliminary Determination" was published in the Federal Register (43 F.R. 29637). The notice stated that it had been preliminarily determined that benefits had been received by Canadian fishermen and processors which may constitute bounties or grants within the meaning of section 303 of the Tariff Act of 1930, as amended (19 U.S.C. 1303) (referred to in this notice as "the act"). Fish imports covered by this investigation are classifiable under items 110.3552, 110.5070, 110.1593, 110.1597, 110.4730, 110.4755, 110.4760, 110.4765, 114.4520, and 114.4537, Tariff Schedules of the United States Annotated (TSUSA). The fish imports from Canada which are classifiable under items 110.1593, 110.1597, 110.4730, 110.4755, 110.4760, 110.4765, 114.4520, and 114.4537 TSUSA are free of duty. The notice stated that the programs under which these benefits were conferred included: (1) Direct payments to fishermen and fish processors by the Federal Government under the groundfish temporary assistance program (GTAP); (2) assistance to fishermen for financing of vessel construction; (3) grants provided to the Newfoundland fishing industry by the Department of Regional Economic Expansion (DREE); and (4) other assistance in the form of loans at preferential rates. The notice offered interested parties an opportunity to submit any relevant data, views, or arguments in writing with respect to the preliminary determination on or before July 25, 1978. After consideration of all information received, it is determined that exports of certain fish from Canada covered by this investigation are subject to bounties or grants within the meaning of section 303 of the act. The bounties or grants are: (1) Cash payments to fishermen for the financing of vessel construction of up to 35 percent of the approved capital cost for vessels between 35 and 75 feet in length. Assistance is available from a different source for vessels over 75 feet in length for up to 20 percent of the approved capital cost of the vessel. This type of aid is treated as a bounty or grant under the law in view of the fact that a preponderance of Canadian fish is exported. Ninety percent of the funds of the former program benefit fishermen of all species of fish who are located in the Atlantic regions of Canada (i.e., Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, and Quebec); the remaining 10 percent benefit fishermen of all species who are located in the rest of Canada. Benefits from the latter program are received by all Canadian fishermen of all species. (2) Grants provided by DREE to the Province of Newfoundland whereby DREE and the provincial authorities share the capital cost for: (a) The augmentation of water supply systems to several coastal communities in Newfoundland, and (b) the construction of wharfs, service center buildings, storage areas, supply and installation of travelift and synchrolift equipment at marine service centers. These benefits are received by Atlantic fishermen of all species. In addition, DREE has provided funds for the construction and improvement of groundfish processing plants in the Atlantic regions of Canada. Only those grants which pertained exclusively to the groundfish under investigation were considered as countervailable. These funds benefited only the Atlantic fishermen of groundfish. Since the benefits of these forms of capital improvements are used almost exclusively by fishermen and fish processors, and as previously noted, a preponderance of the fish produced in Canada is exported, the regional aids described above are considered bounties or grants. (3) Assistance in the form of low-cost loans by the Nova Scotia Fishermen's Loan Board and the New Brunswick Fishermen's Loan Board. Benefits from these programs were received by Atlantic fishermen of all species. It has been determined that the groundfish temporary assistance program (GTAP) no longer constitutes a bounty or grant. Payments under this program, which at its outset provided fishermen and processors of groundfish with cash payments, ceased as of October 1, 1978. It has been determined that certain other programs of the Canadian Government do not constitute a bounty or grant. These are: (1) Loans by the Prince Edward Island Fishermen's Loan Board. Those loans were made at commercial rates of interest. (2) Loans and loan guarantees by the New Brunswick Development Corp. These loans were made at commercial rates of interest and a charge is levied for the guarantee. (3) Loans by the Nova Scotia Industrial Estates Ltd. These loans. were made at commercial rates. (4) Loan guarantees under the Fisheries Improvement Loan Act. These loans were made at commercial rates and a charge is levied for the guarantee. In accordance with section 303 of the act and until further notice, the net amount of bounties or grants has been determined to be, in terms of the f.o.b. price for export to the United States: 1.17 percent for groundfish originating in the Atlantic regions of Canada (i.e., Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, and Quebec); 0.38 percent for groundfish originating in the rest of Canada; 1.08 percent for shellfish originating in the Atlantic regions of Canada; and 0.38 percent for shellfish originating in the rest of Canada. It has been determined that the shellfish and groundfish originating in the rest of Canada receive benefits that are legally de minimis; therefore, no countervailing duties will be assessed on imports of these products. Accordingly, notice is hereby given that the dutiable fish originating in the Atlantic regions of Canada which are the subject of this investigation, imported directly or indirectly from the Atlantic regions of Canada, if entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register, will be subject to payment of countervailing duties equal to the net amount of any bounty or grant determined or estimated to have been paid or bestowed. Effective on or after the date of publication of this notice in the Federal Register and until further notice, upon the entry for consumption or withdrawal from warehouse for consumption of the dutiable fish from Canada, which benefit from these bounties or grants, there shall be collected, in addition to any other duties estimated or determined to be due, countervailing duties in the amount estimated in accordance with the above declaration. To the extent that it can be established to the satisfaction of the Commissioner of Customs that imports of certain dutiable fish from Canada are subject to a bounty or grant smaller than the amount which otherwise would be applicable under the above declaration, the smaller amount so established shall be assessed and collected. Any merchandise subject to the terms of this order shall be deemed to have benefited from a bounty or grant if such bounty or grant, has been or will be credited or bestowed directly or indirectly, upon the manufacture, production, or exportation. Notwithstanding the above, a "Notice of Waiver of Countervailing Duties" is being published concurrently with this order which covers the dutiable fish originating in the Atlantic regions of Canada subject to this investigation in accordance with section 303 (d) of the act. At such time as the waiver ceases to be effective, in whole or in part, a notice will be published setting forth the deposit of estimated countervailing duties which will be required at the time of entry, or withdrawal from warehouse, for consumption of each product then subject to the payment of countervailing duties. The duty-free fish subject to this investigation are included in the above finding of payments of bounties or grants as defined in the act. In accordance with section 303 (a) (2) of the Tariff Act of 1930, as amended (19 U.S.C. 1303(a)(2)), countervailing duties may not be imposed upon any article or merchandise which is free of duty in the absence of a determination by the International Trade Commission that an industry in the United States is being, or is likely to be, injured, or is prevented from being established, by reason of the importation of such article or merchandise into the United States. Accordingly, the International Trade Commission is being advised of this determination and the liquidation of entries, or withdrawals from warehouse, for consumption of the duty-free fish in question will be suspended pending the determination of the Commission. Should the determination of the Commission be affirmative, the Treasury would also consider it appropriate to waive countervailing duties under section 303 (d) of the act, should it then or subsequently have the authority to do so and the preconditions then extent for such a waiver are met. The table in section 159.47 (f) of the Customs Regulations (19 CFR 159.47 (f)) is amended by inserting after the last entry from Canada and under the commodity heading "Fish" the number of this Treasury decision in the column so headed, and the words "Bounty DeclaredRate" in the column headed "Action." (R.S. 251, as amended, secs. 303, 624; 46 Stat. 687, 759, as amended, 88 Stat. 2051, 2052 (19 U.S.C. 66, 1303), as amended, 1624.) Pursuant to reorganization plan No. 26 of 1950 and Treasury Department order 190 (revision 15), March 16, 1978, the provisions of Treasury Department order No. 165, revised, November 2, 1954, and section 159.47 of the Customs Regulations (19 CFR 159.47), insofar as they pertain to the issuance of a final countervailing duty determination by the Commissioner of Customs, are hereby waived. Date: December 29, 1978. ROBERT H. MUNDHEIM, General Counsel of the Treasury. [Published in the Federal Register, Jan. 5, 1979 (44 F.R. 1372)] |