withdrawal penalty which would otherwise be required by § 329.4(e) of this Part.".

[1505-01]

Title 16-Commercial Practices

CHAPTER 1-FEDERAL TRADE

COMMISSION

SUBCHAPTER D-TRADE REGULATION RULES

PART 456-ADVERTISING OF OPHTHALMIC GOODS AND SERVICES

Correction

In FR Doc. 78-15353, appearing at page 23992 in the issue of Friday, June 2, 1978, the following changes should be made:

1. On page 24001, second column, the first word in the eighteenth line of the first full paragraph should read, "produce".

2. On page 24003, second column, the last sentence should be followed by the words, "however, the Commis,sion specifically]".

3. On page 24006, the third line of footnote 30 should read, "the field or in any way to preempt state or".

4. On page 24008, second column, the last line of § 456.9(d) should read, "by private action".

[4810-22]

Title 19-Customs Duties

CHAPTER I-CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY [T.D. 78-182]

PART 159-LIQUIDATION OF DUTIES

Certain Fish From Canada-Waiver of Countervailing Duties AGENCY: Department of the Treasury.

ACTION: Waiver of countervailing duties.

SUMMARY: This notice is to inform the public that a determination has been made to waive countervailing duties that would otherwise be required by section 303 of the Tariff Act of 1930 on imports of dutiable fish from Canada. The waiver is being issued based on actions by the Canadian Government to eliminate the cash assistance program for the fishing industry and the other statutory criteria for granting a waiver.

EFFECTIVE DATE: June 16, 1978. FOR FURTHER INFORMATION CONTACT:

Richard B. Self, Director, Office of

RULES AND REGULATIONS

Tariff Affairs, U.S. Treasury Department, 15th and Fennsylvania Avenue NW., Washington, D.C. 20220, 202-566-8585.

SUPPLEMENTARY INFORMATION: In T.D.-181 published concurrently, it has been determined that bounties or grants within the meaning of section 303 of the Tariff Act of 1930, as amended (19 U.S.C. 1303), are being paid or bestowed directly or indirectly upon the manufacture, production, or exportation of certain fish from Canada.

Section 303(d) of the Tariff Act of 1930, as amended by the Trade Act of 1974 (Pub. L. 93-618, January 3, 1975), authorizes the Secretary of the Treasury to waive the imposition of countervailing duties during the four-year period beginning on the date of enactment of the Trade Act of 1974 if he determines that:

(1) Adequate steps have been taken to reduce substantially or eliminate during such period the adverse effect of a bounty or grant which he has determined is being paid or bestowed with respect to any article or merchandise;

(2) There is a reasonable prospect that under section 102 of the Trade Act of 1974, successful trade agreements will be entered into with foreign countries or instrumentalities providing for the reduction or elimination of barriers to or other distortions of international trade; and

(3) The imposition of the additional duty under the section with respect to such article or merchandise would be likely to seriously jeopardize the satisfactory completion of such negotiations.

Based upon analysis of all the relevant factors and after consultations with interested agencies and parties with direct interest in this proceeding, I have concluded that steps have been taken to reduce substantially the adverse effects of the bounty or grant. Specifically, the Government of Canada is acting to dismantle the groundfish temporary assistance program that has provided direct pay. ments to fishermen and fish processors in Canada. The subsidy for pro. cessors, which is approximately 5 percent ad valorem is being discontinued with respect to claims for payments presented after January 1, 1978. Cash subsidies to "offshore" landings from large vessels, which are approximately 4 percent ad valorem on about 55 percent of the catch, have been discontinued for any claims after March 31, 1978. Finally the 4 percent ad valorem subsidy to "onshore" vessels of a smaller size, accounting for approximately 45 percent of the catch, will be terminated with respect to claims for payments to be presented after October 1, 1978. These steps will effectively reduce the bounty or grant on ground

25995

fish exports by 65 percent as of March 31, 1978. By October 1, 1978, the effective bounty will have been reduced by 92 percent. Thus the steps described above reduce substantially, and by October 1, almost entirely eliminate, the effective bounty or grant on groundfish exports to the United States.

After consulting with appropriate agencies, including the Department of State, the Department of Commerce, and the Office of the Special Repre. sentative for Trade Negotiations, I have further concluded:

(1) That there is a reasonable pros. . pect that, under section 102 of the Trade Act of 1974, successful trade agreements will be entered into with foreign countries or instrumentalities providing for the reduction or elimination of barriers to or other distortions of international trade; and

(2) The imposition of countervailing duties on dutiable groundfish from Canada would be likely seriously to jeopardize the satisfactory completion of such negotiations.

Accordingly, pursuant to section 303(d) of the Tariff Act of 1930, as amended (19 U.S.C. 1303(d)), I hereby waive the imposition of countervailing duties on certain dutiable fish imports from Canada.

This determination may be revoked. in whole or in part, at any time and shall be revoked whenever the basis determination supporting the no longer exists. Unless sooner revoked or made subject to a resolution of disapproval adopted by either House of the Congress of the United States pursuant to section 303(e) of the Tariff Act of 1930, as amended (19 U.S.C. 1303(e), this waiver of countervailing duties will, in any event by statute, cease to have force and effect on January 4, 1979.

On or after the date of publication in the FEDERAL REGISTER of a notice revoking this determination, in whole or in part, the day after the date of adoption by either House of Congress of a resolution disapproving this "waiver of countervailing duties," or January 4, 1979, whichever occurs first, counte.. vailing duties will be assessable on cerLain groundfish imported directly or indirectly from Canada in accordance with T.D. 78-181, published concurrently with this determination.

The table in § 159.47(f) of the Customs regulations (19 CFR 159.47(f)) is amended by inserting after the last entry from Canada under the com

odity heading "Fish," the number of this Treasury Decision in the column heading "Treasury Decision," and the words "Imposition of Countervailing Duties Waived" in the column headed "Action."

(R.S. 251, secs. 303, as amended, 624; 46 Stat. 637, 759, 88 Stat. 2051, 2052 (19 U.S.C. 66, 1303), as amended 1624)

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 dutyfree fish are included in this determination. However, countervailing duties on the dutiable fish 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 is being referred to the International Trade Commission for an injury determination.

EFFECTIVE DATE: June 16, 1978.

FOR FURTHER
CONTACT:

INFORMATION

Vincent P. Kane, Operations Officer, Duty Assessment Division, United States Customs Service, 1301 Constitution Avenue NW., Washington, D.C. 20229, 202-566-5492.

SUPPLEMENTARY INFORMATION: On January 27, 1978, a "Preliminary Countervailing Duty Determination" was published in the FEDERAL REGISTER (42 FR 3786). 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 110.3570, 110.3575, 110.5025, 110.5030, 110.5045, 110.5050, 110.5065, 110.5520, 110.5550, 110.5565, 110.5570, 110.1585, 110.1589, 110.4710, 110.4726, 110.7033, 110.7039, 111.2200, 111.6400, 111.6800, Tariff Schedules of the United States Annotated (TSUSA).

The fish imports from Canada which are classifiable under items 310.1585, 110.1589, 110.4710, 110.4726, 110.7033, 110.7039, 111.2200, 111.6400, and 111.6800 TSUSA are free of duty.

RULES AND REGULATIONS

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; and (3) grants provided to the Newfoundland fishing industry by the Department of Regional Economic Expansion (DREE).

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 February 27, 1978.

After consideration of all information received it is determined that exports of all 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) Payments under the Groundfish Temporary Assistance Program, which at its outset provided fishermen and fish processors with cash payments on a landed weight or processed weight basis and some of which remain to be paid through September 30, 1978.

(2) Cash payments to fishermen for the financing of vessel construction of up to 35 percent of the approved capital cost. 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.

(3) Grants provided by the Department of Regional Economic Assistance (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 Maine Service Centers. 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.

directly or indirectly from 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.

In accordance with section 303 of the Act and until further notice, the net amount of such bounties or grants has not been ascertained and determined but is estimated to be 5 percent of the f.o.b. price for export to the United States of the dutiable fish from Canada covered by this Notice.

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.

a

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, "Notice of Waiver of Countervailing Duties" is being published concurrently with this order which covers the du tiable fish from 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 con

(a) Vessel construction assistance under the Fishermen's Loan Act provided by lending authorities in New Brunswick, Nova Scotia, and Prince Edward Island;

(b) Loans for the processing facilities under the New Brunswick Development Corporation; and

(c) Plant expansion loans provided by Nova Scotia Industrial Estates, Ltd. Accordingly, notice is hereby given that the dutiable fish which are the subject of this investigation, imported

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 dutyfree 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 based on the actions by the Government of Canada described in the waiver notice applicable to the programs there described.

Pursuant to Reorganization Plan No. 26 of 1950 and Treasury Department Order 190 Revision 14, July 1, 1977, the provisions of Treasury Department Order 165, revised November 2, 1954, and § 159.47(d) of the Customs regulations (19 CFR 159.47(d)), insofar as they pertain to the issuance of a countervailing duty order by the Commissioner of Customs, are hereby waived.

Dated: July 13, 1978.

ROBERT H. MUNDHEIM,

General Counsel of the Treasury. [FR Doc. 78-16815 Filed 6-15-78; 8:45 am)

[4710-02]

Title 22-Foreign Relations

CHAPTER II-AGENCY FOR INTERNATIONAL DEVELOPMENT, DEPARTMENT OF STATE

[AID Reg. 1)

PART 201-RULES AND PROCEDURES APPLICABLE ΤΟ COMMODITY TRANSACTIONS FINANCED BY AID

Miscellaneous Amendments AGENCY: Agency for International Development, State.

ACTION: Final rule.

SUMMARY: The Agency for International Development (AID) is amending its regulations relating to commodity transactions financed by the agency. Certain of the amendments relate to cligible transportation costs, geographic source of components of commodities, incidental services, determination of prevailing market price under formal bid procurement, recordretention requirements and a requirement that suppliers provide information concerning participation of small business or minority business in the

Robert D. Elliott, Deputy Director, Office of Commodity Management (SER/COM), Department of State, Washington, D.C. 20523, telephone 703-235-8848.

SUPPLEMENTARY INFORMATION: As a result of a review of AID's procurement policies and practices several amendments have been made to AID Regulation 1.

The major change in AID policy is the modification of the rule regarding eligible transportation costs when Code 941 (Selected Free World) is authorized for procurement. Previously, when Code 941 was the authorized source for procurement of commodities, the cost of freight on vessels under flag registry of any Code 941 country was eligible for AID financing. AID did not finance the use of vessels under flag registry of the cooperating country; i.e., the country receiving the assistance. Under the new policy, when Code 941 is the authorized source, AID will finance only those transportation costs incurred on vesels under flag registry of the United States or the cooperating country. The change has been made in view of the fact that a sizeable portion of the world tonnage of ocean vessels is registered under flags of convenience in a few of the countries included in Code 941 and is beneficially owned by nationals of developed countries. If AID determines that there is a general unavailability of U.S. or cooperating country flag vessels, the use of vessels under flag registry of any Code 941 country will be authorized in the implementing documents. This will restrict the availability of vessels, but will benefit the economy of the cooperating country.

There are two other changes concerning eligibility of transportation costs. Shipment beyond the point of entry in the cooperating country may be financed by, if intermodal transportation service covering the carriage of cargo from point of origin to destination is used, and the point of destination, as stated in the carrier's through bill of lading, is established in the carrier's tariff. This updates existing regulations to reflect the growing use of intermodal service and will allow shippers to use this system. In addition, the policy that AID will not finance applicable freight on any liner vessels unless AID has been notified

25997

that the applicable freight rate has been filed with the Federal Maritime Commission for voyages originating in the U.S. or filed with AID/W for voyages originating outside the U.S.. has been rescinded. The Federal Maritime Commission regulations require the filing of U.S. tariff rates anyway, making the AID requirement redundant; and the requirement for filing foreign tariffs with AID/W has beɛa difficult to implement and of questionable utility. This will reduce paperwork for shippers.

AID's requirments concerning the geographic source of components of commodities financed by AID under regulation 1 have also been modified. Components from the cooperating country and code 941 countries will now be eligible in unlimited amounts regardless of the authorized source for procurement specified in the implementing documents. However, the AID-financed commodity must still be manufactured, processed, or assembled in an authorized source country. This will benefit the economies of the less developed countries and simplify componentry rules for suppliers.

Incidental services such as installation or erection of equipment or training personnel to use and maintain the equipment, may now be financed by AID even when they are procured with local currency in the cooperating country. To be eligible, any incidental service must be specified in the purchase contract for the equipment, must not be priced in excess of the prevailing price for similar services, and must not exceed $50,000 or 25 percent of the total purchase contract, whichever is less. This will allow AID financing of more incidental services which are often an integral and neccssary item to assure effective use of the equipment.

The formal competitve bid procedures, applicable to public sector importers, previously established a commodity procurement with an estimated landed cost of $5,000 as a small value procurement for which AID's advertising requirements need not be followed. This exemption has been raised to $25,000. This will compensate for inflation, make procedures under AID regulation 1 consistent with other AID procurement rules, and lessen requirements on importers.

The minimum purchase price of custom-made equipment for which advance or progress payments may be financed has been raised from $100,000 to $200,000. It has also been determined that the initial advance, if any, may not exceed 10 percent of the total purchase price. This will compensate for inflation and will benefit suppliers by conforming AID procedures more closely with commercial practice.

A new rule governing determination of prevailing market price has been