Final Determination of Sales at Less Than Fair Value and Affirmative Critical Circumstances: Magnesium Metal From the People's Republic of China, 9037-9041 [E5-760]
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Federal Register / Vol. 70, No. 36 / Thursday, February 24, 2005 / Notices
9037
CHLORINATED ISOCYANURATES FROM THE PRC SECTION A RESPONDENTS
Original preliminary margin (percent)
Manufacturer/exporter
Amended preliminary margin (percent)
140.27
140.27
140.27
140.27
140.27
111.03
111.03
111.03
111.03
111.03
Changzhou Clean Chemical Co., Ltd. .........................................................................................................
Liaocheng Huaao Chemical Industry Co., Ltd. ...........................................................................................
Shanghai Tian Yuan International Trading Co., Ltd. ...................................................................................
Sinochem Hebei Import & Export Corporation ............................................................................................
Sinochem Shanghai Import & Export Corporation ......................................................................................
The collection of bonds or cash
deposits and suspension of liquidation
will be revised accordingly and parties
will be notified of this determination, in
accordance with section 733(d) and (f)
of the Act.
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, we have notified the
International Trade Commission (‘‘ITC’’)
of our amended preliminary
determination. If our final
determination is affirmative, the ITC
will determine before the later of 120
days after the date of the Preliminary
Determination or 45 days after our final
determination whether the domestic
industry in the United States is
materially injured, or threatened with
material injury, by reason of imports, or
sales (or the likelihood of sales) for
importation, of the subject merchandise.
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act and 19
CFR 351.224(e).
Dated: February 17, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. 05–3688 Filed 2–23–05; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–896]
Final Determination of Sales at Less
Than Fair Value and Affirmative Critical
Circumstances: Magnesium Metal
From the People’s Republic of China
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
Final Determination
We determine that magnesium metal
from the People’s Republic of China
(‘‘PRC’’) is being, or is likely to be, sold
in the United States at less than fair
value (‘‘LTFV’’) as provided in section
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735 of Tariff Act of 1930, as amended
(‘‘the Act’’). The estimated margins of
sales at LTFV are shown in the ‘‘Final
Determination Margins’’ section of this
notice.
DATES: Effective Date: February 24,
2005.
FOR FURTHER INFORMATION CONTACT:
Laurel LaCivita or Lilit Astvatsatrian,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue NW., Washington,
DC 20230; telephone: (202) 482–4243
and (202) 482–6412, respectively.
Case History
The Department of Commerce (‘‘the
Department’’) published its preliminary
determination of sales at LTFV on
October 4, 2004. See Preliminary
Determination of Sales at Less Than
Fair Value: Magnesium Metal from the
People’s Republic of China, 69 FR
59187, (October 4, 2004) (‘‘Preliminary
Determination’’). The Department
selected two mandatory respondents 1
and received a Section A response from
a third company requesting a rate
separate from the PRC-wide entity.2
Since the Preliminary Determination,
the Department conducted verification
1 Tianjin Magnesium International Co., Ltd.
(‘‘Tianjin’’), and the RSM companies. In the
preliminary determination we determined that the
following companies were collapsed members of
the RSM group of companies for the purposes of
this investigation: Nanjing Yunhai Special Metals
Co., Ltd. (‘‘Yunhai Special’’), Nanjing Welbow
Metals Co., Ltd. (‘‘Welbow’’), Nanjing Yunhai
Magnesium Co., Ltd. (‘‘Yunhai Magnesium’’),
Shanxi Wenxi Yunhai Metals Co., Ltd. (‘‘Wenxi
Yunhai’’). See Memorandum to Laurie Parkhill,
Director, Office 8, NME/China Group, from Laurel
LaCivita, Senior Case Analyst, through Robert
Bolling, Program Manager: Antidumping Duty
Investigation of Magnesium Metal from the People’s
Republic of China: Affiliation and Collapsing of
Members of the RSM Group and its Affiliated U.S.
Reseller, Toyota Tsusho America, Inc., dated
September 24, 2004. In addition, we calculated a
separate rate for China National Nonferrous Metals
I/E Corp. Jiangsu Branch (‘‘Jiangsu Metals’’). See
Memorandum to Laurie Parkhill, Director, Office 8,
NME/China Group, from Laurel LaCivita, Senior
Case Analyst and Lilit Astvatsatrian, Case Analyst,
through Robert Bolling, Program Manager: Separate
Rates Memorandum, dated September 24, 2004.
2 Beijing Guangling Jinghua Science &
Technology Co., Ltd. (‘‘Guangling’’).
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of RSM and Tianjin in both the PRC and
the United States, where applicable. See
the Verification Section below for
additional information. On November
22, 2004, the parties 3 submitted
surrogate-value information. On
December 2, 2004, the parties submitted
rebuttals to those surrogate-value
submissions. On December 28, 2004, the
petitioners submitted an allegation of
critical circumstances in accordance
with section 733(e)(1) of the Act and 19
CFR 351.206(c)(1). On January 4, 2005,
the Petitioners, RSM, and Tianjin
submitted case briefs, and on January
10, 2005, all three parties submitted
rebuttal briefs. On January 11, 2005, the
Department invited all parties to
comment on the petitioners’ allegation
of critical circumstances and requested
RSM, Tianjin, and Guangling to report
the quantity and value of their
shipments of subject merchandise to the
United States on a monthly basis for the
period January 2003 through December
2004. On January 19, 2005, RSM and
Tianjin provided the requested
information. Guangling did not respond
to the Department’s request for
information. On February 3, 2005, the
Department published its preliminary
determination of critical circumstances
in which it found that critical
circumstances exist with regard to
imports of magnesium metal from the
PRC for Tianjin, Guangling, and the
PRC-wide entity. See Affirmative
Preliminary Determination of Critical
Circumstances: Magnesium Metal from
the People’s Republic of China, 70 FR
5606 (February 3, 2005) (‘‘Critical
Circumstances Determination’’). On
February 7, 2005, the petitioners
submitted comments on the
Department’s preliminary determination
of critical circumstances. None of the
respondents provided comments or
rebuttals on the Department’s
preliminary determination of critical
circumstances.
3 The parties include RSM, Tianjin, and the
petitioners (U.S. Magnesium LLC, United
Steelworkers of America, Local 8319 and Glass,
Molders, Pottery, Plastics & Allied Workers
International, Local 374). Guangling did not submit
case or rebuttal briefs.
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Analysis of Comments Received
All issues raised in the case and
rebuttal briefs by parties to this
proceeding are addressed in the
memorandum from Barbara E. Tillman,
Acting Deputy Assistant Secretary for
Import Administration, to Joseph A.
Spetrini, Acting Assistant Secretary for
Import Administration, Issues and
Decision Memorandum for the LessThan-Fair-Value Investigation of
Magnesium Metal from the People’s
Republic of China, dated February 16,
2005, which is hereby adopted by this
notice (‘‘Issues and Decision
Memorandum’’). A list of the issues
which parties raised and to which we
respond in the Issues and Decision
Memorandum is attached to this notice
as an Appendix. The Issues and
Decision Memorandum is a public
document and is on file in the Central
Records Unit (‘‘CRU’’), Main Commerce
Building, Room B–099, and is accessible
on the Web at https://ia.ita.doc.gov. The
paper copy and electronic version of the
memorandum are identical in content.
Scope of Investigation
The products covered by this
investigation are primary and secondary
alloy magnesium metal regardless of
chemistry, raw material source, form,
shape, or size. Magnesium is a metal or
alloy containing by weight primarily the
element magnesium. Primary
magnesium is produced by
decomposing raw materials into
magnesium metal. Secondary
magnesium is produced by recycling
magnesium-based scrap into magnesium
metal. The magnesium covered by this
investigation includes blends of primary
and secondary magnesium.
The subject merchandise includes the
following alloy magnesium metal
products made from primary and/or
secondary magnesium including,
without limitation, magnesium cast into
ingots, slabs, rounds, billets, and other
shapes, magnesium ground, chipped,
crushed, or machined into raspings,
granules, turnings, chips, powder,
briquettes, and other shapes: products
that contain 50 percent or greater, but
less than 99.8 percent, magnesium, by
weight, and that have been entered into
the United States as conforming to an
‘‘ASTM Specification for Magnesium
Alloy’’ 4 and thus are outside the scope
of the existing antidumping orders on
magnesium from the PRC (generally
referred to as ‘‘alloy’’ magnesium).
4 The
meaning of this term is the same as that
used by the American Society for Testing and
Materials in its Annual Book of ASTM Standards:
Volume 01.02 Aluminum and Magnesium Alloys.
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The scope of this investigation
excludes the following merchandise: (1)
All forms of pure magnesium, including
chemical combinations of magnesium
and other material(s) in which the pure
magnesium content is 50 percent or
greater, but less than 99.8 percent, by
weight, that do not conform to an
‘‘ASTM Specification for Magnesium
Alloy’’ 5; (2) magnesium that is in liquid
or molten form; and (3) mixtures
containing 90 percent or less
magnesium in granular or powder form,
by weight, and one or more of certain
non-magnesium granular materials to
make magnesium-based reagent
mixtures, including lime, calcium
metal, calcium silicon, calcium carbide,
calcium carbonate, carbon, slag
coagulants, fluorspar, nephaline syenite,
feldspar, alumina (Al203), calcium
aluminate, soda ash, hydrocarbons,
graphite, coke, silicon, rare earth
metals/mischmetal, cryolite, silica/fly
ash, magnesium oxide, periclase,
ferroalloys, dolomite lime, and
colemanite.6
The merchandise subject to this
investigation is currently classifiable
under items 8104.19.00 and 8104.30.00
of the Harmonized Tariff Schedule of
the United States (‘‘HTSUS’’). Although
the HTSUS items are provided for
convenience and customs purposes, the
written description of the merchandise
under investigation is dispositive.
Verification
As provided in section 782(i) of the
Act, we verified the information
submitted by the mandatory
respondents for use in our final
determination (see the Department’s
verification reports on the record of this
investigation, located in the CRU, with
respect to Jiangsu Metals, Yunhai
5 This material is already covered by existing
antidumping orders. See Antidumping Duty Orders:
Pure Magnesium from the People’s Republic of
China, the Russian Federation and Ukraine;
Amended Final Determination of Sales at Less
Than Fair Value: Antidumping Duty Investigation
of Pure Magnesium from the Russian Federation, 60
FR 25691 (May 12, 1995), and Antidumping Duty
Order: Pure Magnesium in Granular Form from the
People’s Republic of China, 66 FR 57936 (November
19, 2001).
6 This third exclusion for magnesium-based
reagent mixtures is based on the exclusion for
reagent mixtures in the 2000–2001 investigations of
magnesium from the PRC, Israel, and Russia. See
Final Determination of Sales at Less Than Fair
Value: Pure Magnesium in Granular Form From the
People’s Republic of China, 66 FR 49345
(September 27, 2001); Final Determination of Sales
at Less Than Fair Value: Pure Magnesium From
Israel, 66 FR 49349 (September 27, 2001); Final
Determination of Sales at Not Less Than Fair Value:
Pure Magnesium From the Russian Federation, 66
FR 49347 (September 27, 2001). These mixtures are
not magnesium alloys because they are not
chemically combined in liquid form and cast into
the same ingot.
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Special, Welbow, Bada, Tianjin, and
Toyota Tsusho America, Inc. (‘‘TAI’’)).
For all verified companies, we used
standard verification procedures,
including examination of relevant
accounting and production records as
well as original source documents
provided by respondents.
Surrogate Country
In the Preliminary Determination, we
stated that we had selected India as the
appropriate surrogate country to use in
this investigation for the following
reasons: (1) India is at a level of
economic development comparable to
that of the PRC; (2) Indian
manufacturers produce comparable
merchandise and are significant
producers of aluminum; (3) India
provides the best opportunity to use
appropriate, publicly available data to
value the factors of production. See
Preliminary Determination, 69 FR at
59191. For the final determination, we
made no changes to our findings with
respect to the selection of a surrogate
country.
Critical Circumstances
As described below in the section
concerning the application of adverse
facts available (‘‘AFA’’), we are applying
total AFA to the group of RSM
companies which includes Jiangsu
Metals and TAI. As part of total AFA for
the RSM companies, we determine that
RSM and Jiangsu Metals are not eligible
for a separate rate and, therefore, remain
a part of the PRC-wide entity. Therefore,
we revised our critical-circumstances
analysis to include imports from RSM
and Jiangsu Metals in the total quantity
of imports from the PRC-wide entity
during the base and comparison
periods. As a result of this change, we
have determined that critical
circumstances do not exist with respect
to the PRC-wide entity. Additionally, for
this final determination we continue to
find that critical circumstances exist for
Tianjin and Guangling. For further
details regarding the Department’s
critical-circumstances analysis see the
Memorandum from Laurel LaCivita,
Case Analyst, to Laurie Parkhill, Office
Director, AD/CVD Enforcement,
Antidumping Duty Investigation of
Magnesium Metal from the People’s
Republic of China (the ‘‘PRC’’)—
Affirmative Final Determination of
Critical Circumstances, dated February
16, 2005 (‘‘Final Critical Circumstances
Memorandum’’).
Separate Rates
In the Preliminary Determination, the
Department found that Guangling,
which provided a response to Section A
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of the antidumping questionnaire, was
eligible for a rate separate from the PRCwide rate. The margin we established in
the Preliminary Determination for
Guangling was 140.09 percent. Because
the rates of the selected mandatory
respondents have changed since the
Preliminary Determination, we have
recalculated the rate applicable to
Guangling. The final rate is 91.36
percent.
As discussed below, the Department
has determined to apply AFA with
respect to the RSM companies. In
addition, we have determined that there
is no reliable basis for granting the RSM
companies a separate rate. Accordingly,
the RSM companies have not overcome
the presumption that they are part of the
PRC-wide entity and, therefore, entries
of their merchandise will be subject to
the PRC-wide rate.
Adverse Facts Available
Section 776(a)(2) of the Act provides
that the Department shall apply ‘‘facts
otherwise available’’ if, inter alia, an
interested party or any other person (A)
withholds information that has been
requested, (B) fails to provide
information within the deadlines
established, or in the form or manner
requested by the Department, subject to
subsections (c)(1) and (e) of section 782,
(C) significantly impedes a proceeding,
or (D) provides information that cannot
be verified as provided by section 782(i)
of the Act. Section 776(b) of the Act
provides further that the Department
may use an adverse inference when a
party has failed to cooperate by not
acting to the best of its ability to comply
with a request for information.
Where the Department determines
that a response to a request for
information does not comply with the
request, section 782(d) of the Act
provides that the Department will so
inform the party submitting the
response and will, to the extent
practicable, provide that party the
opportunity to remedy or explain the
deficiency. If the party fails to remedy
the deficiency within the applicable
time limits and subject to section 782(e)
of the Act, the Department may
disregard all or part of the original and
subsequent responses, as appropriate.
Section 782(e) of the Act provides that
the Department ‘‘shall not decline to
consider information that is submitted
by an interested party and is necessary
to the determination but does not meet
all applicable requirements established
by the administering authority’’ if the
information is timely, can be verified,
and is not so incomplete that it cannot
be used and if the interested party acted
to the best of its ability in providing the
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information. Where all of these
conditions are met, the statute requires
the Department to use the information if
it can do so without undue difficulties.
In the Preliminary Determination, we
calculated a dumping margin of 128.11
percent for RSM based on the
information it reported in its
questionnaire responses. See
Preliminary Determination. We
conducted verification of the RSM
companies in the PRC and in the United
States.
In the Preliminary Determination, we
determined that the RSM group of
companies and Jiangsu Metals were
affiliated under sections 771(33)(E) and
(F) of the Act. See Preliminary
Determination at 59192. Additionally,
we determined that TAI and the RSM
group of companies were affiliated
under sections 771(33)(E) and (F) of the
Act. See Preliminary Determination at
59192. There has been no information
placed on the record since the
Preliminary Determination that
contradicts our affiliation
determinations. Therefore, for the final
determination, we continue to find that
RSM, Jiangsu Metals, and TAI are
affiliated under the statute.
Based on record evidence gathered as
a result of the verification of TAI, RSM’s
affiliated customer in the United States,
and pursuant to the statutory
requirements of the Act, the Department
has determined that the RSM Group and
its affiliates impeded this investigation,
provided unverifiable information, and
did not cooperate to the best of their
ability to comply with the Department’s
requests for information. Therefore, we
determine that the use of AFA is
warranted with respect to all of TAI’s
sales of subject merchandise whether
exported through RSM or Jiangsu Metals
for the purposes of the final
determination of this investigation. See
our response to Comment 1 in the
Decision Memorandum for a further
discussion of this issue.
In the Preliminary Determination, the
Department granted RSM and Jiangsu
Metals separate rates based on the
information provided in their
questionnaire responses. See
memorandum to Laurie Parkhill, Office
Director, China/NME Group, through
Robert Bolling, Program Manager, from
Laurel LaCivita, Senior Case Analyst
and Lilit Astvatsatrian, Case Analyst,
Preliminary Determination: Magnesium
Metal from the People’s Republic of
China: Separate-Rates Memorandum
(‘‘Separate Rates Memorandum’’), dated
September 24, 2004, at 13. Because we
found that RSM’s affiliate TAI did not
cooperate to the best of its ability and
are applying AFA to all of TAI’s sales
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9039
of subject merchandise in the United
States, we have determined that RSM
and Jiangsu Metals, which produced
and/or exported the subject
merchandise, do not qualify for separate
rates. See our response to Comment 3 in
the Issues and Decision Memorandum
for a further discussion of this issue.
Corroboration of the Adverse-FactsAvailable Rate
In the Preliminary Determination, in
accordance with sections 776(b) of the
Act, we assigned an AFA rate to the
PRC-wide entity based on a calculated
margin derived from information
obtained in the course of the
investigation and placed on the record
of this proceeding. At the Preliminary
Determination, we applied a rate of
177.62 percent. Based on comments we
received from interested parties which
changed our calculations of the
respondents margins, we have
determined to change the AFA rate we
applied in the Preliminary
Determination.
Section 776(c) of the Act provides
that, when the Department relies on
secondary information rather than on
information obtained in the course of an
investigation as facts available, it must,
to the extent practicable, corroborate
that information from independent
sources reasonably at its disposal.
Secondary information is described in
the SAA as ‘‘information derived from
the petition that gave rise to the
investigation or review, the final
determination concerning subject
merchandise, or any previous review
under section 751 concerning the
subject merchandise.’’ See SAA at 870.
The SAA provides that to ‘‘corroborate’’
means simply that the Department will
satisfy itself that the secondary
information to be used has probative
value. Ibid. The SAA also states that
independent sources used to corroborate
may include, for example, published
price lists, official import statistics and
customs data, and information obtained
from interested parties during the
particular investigation. Ibid. As
explained in Tapered Roller Bearings
and Parts Thereof, Finished and
Unfinished, from Japan, and Tapered
Roller Bearings, Four Inches or Less in
Outside Diameter, and Components
Thereof, from Japan; Preliminary
Results of Antidumping Duty
Administrative Reviews and Partial
Termination of Administrative Reviews,
61 FR 57391, 57392 (November 6, 1996),
to corroborate secondary information,
the Department will examine, to the
extent practicable, the reliability and
relevance of the information used.
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We find that the export-price and
normal-value information in the petition
is reliable and relevant and, therefore,
have determined that the information
has probative value. See Memorandum
from Lilit Astvatsatrian to Laurie
Parkhill, dated February 16, 2005,
Corroboration of the PRC-Wide Adverse
Facts-Available Rate. Accordingly, we
find that the highest margin based on
that information, 141.49 percent, is
corroborated within the meaning of
section 776(c) of the Act.
Furthermore, there is no information
on the record that demonstrates that the
rate we have selected is an
inappropriate total AFA rate for the
companies in question. Therefore, we
consider the selected rate to have
probative value with respect to the firms
in question and to reflect the
appropriate adverse inference.
following changes to the margin
calculations:
• We determined the profit ratios for
the Indian surrogate companies as a
percentage of the cost of manufacturing,
selling, general and administrative
expenses, and interest.
• We calculated the surrogate value
for the subject merchandise produced
by Yinguang Metal based on its
purchases of pure magnesium from
affiliated and unaffiliated suppliers
rather than by using surrogate values for
inputs used to produce the raw
magnesium produced and supplied to
Yinguang by Yangyu Magnesium, an
affiliated supplier.
The PRC-Wide Rate
Because we begin with the
presumption that all companies within
a non-market-economy (‘‘NME’’)
country are subject to government
control and because only the companies
listed under the ‘‘Final Determination
Margins’’ below have overcome that
presumption, we are applying a single
antidumping rate—the PRC-wide rate—
to all other exporters of subject
merchandise from the PRC. Such
companies did not demonstrate
entitlement to a separate rate. See Final
Determination of Sales at Less Than
Fair Value: Synthetic Indigo from the
People’s Republic of China, 65 FR 25706
(May 3, 2000). The PRC-wide rate
applies to all entries of subject
merchandise except for entries from the
respondents listed in the ‘‘Final
Determination Margins’’ section below
(except as noted).
MAGNESIUM METAL FROM THE PRC
Changes Since the Preliminary
Determination
Based on our analysis of comments
received, we have made changes in our
margin calculations for Tianjin. We did
not calculate a margin using the
information RSM provided because we
determined the margin for RSM based
on total AFA. For discussion of the
company-specific changes we made
since the preliminary determination to
our calculations of Tianjin’s final
margin, see Memorandum to the File
from Lilit Astvatsatrian, Case Analyst,
through Robert Bolling, Program
Manager, Analysis Memorandum for the
Final Determination of the Antidumping
Duty Investigation of Magnesium Metal
from the People’s Republic of China:
Tianjin Magnesium Co., Ltd. (‘‘Tianjin’’)
(‘‘Final Analysis Memorandum’’), dated
February 16, 2005. We made the
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Final Determination Margins
We determine that the following
percentage weighted-average margins
exist for the Period of Investigation:
Manufacturer/Exporter
Tianjin .........................................
Guangling ...................................
PRC-Wide Rate* .........................
WeightedAverage
Margin
91.31
91.31
141.49
* Not a separate rate; also applies to the
RSM companies and Jiangsu Metals.
Continuation of Suspension of
Liquidation
In accordance with section
735(c)(1)(B) of the Act, we are directing
the U.S. Bureau of Customs and Border
Protection (‘‘CBP’’) to continue to
suspend liquidation of all entries of
subject merchandise from the PRC that
are entered, or withdrawn from
warehouse, for consumption on or after
October 4, 2004 for the RSM group of
companies.
With respect to Tianjin and
Guangling, we will direct the U.S.
Customs and Border Protection (‘‘CBP’’)
to continue to suspend liquidation of all
entries of magnesium metal from the
PRC that are entered, or withdrawn from
warehouse, on or after 90 days before
the date of publication of the
Preliminary Determination. CBP shall
continue to require a cash deposit or
posting of a bond equal to the estimated
amount by which the normal value
exceeds the U.S. price as shown below.
These instructions suspending
liquidation will remain in effect until
further notice.
Disclosure
We will disclose the calculations
performed within five days of the date
of publication of this notice to parties in
this proceeding in accordance with 19
CFR 351.224(b).
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ITC Notification
In accordance with section 735(d) of
the Act, we have notified the
International Trade Commission (‘‘ITC’’)
of our final determination of sales at
LTFV. As our final determination is
affirmative, in accordance with section
735(b)(2) of the Act, within 45 days the
ITC will determine whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports or
sales (or the likelihood of sales) for
importation of the subject merchandise.
If the ITC determines that material
injury or threat of material injury does
not exist, the proceeding will be
terminated and all securities posted will
be refunded or canceled. If the ITC
determines that such injury does exist,
the Department will issue an
antidumping duty order directing CBP
to assess antidumping duties on all
imports of subject merchandise entered
for consumption on or after the effective
date of the suspension of liquidation.
Notification Regarding APO
This notice also serves as a reminder
to parties subject to administrative
protective order (‘‘APO’’) of their
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305. Timely
notification of return or destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and the terms of an APO is a
sanctionable violation.
This determination is issued and
published in accordance with sections
735(d) and 777(I)(1) of the Act.
Dated: February 16, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
Appendix
Issues in the Issues and Decision
Memorandum
Issues With Respect to RSM
Comment 1: TAI Verification Failure
Date of Sale
TAI’s Lack of Preparation
Location of the Accounting Documents and
Site Selection for Verification
Sales—Trace Documentation
Brokerage Expenses Incurred in the United
States
Warehousing and Freight Expenses
Incurred in the United States
Indirect Selling Expenses
Comment 2: Application of Adverse Facts
Available
Comment 3: Separate Rate for Jiangsu Metals
Comment 4: Labor-Rate Factor at Bada
Magnesium
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24FEN1
Federal Register / Vol. 70, No. 36 / Thursday, February 24, 2005 / Notices
General Issues
Comment 5: Critical Circumstances
Comment 6: Exporter-Producer Combination
Rates
Surrogate Values
Comment 7: Time Period for the Valuation of
Pure Magnesium
Comment 8: Valuation of Pure Magnesium
Comment 9: Surrogate Value for Dolomite
Comment 10: Ferrosilicon, No. 2 Flux,
Fluorite Powder, Magnesium and Barium
Chlorides, Bituminous Coal
Comment 11: Electricity and Chemicals/
Gases
Comment 12: Use of Zinc Financial
Statements Instead of Aluminum for
Determination of the Overhead Ratios
Comment 13: Particle-board Pallets, Profit,
and Marine Insurance
Issues with Respect to Tianjin
Comment 14: Valuation of Pure Magnesium
for Yinguang
Comment 15: Yinguang’s Consumption Rate
for Dolomite
Comment 16: Supplier Distance for Yangyu
Comment 17: Valuation of Pure Magnesium
for Guoli
[FR Doc. E5–760 Filed 2–23–05; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–821–819]
Magnesium Metal from the Russian
Federation: Notice of Final
Determination of Sales at Less Than
Fair Value
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
Final Determination
We determine that magnesium metal
(‘‘magnesium’’) from the Russian
Federation (‘‘Russia’’) is being, or is
likely to be, sold in the United States at
less-than-fair value (‘‘LTFV’’), as
provided in section 735 of the Tariff Act
of 1930, as amended (‘‘the Act’’). The
estimated margins of sales at LTFV are
shown in the ‘‘Final Determination
Margins’’ section of this notice.
EFFECTIVE DATE:
February 24, 2005.
FOR FURTHER INFORMATION CONTACT:
Mark Hoadley at (202) 482–3148 or
Kimberley Hunt at (202) 482–1272
(Avisma); and Josh Reitze at (202) 482–
0666 (SMW); AD/CVD Operations,
Office 6, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230.
VerDate jul<14>2003
18:49 Feb 23, 2005
Jkt 205001
Case History
On October 4, 2004, the Department
of Commerce (‘‘the Department’’)
published its preliminary determination
of sales at LTFV of magnesium metal
from Russia. See Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination: Magnesium Metal From
the Russian Federation, 69 FR 59197
(October 4, 2004) (Preliminary
Determination). Since the Preliminary
Determination, the following events
have occurred. On October 8, 2004,
Solikamsk Magnesium Works (‘‘SMW’’)
requested a public hearing. On October
18, 2004, SMW provided a revised
version of its U.S. sales database that
included all sales invoiced during the
period of investigation. The Department
conducted verification of JSC AVISMA
Titanium-Magnesium Works’
(‘‘Avisma’’) and SMW’s sales and cost
questionnaire responses from October
25, 2004, to November 5, 2004.1
Petitioners2 requested a hearing on
October 28, 2004, and on November 3,
2004, Avisma requested one as well. On
November 8 and November 9, 2004,
respectively, Petitioners and the USEC
Inc. and United States Enrichment
Corporation (collectively, ‘‘USEC’’),
submitted comments regarding Russian
energy prices. On November 10, 2004,
Avisma requested that the Department
reject this submission as USEC is not a
party to the proceeding. On November
12, 2004, USEC rebutted Avisma’s
November 10 submission; on November
18, 2004, Avisma filed a rebuttal to
Petitioners’ November 8, 2004,
submission.
The Department conducted
verification of SMW’s U.S. affiliate,
Solimin Magnesium Corporation
(‘‘Solimin’’), on December 6 and 7,
1 See Memorandum to the File, from Sebastian
Wright, Magnesium Metal From The Russian
Federation: Verification Report for JSC AVISMA
Titanium-Magnesium Works, December 23, 2004
(Avisma Verification Report); Memorandum to Neal
M. Halper from Robert Greger, et al., Verification
Report on the Cost of Production and Constructed
Value Data Submitted by JSC AVISMA TitaniumMagnesium Works, December 30, 2004 (Avisma
Cost Verification Report); See Memorandum to the
File from Maria MacKay and Mark Hoadley;
Magnesium Metal From The Russian Federation:
Verification Report for Solikamsk Magnesium
Works (SMW Verification Report); and
Memorandum to Neal M. Halper from Ernest
Gziryan, et al; Verification Report on the Cost of
Production and Constructed Value Data Submitted
by Solikamsk Magnesium Works, December 30,
2004 (SMW Cost Verification Report), on file in the
Central Records Unit, Room B–099 of the Main
Commerce building (‘‘CRU’’).
2 Petitioners in this investigation are U.S.
Magnesium Corporation, LLC; United Steelworkers
of America, Local 8319; and Glass, Molders,
Pottery, Plastics and Allied Workers International,
Local 374.
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
9041
2004.3 The Department conducted
verification of Avisma’s U.S. affiliate,
VSMPO-Tirus, U.S., Inc. (‘‘Tirus’’), on
December 13 and 14, 2004,4 and of
SMW’s other U.S. affiliate, CMC
Cometals (‘‘Cometals’’), on December 16
and 17, 2004.5
On January 4, 2005, Petitioners
submitted ‘‘previously unavailable’’
information on the Russian energy
market. Avisma, on January 5, and
SMW, on January 6, 2005, requested
that Petitioners’ ‘‘untimely’’ submission
be removed from the record. During the
weeks of January 3rd and January 10th,
the Department held meetings with
several parties on the energy issue and
memoranda documenting these
meetings have been placed on the
record of this investigation. On January
7, 2005, the Department extended the
time limits on the submission of factual
information and accepted the
Petitioners’ submission. On January 14,
2005, Avisma argued that the
Department should not rely on the
information contained in Petitioners’
January 4, 2005, submission.
On January 7, 2005, Petitioners,
Avisma, SMW, and Northwest Alloys,
Inc. and Alcoa, Inc. (collectively,
‘‘Alcoa’’), submitted case briefs. SMW
submitted a rebuttal brief on January 12
and Petitioners and Avisma submitted
rebuttal briefs on January 13, 2005.
On January 12, 2005, the Department
requested comments on a
methodological issue related to the cost
of electricity. On January 14, 2005,
Alcoa submitted comments; on January
18, 2005, Avisma and USEC also
submitted comments. On January 18,
2005, Petitioners made three
submissions, the first two calling for
Avisma’s and Alcoa’s submissions to be
struck from the record and the third
responding to the Department’s request
for comment. On January 19, 2005,
Avisma made another submission
arguing the relevance of Petitioners’
January 18, 2005, submission. On
January 21, 2005, Petitioners submitted
rebuttal comments to Alcoa’s January
14, 2005, submission and Avisma’s
January 18, 2005, submission. On
3 Memorandum to the File, from Joshua Reitze
and Kimberley Hunt, Magnesium Metal From The
Russian Federation: U.S. Sales Verification,
December 29, 2004 (Solimin Verification Report),
on file in the CRU.
4 Memorandum to the File, from Sebastian Wright
and Mark Hoadley; Magnesium Metal From The
Russian Federation: Verification Report for JSC
AVISMA Titanium-Magnesium Works, December
30, 2004 (Tirus Verification Report), on file in the
CRU.
5 Memorandum to the File, from Joshua Reitze
and Kimberley Hunt, Magnesium Metal From The
Russian Federation: U.S. Sales Verification
(Cometals), December 30, 2004 (Cometals
Verification Report), on file in the CRU.
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]]>Agencies
[Federal Register Volume 70, Number 36 (Thursday, February 24, 2005)]
[Notices]
[Pages 9037-9041]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-760]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-896]
Final Determination of Sales at Less Than Fair Value and
Affirmative Critical Circumstances: Magnesium Metal From the People's
Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
Final Determination
We determine that magnesium metal from the People's Republic of
China (``PRC'') is being, or is likely to be, sold in the United States
at less than fair value (``LTFV'') as provided in section 735 of Tariff
Act of 1930, as amended (``the Act''). The estimated margins of sales
at LTFV are shown in the ``Final Determination Margins'' section of
this notice.
DATES: Effective Date: February 24, 2005.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Lilit
Astvatsatrian, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4243 and (202) 482-6412, respectively.
Case History
The Department of Commerce (``the Department'') published its
preliminary determination of sales at LTFV on October 4, 2004. See
Preliminary Determination of Sales at Less Than Fair Value: Magnesium
Metal from the People's Republic of China, 69 FR 59187, (October 4,
2004) (``Preliminary Determination''). The Department selected two
mandatory respondents \1\ and received a Section A response from a
third company requesting a rate separate from the PRC-wide entity.\2\
Since the Preliminary Determination, the Department conducted
verification of RSM and Tianjin in both the PRC and the United States,
where applicable. See the Verification Section below for additional
information. On November 22, 2004, the parties \3\ submitted surrogate-
value information. On December 2, 2004, the parties submitted rebuttals
to those surrogate-value submissions. On December 28, 2004, the
petitioners submitted an allegation of critical circumstances in
accordance with section 733(e)(1) of the Act and 19 CFR 351.206(c)(1).
On January 4, 2005, the Petitioners, RSM, and Tianjin submitted case
briefs, and on January 10, 2005, all three parties submitted rebuttal
briefs. On January 11, 2005, the Department invited all parties to
comment on the petitioners' allegation of critical circumstances and
requested RSM, Tianjin, and Guangling to report the quantity and value
of their shipments of subject merchandise to the United States on a
monthly basis for the period January 2003 through December 2004. On
January 19, 2005, RSM and Tianjin provided the requested information.
Guangling did not respond to the Department's request for information.
On February 3, 2005, the Department published its preliminary
determination of critical circumstances in which it found that critical
circumstances exist with regard to imports of magnesium metal from the
PRC for Tianjin, Guangling, and the PRC-wide entity. See Affirmative
Preliminary Determination of Critical Circumstances: Magnesium Metal
from the People's Republic of China, 70 FR 5606 (February 3, 2005)
(``Critical Circumstances Determination''). On February 7, 2005, the
petitioners submitted comments on the Department's preliminary
determination of critical circumstances. None of the respondents
provided comments or rebuttals on the Department's preliminary
determination of critical circumstances.
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\1\ Tianjin Magnesium International Co., Ltd. (``Tianjin''), and
the RSM companies. In the preliminary determination we determined
that the following companies were collapsed members of the RSM group
of companies for the purposes of this investigation: Nanjing Yunhai
Special Metals Co., Ltd. (``Yunhai Special''), Nanjing Welbow Metals
Co., Ltd. (``Welbow''), Nanjing Yunhai Magnesium Co., Ltd. (``Yunhai
Magnesium''), Shanxi Wenxi Yunhai Metals Co., Ltd. (``Wenxi
Yunhai''). See Memorandum to Laurie Parkhill, Director, Office 8,
NME/China Group, from Laurel LaCivita, Senior Case Analyst, through
Robert Bolling, Program Manager: Antidumping Duty Investigation of
Magnesium Metal from the People's Republic of China: Affiliation and
Collapsing of Members of the RSM Group and its Affiliated U.S.
Reseller, Toyota Tsusho America, Inc., dated September 24, 2004. In
addition, we calculated a separate rate for China National
Nonferrous Metals I/E Corp. Jiangsu Branch (``Jiangsu Metals''). See
Memorandum to Laurie Parkhill, Director, Office 8, NME/China Group,
from Laurel LaCivita, Senior Case Analyst and Lilit Astvatsatrian,
Case Analyst, through Robert Bolling, Program Manager: Separate
Rates Memorandum, dated September 24, 2004.
\2\ Beijing Guangling Jinghua Science & Technology Co., Ltd.
(``Guangling'').
\3\ The parties include RSM, Tianjin, and the petitioners (U.S.
Magnesium LLC, United Steelworkers of America, Local 8319 and Glass,
Molders, Pottery, Plastics & Allied Workers International, Local
374). Guangling did not submit case or rebuttal briefs.
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[[Page 9038]]
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this proceeding are addressed in the memorandum from Barbara E.
Tillman, Acting Deputy Assistant Secretary for Import Administration,
to Joseph A. Spetrini, Acting Assistant Secretary for Import
Administration, Issues and Decision Memorandum for the Less-Than-Fair-
Value Investigation of Magnesium Metal from the People's Republic of
China, dated February 16, 2005, which is hereby adopted by this notice
(``Issues and Decision Memorandum''). A list of the issues which
parties raised and to which we respond in the Issues and Decision
Memorandum is attached to this notice as an Appendix. The Issues and
Decision Memorandum is a public document and is on file in the Central
Records Unit (``CRU''), Main Commerce Building, Room B-099, and is
accessible on the Web at https://ia.ita.doc.gov. The paper copy and
electronic version of the memorandum are identical in content.
Scope of Investigation
The products covered by this investigation are primary and
secondary alloy magnesium metal regardless of chemistry, raw material
source, form, shape, or size. Magnesium is a metal or alloy containing
by weight primarily the element magnesium. Primary magnesium is
produced by decomposing raw materials into magnesium metal. Secondary
magnesium is produced by recycling magnesium-based scrap into magnesium
metal. The magnesium covered by this investigation includes blends of
primary and secondary magnesium.
The subject merchandise includes the following alloy magnesium
metal products made from primary and/or secondary magnesium including,
without limitation, magnesium cast into ingots, slabs, rounds, billets,
and other shapes, magnesium ground, chipped, crushed, or machined into
raspings, granules, turnings, chips, powder, briquettes, and other
shapes: products that contain 50 percent or greater, but less than 99.8
percent, magnesium, by weight, and that have been entered into the
United States as conforming to an ``ASTM Specification for Magnesium
Alloy'' \4\ and thus are outside the scope of the existing antidumping
orders on magnesium from the PRC (generally referred to as ``alloy''
magnesium).
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\4\ The meaning of this term is the same as that used by the
American Society for Testing and Materials in its Annual Book of
ASTM Standards: Volume 01.02 Aluminum and Magnesium Alloys.
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The scope of this investigation excludes the following merchandise:
(1) All forms of pure magnesium, including chemical combinations of
magnesium and other material(s) in which the pure magnesium content is
50 percent or greater, but less than 99.8 percent, by weight, that do
not conform to an ``ASTM Specification for Magnesium Alloy'' \5\; (2)
magnesium that is in liquid or molten form; and (3) mixtures containing
90 percent or less magnesium in granular or powder form, by weight, and
one or more of certain non-magnesium granular materials to make
magnesium-based reagent mixtures, including lime, calcium metal,
calcium silicon, calcium carbide, calcium carbonate, carbon, slag
coagulants, fluorspar, nephaline syenite, feldspar, alumina (Al203),
calcium aluminate, soda ash, hydrocarbons, graphite, coke, silicon,
rare earth metals/mischmetal, cryolite, silica/fly ash, magnesium
oxide, periclase, ferroalloys, dolomite lime, and colemanite.\6\
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\5\ This material is already covered by existing antidumping
orders. See Antidumping Duty Orders: Pure Magnesium from the
People's Republic of China, the Russian Federation and Ukraine;
Amended Final Determination of Sales at Less Than Fair Value:
Antidumping Duty Investigation of Pure Magnesium from the Russian
Federation, 60 FR 25691 (May 12, 1995), and Antidumping Duty Order:
Pure Magnesium in Granular Form from the People's Republic of China,
66 FR 57936 (November 19, 2001).
\6\ This third exclusion for magnesium-based reagent mixtures is
based on the exclusion for reagent mixtures in the 2000-2001
investigations of magnesium from the PRC, Israel, and Russia. See
Final Determination of Sales at Less Than Fair Value: Pure Magnesium
in Granular Form From the People's Republic of China, 66 FR 49345
(September 27, 2001); Final Determination of Sales at Less Than Fair
Value: Pure Magnesium From Israel, 66 FR 49349 (September 27, 2001);
Final Determination of Sales at Not Less Than Fair Value: Pure
Magnesium From the Russian Federation, 66 FR 49347 (September 27,
2001). These mixtures are not magnesium alloys because they are not
chemically combined in liquid form and cast into the same ingot.
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The merchandise subject to this investigation is currently
classifiable under items 8104.19.00 and 8104.30.00 of the Harmonized
Tariff Schedule of the United States (``HTSUS''). Although the HTSUS
items are provided for convenience and customs purposes, the written
description of the merchandise under investigation is dispositive.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by the mandatory respondents for use in our final
determination (see the Department's verification reports on the record
of this investigation, located in the CRU, with respect to Jiangsu
Metals, Yunhai Special, Welbow, Bada, Tianjin, and Toyota Tsusho
America, Inc. (``TAI'')). For all verified companies, we used standard
verification procedures, including examination of relevant accounting
and production records as well as original source documents provided by
respondents.
Surrogate Country
In the Preliminary Determination, we stated that we had selected
India as the appropriate surrogate country to use in this investigation
for the following reasons: (1) India is at a level of economic
development comparable to that of the PRC; (2) Indian manufacturers
produce comparable merchandise and are significant producers of
aluminum; (3) India provides the best opportunity to use appropriate,
publicly available data to value the factors of production. See
Preliminary Determination, 69 FR at 59191. For the final determination,
we made no changes to our findings with respect to the selection of a
surrogate country.
Critical Circumstances
As described below in the section concerning the application of
adverse facts available (``AFA''), we are applying total AFA to the
group of RSM companies which includes Jiangsu Metals and TAI. As part
of total AFA for the RSM companies, we determine that RSM and Jiangsu
Metals are not eligible for a separate rate and, therefore, remain a
part of the PRC-wide entity. Therefore, we revised our critical-
circumstances analysis to include imports from RSM and Jiangsu Metals
in the total quantity of imports from the PRC-wide entity during the
base and comparison periods. As a result of this change, we have
determined that critical circumstances do not exist with respect to the
PRC-wide entity. Additionally, for this final determination we continue
to find that critical circumstances exist for Tianjin and Guangling.
For further details regarding the Department's critical-circumstances
analysis see the Memorandum from Laurel LaCivita, Case Analyst, to
Laurie Parkhill, Office Director, AD/CVD Enforcement, Antidumping Duty
Investigation of Magnesium Metal from the People's Republic of China
(the ``PRC'')--Affirmative Final Determination of Critical
Circumstances, dated February 16, 2005 (``Final Critical Circumstances
Memorandum'').
Separate Rates
In the Preliminary Determination, the Department found that
Guangling, which provided a response to Section A
[[Page 9039]]
of the antidumping questionnaire, was eligible for a rate separate from
the PRC-wide rate. The margin we established in the Preliminary
Determination for Guangling was 140.09 percent. Because the rates of
the selected mandatory respondents have changed since the Preliminary
Determination, we have recalculated the rate applicable to Guangling.
The final rate is 91.36 percent.
As discussed below, the Department has determined to apply AFA with
respect to the RSM companies. In addition, we have determined that
there is no reliable basis for granting the RSM companies a separate
rate. Accordingly, the RSM companies have not overcome the presumption
that they are part of the PRC-wide entity and, therefore, entries of
their merchandise will be subject to the PRC-wide rate.
Adverse Facts Available
Section 776(a)(2) of the Act provides that the Department shall
apply ``facts otherwise available'' if, inter alia, an interested party
or any other person (A) withholds information that has been requested,
(B) fails to provide information within the deadlines established, or
in the form or manner requested by the Department, subject to
subsections (c)(1) and (e) of section 782, (C) significantly impedes a
proceeding, or (D) provides information that cannot be verified as
provided by section 782(i) of the Act. Section 776(b) of the Act
provides further that the Department may use an adverse inference when
a party has failed to cooperate by not acting to the best of its
ability to comply with a request for information.
Where the Department determines that a response to a request for
information does not comply with the request, section 782(d) of the Act
provides that the Department will so inform the party submitting the
response and will, to the extent practicable, provide that party the
opportunity to remedy or explain the deficiency. If the party fails to
remedy the deficiency within the applicable time limits and subject to
section 782(e) of the Act, the Department may disregard all or part of
the original and subsequent responses, as appropriate. Section 782(e)
of the Act provides that the Department ``shall not decline to consider
information that is submitted by an interested party and is necessary
to the determination but does not meet all applicable requirements
established by the administering authority'' if the information is
timely, can be verified, and is not so incomplete that it cannot be
used and if the interested party acted to the best of its ability in
providing the information. Where all of these conditions are met, the
statute requires the Department to use the information if it can do so
without undue difficulties.
In the Preliminary Determination, we calculated a dumping margin of
128.11 percent for RSM based on the information it reported in its
questionnaire responses. See Preliminary Determination. We conducted
verification of the RSM companies in the PRC and in the United States.
In the Preliminary Determination, we determined that the RSM group
of companies and Jiangsu Metals were affiliated under sections
771(33)(E) and (F) of the Act. See Preliminary Determination at 59192.
Additionally, we determined that TAI and the RSM group of companies
were affiliated under sections 771(33)(E) and (F) of the Act. See
Preliminary Determination at 59192. There has been no information
placed on the record since the Preliminary Determination that
contradicts our affiliation determinations. Therefore, for the final
determination, we continue to find that RSM, Jiangsu Metals, and TAI
are affiliated under the statute.
Based on record evidence gathered as a result of the verification
of TAI, RSM's affiliated customer in the United States, and pursuant to
the statutory requirements of the Act, the Department has determined
that the RSM Group and its affiliates impeded this investigation,
provided unverifiable information, and did not cooperate to the best of
their ability to comply with the Department's requests for information.
Therefore, we determine that the use of AFA is warranted with respect
to all of TAI's sales of subject merchandise whether exported through
RSM or Jiangsu Metals for the purposes of the final determination of
this investigation. See our response to Comment 1 in the Decision
Memorandum for a further discussion of this issue.
In the Preliminary Determination, the Department granted RSM and
Jiangsu Metals separate rates based on the information provided in
their questionnaire responses. See memorandum to Laurie Parkhill,
Office Director, China/NME Group, through Robert Bolling, Program
Manager, from Laurel LaCivita, Senior Case Analyst and Lilit
Astvatsatrian, Case Analyst, Preliminary Determination: Magnesium Metal
from the People's Republic of China: Separate-Rates Memorandum
(``Separate Rates Memorandum''), dated September 24, 2004, at 13.
Because we found that RSM's affiliate TAI did not cooperate to the best
of its ability and are applying AFA to all of TAI's sales of subject
merchandise in the United States, we have determined that RSM and
Jiangsu Metals, which produced and/or exported the subject merchandise,
do not qualify for separate rates. See our response to Comment 3 in the
Issues and Decision Memorandum for a further discussion of this issue.
Corroboration of the Adverse-Facts-Available Rate
In the Preliminary Determination, in accordance with sections
776(b) of the Act, we assigned an AFA rate to the PRC-wide entity based
on a calculated margin derived from information obtained in the course
of the investigation and placed on the record of this proceeding. At
the Preliminary Determination, we applied a rate of 177.62 percent.
Based on comments we received from interested parties which changed our
calculations of the respondents margins, we have determined to change
the AFA rate we applied in the Preliminary Determination.
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation as facts available, it must, to the extent
practicable, corroborate that information from independent sources
reasonably at its disposal. Secondary information is described in the
SAA as ``information derived from the petition that gave rise to the
investigation or review, the final determination concerning subject
merchandise, or any previous review under section 751 concerning the
subject merchandise.'' See SAA at 870. The SAA provides that to
``corroborate'' means simply that the Department will satisfy itself
that the secondary information to be used has probative value. Ibid.
The SAA also states that independent sources used to corroborate may
include, for example, published price lists, official import statistics
and customs data, and information obtained from interested parties
during the particular investigation. Ibid. As explained in Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, from Japan,
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, from Japan; Preliminary Results of Antidumping
Duty Administrative Reviews and Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November 6, 1996), to corroborate
secondary information, the Department will examine, to the extent
practicable, the reliability and relevance of the information used.
[[Page 9040]]
We find that the export-price and normal-value information in the
petition is reliable and relevant and, therefore, have determined that
the information has probative value. See Memorandum from Lilit
Astvatsatrian to Laurie Parkhill, dated February 16, 2005,
Corroboration of the PRC-Wide Adverse Facts-Available Rate.
Accordingly, we find that the highest margin based on that information,
141.49 percent, is corroborated within the meaning of section 776(c) of
the Act.
Furthermore, there is no information on the record that
demonstrates that the rate we have selected is an inappropriate total
AFA rate for the companies in question. Therefore, we consider the
selected rate to have probative value with respect to the firms in
question and to reflect the appropriate adverse inference.
The PRC-Wide Rate
Because we begin with the presumption that all companies within a
non-market-economy (``NME'') country are subject to government control
and because only the companies listed under the ``Final Determination
Margins'' below have overcome that presumption, we are applying a
single antidumping rate--the PRC-wide rate--to all other exporters of
subject merchandise from the PRC. Such companies did not demonstrate
entitlement to a separate rate. See Final Determination of Sales at
Less Than Fair Value: Synthetic Indigo from the People's Republic of
China, 65 FR 25706 (May 3, 2000). The PRC-wide rate applies to all
entries of subject merchandise except for entries from the respondents
listed in the ``Final Determination Margins'' section below (except as
noted).
Changes Since the Preliminary Determination
Based on our analysis of comments received, we have made changes in
our margin calculations for Tianjin. We did not calculate a margin
using the information RSM provided because we determined the margin for
RSM based on total AFA. For discussion of the company-specific changes
we made since the preliminary determination to our calculations of
Tianjin's final margin, see Memorandum to the File from Lilit
Astvatsatrian, Case Analyst, through Robert Bolling, Program Manager,
Analysis Memorandum for the Final Determination of the Antidumping Duty
Investigation of Magnesium Metal from the People's Republic of China:
Tianjin Magnesium Co., Ltd. (``Tianjin'') (``Final Analysis
Memorandum''), dated February 16, 2005. We made the following changes
to the margin calculations:
We determined the profit ratios for the Indian surrogate
companies as a percentage of the cost of manufacturing, selling,
general and administrative expenses, and interest.
We calculated the surrogate value for the subject
merchandise produced by Yinguang Metal based on its purchases of pure
magnesium from affiliated and unaffiliated suppliers rather than by
using surrogate values for inputs used to produce the raw magnesium
produced and supplied to Yinguang by Yangyu Magnesium, an affiliated
supplier.
Final Determination Margins
We determine that the following percentage weighted-average margins
exist for the Period of Investigation:
Magnesium Metal from the PRC
------------------------------------------------------------------------
Weighted-
Manufacturer/Exporter Average
Margin
------------------------------------------------------------------------
Tianjin..................................................... 91.31
Guangling................................................... 91.31
PRC-Wide Rate*.............................................. 141.49
------------------------------------------------------------------------
\*\ Not a separate rate; also applies to the RSM companies and Jiangsu
Metals.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we are
directing the U.S. Bureau of Customs and Border Protection (``CBP'') to
continue to suspend liquidation of all entries of subject merchandise
from the PRC that are entered, or withdrawn from warehouse, for
consumption on or after October 4, 2004 for the RSM group of companies.
With respect to Tianjin and Guangling, we will direct the U.S.
Customs and Border Protection (``CBP'') to continue to suspend
liquidation of all entries of magnesium metal from the PRC that are
entered, or withdrawn from warehouse, on or after 90 days before the
date of publication of the Preliminary Determination. CBP shall
continue to require a cash deposit or posting of a bond equal to the
estimated amount by which the normal value exceeds the U.S. price as
shown below. These instructions suspending liquidation will remain in
effect until further notice.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
ITC Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (``ITC'') of our final determination of
sales at LTFV. As our final determination is affirmative, in accordance
with section 735(b)(2) of the Act, within 45 days the ITC will
determine whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports or sales (or the likelihood of sales) for importation of the
subject merchandise. If the ITC determines that material injury or
threat of material injury does not exist, the proceeding will be
terminated and all securities posted will be refunded or canceled. If
the ITC determines that such injury does exist, the Department will
issue an antidumping duty order directing CBP to assess antidumping
duties on all imports of subject merchandise entered for consumption on
or after the effective date of the suspension of liquidation.
Notification Regarding APO
This notice also serves as a reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305. Timely notification of return or
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and the
terms of an APO is a sanctionable violation.
This determination is issued and published in accordance with
sections 735(d) and 777(I)(1) of the Act.
Dated: February 16, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix
Issues in the Issues and Decision Memorandum
Issues With Respect to RSM
Comment 1: TAI Verification Failure
Date of Sale
TAI's Lack of Preparation
Location of the Accounting Documents and Site Selection for
Verification
Sales--Trace Documentation
Brokerage Expenses Incurred in the United States
Warehousing and Freight Expenses Incurred in the United States
Indirect Selling Expenses
Comment 2: Application of Adverse Facts Available
Comment 3: Separate Rate for Jiangsu Metals
Comment 4: Labor-Rate Factor at Bada Magnesium
[[Page 9041]]
General Issues
Comment 5: Critical Circumstances
Comment 6: Exporter-Producer Combination Rates
Surrogate Values
Comment 7: Time Period for the Valuation of Pure Magnesium
Comment 8: Valuation of Pure Magnesium
Comment 9: Surrogate Value for Dolomite
Comment 10: Ferrosilicon, No. 2 Flux, Fluorite Powder, Magnesium and
Barium Chlorides, Bituminous Coal
Comment 11: Electricity and Chemicals/Gases
Comment 12: Use of Zinc Financial Statements Instead of Aluminum for
Determination of the Overhead Ratios
Comment 13: Particle-board Pallets, Profit, and Marine Insurance
Issues with Respect to Tianjin
Comment 14: Valuation of Pure Magnesium for Yinguang
Comment 15: Yinguang's Consumption Rate for Dolomite
Comment 16: Supplier Distance for Yangyu
Comment 17: Valuation of Pure Magnesium for Guoli
[FR Doc. E5-760 Filed 2-23-05; 8:45 am]
BILLING CODE 3510-DS-P
