Pure Magnesium and Alloy Magnesium from Canada: Preliminary Results of Countervailing Duty Administrative Reviews and Intent to Rescind, 39667-39670 [E6-11063]
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Notices
Weighted–
Average
Margin
Ta Chen Stainless Pipe Co., Ltd
0.79%
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The Department will disclose
calculations performed for these
preliminary results of review within five
days of the date of publication of this
notice in accordance with 19 CFR
351.224(b). Interested parties may
submit case briefs and/or written
comments no later than 30 days after the
date of publication of these preliminary
results of review. See 19 CFR
351.309(c)(ii). Rebuttal briefs and
rebuttals to written comments are
limited to issues raised in such briefs or
comments and may be filed no later
than five days after the time limit for
filing the case briefs or comments. See
19 CFR 351.309(d). Parties who submit
argument in these proceedings are
requested to submit with the argument:
(1) a statement of the issue, (2) a brief
summary of the argument, and (3) a
table of authorities. See 19 CFR
351.309(c). An interested party may
request a hearing within 30 days of
publication of these preliminary results.
See 19 CFR 351.310(c). Any hearing, if
requested, will be held two days after
the scheduled date for submission of
rebuttal briefs. See 19 CFR 351.310(d).
The Department will issue the final
results of this administrative review,
including the results of our analysis of
the issues raised in any such written
comments or at a hearing, within 120
days of publication of these preliminary
results, pursuant to section 751(a)(3)(A)
of the Act.
Assessment Rates
Upon completion of this review the
Department will determine, and CBP
shall assess antidumping duties on all
appropriate entries. In accordance with
19 CFR 351.212(b)(1) we have
calculated an importer–specific ad
valorem rate for merchandise exported
by Ta Chen which is subject to this
review. The Department will issue
appropriate assessment instructions
directly to CBP within 15 days of
publication of the final results of
review.
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003 (68 FR 23954). See
Antidumping and Countervailing Duty
Proceedings: Assessment of
Antidumping Duties, 68 FR 23954 (May
6, 2003). This clarification will apply to
entries of subject merchandise during
the period of review produced by Ta
Chen or by any of the companies for
which we are rescinding this review and
for which Ta Chen or each no–shipment
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respondent did not know its
merchandise would be exported by
another company to the United States.
In such instances, we will instruct CBP
to liquidate unreviewed entries at the
all–others rate if there is no rate for the
intermediate company(ies) involved in
the transaction.
Cash Deposit
The following cash deposit
requirements will be effective upon
publication of the final results of this
administrative review for all shipments
of the subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the publication
date of the final results of this
administrative review, as provided by
section 751(a)(1) of the Act: (1) the cash
deposit rate for the reviewed company
will be the rate listed in the final results
of review; (2) for previously investigated
companies not listed above, the cash
deposit rate will continue to be the
company–specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review, a prior
review, or the original less–than-fair–
value (LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and (4) the cash
deposit rate for all other manufacturers
or exporters will continue to be the ‘‘all
others’’ rate of 51.01 percent, which is
the ‘‘all others’’ rate established in the
LTFV investigation. These deposit
requirements, when imposed, shall
remain in effect until publication of the
final results of the next administrative
review.
Notification to Interested Parties
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of the antidumping
duties occurred and the subsequent
assessment of double antidumping
duties.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: June 30, 2006.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E6–11060 Filed 7–12–06; 8:45 am]
BILLING CODE 3510–DS–S
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39667
DEPARTMENT OF COMMERCE
International Trade Administration
C–122–815
Pure Magnesium and Alloy Magnesium
from Canada: Preliminary Results of
Countervailing Duty Administrative
Reviews and Intent to Rescind
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, 2004,
through December 31, 2004. We
preliminarily find that a producer/
exporter has 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: July 13, 2006.
FOR FURTHER INFORMATION CONTACT:
Andrew McAllister or Steve Williams,
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 or (202) 482–
4619, respectively.
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 (July 13,
1992) (‘‘Magnesium Investigation’’). On
August 1, 2005, 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, 70 FR 44085).
We received timely requests for review
from Norsk Hydro Canada, Inc.
(‘‘NHCI’’) and from the petitioner, US
Magnesium LLC (‘‘US Magnesium’’) for
reviews of NHCI and Magnola
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Notices
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Metallurgy Inc. (‘‘Magnola’’). NHCI also
requested that the Department revoke
the countervailing duty orders with
respect to NHCI. On September 16,
2005, we received comments from US
Magnesium arguing that NHCI’s
revocation request was without merit.
On September 23, 2005, NHCI
submitted a rebuttal to the September
16, 2005, submission by US Magnesium.
On September 28, 2005, 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, 70 FR 56631).
On October 5, 2005, NHCI requested
that the Department continue the
suspension of liquidation for NHCI’s
subject merchandise during this POR
until final disposition of a dispute
settlement proceeding under NAFTA
(USA–CDA–00–1904–09 (panel)). On
June 23, 2006, the Department granted
NHCI’s request to continue suspension
of liquidation of its subject merchandise
entries during this POR.
On November 2, 2005, we issued
countervailing duty questionnaires to
´
NHCI, Magnola, Government of Quebec
(‘‘GOQ’’), and the Government of
Canada (‘‘GOC’’). On November 14,
2005, Magnola notified the Department
that it had ceased operations and had no
shipments of the subject merchandise
during the POR. We received
questionnaire responses from GOQ and
GOC on December 9, 2005, and from
NHCI on December 16, 2005.
On January 13, 2006, we received
additional information from NHCI
regarding its revocation request. On
June 12, 2006, NHCI withdrew its
request for revocation.
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.
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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).
Intent to Rescind
As noted above, the Department was
notified by Magnola that it ceased
operations and had no shipments of
subject merchandise during the POR.
The Department confirmed, using CBP
data, that Magnola did not ship subject
merchandise to the United States during
the POR. Therefore, pursuant to 19 CFR
351.213(d)(3), we are preliminarily
rescinding the administrative review of
the countervailing duty order on alloy
magnesium with respect to Magnola.
Period of Review
The period of review (‘‘POR’’) for
which we are measuring subsidies is
January 1, 2004, through December 31,
2004.
Subsidies Valuation Information
Discount rate: As noted below, the
Department preliminarily finds that
NHCI 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.
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.
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Pursuant to 19 CFR 351.524(d)(2), 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 these reviews, 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 19 CFR 351.524(b)(2). 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.
The grant was disbursed in 1990 and
1991. 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
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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 19 CFR
351.524(d) 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 0.51 percent ad
valorem for NHCI.
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II. Programs Preliminarily Determined
To Be Not Used
We examined the following programs
and preliminarily determine that NHCI
did not apply for or receive benefits
under these programs during the POR:
´
• Emploi–Quebec Manpower Training
Program
• 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
• Business Investment Assistance
Program
• Business Financing Program
• Research and Innovation Activities
Program
• Export Assistance Program
• Energy Technologies Development
Program
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• Financial Assistance Program for
Research Formation and for the
Improvement of the Recycling Industry
• 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 January 13, 2006, submission,
NHCI contends that the Department
should set NHCI’s cash deposit rate to
zero for pure magnesium and alloy
magnesium at the final results of these
administrative reviews. NHCI asserts
that, as of that date, the only subsidy at
issue for NHCI (i.e., the Article 7 grant)
will have been fully amortized, and
there will be no basis or need for
collecting cash deposits from NHCI. In
support of its argument, NHCI cites to
Stainless Steel Sheet and Strip in Coils
from France: Final Results of
Countervailing Duty Administrative
Review, 68 FR 53963 (September 15,
2003) (‘‘SSSSC from France’’) and Final
Results of Countervailing Duty
Administrative Reviews: Low Enriched
Uranium From Germany, the
Netherlands, and the United Kingdom,
69 FR 40869 (July 7, 2004) (‘‘Uranium’’).
In its December 9, 2005, submission,
GOC supported NHCI’s arguments for
setting the cash deposit rate at zero.
As discussed below under the ‘‘Cash
Deposit Instructions’’ section, we do not
intend to issue cash deposit instructions
as a result of these reviews. Therefore,
NHCI’s argument is moot.
Preliminary Results of Reviews
In accordance with 19 CFR
351.221(b)(4)(i), we calculated an
individual subsidy rate for the
producer/exporter subject to these
administrative reviews. For the period
January 1, 2004, through December 31,
2004, we preliminarily find the net
subsidy rate for NHCI to be 0.51 percent.
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 this net subsidy
rate. We will disclose our calculations
to the interested parties in accordance
with 19 CFR 351.224(b).
Cash Deposit Instructions
On June 26, 2006, the ITC voted in
favor of revoking the countervailing
duty orders on pure magnesium and
alloy magnesium from Canada (see Pure
and Alloy Magnesium from Canada, 71
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39669
FR 36359 (June 26, 2006)). The effective
date of the revocations is August 16,
2005. As a result of the ITC’s
determination, we do not intend to issue
cash deposit instructions.
However, were the Department to
issue cash deposit instructions, we
preliminarily determine that the
estimated net subsidy for future NHCI
imports would be zero. Consequently,
no cash deposits of estimated
countervailing duties would be required
on shipments of the subject
merchandise from the reviewed entity,
entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of the final results of these
reviews.
Liquidation Instructions
Pursuant to 19 U.S.C.
1516a(g)(5)(C)(i), the Department will
not order the liquidation of entries of
pure magnesium or alloy magnesium
from Canada exported by NHCI on or
after January 1, 2004, through December
31, 2004, pending final disposition of a
dispute settlement proceeding under
NAFTA (USA–CDA–00–1904–09
(panel)) with respect to Pure and Alloy
Magnesium From Canada; Final Results
of Full Sunset Review, 65 FR 41436 (July
5, 2000). Liquidation of NHCI entries
will occur at the rates described in these
final results of reviews, if appropriate,
following the final disposition of the
previously mentioned NAFTA dispute
settlement proceedings.
Public Comment
Pursuant to 19 CFR 351.310(c), any
interested party may request a hearing
within 30 days of publication of this
notice. Any hearing, if requested, will
be held 42 days after the publication of
this notice, or the first workday
thereafter. Issues raised in the hearing
will be limited to those raised in the
case and rebuttal briefs. Pursuant to 19
CFR 351.309(c), interested parties may
submit case briefs within 30 days of the
date of publication of this notice.
Rebuttal briefs, which must be limited
to issues raised in the case briefs, may
be filed not later than 35 days after the
date of publication of this notice. See 19
CFR 351.309(d). Parties who submit
case briefs or rebuttal briefs in this
proceeding are requested to submit with
each argument (1) a statement of the
issue and (2) a brief summary of the
argument with an electronic version
included.
The Department will issue the final
results of this administrative review,
including the results of its analysis of
issues raised in any such written briefs
or hearing, within 120 days of
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publication of these preliminary results.
See section 751(a)(3) of the Act.
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: July 6, 2006.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E6–11063 Filed 7–12–06; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[I.D. 071006D]
Mid-Atlantic Fishery Management
Council (MAFMC); Meetings
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meeting.
sroberts on PROD1PC70 with NOTICES
AGENCY:
SUMMARY: The Mid-Atlantic Fishery
Management Council (Council); its
Magnuson-Stevens Act (MSA)
Reauthorization Committee; its
Ecosystem Committee; and, its Squid,
Mackerel, Butterfish Committee will
hold public meetings.
DATES: Tuesday, August 1, 2006,
through Thursday, August 3, 2006. See
SUPPLEMENTARY INFORMATION for a
meeting agenda.
ADDRESSES: This meeting will be held at
the Sheraton Society Hill Hotel, One
Dock Street, Philadelphia, PA 19106,
telephone 215–238–6000.
Council Address: Mid-Atlantic
Fishery Management Council, 300 S.
New Street, Dover, DE 19904, telephone
302–674–2331.
FOR FURTHER INFORMATION CONTACT:
Daniel T. Furlong, Executive Director,
Mid-Atlantic Fishery Management
Council; telephone: 302–674–2331,
extension 19.
SUPPLEMENTARY INFORMATION:
Tuesday, August 1, 2006
The Magnuson-Stevens Act (MSA)
Reauthorization Committee will meet
from 9 a.m. until 10 a.m. to review
Senate Bill 2012 and other
reauthorization Bills to finalize Council
position on MSA reauthorization. The
Council will convene at 10 a.m. The
Council will receive a summary report
from 10 a.m. until 11:30 a.m. regarding
outcomes of the 43rd Stock Assessment
Review Committee concerning spiny
dogfish, black sea bass, and red crab.
From 12:30 p.m. until 4:30 p.m. the
Council will finalize scup management
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17:46 Jul 12, 2006
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measures for 2007 (2008, 2009) in
conjunction with the Atlantic States
Marine Fisheries Commission’s Summer
Flounder, Scup, and Black Sea Bass
Board (Board). The Scup Monitoring
Committee’s recommendations will be
reviewed regarding harvest levels and
commercial management measures to be
applied for the 2007 fishing year and
possibly the next two years thereafter,
and harvest levels and commercial
management measures as appropriate
for scup will be adopted.
Wednesday, August 2, 2006
The Council will convene at 8 a.m.
and meet in conjunction with the Board
until noon to finalize summer flounder
management measures for 2007 (2008,
2009). The Council and Board will
review the Summer Flounder
Monitoring Committee’s
recommendations regarding harvest
levels and commercial management
measures to be applied for the 2007
fishing year and possibly the next two
years thereafter, and harvest levels and
commercial management measures as
appropriate for summer flounder will be
adopted. From 1 p.m. until 3:30 p.m. the
Council will finalize black sea bass
management measures for 2007 (2008,
2009) in conjunction with the Board.
The Council and the Board will review
the Black Sea Bass Monitoring
Committee’s recommendations
regarding harvest levels and commercial
management measures to be applied for
the 2007 fishing year and possibly the
next two years thereafter, and harvest
levels and commercial management
measures as appropriate for black sea
bass will be adopted. From 3:30 p.m.
until 5:30 p.m. the Council will finalize
Bluefish Management Measures for 2007
in conjunction with the Atlantic States
Marine Fisheries Commission’s Bluefish
Board by reviewing the Bluefish
Monitoring Committee’s
recommendations regarding harvest
levels and associated management
measures to be applied for the 2007
fishing year, and harvest levels and
associated management measures for
2007 will be adopted.
Thursday, August 3, 2006
Concurrent sessions of the Ecosystems
Committee and the Squid, Mackerel,
Butterfish Committee will meet from 8
a.m. until 9 a.m. The Ecosystems
Committee will review strategies to
reduce bycatch mortality through the
adoption and use of circle hooks and
other types of hooks in selected
recreational fisheries. The Squid,
Mackerel, Butterfish Committee will
review and discuss trimester allocation
alternatives regarding the 2007 fishing
year for Loligo squid and adopt a
preferred alternative. The Council will
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convene at 9 a.m. Loligo squid
specifications for 2007 will be discussed
from 9 a.m. until 9:30 a.m. This
discussion will include a review of the
Squid, Mackerel, Butterfish Committee’s
recommendations regarding trimester
allocations and preferred allocation
alternatives. The Council will approve
and adopt a preferred allocation as its
Loligo squid specification for 2007.
From 9:30 a.m. until 11 a.m. the Council
will review and discuss the scup
rebuilding plan contained in the current
draft of Amendment 14 to the Summer
Flounder, Scup, Black Sea Bass FMP
(pre-Public Hearing Document) and its
associated environmental assessment
(EA). From 11 a.m. until 1 p.m. the
Council will receive a report on
comments received as a consequence of
the recent scoping process for
Amendment 15 to the Summer
Flounder, Scup, Black Sea Bass FMP,
and develop a list of potential actions to
be addressed in Amendment 15. The
Council will conduct its regular
business session from 2 p.m. to 5 p.m.
to approve June Council meeting
minutes, approve actions from the June
meeting, receive various organizational
reports, receive Committee reports and
address any continuing business, i.e.,
changes to the Council’s Statement of
Operating Practices and Procedures
(SOPP’s) regarding Scientific and
Statistical Committee membership, and
any new business.
Although non-emergency issues not
contained in this agenda may come
before the Council and its Committees
for discussion, these issues may not be
the subject of formal Council or
Committee action during this meeting.
Council and Committee action will be
restricted to those issues specifically
listed in this notice and any issues
arising after publication of this notice
that require emergency action under
section 305(c) of the Magnuson-Stevens
Act provided the public has been
notified of the Council(s intent to take
final actions to address such
emergencies.
Special Accommodations
This meeting is physically accessible
to people with disabilities. Requests for
sign language interpretation or other
auxiliary aids should be directed to M.
Jan Saunders (302–674–2331 extension
18) at least five days prior to the
meeting date.
Dated: July 10, 2006.
Tracey L. Thompson,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. E6–11025 Filed 7–12–06; 8:45 am]
BILLING CODE 3510–22–S
E:\FR\FM\13JYN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 134 (Thursday, July 13, 2006)]
[Notices]
[Pages 39667-39670]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11063]
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DEPARTMENT OF COMMERCE
International Trade Administration
C-122-815
Pure Magnesium and Alloy Magnesium from Canada: Preliminary
Results of Countervailing Duty Administrative Reviews and Intent to
Rescind
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, 2004, through December
31, 2004. We preliminarily find that a producer/exporter has 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: July 13, 2006.
FOR FURTHER INFORMATION CONTACT: Andrew McAllister or Steve Williams,
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
or (202) 482-4619, respectively.
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 (July 13, 1992) (``Magnesium Investigation'').
On August 1, 2005, 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, 70 FR
44085). We received timely requests for review from Norsk Hydro Canada,
Inc. (``NHCI'') and from the petitioner, US Magnesium LLC (``US
Magnesium'') for reviews of NHCI and Magnola
[[Page 39668]]
Metallurgy Inc. (``Magnola''). NHCI also requested that the Department
revoke the countervailing duty orders with respect to NHCI. On
September 16, 2005, we received comments from US Magnesium arguing that
NHCI's revocation request was without merit. On September 23, 2005,
NHCI submitted a rebuttal to the September 16, 2005, submission by US
Magnesium. On September 28, 2005, 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, 70 FR 56631).
On October 5, 2005, NHCI requested that the Department continue the
suspension of liquidation for NHCI's subject merchandise during this
POR until final disposition of a dispute settlement proceeding under
NAFTA (USA-CDA-00-1904-09 (panel)). On June 23, 2006, the Department
granted NHCI's request to continue suspension of liquidation of its
subject merchandise entries during this POR.
On November 2, 2005, we issued countervailing duty questionnaires
to NHCI, Magnola, Government of Qu[eacute]bec (``GOQ''), and the
Government of Canada (``GOC''). On November 14, 2005, Magnola notified
the Department that it had ceased operations and had no shipments of
the subject merchandise during the POR. We received questionnaire
responses from GOQ and GOC on December 9, 2005, and from NHCI on
December 16, 2005.
On January 13, 2006, we received additional information from NHCI
regarding its revocation request. On June 12, 2006, NHCI withdrew its
request for revocation.
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).
Intent to Rescind
As noted above, the Department was notified by Magnola that it
ceased operations and had no shipments of subject merchandise during
the POR. The Department confirmed, using CBP data, that Magnola did not
ship subject merchandise to the United States during the POR.
Therefore, pursuant to 19 CFR 351.213(d)(3), we are preliminarily
rescinding the administrative review of the countervailing duty order
on alloy magnesium with respect to Magnola.
Period of Review
The period of review (``POR'') for which we are measuring subsidies
is January 1, 2004, through December 31, 2004.
Subsidies Valuation Information
Discount rate: As noted below, the Department preliminarily finds that
NHCI 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.
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 19 CFR
351.524(d)(2), 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 these reviews, 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 19 CFR 351.524(b)(2). 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.
The grant was disbursed in 1990 and 1991. 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
[[Page 39669]]
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 19 CFR
351.524(d) 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 0.51 percent ad valorem for NHCI.
II. Programs Preliminarily Determined To Be Not Used
We examined the following programs and preliminarily determine that
NHCI did not apply for or receive benefits under these programs during
the POR:
Emploi-Qu[eacute]bec Manpower Training Program
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
Financial Assistance Program for Research Formation and for
the Improvement of the Recycling Industry
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 January 13, 2006, submission, NHCI contends that the
Department should set NHCI's cash deposit rate to zero for pure
magnesium and alloy magnesium at the final results of these
administrative reviews. NHCI asserts that, as of that date, the only
subsidy at issue for NHCI (i.e., the Article 7 grant) will have been
fully amortized, and there will be no basis or need for collecting cash
deposits from NHCI. In support of its argument, NHCI cites to Stainless
Steel Sheet and Strip in Coils from France: Final Results of
Countervailing Duty Administrative Review, 68 FR 53963 (September 15,
2003) (``SSSSC from France'') and Final Results of Countervailing Duty
Administrative Reviews: Low Enriched Uranium From Germany, the
Netherlands, and the United Kingdom, 69 FR 40869 (July 7, 2004)
(``Uranium'').
In its December 9, 2005, submission, GOC supported NHCI's arguments
for setting the cash deposit rate at zero.
As discussed below under the ``Cash Deposit Instructions'' section,
we do not intend to issue cash deposit instructions as a result of
these reviews. Therefore, NHCI's argument is moot.
Preliminary Results of Reviews
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual subsidy rate for the producer/exporter subject to these
administrative reviews. For the period January 1, 2004, through
December 31, 2004, we preliminarily find the net subsidy rate for NHCI
to be 0.51 percent. 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 this net subsidy rate. We will disclose our calculations to
the interested parties in accordance with 19 CFR 351.224(b).
Cash Deposit Instructions
On June 26, 2006, the ITC voted in favor of revoking the
countervailing duty orders on pure magnesium and alloy magnesium from
Canada (see Pure and Alloy Magnesium from Canada, 71 FR 36359 (June 26,
2006)). The effective date of the revocations is August 16, 2005. As a
result of the ITC's determination, we do not intend to issue cash
deposit instructions.
However, were the Department to issue cash deposit instructions, we
preliminarily determine that the estimated net subsidy for future NHCI
imports would be zero. Consequently, no cash deposits of estimated
countervailing duties would be required on shipments of the subject
merchandise from the reviewed entity, entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
final results of these reviews.
Liquidation Instructions
Pursuant to 19 U.S.C. 1516a(g)(5)(C)(i), the Department will not
order the liquidation of entries of pure magnesium or alloy magnesium
from Canada exported by NHCI on or after January 1, 2004, through
December 31, 2004, pending final disposition of a dispute settlement
proceeding under NAFTA (USA-CDA-00-1904-09 (panel)) with respect to
Pure and Alloy Magnesium From Canada; Final Results of Full Sunset
Review, 65 FR 41436 (July 5, 2000). Liquidation of NHCI entries will
occur at the rates described in these final results of reviews, if
appropriate, following the final disposition of the previously
mentioned NAFTA dispute settlement proceedings.
Public Comment
Pursuant to 19 CFR 351.310(c), any interested party may request a
hearing within 30 days of publication of this notice. Any hearing, if
requested, will be held 42 days after the publication of this notice,
or the first workday thereafter. Issues raised in the hearing will be
limited to those raised in the case and rebuttal briefs. Pursuant to 19
CFR 351.309(c), interested parties may submit case briefs within 30
days of the date of publication of this notice. Rebuttal briefs, which
must be limited to issues raised in the case briefs, may be filed not
later than 35 days after the date of publication of this notice. See 19
CFR 351.309(d). Parties who submit case briefs or rebuttal briefs in
this proceeding are requested to submit with each argument (1) a
statement of the issue and (2) a brief summary of the argument with an
electronic version included.
The Department will issue the final results of this administrative
review, including the results of its analysis of issues raised in any
such written briefs or hearing, within 120 days of
[[Page 39670]]
publication of these preliminary results. See section 751(a)(3) of the
Act.
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: July 6, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-11063 Filed 7-12-06; 8:45 am]
BILLING CODE 3510-DS-S
