purposes to convert such currency into currency of the United States, conversion shall be at the following rates: CHAPTER I-UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY (T.D. 78-164) Countervailing Duties on Certain Products from Spain AGENCY: Customs Service, United States Treasury Department. ACTION: Method of Calculation of "Net Amount" of Bounty or Grant in Determining Countervailing Duties. SUMMARY: This notice is to advise the public of the method by which the "net amount" of bounties or grants have been determined with respect to certain products imported from Spain. T.D. 78–166, with respect to unwrought zinc, T.D. 78-167, with respect to bottled green olives, and T.D. 78-165, with respect to non-rubber footwear, note that a Desgravacion Fiscal is paid to exporters of such products which exceeds by the amounts indicated in the respective Notices the indirect taxes directly related to the exported products paid by the producers. Such excess payments are deemed a "bounty" or "grant" within the meaning of Section 303 of the Tariff Act. The classification of indirect taxes for which an offset has been permitted in determining the "net amount" of the "bounty" or "grant" is described below. FOR FURTHER INFORMATION CONTACT: Richard B. Self, Director, Office of Tariff Affairs, United States Treasury Department, 15th and Pennsylvania Avenue NW., Washington, DC. 20220 (telephone (202) 566-8585). SUPPLEMENTARY INFORMATION: Three Notices published contemporaneously establish rates for countervailing duties applicable to certain products imported from Spain, These rates have been determined by subtracting from the aggregate amounts of the Desgravacion Fiscal paid to exporters of the products in question, those amounts paid by the producers of those products in indirect taxes. In previous Treasury Decisions with respect to products imported from countries remitting or rebating value added taxes on exports, it has been determined that the remission or rebate of the full amount of such value added taxes is not to be regarded as a "bounty" or "grant" within the meaning of the countervailing duty law. The turnover tax system, such as is used in Spain, is in its economic effects, similar to a system using taxes on "value added". Accordingly, it has been determined in these cases that if the full amount of value added tax rebated or remitted to the exporter of merchandise from one country is not a "bounty" or "grant", it is inappropriate to deny to an exporter in a country using a cascade turnover tax system similar treatment with respect to individual indirect taxes paid on or in the production of the exported merchandise. In the three determinations published herewith, taxes paid on or in the manufacture of the products exported have been allowed as offsets in calculating the "net amount" by which the Desgravacion Fiscal may be treated as a "bounty" or "grant". On the other hand, no offset has been allowed with respect to the delayed receipt of rebates by the exporters, since it has not been demonstrated that such delays are required under Spanish law. Moreover, a variety of so-called parafiscal taxes have not been allowed as offsets since they are both denominated and in fact charges for services rendered, such as sanitary inspections. As such they are properly treated as business expenses whose rebate constitutes a "bounty". Dated June 10, 1978: PETER D. EHRENHAFT, Deputy Assistant Secretary of the Treasury. [Published in the FEDERAL REGISTER June 15, 1978 (43 FR 25812)] TITLE 19-CUSTOMS DUTIES CHAPTER I-UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY (T.D. 78-165) Non-Rubber Footwear from Spain-New Rate of Countervailing Duty Declared AGENCY: Customs Service, United States Treasury Department. ACTION: Modification of Countervailing Duty Declared for NonRubber Footwear from Spain. SUMMARY: This notice is to advise the public of the new rate of countervailing duty applicable to imports of non-rubber footwear from Spain. Based upon a review of further information received, the net amount of benefits given by the Government of Spain, which constitute bounties or grants upon the manufacture, production or exportation of non-rubber footwear, within the meaning of the countervailing duty law, has been determined to be 0.91% of the F.O.B. or ex-works price to the U.S. Accordingly, effective today, non-rubber footwear from Spain will be subject to countervailing duty in accordance with this determination. 302-643-80-23 EFFECTIVE DATE: June 15, 1978. FOR FURTHER INFORMATION CONTACT: Richard B. Self, Director, Office of Tariff Affairs, United States Treasury Department, 15th and Pennsylvania Avenue, NW., Washington, D.C. 20220 (telephone (202) 566-8585). SUPPLEMENTARY INFORMATION: In the FEDERAL REGISTER of September 12, 1975 (39 FR 32904), notice was given (T.D. 74-235) that it had been determined that exports of non-rubber footwear from Spain benefit from bounties or grants within the meaning of section 303 of the Tariff Act of 1930 (19 U.S.C. 1303). At that time, notice was given that non-rubber footwear imported directly or indirectly from Spain, if entered for consumption or withdrawn from warehouse for consumption after the expiration of 30 days after publication of that notice in the Customs Bulletin, would be subject to the 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, the amount of the bounties or grants, under the information then available, was determined to be 3.0 percent of the f.o.b. or ex-works price to the United States. On the basis of a review of all of the information developed, the amount of indirect taxes directly related to the product or its components has been found to be 9.09% ad valorem. Accordingly, it has been determined that the net amount of bounty or grant being paid or bestowed, directly or indirectly, within the meaning of Section 303 of the Act, upon the exportation of non-rubber footwear from Spain is 0.91%. This amount represents the difference between the Desgravacion Fiscal rebate of 10% and the amount of indirect taxes found to be directly related to the product or its components. Effective on June 15, 1978, and until further notice, upon the entry for consumption or withdrawal from warehouse for consumption of such dutiable non-rubber footwear imported directly or indirectly from Spain 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 ascertained in accordance with the above declaration. 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 paid or credited, directly or indirectly, upon the manufacture, production, or exportation of such non-rubber footwear from Spain. The table in section 159.47 (f) of the Customs Regulations (19 CFR section 159.47(b)) is amended by inserting in respect of the commodity "Non-Rubber Footwear" and of the country "Spain", the number of this Treasury Decision in the column headed "Treasury Decision" and the words "new rate" in the column headed "Action". (R.S. 251, secs. 303, as amended, 624; 46 Stat. 687, 759, 88 Stat. 2049 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 countervailing duty determination by the Commissioner of Customs, are hereby waived. Dated June 10, 1978: PETER D. EHRENHAFT, Deputy Assistant Secretary of the Treasury. [Published in the FEDERAL REGISTER June 15, 1978 (43 FR 25814)] TITLE 19-CUSTOMS DUTIES CHAPTER I-UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY (T.D. 78-166) PART 159-LIQUIDATION OF DUTIES Unwrought Zinc from Spain-Declaration of Net Amount of Bounty or Grant AGENCY: Customs Service, United States Treasury Department. ACTION: Net Amount of Bounty or Grant Declared. SUMMARY: This notice is to advise the public of the net amount of benefits given by the Government of Spain, which constitute bounties or grants upon manufacture, production or exportation of unwrought zinc within the meaning of the countervailing duty law. Based upon a review of information received, the net amount of such bounties or grants has been determined to be 1.29%. Accordingly, estimated countervailing duties previously deposited in amounts in excess of this determination will be refunded and entries of unwrought zinc from Spain will be subject to countervailing duties in accordance with this determination. EFFECTIVE DATE: June 15, 1978. FOR FURTHER INFORMATION CONTACT: Richard B. Self, Director, Office of Tariff Affairs, United States Treasury Department, |