Pure Magnesium and Alloy Magnesium from Canada: Preliminary Results of Countervailing Duty Administrative Reviews, 24530-24533 [E5-2296]
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24530
Federal Register / Vol. 70, No. 89 / Tuesday, May 10, 2005 / Notices
systems, classifiable as heavy castings
under Harmonized Tariff Schedule
(‘‘HTS’’) item number 7325.10.0010.
The HTS item numbers are provided for
convenience and customs purposes
only. The written description remains
dispositive.
Analysis of Comments Received
Final Results of Review
We determine that revocation of the
countervailing duty order on iron
castings from Brazil would likely lead to
continuation or recurrence of
countervailable subsidies at the
following percentage weighted–average
percentage margins:
Weighted–Average
Margin (Percent)
Country–wide rate ........
1.06
This notice also serves as the only
reminder to parties subject to
administrative protective orders
(‘‘APO’’) of their responsibility
concerning the return or destruction of
proprietary information disclosed under
APO in accordance with 19 CFR
351.305 of the Department’s regulations.
Timely notification of the return or
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
We are issuing and publishing the
results and notice in accordance with
sections 751(c), 752, and 777(i)(1) of the
Act.
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BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
All issues raised in this case are
addressed in the ‘‘Issues and Decision
Memorandum’’ (‘‘Decision Memo’’)
from Ronald K. Lorentzen, Acting
Director, Office of Policy, Import
Administration, to Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration, dated May 2, 2005,
which is hereby adopted by this notice.
The issues discussed in the Decision
Memo include the likelihood of
continuation or recurrence of dumping
and the magnitude of the margin likely
to prevail if the order were revoked.
Parties can find a complete discussion
of all issues raised in this sunset review
and the corresponding
recommendations in this public memo,
which is on file in room B–099 of the
main Department Building.
In addition, a complete version of the
Decision Memo can be accessed directly
on the Web at https://ia.ita.doc.gov,
under the heading ‘‘May 2005.’’ The
paper copy and electronic version of the
Decision Memo are identical in content.
Manufacturers/Exporters/Producers
Dated: May 2, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–2294 Filed 5–9–05; 8:45 am]
International Trade Administration
C–122–815
Pure Magnesium and Alloy Magnesium
from Canada: Preliminary Results of
Countervailing Duty Administrative
Reviews
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
is conducting administrative reviews of
the countervailing duty orders on pure
magnesium and alloy magnesium from
Canada for the period January 1, 2003,
through December 31, 2003. We
preliminarily find that certain
producers/exporters have received
countervailable subsidies during the
period of review. If the final results
remain the same as these preliminary
results, we will instruct U.S. Customs
and Border Protection to assess
countervailing duties as detailed in the
‘‘Preliminary Results of Reviews’’
section of this notice. Interested parties
are invited to comment on these
preliminary results (see the ‘‘Public
Comment’’ section of this notice).
EFFECTIVE DATE: May 10, 2005.
FOR FURTHER INFORMATION CONTACT:
Andrew McAllister, AD/CVD
Operations, Office 1, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington DC 20230;
telephone (202) 482–1174.
SUPPLEMENTARY INFORMATION:
AGENCY:
Case History
On August 31, 1992, the Department
of Commerce (‘‘the Department’’)
published in the Federal Register the
countervailing duty orders on pure
magnesium and alloy magnesium from
Canada (see Final Affirmative
Countervailing Duty Determinations:
Pure Magnesium and Alloy Magnesium
from Canada, 57 FR 39392
(‘‘Magnesium Investigation’’)). On
August 3, 2004, the Department
published a notice of ‘‘Opportunity to
Request Administrative Review’’ of
these countervailing duty orders (see
Antidumping or Countervailing Duty
Order, Finding, or Suspended
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Sfmt 4703
Investigation; Opportunity to Request
Administrative Review, 69 FR 46496).
We received timely requests for review
from Norsk Hydro Canada, Inc.
(‘‘NHCI’’) and from the petitioner, U.S.
Magnesium, LLC for reviews of NHCI
and Magnola Metallurgy, Inc.
(‘‘Magnola’’). On September 1, 2004, we
received a request for review from
Magnola. On September 7, 2004, we
asked Magnola to explain the
circumstances which led to its late
filing. On September 10, 2004, Magnola
responded to the Department’s request
and explained its circumstances. On
September 16, 2004, the Department
rejected Magnola’s September 1, 2004,
request for review, but the review with
respect to Magnola continued based on
the request of the petitioner. On
September 22, 2004, we initiated these
reviews covering shipments of subject
merchandise from NHCI and Magnola
(see Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 69 FR 56745).
On October 6, 2004, we issued
countervailing duty questionnaires to
NHCI, Magnola, the Government of
´
Quebec (‘‘GOQ’’), and the Government
of Canada (‘‘GOC’’). We received
questionnaire responses from GOQ on
November 8, 2004, from GOC and
Magnola on November 12, 2004, and
from NHCI on December 22, 2004.
Scope of the Orders
The products covered by these orders
are shipments of pure and alloy
magnesium from Canada. Pure
magnesium contains at least 99.8
percent magnesium by weight and is
sold in various slab and ingot forms and
sizes. Magnesium alloys contain less
than 99.8 percent magnesium by weight
with magnesium being the largest
metallic element in the alloy by weight,
and are sold in various ingot and billet
forms and sizes.
The pure and alloy magnesium
subject to the orders is currently
classifiable under items 8104.11.0000
and 8104.19.0000, respectively, of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). Although the
HTSUS subheadings are provided for
convenience and customs purposes, the
written descriptions of the merchandise
subject to the orders are dispositive.
Secondary and granular magnesium
are not included in the scope of these
orders. Our reasons for excluding
granular magnesium are summarized in
Preliminary Determination of Sales at
Less Than Fair Value: Pure and Alloy
Magnesium From Canada, 57 FR 6094
(February 20, 1992).
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Federal Register / Vol. 70, No. 89 / Tuesday, May 10, 2005 / Notices
Period of Review
The period of review (‘‘POR’’) for
which we are measuring subsidies is
January 1, 2003, through December 31,
2003.
Subsidies Valuation Information
Discount rate: As noted below, the
Department preliminarily finds that
NHCI and Magnola benefitted from
countervailable subsidies during the
POR. In accordance with 19 CFR
351.524(d)(3), it is the Department’s
preference to use a company’s long–
term, fixed–rate cost of borrowing in the
same year a grant was approved as the
discount rate. However, where a
company does not have any debt that
can be used as an appropriate basis for
a discount rate, the Department’s next
preference is to use the average cost of
long–term fixed–rate loans in the
country in question. In the investigation
and previous reviews, the Department
determined that NHCI received and
benefitted from countervailable
subsidies from the Article 7 grant from
´
the Quebec Industrial Development
Corporation (‘‘Article 7 grant’’). See
Magnesium Investigation. In line with
the Department’s practice, we used
NHCI’s cost of long–term, fixed–rate
debt in the year in which the Article 7
grant was approved as the discount rate
for purposes of calculating the benefit
pertaining to the POR.
In the Final Results of Pure
Magnesium from Canada: Notice of
Final Results of Countervailing Duty
New Shipper Review (‘‘New Shipper
Review’’), 68 FR 22359 (April 28, 2003),
we found that Magnola benefitted from
´
grants under the Emploi–Quebec
Manpower Training Measure Program
(‘‘MTM Program’’). Magnola did not
have any long–term fixed–rate debt
during the years the grants were
approved. Therefore, consistent with
our treatment of these grants in previous
administrative reviews, we continue to
use long–term commercial bond rates
for purposes of calculating the benefit
attributable to the POR.
Allocation period: In the
investigations and previous
administrative reviews of these cases,
the Department used as the allocation
period for non–recurring subsidies the
average useful life (‘‘AUL’’) of
renewable physical assets in the
magnesium industry as recorded in the
Internal Revenue Service’s 1977 Class
Life Asset Depreciation Range System
(‘‘the IRS tables’’), i.e., 14 years.
Pursuant to section 351.524(d)(2) of the
Department’s regulations, we use the
AUL in the IRS tables as the allocation
period unless a party can show that the
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IRS tables do not reasonably reflect
either the company–specific or country–
wide AUL for the industry. During this
review, none of the parties contested
using the AUL reported for the
magnesium industry in the IRS tables.
Therefore, we continue to allocate non–
recurring benefits over 14 years.
For non–recurring subsidies, we
applied the ‘‘0.5 percent expense test’’
described in section 351.524(b)(2) of the
Department’s regulations. In this test,
we compare the amount of subsidies
approved under a given program in a
particular year to sales (total or export,
as appropriate) in that year. If the
amount of the subsidies is less than 0.5
percent of sales, the benefits are
expensed in their entirety, in the year of
receipt, rather than allocated over the
AUL period.
Analysis of Programs
I. Programs Preliminarily Determined to
Confer Countervailable Subsidies
´
A. Article 7 Grant from the Quebec
Industrial Development Corporation
(‘‘SDI’’)
´ ´
´
SDI (Societe de Developpement
´
Industriel du Quebec) administers
development programs on behalf of the
GOQ. SDI provides assistance under
Article 7 of the SDI Act in the form of
loans, loan guarantees, grants,
assumptions of costs associated with
loans, and equity investments. This
assistance is provided for projects that
are capable of having a major impact
´
upon the economy of Quebec. Article 7
assistance greater than 2.5 million
dollars must be approved by the Council
of Ministers and assistance over 5
million dollars becomes a separate
budget item under Article 7. Assistance
provided in such amounts must be of
‘‘special economic importance and
value to the province.’’ (See Magnesium
Investigation, 57 FR at 30948.)
In 1988, NHCI was awarded a grant
under Article 7 to cover a large
percentage of the cost of certain
environmental protection equipment. In
the Magnesium Investigation, the
Department determined the Article 7
grant confers a countervailable subsidy
within the meaning of section 771(5) of
the Tariff Act of 1930, as amended (‘‘the
Act’’). The grant is a direct transfer of
funds from the GOQ bestowing a benefit
in the amount of the grant. We
previously determined that NHCI
received a disproportionately large
share of assistance under this program,
and, on this basis, we determined that
the Article 7 grant was limited to a
specific enterprise or industry, or group
of enterprises or industries, within the
meaning of section 771(5A)(D)(iv) of the
Act. In these reviews, neither the GOQ
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24531
nor NHCI has provided new information
which would warrant reconsideration of
this determination.
In the Magnesium Investigation, the
Department determined that the Article
7 assistance received by NHCI
constituted a non–recurring grant
because it represented a one–time
provision of funds. In the current
reviews, no new information has been
placed on the record that would cause
us to depart from this treatment. To
calculate the benefit, we performed the
expense test, as explained in the
‘‘Allocation period’’ section above, and
found that the benefits approved were
more than 0.5 percent of NHCI’s total
sales. Therefore, we allocated the
benefits over time. We used the grant
methodology as described in section
351.524(d) of the Department’s
regulations to calculate the amount of
benefit allocable to the POR. We then
divided the benefit attributable to the
POR by NHCI’s total sales of Canadian–
manufactured products in the POR. On
this basis, we preliminarily determine
the countervailable subsidy from the
Article 7 grant to be 1.21 percent ad
valorem for NHCI.
´
B. Emploi–Quebec Manpower
Training Program
The MTM Program is a labor–focused
program designed to improve and
develop the labor market in the region
´
of Quebec. It is implemented by the
´
Emploi–Quebec (‘‘E–Q’’), a labor unit
´
within Quebec’s Ministry of
´
Employment and Solidarity (Ministere
´
de L’Emploi et de la Solidarite sociale),
and funded by the GOQ. The Program
´
provides grants to companies in Quebec
that have training programs approved by
the E–Q. Up to 50 percent of a
company’s training expenses, normally
over a period of 24 months, are
reimbursed under the MTM program if
the training programs satisfy the E–Q’s
five policy objectives of job preparation,
job integration, job management, job
stabilization, and job creation.
Once the five objectives are met,
companies with small–scale projects are
eligible to receive reimbursement of 50
percent of their labor training expenses,
up to a maximum reimbursement of
$100,000. Major economic projects are
required to: (1) create either 50 jobs or
100 jobs in 24 months, depending on
whether the company is a new company
or a company that has been in
operation; (2) have the approval of the
Ministry’s Commission des partenaires
du marche du travail; and (3) agree to
close monitoring by the E–Q. The
$100,000 reimbursement limit does not
apply to major economic projects. (See
New Shipper Review and accompanying
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Federal Register / Vol. 70, No. 89 / Tuesday, May 10, 2005 / Notices
Issues and Decision Memorandum at
‘‘Analysis of Programs.’’)
In 1998 and 2000, the E–Q approved
grants to reimburse 50 percent of
Magnola’s training expenses. Magnola
received the MTM grants in 1999, 2000
and 2001. In the New Shipper Review,
the Department found that the MTM
program assistance received by
Magnola, constituted countervailable
benefits within the meaning of section
771(5) of the Act. The assistance is a
direct transfer of funds from the GOQ
bestowing a benefit in the amount of the
grants. We also found Magnola received
a disproportionately large share of
assistance under the MTM program and,
on this basis, we found the grants to be
limited to a specific enterprise or
industry, or group of enterprises or
industries, within the meaning of
section 771(5A)(D)(iv) of the Act. In
accordance with 19 CFR 351.524(c)(1)
and (2), we treated the grants as non–
recurring.
In the current reviews, no new
information has been provided that
would warrant reconsideration of these
determinations. To calculate the benefit,
we performed the expense test, as
explained in the ‘‘Allocation period’’
section above, and found that the
benefits approved were more than 0.5
percent of Magnola’s total sales.
Therefore, we allocated the benefits over
time. We used the grant methodology as
described in section 351.524(d) of the
Department’s regulations to calculate
the amount of benefit allocable to the
POR. We then divided the benefit
attributable to the POR by Magnola’s
total sales in the POR. On this basis, we
preliminarily find the net subsidy rate
from the MTM program to be 5.40
percent ad valorem for Magnola.
II. Programs Preliminarily Determined
To Be Not Used
We examined the following programs
and preliminarily determine that neither
NHCI nor Magnola applied for or
received benefits under these programs
during the POR:
• St. Lawrence River Environment
Technology Development Program
• Program for Export Market
Development
• The Export Development Corporation
´
• Canada–Quebec Subsidiary Agreement
on the Economic Development of the
´
Regions of Quebec
• Opportunities to Stimulate
Technology Programs
• Development Assistance Program
• Industrial Feasibility Study Assistance
Program
• Export Promotion Assistance Program
• Creation of Scientific Jobs in
Industries
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• Business Investment Assistance
Program
• Business Financing Program
• Research and Innovation Activities
Program
• Export Assistance Program
• Energy Technologies Development
Program
• Transportation Research and
Development Assistance Program
III. Program Previously Determined To
Be Terminated
• Exemption from Payment of Water
Bills
Adjustment of Countervailing Duty
Cash Deposit Rate
In its December 3, 2004, submission,
NHCI contends that the Department
should set the countervailing duty cash
deposit rate to zero for pure and alloy
magnesium produced by NHCI in
Canada and entered on or after January
1, 2005. NHCI asserts that, as of that
date, the only subsidy at issue for NHCI
will have been fully amortized, and
there will be no legal basis or need for
collecting cash deposits from NHCI. On
December 9, 2004, the GOQ made a
submission supporting NHCI’s
arguments. On December 14, 2004, the
petitioner argued that the Department
should deny NHCI’s request and
complete the administrative review
before setting future cash deposit rates.
On December 14, 2004, the
Department responded to NHCI’s
request by stating that we do not have
the authority to modify deposit rates
outside of the administrative review
process. Therefore, we are not changing
the deposit rate for NHCI effective
January 1, 2005.
Preliminary Results of Reviews
In accordance with 19 CFR
351.221(b)(4)(i), we calculated an
individual subsidy rate for each
producer/exporter subject to these
administrative reviews. For the period
January 1, 2003, through December 31,
2003, we preliminarily find the net
subsidy rates for producers/exporters
under review to be those specified in
the chart shown below. If the final
results of these reviews remain the same
as these preliminary results, the
Department intends to instruct U.S.
Customs and Border Protection (‘‘CBP’’)
to assess countervailing duties at these
net subsidy rates. We will disclose our
calculations to the interested parties in
accordance with section 351.224(b) of
the Department’s regulations.
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NET SUBSIDY RATE: PURE MAGNESIUM
Manufacturer/Exporter
Norsk Hydro Canada,
Inc. ............................
Magnola Metallurgy,
Inc. ............................
Percent
1.21 percent
5.40 percent
NET SUBSIDY RATE: ALLOY
MAGNESIUM
Manufacturer/Exporter
Norsk Hydro Canada,
Inc. ............................
Magnola Metallurgy,
Inc. ............................
Percent
1.21 percent
5.40 percent
Cash Deposit Instructions
The Department also intends to
instruct CBP to collect cash deposits of
estimated countervailing duties at the
rate specified on the f.o.b. value of all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of the final results of these
administrative reviews.
We will instruct CBP to continue to
collect cash deposits for non–reviewed
companies (except Timminco Limited,
which was excluded from the orders
during the investigations) at the most
recent company–specific or country–
wide rate applicable to the company.
Accordingly, the cash deposit rate that
will be applied to non–reviewed
companies covered by these orders is
that established in Pure and Alloy
Magnesium From Canada; Final Results
of the Second (1993) Countervailing
Duty Administrative Reviews, 62 FR
48607 (September 16, 1997) or the
company–specific rate published in the
most recent final results of an
administrative review in which a
company participated. These rates shall
apply to all non–reviewed companies
until a review of a company assigned
these rates is requested.
Public Comment
Interested parties may submit written
arguments in case briefs within 30 days
of the date of publication of this notice.
Rebuttal briefs, limited to issues raised
in case briefs, may be filed not later than
five days after the date of filing the case
briefs. Parties who submit briefs in this
proceeding should provide a summary
of the arguments not to exceed five
pages and a table of statutes,
regulations, and cases cited. Copies of
case briefs and rebuttal briefs must be
served on interested parties in
accordance with 19 CFR 351.303(f).
Interested parties may request a
hearing within 30 days after the date of
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publication of this notice. Any hearing,
if requested, will be held two days after
the scheduled date for submission of
rebuttal briefs. The Department will
publish a notice of the final results of
these administrative reviews within 120
days from the publication of these
preliminary results.
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: May 3, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–2296 Filed 5–9–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
Notice of Clarification: Application of
‘‘Next Business Day’’ Rule for
Administrative Determination
Deadlines Pursuant to the Tariff Act of
1930, As Amended
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: May 10, 2005.
FOR FURTHER INFORMATION CONTACT:
Katja Kravetsky at (202) 482–0108,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street & Constitution
Ave, NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
which recognizes the administrative
reality that there are no employees
present to make administrative
determinations that fall due when the
Department is closed. While this
practice has never been challenged, the
Department has concluded that it is
appropriate to publicize this practice to
interested parties.
scope rulings and anticircumvention
determinations completed by Import
Administration between April 1, 2003,
and December 31, 2004, inclusive. It
also lists any scope or
anticircumvention inquiries pending as
of December 31, 2004. As described
below, subsequent lists will follow after
the close of each calendar quarter.
Clarification of Statutory Deadlines
The Department hereby clarifies that
where a statutory deadline falls on a
weekend, federal holiday, or any other
day when the Department is closed, the
Department will continue its
longstanding practice of reaching our
determination on the next business day.
We find that this clarification is
consistent with federal practice. See
Fed. R. Civ. P. 6(a); Fed R. App. P. 26(a);
see, also, Dofasco Inc., 390 F.3d at 1372.
Scope Rulings Completed Between
April 1, 2003, and December 31, 2004
Dated: April 29, 2005.
Joseph A. Spetrini,
Acting Assistant Sectretary for Import
Administration.
[FR Doc. E5–2234 Filed 5–9–05; 8:45 am]
BILLING CODE 3510–DS–S
AGENCY:
Background
The Tariff Act of 1930, as amended
(the Act), requires that the Department
of Commerce (the Department) make
preliminary and final determinations
during an administrative proceeding
within specified time limits. See, e.g.,
section 751(a) of the Act, 19 U.S.C.
§ 1675(a). The Act does not address the
treatment of deadlines falling on a
weekend, federal holiday, or day on
which the Department is otherwise
closed, e.g., due to a weather
emergency.
With respect to certain deadlines
involving filings made with the
Department, the agency’s regulations
clarify that where ‘‘the applicable time
limit expires on a non–business day, the
Secretary will accept documents that are
filed on the next business day.’’ See 19
CFR 351.303(b); see, also, Dofasco, Inc.
v. United States, 390 F.3d 1370, 1372
(Fed. Cir. 2004). With respect to
deadlines for reaching administrative
determinations, the Department’s
longstanding practice has been to apply
a similar ‘‘next business day’’ rule,
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India
A–533–824, C–533–825: Polyethylene
Terephthalate Film Sheet and Strip
from India
Requestor: International Packaging
Films, Inc.; tracing and drafting film is
outside the scope of the order; August
25, 2003.
A–533–502: Certain Welded Carbon
Steel Standard Pipes and Tubes from
India
Requestor: Aruvil International, Inc.;
welded carbon steel pipes that are
galvanized and have a polyester powder
coating are within the scope of the
antidumping duty order; March 4, 2004.
DEPARTMENT OF COMMERCE
Mexico
International Trade Administration
A–201–805: Circular Welded Non–Alloy
Steel Pipe from Mexico
Notice of Scope Rulings
Requestor: Galvak S.A. de CV;
mechanical tubing is outside of the
order, some Galvak tubing marked as
ASTM A–787 is not mechanical tubing;
scope ruling November 19, 1998; redetermination affirmed by NAFTA
panel June 7, 2004.
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: May 10, 2005.
SUMMARY: The Department of Commerce
(the Department) hereby publishes a list
of scope rulings completed between
April 1, 2003, and December 31, 2004.
In conjunction with this list, the
Department is also publishing a list of
requests for scope rulings and
anticircumvention determinations
pending as of December 31, 2004. We
intend to publish future lists after the
close of the next calendar quarter.
FOR FURTHER INFORMATION CONTACT:
Bridgette Roy or Irina Itkin, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone (202) 482–0160 or (202) 482–
0656.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
The Department’s regulations provide
that the Secretary will publish in the
Federal Register a list of scope rulings.
See 19 CFR 351.225(o). Our most recent
‘‘Notice of Scope Rulings’’ was
published on June 19, 2003. See 68 FR
36770. The instant notice covers all
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A–201–831: Prestressed Concrete Steel
Wire Strand from Mexico
Requestors: American Spring Wire
Corp., Insteel Wire Products Company,
Sumiden Wire Products Corp., and
Cablesa , S.A. de C.V.; 0.05 oz./sq. ft.
zinc coated PC strand is within the
scope of the order; June 16, 2004.
People’s Republic of China
A–570–504: Petroleum Wax Candles
from the People’s Republic of China
Requestor: Garden Ridge; nine candles
six with a cheetah print (Styles 194735–
A, 194736–A, 194768–A, 194735–C) and
three with a zebra print (194735–D,
194736–D, 194768–D) are within the
scope of the order; April 22, 2003.
A–570–504: Petroleum Wax Candles
from the People’s Republic of China
Requestor: Fleming International, Ltd.;
three of Fleming’s candles (B3922,
B3966, and B3988) are not included in
the scope of the order based on their
vegetable wax content. However, one of
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]]>Agencies
[Federal Register Volume 70, Number 89 (Tuesday, May 10, 2005)]
[Notices]
[Pages 24530-24533]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2296]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
C-122-815
Pure Magnesium and Alloy Magnesium from Canada: Preliminary
Results of Countervailing Duty Administrative Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce is conducting administrative
reviews of the countervailing duty orders on pure magnesium and alloy
magnesium from Canada for the period January 1, 2003, through December
31, 2003. We preliminarily find that certain producers/exporters have
received countervailable subsidies during the period of review. If the
final results remain the same as these preliminary results, we will
instruct U.S. Customs and Border Protection to assess countervailing
duties as detailed in the ``Preliminary Results of Reviews'' section of
this notice. Interested parties are invited to comment on these
preliminary results (see the ``Public Comment'' section of this
notice).
EFFECTIVE DATE: May 10, 2005.
FOR FURTHER INFORMATION CONTACT: Andrew McAllister, AD/CVD Operations,
Office 1, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington DC 20230; telephone (202) 482-1174.
SUPPLEMENTARY INFORMATION:
Case History
On August 31, 1992, the Department of Commerce (``the Department'')
published in the Federal Register the countervailing duty orders on
pure magnesium and alloy magnesium from Canada (see Final Affirmative
Countervailing Duty Determinations: Pure Magnesium and Alloy Magnesium
from Canada, 57 FR 39392 (``Magnesium Investigation'')). On August 3,
2004, the Department published a notice of ``Opportunity to Request
Administrative Review'' of these countervailing duty orders (see
Antidumping or Countervailing Duty Order, Finding, or Suspended
Investigation; Opportunity to Request Administrative Review, 69 FR
46496). We received timely requests for review from Norsk Hydro Canada,
Inc. (``NHCI'') and from the petitioner, U.S. Magnesium, LLC for
reviews of NHCI and Magnola Metallurgy, Inc. (``Magnola''). On
September 1, 2004, we received a request for review from Magnola. On
September 7, 2004, we asked Magnola to explain the circumstances which
led to its late filing. On September 10, 2004, Magnola responded to the
Department's request and explained its circumstances. On September 16,
2004, the Department rejected Magnola's September 1, 2004, request for
review, but the review with respect to Magnola continued based on the
request of the petitioner. On September 22, 2004, we initiated these
reviews covering shipments of subject merchandise from NHCI and Magnola
(see Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Request for Revocation in Part, 69 FR 56745).
On October 6, 2004, we issued countervailing duty questionnaires to
NHCI, Magnola, the Government of Qu[eacute]bec (``GOQ''), and the
Government of Canada (``GOC''). We received questionnaire responses
from GOQ on November 8, 2004, from GOC and Magnola on November 12,
2004, and from NHCI on December 22, 2004.
Scope of the Orders
The products covered by these orders are shipments of pure and
alloy magnesium from Canada. Pure magnesium contains at least 99.8
percent magnesium by weight and is sold in various slab and ingot forms
and sizes. Magnesium alloys contain less than 99.8 percent magnesium by
weight with magnesium being the largest metallic element in the alloy
by weight, and are sold in various ingot and billet forms and sizes.
The pure and alloy magnesium subject to the orders is currently
classifiable under items 8104.11.0000 and 8104.19.0000, respectively,
of the Harmonized Tariff Schedule of the United States (``HTSUS'').
Although the HTSUS subheadings are provided for convenience and customs
purposes, the written descriptions of the merchandise subject to the
orders are dispositive.
Secondary and granular magnesium are not included in the scope of
these orders. Our reasons for excluding granular magnesium are
summarized in Preliminary Determination of Sales at Less Than Fair
Value: Pure and Alloy Magnesium From Canada, 57 FR 6094 (February 20,
1992).
[[Page 24531]]
Period of Review
The period of review (``POR'') for which we are measuring subsidies
is January 1, 2003, through December 31, 2003.
Subsidies Valuation Information
Discount rate: As noted below, the Department preliminarily finds
that NHCI and Magnola benefitted from countervailable subsidies during
the POR. In accordance with 19 CFR 351.524(d)(3), it is the
Department's preference to use a company's long-term, fixed-rate cost
of borrowing in the same year a grant was approved as the discount
rate. However, where a company does not have any debt that can be used
as an appropriate basis for a discount rate, the Department's next
preference is to use the average cost of long-term fixed-rate loans in
the country in question. In the investigation and previous reviews, the
Department determined that NHCI received and benefitted from
countervailable subsidies from the Article 7 grant from the
Qu[eacute]bec Industrial Development Corporation (``Article 7 grant'').
See Magnesium Investigation. In line with the Department's practice, we
used NHCI's cost of long-term, fixed-rate debt in the year in which the
Article 7 grant was approved as the discount rate for purposes of
calculating the benefit pertaining to the POR.
In the Final Results of Pure Magnesium from Canada: Notice of Final
Results of Countervailing Duty New Shipper Review (``New Shipper
Review''), 68 FR 22359 (April 28, 2003), we found that Magnola
benefitted from grants under the Emploi-Qu[eacute]bec Manpower Training
Measure Program (``MTM Program''). Magnola did not have any long-term
fixed-rate debt during the years the grants were approved. Therefore,
consistent with our treatment of these grants in previous
administrative reviews, we continue to use long-term commercial bond
rates for purposes of calculating the benefit attributable to the POR.
Allocation period: In the investigations and previous
administrative reviews of these cases, the Department used as the
allocation period for non-recurring subsidies the average useful life
(``AUL'') of renewable physical assets in the magnesium industry as
recorded in the Internal Revenue Service's 1977 Class Life Asset
Depreciation Range System (``the IRS tables''), i.e., 14 years.
Pursuant to section 351.524(d)(2) of the Department's regulations, we
use the AUL in the IRS tables as the allocation period unless a party
can show that the IRS tables do not reasonably reflect either the
company-specific or country-wide AUL for the industry. During this
review, none of the parties contested using the AUL reported for the
magnesium industry in the IRS tables. Therefore, we continue to
allocate non-recurring benefits over 14 years.
For non-recurring subsidies, we applied the ``0.5 percent expense
test'' described in section 351.524(b)(2) of the Department's
regulations. In this test, we compare the amount of subsidies approved
under a given program in a particular year to sales (total or export,
as appropriate) in that year. If the amount of the subsidies is less
than 0.5 percent of sales, the benefits are expensed in their entirety,
in the year of receipt, rather than allocated over the AUL period.
Analysis of Programs
I. Programs Preliminarily Determined to Confer Countervailable
Subsidies
A. Article 7 Grant from the Qu[eacute]bec Industrial Development
Corporation (``SDI'')
SDI (Soci[eacute]t[eacute] de D[eacute]veloppement Industriel du
Qu[eacute]bec) administers development programs on behalf of the GOQ.
SDI provides assistance under Article 7 of the SDI Act in the form of
loans, loan guarantees, grants, assumptions of costs associated with
loans, and equity investments. This assistance is provided for projects
that are capable of having a major impact upon the economy of
Qu[eacute]bec. Article 7 assistance greater than 2.5 million dollars
must be approved by the Council of Ministers and assistance over 5
million dollars becomes a separate budget item under Article 7.
Assistance provided in such amounts must be of ``special economic
importance and value to the province.'' (See Magnesium Investigation,
57 FR at 30948.)
In 1988, NHCI was awarded a grant under Article 7 to cover a large
percentage of the cost of certain environmental protection equipment.
In the Magnesium Investigation, the Department determined the Article 7
grant confers a countervailable subsidy within the meaning of section
771(5) of the Tariff Act of 1930, as amended (``the Act''). The grant
is a direct transfer of funds from the GOQ bestowing a benefit in the
amount of the grant. We previously determined that NHCI received a
disproportionately large share of assistance under this program, and,
on this basis, we determined that the Article 7 grant was limited to a
specific enterprise or industry, or group of enterprises or industries,
within the meaning of section 771(5A)(D)(iv) of the Act. In these
reviews, neither the GOQ nor NHCI has provided new information which
would warrant reconsideration of this determination.
In the Magnesium Investigation, the Department determined that the
Article 7 assistance received by NHCI constituted a non-recurring grant
because it represented a one-time provision of funds. In the current
reviews, no new information has been placed on the record that would
cause us to depart from this treatment. To calculate the benefit, we
performed the expense test, as explained in the ``Allocation period''
section above, and found that the benefits approved were more than 0.5
percent of NHCI's total sales. Therefore, we allocated the benefits
over time. We used the grant methodology as described in section
351.524(d) of the Department's regulations to calculate the amount of
benefit allocable to the POR. We then divided the benefit attributable
to the POR by NHCI's total sales of Canadian-manufactured products in
the POR. On this basis, we preliminarily determine the countervailable
subsidy from the Article 7 grant to be 1.21 percent ad valorem for
NHCI.
B. Emploi-Qu[eacute]bec Manpower Training Program
The MTM Program is a labor-focused program designed to improve and
develop the labor market in the region of Qu[eacute]bec. It is
implemented by the Emploi-Qu[eacute]bec (``E-Q''), a labor unit within
Qu[eacute]bec's Ministry of Employment and Solidarity (Minist[eacute]re
de L'Emploi et de la Solidarit[eacute] sociale), and funded by the GOQ.
The Program provides grants to companies in Qu[eacute]bec that have
training programs approved by the E-Q. Up to 50 percent of a company's
training expenses, normally over a period of 24 months, are reimbursed
under the MTM program if the training programs satisfy the E-Q's five
policy objectives of job preparation, job integration, job management,
job stabilization, and job creation.
Once the five objectives are met, companies with small-scale
projects are eligible to receive reimbursement of 50 percent of their
labor training expenses, up to a maximum reimbursement of $100,000.
Major economic projects are required to: (1) create either 50 jobs or
100 jobs in 24 months, depending on whether the company is a new
company or a company that has been in operation; (2) have the approval
of the Ministry's Commission des partenaires du marche du travail; and
(3) agree to close monitoring by the E-Q. The $100,000 reimbursement
limit does not apply to major economic projects. (See New Shipper
Review and accompanying
[[Page 24532]]
Issues and Decision Memorandum at ``Analysis of Programs.'')
In 1998 and 2000, the E-Q approved grants to reimburse 50 percent
of Magnola's training expenses. Magnola received the MTM grants in
1999, 2000 and 2001. In the New Shipper Review, the Department found
that the MTM program assistance received by Magnola, constituted
countervailable benefits within the meaning of section 771(5) of the
Act. The assistance is a direct transfer of funds from the GOQ
bestowing a benefit in the amount of the grants. We also found Magnola
received a disproportionately large share of assistance under the MTM
program and, on this basis, we found the grants to be limited to a
specific enterprise or industry, or group of enterprises or industries,
within the meaning of section 771(5A)(D)(iv) of the Act. In accordance
with 19 CFR 351.524(c)(1) and (2), we treated the grants as non-
recurring.
In the current reviews, no new information has been provided that
would warrant reconsideration of these determinations. To calculate the
benefit, we performed the expense test, as explained in the
``Allocation period'' section above, and found that the benefits
approved were more than 0.5 percent of Magnola's total sales.
Therefore, we allocated the benefits over time. We used the grant
methodology as described in section 351.524(d) of the Department's
regulations to calculate the amount of benefit allocable to the POR. We
then divided the benefit attributable to the POR by Magnola's total
sales in the POR. On this basis, we preliminarily find the net subsidy
rate from the MTM program to be 5.40 percent ad valorem for Magnola.
II. Programs Preliminarily Determined To Be Not Used
We examined the following programs and preliminarily determine that
neither NHCI nor Magnola applied for or received benefits under these
programs during the POR:
St. Lawrence River Environment Technology Development Program
Program for Export Market Development
The Export Development Corporation
Canada-Qu[eacute]bec Subsidiary Agreement on the Economic
Development of the Regions of Qu[eacute]bec
Opportunities to Stimulate Technology Programs
Development Assistance Program
Industrial Feasibility Study Assistance Program
Export Promotion Assistance Program
Creation of Scientific Jobs in Industries
Business Investment Assistance Program
Business Financing Program
Research and Innovation Activities Program
Export Assistance Program
Energy Technologies Development Program
Transportation Research and Development Assistance Program
III. Program Previously Determined To Be Terminated
Exemption from Payment of Water Bills
Adjustment of Countervailing Duty Cash Deposit Rate
In its December 3, 2004, submission, NHCI contends that the
Department should set the countervailing duty cash deposit rate to zero
for pure and alloy magnesium produced by NHCI in Canada and entered on
or after January 1, 2005. NHCI asserts that, as of that date, the only
subsidy at issue for NHCI will have been fully amortized, and there
will be no legal basis or need for collecting cash deposits from NHCI.
On December 9, 2004, the GOQ made a submission supporting NHCI's
arguments. On December 14, 2004, the petitioner argued that the
Department should deny NHCI's request and complete the administrative
review before setting future cash deposit rates.
On December 14, 2004, the Department responded to NHCI's request by
stating that we do not have the authority to modify deposit rates
outside of the administrative review process. Therefore, we are not
changing the deposit rate for NHCI effective January 1, 2005.
Preliminary Results of Reviews
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual subsidy rate for each producer/exporter subject to these
administrative reviews. For the period January 1, 2003, through
December 31, 2003, we preliminarily find the net subsidy rates for
producers/exporters under review to be those specified in the chart
shown below. If the final results of these reviews remain the same as
these preliminary results, the Department intends to instruct U.S.
Customs and Border Protection (``CBP'') to assess countervailing duties
at these net subsidy rates. We will disclose our calculations to the
interested parties in accordance with section 351.224(b) of the
Department's regulations.
Net Subsidy Rate: Pure Magnesium
------------------------------------------------------------------------
Manufacturer/Exporter Percent
------------------------------------------------------------------------
Norsk Hydro Canada, Inc............................. 1.21 percent
Magnola Metallurgy, Inc............................. 5.40 percent
------------------------------------------------------------------------
Net Subsidy Rate: Alloy Magnesium
------------------------------------------------------------------------
Manufacturer/Exporter Percent
------------------------------------------------------------------------
Norsk Hydro Canada, Inc............................. 1.21 percent
Magnola Metallurgy, Inc............................. 5.40 percent
------------------------------------------------------------------------
Cash Deposit Instructions
The Department also intends to instruct CBP to collect cash
deposits of estimated countervailing duties at the rate specified on
the f.o.b. value of all shipments of the subject merchandise entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of the final results of these administrative reviews.
We will instruct CBP to continue to collect cash deposits for non-
reviewed companies (except Timminco Limited, which was excluded from
the orders during the investigations) at the most recent company-
specific or country-wide rate applicable to the company. Accordingly,
the cash deposit rate that will be applied to non-reviewed companies
covered by these orders is that established in Pure and Alloy Magnesium
From Canada; Final Results of the Second (1993) Countervailing Duty
Administrative Reviews, 62 FR 48607 (September 16, 1997) or the
company-specific rate published in the most recent final results of an
administrative review in which a company participated. These rates
shall apply to all non-reviewed companies until a review of a company
assigned these rates is requested.
Public Comment
Interested parties may submit written arguments in case briefs
within 30 days of the date of publication of this notice. Rebuttal
briefs, limited to issues raised in case briefs, may be filed not later
than five days after the date of filing the case briefs. Parties who
submit briefs in this proceeding should provide a summary of the
arguments not to exceed five pages and a table of statutes,
regulations, and cases cited. Copies of case briefs and rebuttal briefs
must be served on interested parties in accordance with 19 CFR
351.303(f).
Interested parties may request a hearing within 30 days after the
date of
[[Page 24533]]
publication of this notice. Any hearing, if requested, will be held two
days after the scheduled date for submission of rebuttal briefs. The
Department will publish a notice of the final results of these
administrative reviews within 120 days from the publication of these
preliminary results.
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: May 3, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-2296 Filed 5-9-05; 8:45 am]
BILLING CODE 3510-DS-S
