FINAL RESULTS OF REDETERMINATION ON REMAND
KAJARIA IRON CASTINGS PVT. LTD., ET. AL. V. UNITED STATES
Slip. Op. 00 -147 (Ct. Int'l Trade, November 9, 2000)
In accordance with the U.S. Court of International Trade's (CIT) order in Slip. op. 00 - 147 (November 9, 2000), Consol. Court No. 95-09-01240 (Kajaria Remand), the Department of Commerce (the Department), pursuant to the U.S. Court of Appeals for the Federal Circuit's (CAFC) opinion in Kajaria Iron Castings Pvt. Ltd. v United States, 156 F.3d 1163 (Fed. Cir. September 8, 1998) (Kajaria), has prepared these final results of redetermination on remand with respect to the final results of the 1991 countervailing duty administrative review of iron-metal castings from India. Certain Iron-metal Castings from India: Final Results of Countervailing Duty Administrative Review, 60 Fed. Reg. 44,843 (Aug. 29, 1995) (Final Results). Pursuant to the Court's remand instructions, the Department has recalculated the program rates for the subsidies conferred under section 80HHC of India's Income Tax Act (80HHC) and the company-specific total ad valorem rates.
There are three subsidy programs at issue in this remand: (1) the Cash Compensatory Support (CCS) program which rebates indirect taxes and import duties; (2) the International Price Reimbursement Scheme (IPRS) which reimburses Indian castings exporters for the difference in price between higher-priced domestic pig iron and imported pig iron; and (3) 80HHC of India's Income Tax Act (80HHC) which allows exporters to deduct profits derived from the export of goods and merchandise from taxable income. In the Final Results, we determined that the CCS and 80HHC were countervailable export subsidies. We also determined that the IPRS was not used with respect to exports of the subject merchandise to the United States.
In accordance with the Court's instructions we have recalculated the 80HHC subsidy "by subtracting the IPRS rebates and CCS over-rebates from taxable income before determining any 80HHC benefit." In addition, we recalculated the all-others rate by taking the weighted-average of all of the companies' company-specific rates. We then determined whether each company's individual company-specific rate was significantly different than the all-others rate. If so, the company was assigned its individually-calculated rate. If not, it was assigned the recalculated all-others rate. The rates in the first table below are the original and recalculated rates for the section 80HHC program. The rates set forth in the second table are the original and recalculated total ad valorem rates for each company.
80HHC Program Ad Valorem Rate Comparison Original Recalculated Remand Program Rate Program Rate Calcutta Ferrous [ ] Carnation Enterprise Pvt. Ltd. Commex Crescent Foundry Co. Pvt. Ltd. Dinesh Kajaria Castings Ltd. Kejriwal Iron & Steel Works Nandikeshwari R.B. Agarwalla & Co. R.S.I. Serampore Industries Pvt. Ltd. Super Castings (India) Tirupati UMA Iron & Steel Co. [ ] Company-specific Total Ad Valorem Rate Comparison Original Recalculated Final Total Administrative Remand Ad Valorem Review Rate Rates Rates Calcutta Ferrous [ ] 0.93% Carnation Enterprise Pvt. Ltd. 0.66% Commex 0.44% (de minimis) Crescent Foundry Co. Pvt. Ltd. 1.18% Dinesh 0.00% Kajaria Castings Ltd. 2.56% Kejriwal Iron & Steel Works 0.40% (de minimis) Nandikeshwari 2.56% R.B. Agarwalla & Co. 1.73% R.S.I. 4.19% Serampore Industries Pvt. Ltd. 0.78% Super Castings (India) 23.00% Tirupati 3.68% UMA Iron & Steel Co. [ ] 1.84% All-others Rate 5.53% 2.56%
On December 1, 2000, we provided a draft of these final results to the interested parties and requested that they provide comments on the draft results by December 5, 2000. We received comments from the Producers on December 5, 2000. We did not receive any comments from the Petitioners. We have addressed the Producers' comments in the "Comment Section," below.
The Producers point out that the re-calculated company-specific rates for Commex Corporation and Kejriwal Iron & Steel Works are less than 0.5% and therefore are de minimis.
We agree with the Producers that the final total ad valorem rates for Commex Corporation and Kejriwal Iron & Steel Works are de minimis.
Troy H. Cribb
December 11, 2000