Raw Flexible Magnets From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Countervailing Duty Determination With Final Antidumping Duty Determination, 9998-10003 [E8-3493]
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Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices
for additional time to evaluate the
respondents’ questionnaire responses in
these investigations. Under section
733(c)(1)(A) of the Act, if the petitioner
makes a timely request for an extension
of the period within which the
preliminary determination must be
made under subsection (b)(1), then the
Department may postpone making the
preliminary determination under
subsection (b)(1) until not later than the
190th day after the date on which the
administrative authority initiated the
investigation. For the reason identified
by the petitioner and because there are
no compelling reasons to deny the
request, the Department is postponing
the deadline for the preliminary
determinations under section
733(c)(1)(A) of the Act by 50 days to
May 6, 2008. The deadline for the final
determinations will continue to be 75
days after the date of the preliminary
determinations, unless extended.
This notice is issued and published
pursuant to section 733(c)(2) of the Act
and 19 CFR 351.205(f)(1).
Dated: February 19, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–3534 Filed 2–22–08; 8:45 am]
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–881]
Malleable Cast Iron Pipe Fittings From
the People’s Republic of China: Notice
of Rescission of Antidumping Duty
Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: February 25, 2008.
FOR FURTHER INFORMATION CONTACT:
Andrea Staebler Berton, AD/CVD
Operations, Office 8, Import
Administration, Room 1870,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202)
482–4037.
AGENCY:
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Background
On December 3, 2007, the Department
of Commerce (‘‘the Department’’)
published a notice of opportunity to
request an administrative review of the
antidumping duty order on malleable
cast iron pipe fittings from the People’s
Republic of China (‘‘PRC’’) for the
period of review (‘‘POR’’) December 1,
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Notification Regarding APOs
This notice also serves as a 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, which continues
to govern business proprietary
information in this segment of the
proceeding. Timely written notification
of the return/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.
This notice is issued and published in
accordance with section 777(i)(1) of the
Tariff Act of 1930, as amended, and 19
CFR 351.213(d)(4).
Dated: February 15, 2008.
Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E8–3532 Filed 2–22–08; 8:45 am]
BILLING CODE 3510–DS–P
Rescission of Review
BILLING CODE 3510–DS–P
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2006, through November 30, 2007.1 On
December 28, 2007, Beijing Sai Lin Ke
Hardware Co., Ltd. (‘‘SLK’’) requested
that the Department conduct a review of
its sales and entries of subject
merchandise into the United States
during the POR. On December 31, 2007,
´
Mueller Comercial de Mexico, S. de R.L.
de C.V. (‘‘Mueller’’) requested that the
Department conduct an administrative
review of its sales and entries of subject
merchandise into the United States
during the POR. No other parties
requested a review. On January 28,
2008, the Department published the
Initiation Notice covering SLK and
Mueller.2 On January 29, 2008, the
Department sent interested parties U.S.
Customs and Border Protection (‘‘CBP’’)
data that the Department intended to
rely upon in selecting the mandatory
respondent. The Department invited
interested parties to submit comments
on this data no later than February 5,
2008. However, on January 30, 2008,
SLK withdrew its request for review. On
February 6, 2008, Mueller withdrew its
request for an administrative review.
DEPARTMENT OF COMMERCE
The Department’s regulations at 19
CFR 351.213(d)(1) provide that the
Department will rescind an
administrative review if the party that
requested the review withdraws its
request for review within 90 days of the
date of publication of the notice of
initiation of the requested review, or
withdraws its request at a later date if
the Department determines that it is
reasonable to extend the time limit for
withdrawing the request. SLK and
Mueller timely withdrew their requests
before the 90-day deadline. Therefore,
we are rescinding this review of the
antidumping duty order on malleable
cast iron pipe fittings from the PRC
covering the period December 1, 2006,
through November 30, 2007. The
Department intends to issue assessment
instructions to CBP 15 days after
publication of this rescission notice.
The Department will instruct CBP to
assess antidumping duties at rates equal
to the cash deposit of estimated
antidumping duties required at the time
of entry, or withdrawal from warehouse,
for consumption, in accordance with 19
CFR 351.212(c)(1)(i).
International Trade Administration
1 See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation: Opportunity
to Request Administrative Review, 72 FR 67889
(December 3, 2007).
2 See Initiation of Antidumping or Countervailing
Duty Administrative Reviews and Request for
Revocation in Part, 73 FR 4829 (January 28, 2008).
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[C–570–923]
Raw Flexible Magnets From the
People’s Republic of China:
Preliminary Affirmative Countervailing
Duty Determination and Alignment of
Final Countervailing Duty
Determination With Final Antidumping
Duty Determination
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that countervailable
subsidies are being provided to
producers and exporters of raw flexible
magnets (RFM) from the People’s
Republic of China (PRC). For
information on the estimated subsidy
rates, see the ‘‘Suspension of
Liquidation’’ section of this notice.
DATES: Effective Date: February 25,
2008.
AGENCY:
FOR FURTHER INFORMATION CONTACT:
Kristen Johnson or Eric Greynolds, AD/
CVD Operations, Office 3, Import
Administration, U.S. Department of
Commerce, Room 4014, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230; telephone: (202) 482–4793
and (202) 482–6071, respectively.
SUPPLEMENTARY INFORMATION:
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Case History
On September 21, 2007, the
Department received the petition filed
in proper form by Magnum Magnetics
Corporation (petitioner). This
investigation was initiated on October
11, 2007. See Raw Flexible Magnets
from the People’s Republic of China:
Notice of Initiation of Countervailing
Duty Investigation, 72 FR 59076
(October 18, 2007) (Initiation Notice),
and accompanying Initiation Checklist.1
On November 8, 2007, petitioner timely
requested a 65-day extension of the
preliminary determination in this
investigation, pursuant to section
703(c)(1)(A) of the Tariff Act of 1930, as
amended (the Act) and 19 CFR
351.205(e). On November 26, 2007, the
Department postponed the deadline for
the preliminary determination by 65
days to no later than February 19, 2008.
See Raw Flexible Magnets from the
People’s Republic of China:
Postponement of Preliminary
Determination in the Countervailing
Duty Investigation, 72 FR 67911
(December 3, 2007).
Due to the large number of producers
and exporters of RFM in the PRC, we
determined that it is not possible to
investigate individually each producer
or exporter and, therefore, selected three
producers/exporters of RFM to be
mandatory respondents: China Ningbo
Cixi Import Export Corporation (Cixi),
Polyflex Magnets Ltd. (Polyflex), and
Qualita Magnets Ltd. (Qualita)
(collectively, respondents). See
Memorandum from the Team, through
Melissa Skinner, Director, Office 3, to
Stephen J. Claeys, Deputy Assistant
Secretary for Import Administration,
regarding Respondent Selection
(October 24, 2007).2
On October 25, 2007, we issued our
initial countervailing duty (CVD)
questionnaire to the Government of the
People’s Republic of China (the GOC)
and the mandatory respondents. On
October 25, 2007, we also issued
directly to the three mandatory
respondents an export shipment
questionnaire. Polyflex and Qualita
submitted their respective responses to
the export shipment questionnaire on
November 8, 2007. Polyflex reported
that it exported subject merchandise
that entered the United States during
the period of investigation. Qualita
reported that it did not export to the
United States merchandise covered
1 A public version of this and all public
Departmental memoranda is on file in the Central
Records Unit (CRU), room 1117 in the main
building of the Commerce Department.
2 A public version of this memorandum is
available in the CRU.
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under the scope of the CVD
investigation, which entered the United
States during the period of
investigation. Cixi did not submit a
response to either the October 25, 2007,
export shipment questionnaire or the
initial CVD questionnaire.
On December 14, 2007, the GOC and
Polyflex submitted their respective
responses to the initial CVD
questionnaire. On January 11, 2008, we
issued a supplemental questionnaire to
Polyflex and the GOC. Polyflex
submitted its supplemental
questionnaire response on February 1,
2008. On February 4, 2008, the GOC
submitted its supplemental
questionnaire response. On February 7,
2008, we issued a second supplemental
questionnaire to Polyflex and the GOC,
respectively. On February 12, 2008,
Polyflex submitted a letter stating that it
will no longer be participating in the
CVD investigation on raw flexible
magnets from the PRC.
Scope of the Investigation
The products covered by this
investigation are certain flexible magnet
sheeting, strips, and profile shapes.
Subject flexible magnet sheeting, strips,
and profile shapes are bonded magnets
composed (not necessarily exclusively)
of (i) any one or combination of various
flexible binders (such as polymers or copolymers, or rubber) and (ii) a magnetic
element, which may consist of a ferrite
permanent magnet material (commonly,
strontium or barium ferrite, or a
combination of the two), a metal alloy
(such as NdFeB or Alnico), any
combination of the foregoing with each
other or any other material, or any other
material capable of being permanently
magnetized. Subject flexible magnet
sheeting, strips, and profile shapes are
capable of being permanently
magnetized, but may be imported in
either magnetized or unmagnetized
(including demagnetized) condition.
Subject merchandise may be of any
color and may or may not be laminated
or bonded with paper, plastic or other
material, which paper, plastic or other
material may be of any composition
and/or color. Subject merchandise may
be uncoated or may be coated with an
adhesive or any other coating or
combination of coatings. Subject
merchandise is within the scope of this
investigation whether it is in rolls, coils,
sheets, or pieces, and regardless of
physical dimensions or packaging,
including specialty packaging such as
digital printer cartridges.
Specifically excluded from the scope
of this investigation is retail printed
flexible magnet sheeting, defined as
flexible magnet sheeting (including
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individual magnets) that is laminated
with paper, plastic or other material, if
such paper, plastic or other material
bears printed text and/or images,
including but not limited to business
cards, calendars, poetry, sports event
schedules, business promotions,
decorative motifs, and the like. This
exclusion does not apply to such
printed flexible magnet sheeting if the
printing concerned consists of only: a
trade mark or trade name; country of
origin; border, stripes, or lines; any
printing that is removed in the course of
cutting and/or printing magnets for
retail sale or other disposition from the
flexible magnet sheeting; manufacturing
or use instructions (e.g., ‘‘print this side
up,’’ ‘‘this side up,’’ ‘‘laminate here’’);
printing on adhesive backing (that is,
material to be removed in order to
expose adhesive for use, such as
application of laminate) or on any other
covering that is removed from the
flexible magnet sheeting prior or
subsequent to final printing and before
use; non-permanent printing (that is,
printing in a medium that facilitates
easy removal, permitting the flexible
magnet sheeting to be re-printed);
printing on the back (magnetic) side; or
any combination of the above.
All products meeting the physical
description of the subject merchandise
that are not specifically excluded are
included in this scope. The products
subject to the investigation are currently
classifiable principally under
subheadings 8505.19.10 and 8505.19.20
of the Harmonized Tariff Schedule of
the United States (HTSUS). The HTSUS
subheadings are provided only for
convenience and customs purposes,
however, and the written description of
the scope of this proceeding is
dispositive.
Scope Comments
In accordance with the Preamble to
the Department’s regulations (see
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27323 (May 19,
1997) (Preamble)), in our Initiation
Notice, we set aside a period of time for
parties to raise issues regarding product
coverage, and encouraged all parties to
submit comments within 20 calendar
days of publication of the Initiation
Notice. On November 7, 2007, SH
Industries, an interested party,
submitted timely scope comments.3 In
its comments, SH Industries argues that
magnetic photo pockets, which are
flexible magnets with clear plastic
laminations that form a pocket into
3 This public document is available on the public
record of each investigation (A–570–922, A–583–
842, and C–570–923) in the Department’s CRU.
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which photographs and other items may
be inserted for display, should be
excluded from the scope of the
antidumping (AD) and CVD
investigations on RFM from the PRC
and Taiwan. On November 13, 2007,
petitioner filed a response to SH
Industries’ comments arguing that
magnetic photo pockets are properly
within the scope of the investigations.4
The Department is evaluating the
comments submitted by both parties
and will issue its decision regarding the
scope of the investigations in the
preliminary determination of the
companion AD investigations due on
April 18, 2008.
Period of Investigation
The period of investigation (the POI)
for which we are measuring subsidies is
January 1, 2006, through December 31,
2006. See 19 CFR 351.204(b)(2).
Alignment of Final Countervailing Duty
Determination With Final Antidumping
Duty Determination
On October 11, 2007, the Department
initiated AD and CVD investigations of
RFM from the PRC and Taiwan. See
Notice of Initiation of Antidumping
Duty Investigations: Raw Flexible
Magnets from the People’s Republic of
China and Taiwan, 72 FR 59071
(October 18, 2007), and also Initiation
Notice (for the PRC CVD investigation).
The CVD investigation and the AD
investigations have the same scope with
regard to the merchandise covered.
On February 12, 2008, the petitioner
submitted a letter, in accordance with
section 705(a)(1) of the Act, requesting
alignment of the final CVD
determination with the final
determination in the companion AD
investigation of RFM from the PRC.
Therefore, in accordance with section
705(a)(1) of the Act, and 19 CFR
351.210(b)(4), we are aligning the final
CVD determination with the final
Application of the Countervailing Duty
Law to Imports From the PRC
On October 25, 2007, the Department
published the final determination of
coated free sheet paper from the PRC.
See Coated Free Sheet Paper from the
Republic of China: Final Determination
of Countervailing Duty Investigation, 72
FR 60645 (October 25, 2007) (CFS China
Final), and accompanying Issues and
Decision Memorandum (CFS Decision
Memorandum). In that determination,
the Department found, ‘‘given the
substantial differences between the
Soviet-style economies and the PRC’s
economy in recent years, the
Department’s previous decision not to
apply the CVD law to these Soviet-style
economies does not act as a bar to
proceeding with a CVD investigation
involving products from China.’’ See
CFS Decision Memorandum at
Comment 6, ‘‘Comparison of the
Department’s Findings in the
Georgetown Memo and the August 30
Market Economy Status Memo,’’ see
also Memorandum to David M.
Spooner, ‘‘Countervailing Duty
Investigation of Coated Free Sheet Paper
from the People’s Republic of China—
Whether the Analytical Elements of the
Georgetown Steel Opinion are
Applicable to China’s Present-day
Economy,’’ (March 29, 2007) at 2.5
Recently, the Department has
preliminarily determined that it is
appropriate and administratively
desirable to identify a uniform date from
which the Department will identify and
measure subsidies in the PRC for
purposes of the CVD law. See Circular
Welded Carbon Quality Steel Pipe from
the People’s Republic of China:
Preliminary Affirmative Countervailing
Duty Determination; Preliminary
Affirmative Determination of Critical
Circumstances; and Alignment of Final
Countervailing Duty Determination with
Final Antidumping Duty Determination,
72 FR 63875 (November 13, 2007) (CWP
from the PRC); see also Light-walled
4 The public version of petitioner’s submission is
available on the public record of each investigation
(A–570–922, A–583–842, and C–570–923) in the
Department’s CRU.
5 This public document is available on the public
record of the investigation of coated free sheet
paper from the PRC (C–570–907) in the
Department’s CRU.
Injury Test
Because the PRC is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act, the
International Trade Commission (the
ITC) is required to determine whether
imports of the subject merchandise from
the PRC materially injure, or threaten
material injury to a U.S. industry. On
November 9, 2007, the ITC published its
preliminary determination finding that
there is a reasonable indication that an
industry in the United States is
materially injured by reason of imports
from the PRC of subject merchandise.
See Raw Flexible Magnets from China
and Taiwan, Investigation Nos. 701–
TA–452 and 731–TA–1129 and 1130
(Preliminary), 72 FR 63629 (November
9, 2007).
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determination in the companion AD
investigation of RFM from the PRC. The
final CVD determination will be issued
on the same date as the final AD
determination, which is currently
scheduled to be issued on or about July
2, 2008.
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Rectangular Pipe and Tube from the
People’s Republic of China: Preliminary
Affirmative Countervailing Duty
Determination and Alignment of Final
Countervailing Duty Determination with
Final Antidumping Duty Determination,
72 FR 67703 (November 30, 2007);
Laminated Woven Sacks from the
People’s Republic of China: Preliminary
Affirmative Countervailing Duty
Determination; Preliminary Affirmative
Determination of Critical
Circumstances, In Part; and Alignment
of Final Countervailing Duty
Determination With Final Antidumping
Duty Determination, 72 FR 67893
(December 3, 2007); and Certain New
Pneumatic Off-the-Road Tires from the
People’s Republic of China: Preliminary
Affirmative Countervailing Duty
Determination, 72 FR 71360 (December
17, 2007).
In CWP from the PRC, we
preliminarily determined that date to be
December 11, 2001, the date on which
the PRC became a member of the WTO.
Therefore, for the reasons outlined in
CWP from the PRC, we have limited our
analysis to subsidies bestowed after
December 11, 2001, for this preliminary
determination.
Use of Facts Otherwise Available
Sections 776(a)(1) and (2) of the Act
provide that the Department shall apply
‘‘facts otherwise available’’ if, inter alia,
necessary information is not on the
record or an interested party or any
other person: (A) withholds information
that has been requested; (B) fails to
provide information within the
deadlines established, or in the form
and manner requested by the
Department, subject to subsections (c)(1)
and (e) of section 782 of the Act; (C)
significantly impedes a proceeding; or
(D) provides information that cannot be
verified as provided by section 782(i) of
the Act.
Where the Department determines
that a response to a request for
information does not comply with the
request, section 782(d) of the Act
provides that the Department will so
inform the party submitting the
response and will, to the extent
practicable, provide that party the
opportunity to remedy or explain the
deficiency. If the party fails to remedy
the deficiency within the applicable
time limits and subject to section 782(e)
of the Act, the Department may
disregard all or part of the original and
subsequent responses, as appropriate.
Section 782(e) of the Act provides that
the Department ‘‘shall not decline to
consider information that is submitted
by an interested party and is necessary
to the determination but does not meet
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all applicable requirements established
by the administering authority’’ if the
information is timely, can be verified, is
not so incomplete that it cannot be used,
and if the interested party acted to the
best of its ability in providing the
information. Where all of these
conditions are met, the statute requires
the Department to use the information if
it can do so without undue difficulties.
In this case, Cixi did not provide the
requested information that is necessary
to determine a CVD rate for this
preliminary determination. Specifically,
Cixi did not respond to either the
Department’s October 25, 2007,
shipment data questionnaire or October
25, 2007, initial CVD questionnaire.
Thus, in reaching our preliminary
determination, pursuant to section
776(a)(2)(A) and (C) of the Act, we have
based Cixi’s CVD rate on facts otherwise
available.
On February 12, 2008, Polyflex,
which was the only active mandatory
respondent, withdrew from this
investigation. Thus, in reaching our
preliminary determination, pursuant to
section 776(a)(2)(C) and (D) of the Act,
we have based Polyflex’s CVD rate on
facts otherwise available.
Use of Adverse Inferences
Section 776(b) of the Act further
provides that the Department may use
an adverse inference in applying the
facts otherwise available when a party
has failed to cooperate by not acting to
the best of its ability to comply with a
request for information. Section 776(b)
of the Act also authorizes the
Department to use as adverse facts
available (AFA) information derived
from the petition, the final
determination, a previous
administrative review, or other
information placed on the record.
Section 776(c) of the Act provides
that, when the Department relies on
secondary information rather than on
information obtained in the course of an
investigation or review, it shall, to the
extent practicable, corroborate that
information from independent sources
that are reasonably at its disposal.
Secondary information is defined as
‘‘information derived from the petition
that gave rise to the investigation or
review, the final determination
concerning the subject merchandise, or
any previous review under section 751
concerning the subject merchandise.’’
See Statement of Administrative Action
(SAA) accompanying the Uruguay
Round Agreements Act, H. Doc. No.
316, 103d Cong., 2d Session (1994) at
870. The Department considers
information to be corroborated if it has
probative value. See SAA at 870. To
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corroborate secondary information, the
Department will, to the extent
practicable, examine the reliability and
relevance of the information to be used.
The SAA emphasizes, however, that the
Department need not prove that the
selected facts available are the best
alternative information. See SAA at 869.
In selecting from among the facts
available, the Department has
determined that, in the instant
investigation, an adverse inference is
warranted, pursuant to section 776(b) of
the Act. By failing to submit a response
to the Department’s CVD questionnaire,
Cixi did not cooperate to the best of its
ability in this investigation. We also
find that Polyflex, by withdrawing from
the investigation, has failed to cooperate
to the best of its ability in this
investigation. Accordingly, we find that
an adverse inference is warranted to
ensure that Cixi and Polyflex will not
obtain a more favorable result than had
each company fully complied with our
request for information. Thus, in those
instances in which it determines to
apply AFA, the Department, in order to
satisfy itself that such information has
probative value, will examine, to the
extent practicable, the reliability and
relevance of the information used. With
regard to the reliability aspect of
corroboration, unlike other types of
information, such as publicly available
data on the national inflation rate of a
given country or national average
interest rates, there typically are no
independent sources for data on
company-specific benefits resulting
from countervailable subsidy programs.
Selection of the Adverse Facts
Available Rate
In deciding which facts to use as
AFA, section 776(b) of the Act and 19
CFR 351.308(c)(1) authorize the
Department to rely on information
derived from (1) the petition, (2) a final
determination in the investigation, (3)
any previous review or determination,
or (4) any information placed on the
record. In selecting the AFA rate, it is
the Department’s practice to select,
where possible, the highest calculated
final net subsidy rate for the same type
of program at issue. Where such
information is not available, it is the
Department’s practice to apply the
highest subsidy rate for any program
otherwise listed. See CFS Decision
Memorandum at ‘‘Use of Adverse Facts
Available’’ section and Comment 24.
The Department’s practice when
selecting an adverse margin from among
the possible sources of information is to
ensure that the margin is sufficiently
adverse ‘‘as to effectuate the purpose of
the facts available role to induce
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respondents to provide the Department
with complete and accurate information
in a timely manner.’’ See Notice of Final
Determination of Sales at Less than Fair
Value: Static Random Access Memory
Semiconductors From Taiwan, 63 FR
8909, 8932 (February 23, 1998). The
Department’s practice also ensures ‘‘that
the party does not obtain a more
favorable result by failing to cooperate
than if it had cooperated fully.’’ See
SAA at 870. In choosing the appropriate
balance between providing a respondent
with an incentive to respond accurately
and imposing a rate that is reasonably
related to the respondent’s prior
experience, selecting the highest prior
margin ‘‘reflects a common sense
inference that the highest prior margin
is the most probative evidence of
current margins, because, if it were not
so, the importer, knowing of the rule,
would have produced current
information showing the margin to be
less.’’ See Rhone Poulenc, Inc. v. United
States, 899 F. 2d 1185, 1190 (Fed. Cir.
1990).
With respect to the relevance aspect
of corroboration, the Department will
consider information reasonably at its
disposal as to whether there are
circumstances that would render benefit
data not relevant. Where circumstances
indicate that the information is not
appropriate as adverse facts available,
the Department will not use it. See
Fresh Cut Flowers from Mexico; Final
Results of Antidumping Duty
Administrative Review, 61 FR 6812
(February 22, 1996). In the instant case,
no evidence has been presented or
obtained which contradicts the
relevance of the benefit data relied upon
in a prior China CVD investigation.
Thus, in the instant case, the
Department finds that the information
used has been corroborated to the extent
practicable.
Because Cixi and Polyflex failed to act
to the best of their ability in this
investigation, as discussed above, for
each program examined, we made the
adverse inference that each company
benefitted from each program. To
calculate the program rate for the nine
alleged income tax programs pertaining
to either the reduction of the income tax
or the payment of no tax, we have
applied an adverse inference that Cixi
and Polyflex paid no income tax during
the POI. The standard income tax rate
for corporations in China is 30 percent,
plus a 3 percent provincial income tax
rate. Therefore, the highest possible
benefit for these nine income tax
programs is 33 percent. We are applying
the 33 percent AFA rate on a combined
basis (i.e., the nine programs combined
provided a 33 percent benefit). This 33
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10002
Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices
percent AFA rate does not apply to tax
credit and refund programs. For the
remaining programs in this investigation
(including the tax credit and refund
programs), we used the approach from
the CFS China Final, as discussed
above. Specifically, we are applying,
where available, the highest subsidy rate
calculated for a similar program in the
CFS China Final. Absent a subsidy rate
calculated for a similar program, we are
applying the highest subsidy rate for
any program otherwise listed in the CFS
China Final. See CFS Decision
Memorandum at ‘‘Analysis of
Programs.’’ On this basis, the AFA
countervailable subsidy rate determined
for Cixi and Polyflex is 70.41 percent ad
valorem. See Memorandum to the File
regarding Adverse Facts Available Rate
for China Ningbo Cixi Import Export
Corporation and Polyflex Magnets Ltd.
(February 19, 2008).6
Due to the circumstances of this case,
we are taking public information
concerning subsidy programs from the
record of the CFS China CVD
investigation and placing it on the
record of this case for use as AFA
because we have no other information
on the record of this case from which to
select appropriate AFA rates for nonincome tax programs, and because this
is an investigation, we have no previous
segments of the proceeding from which
to draw potential AFA rates. See
Memorandum to the File regarding
Placing on the RFM Record the Final
Affirmative Countervailing Duty
Determination of Coated Free Sheet
Paper from the People’s Republic of
China (February 19, 2008). For the final
determination, we invite parties to
comment on the AFA rates applied to
the programs alleged in this
investigation.
Suspension of Liquidation
In accordance with section
703(d)(1)(A)(i) of the Act, we calculated
a countervailable subsidy rate for each
producer/exporter of the subject
merchandise individually investigated.
With respect to the all-others rate,
section 705(c)(5)(A)(ii) of the Act
provides that if the countervailable
subsidy rates established for all
exporters and producers individually
investigated are determined entirely
under section 776 of the Act, the
Department may use any reasonable
method to establish an all-others rate for
exporters and producers not
individually investigated. In this case,
the rate calculated for the two
investigated companies is based entirely
on facts available under section 776 of
the Act. There is no other information
on the record upon which we could
determine an all-others rate. As a result,
we have used the AFA rate calculated
for Cixi and Polyflex as the all-others
rate. This method is consistent with the
Department’s past practice. See Final
Affirmative Countervailing Duty
Determination: Certain Hot-Rolled
Carbon Steel Flat Products From
Argentina, 66 FR 37007, 37008 (July 16,
2001); see also Final Affirmative
Countervailing Duty Determination:
Prestressed Concrete Steel Wire Strand
From India, 68 FR 68356, 68357
(December 8, 2003).
Producer/Exporter
Subsidy rate
China Ningbo Cixi Import Export Corporation ..............................................................................................................
Polyflex Magnets Ltd ....................................................................................................................................................
All-Others ......................................................................................................................................................................
In accordance with sections
703(d)(1)(B) and (2) of the Act, we are
directing U.S. Customs and Border
Protection (CBP) to suspend liquidation
of all entries of the subject merchandise
from the PRC that are entered or
withdrawn from warehouse, for
consumption on or after the date of the
publication of this notice in the Federal
Register, and to require a cash deposit
or bond for such entries of the
merchandise in the amounts indicated
above.
This suspension will remain in effect
until further notice.
rfrederick on PROD1PC67 with NOTICES
ITC Notification
In accordance with section 703(f) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information relating to this
investigation. We will allow the ITC
access to all privileged and business
proprietary information in our files,
provided the ITC confirms that it will
not disclose such information, either
publicly or under an administrative
protective order, without the written
consent of the Assistant Secretary for
Import Administration.
In accordance with section 705(b)(2)
of the Act, if our final determination is
affirmative, the ITC will make its final
determination within 45 days after the
Department makes its final
determination.
Disclosure and Public Comment
In accordance with 19 CFR
351.224(b), the Department will disclose
to the parties the calculations for this
preliminary determination within five
days of its announcement. Unless
otherwise notified by the Department,
interested parties may submit case briefs
within 50 days of the date of publication
of the preliminary determination in
accordance with 19 CFR 351.309(c)(i).
As part of the case brief, parties are
encouraged to provide a summary of the
arguments not to exceed five pages and
a table of statutes, regulations, and cases
cited. Rebuttal briefs, which must be
limited to issues raised in the case
briefs, must be filed within five days
after the case briefs are filed. See 19 CFR
351.309(d).
In accordance with 19 CFR
351.310(c), we will hold a public
hearing, if requested, to afford interested
parties an opportunity to comment on
this preliminary determination.
Individuals who wish to request a
hearing must submit a written request
within 30 days of the publication of this
notice in the Federal Register to the
Assistant Secretary for Import
Administration, U.S. Department of
Commerce, Room 1870, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230. Parties will be notified of the
schedule for the hearing and parties
should confirm the time, date, and place
of the hearing 48 hours before the
scheduled time. Requests for a public
hearing should contain: (1) Party’s
name, address, and telephone number;
(2) the number of participants; and (3)
to the extent practicable, an
identification of the arguments to be
raised at the hearing.
This determination is issued and
published pursuant to sections 703(f)
and 777(i) of the Act and 19 CFR
351.221(b)(4).
6 A copy of this public memorandum in on the
public file in the CRU.
VerDate Aug<31>2005
14:34 Feb 22, 2008
Jkt 214001
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Frm 00019
Fmt 4703
Sfmt 4703
70.41 percent ad valorem.
70.41 percent ad valorem.
70.41 percent ad valorem.
E:\FR\FM\25FEN1.SGM
25FEN1
Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices
February 19, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–3493 Filed 2–22–08; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Proposed Information Collection;
Comment Request; Highly Migratory
Species Vessel Logbooks and CostEarnings Data Reports
National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice.
AGENCY:
rfrederick on PROD1PC67 with NOTICES
SUMMARY: The Department of
Commerce, as part of its continuing
effort to reduce paperwork and
respondent burden, invites the general
public and other Federal agencies to
take this opportunity to comment on
proposed and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
DATES: Written comments must be
submitted on or before April 25, 2008.
ADDRESSES: Direct all written comments
to Diana Hynek, Departmental
Paperwork Clearance Officer,
Department of Commerce, Room 6625,
14th and Constitution Avenue, NW.,
Washington, DC 20230 (or via the
Internet at dHynek@doc.gov).
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the information collection
instrument and instructions should be
directed to Joseph Desfosse, (301) 713–
2347 or Joseph.Desfosse@noaa.gov or
Margo Schulze-Haugen, (301) 713–2347
or Margo.Schulze_Haugen@noaa.gov.
SUPPLEMENTARY INFORMATION:
I. Abstract
Under the provisions of the
Magnuson-Stevens Fishery
Conservation and Management Act (16
U.S.C. 1801 et seq.), the National
Oceanic and Atmospheric
Administration’s National Marine
Fisheries Service (NMFS) is responsible
for management of the nation’s marine
fisheries. In addition, NMFS must
comply with the United States’
obligations under the Atlantic Tunas
Convention Act of 1975 (16 U.S.C. 971
et seq.), which implements the
International Commission for the
Conservation of Atlantic Tunas (ICCAT)
recommendations. NMFS collects
information via vessel logbooks to
VerDate Aug<31>2005
14:34 Feb 22, 2008
Jkt 214001
monitor the U.S. catch of Atlantic
swordfish, sharks, marlins, and tunas in
relation to the quotas, thereby ensuring
that the United States complies with its
domestic and international obligations.
The information supplied through
vessel logbooks also provides the catch
and effort data necessary to assess the
status of highly migratory species and to
evaluate bycatch in each fishery.
International stock assessments for
tunas, swordfish, marlins, and some
species of sharks are conducted and
presented to the ICCAT periodically and
provide, in part, the basis for ICCAT
management recommendations which
become binding on member nations.
The domestic stock assessments for
most species of sharks are used as the
basis of managing these species.
Supplementary information on fishing
costs and earnings has been collected
via this vessel logbook program. This
economic information enables NMFS to
assess the economic impacts of
regulatory programs on small businesses
and fishing communities, consistent
with the National Environmental Policy
Act (NEPA), Executive Order 12866, the
Regulatory Flexibility Act, and other
domestic laws.
II. Method of Collection
Logbooks are being completed and
submitted in paper form.
III. Data
OMB Control Number: 0648–0371.
Form Number: NOAA Form 88–191.
Type of Review: Regular submission.
Affected Public: Business or other forprofit organizations.
Estimated Number of Respondents:
7,451.
Estimated Time per Response: 10
minutes for cost/earnings summaries
attached to logbook reports; 30 minutes
for annual expenditure forms; 12
minutes for logbook catch reports; and
2 minutes for negative logbook catch
reports.
Estimated Total Annual Burden
Hours: 29,461.
Estimated Total Annual Cost to
Public: $0 (no capital or recordkeeping/
reporting expenditures required).
IV. Request for Comments
Comments are invited on: (a) Whether
the proposed collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information shall have
practical utility; (b) the accuracy of the
agency’s estimate of the burden
(including hours and cost) of the
proposed collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information to be
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
10003
collected; and (d) ways to minimize the
burden of the collection of information
on respondents, including through the
use of automated collection techniques
or other forms of information
technology.
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval of this information collection;
they also will become a matter of public
record.
Dated: February 20, 2008.
Gwellnar Banks,
Management Analyst, Office of the Chief
Information Officer.
[FR Doc. E8–3507 Filed 2–22–08; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Proposed Information Collection;
Comment Request; Fishery Capacity
Reduction Program Buyback Requests
National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice.
AGENCY:
SUMMARY: The Department of
Commerce, as part of its continuing
effort to reduce paperwork and
respondent burden, invites the general
public and other Federal agencies to
take this opportunity to comment on
proposed and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
DATES: Written comments must be
submitted on or before April 25, 2008.
ADDRESSES: Direct all written comments
to Diana Hynek, Departmental
Paperwork Clearance Officer,
Department of Commerce, Room 6625,
14th and Constitution Avenue, NW.,
Washington, DC 20230 (or via the
Internet at dHynek@doc.gov).
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the information collection
instrument and instructions should be
directed to Leo Erwin, (301) 713–2390,
or via the Internet at
Leo.Erwin@noaa.gov.
SUPPLEMENTARY INFORMATION:
I. Abstract
NOAA has established a program to
reduce excess fishing capacity by paying
fishermen to (1) surrender their fishing
permits or (2) both surrender their
permits and either scrap their vessels or
restrict vessel titles to prevent fishing.
E:\FR\FM\25FEN1.SGM
25FEN1
Agencies
[Federal Register Volume 73, Number 37 (Monday, February 25, 2008)]
[Notices]
[Pages 9998-10003]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3493]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-923]
Raw Flexible Magnets From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Countervailing Duty Determination With Final Antidumping Duty
Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of raw flexible magnets (RFM) from the People's
Republic of China (PRC). For information on the estimated subsidy
rates, see the ``Suspension of Liquidation'' section of this notice.
DATES: Effective Date: February 25, 2008.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson or Eric Greynolds, AD/
CVD Operations, Office 3, Import Administration, U.S. Department of
Commerce, Room 4014, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-4793 and (202) 482-6071,
respectively.
SUPPLEMENTARY INFORMATION:
[[Page 9999]]
Case History
On September 21, 2007, the Department received the petition filed
in proper form by Magnum Magnetics Corporation (petitioner). This
investigation was initiated on October 11, 2007. See Raw Flexible
Magnets from the People's Republic of China: Notice of Initiation of
Countervailing Duty Investigation, 72 FR 59076 (October 18, 2007)
(Initiation Notice), and accompanying Initiation Checklist.\1\ On
November 8, 2007, petitioner timely requested a 65-day extension of the
preliminary determination in this investigation, pursuant to section
703(c)(1)(A) of the Tariff Act of 1930, as amended (the Act) and 19 CFR
351.205(e). On November 26, 2007, the Department postponed the deadline
for the preliminary determination by 65 days to no later than February
19, 2008. See Raw Flexible Magnets from the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 72 FR 67911 (December 3, 2007).
---------------------------------------------------------------------------
\1\ A public version of this and all public Departmental
memoranda is on file in the Central Records Unit (CRU), room 1117 in
the main building of the Commerce Department.
---------------------------------------------------------------------------
Due to the large number of producers and exporters of RFM in the
PRC, we determined that it is not possible to investigate individually
each producer or exporter and, therefore, selected three producers/
exporters of RFM to be mandatory respondents: China Ningbo Cixi Import
Export Corporation (Cixi), Polyflex Magnets Ltd. (Polyflex), and
Qualita Magnets Ltd. (Qualita) (collectively, respondents). See
Memorandum from the Team, through Melissa Skinner, Director, Office 3,
to Stephen J. Claeys, Deputy Assistant Secretary for Import
Administration, regarding Respondent Selection (October 24, 2007).\2\
---------------------------------------------------------------------------
\2\ A public version of this memorandum is available in the CRU.
---------------------------------------------------------------------------
On October 25, 2007, we issued our initial countervailing duty
(CVD) questionnaire to the Government of the People's Republic of China
(the GOC) and the mandatory respondents. On October 25, 2007, we also
issued directly to the three mandatory respondents an export shipment
questionnaire. Polyflex and Qualita submitted their respective
responses to the export shipment questionnaire on November 8, 2007.
Polyflex reported that it exported subject merchandise that entered the
United States during the period of investigation. Qualita reported that
it did not export to the United States merchandise covered under the
scope of the CVD investigation, which entered the United States during
the period of investigation. Cixi did not submit a response to either
the October 25, 2007, export shipment questionnaire or the initial CVD
questionnaire.
On December 14, 2007, the GOC and Polyflex submitted their
respective responses to the initial CVD questionnaire. On January 11,
2008, we issued a supplemental questionnaire to Polyflex and the GOC.
Polyflex submitted its supplemental questionnaire response on February
1, 2008. On February 4, 2008, the GOC submitted its supplemental
questionnaire response. On February 7, 2008, we issued a second
supplemental questionnaire to Polyflex and the GOC, respectively. On
February 12, 2008, Polyflex submitted a letter stating that it will no
longer be participating in the CVD investigation on raw flexible
magnets from the PRC.
Scope of the Investigation
The products covered by this investigation are certain flexible
magnet sheeting, strips, and profile shapes. Subject flexible magnet
sheeting, strips, and profile shapes are bonded magnets composed (not
necessarily exclusively) of (i) any one or combination of various
flexible binders (such as polymers or co-polymers, or rubber) and (ii)
a magnetic element, which may consist of a ferrite permanent magnet
material (commonly, strontium or barium ferrite, or a combination of
the two), a metal alloy (such as NdFeB or Alnico), any combination of
the foregoing with each other or any other material, or any other
material capable of being permanently magnetized. Subject flexible
magnet sheeting, strips, and profile shapes are capable of being
permanently magnetized, but may be imported in either magnetized or
unmagnetized (including demagnetized) condition. Subject merchandise
may be of any color and may or may not be laminated or bonded with
paper, plastic or other material, which paper, plastic or other
material may be of any composition and/or color. Subject merchandise
may be uncoated or may be coated with an adhesive or any other coating
or combination of coatings. Subject merchandise is within the scope of
this investigation whether it is in rolls, coils, sheets, or pieces,
and regardless of physical dimensions or packaging, including specialty
packaging such as digital printer cartridges.
Specifically excluded from the scope of this investigation is
retail printed flexible magnet sheeting, defined as flexible magnet
sheeting (including individual magnets) that is laminated with paper,
plastic or other material, if such paper, plastic or other material
bears printed text and/or images, including but not limited to business
cards, calendars, poetry, sports event schedules, business promotions,
decorative motifs, and the like. This exclusion does not apply to such
printed flexible magnet sheeting if the printing concerned consists of
only: a trade mark or trade name; country of origin; border, stripes,
or lines; any printing that is removed in the course of cutting and/or
printing magnets for retail sale or other disposition from the flexible
magnet sheeting; manufacturing or use instructions (e.g., ``print this
side up,'' ``this side up,'' ``laminate here''); printing on adhesive
backing (that is, material to be removed in order to expose adhesive
for use, such as application of laminate) or on any other covering that
is removed from the flexible magnet sheeting prior or subsequent to
final printing and before use; non-permanent printing (that is,
printing in a medium that facilitates easy removal, permitting the
flexible magnet sheeting to be re-printed); printing on the back
(magnetic) side; or any combination of the above.
All products meeting the physical description of the subject
merchandise that are not specifically excluded are included in this
scope. The products subject to the investigation are currently
classifiable principally under subheadings 8505.19.10 and 8505.19.20 of
the Harmonized Tariff Schedule of the United States (HTSUS). The HTSUS
subheadings are provided only for convenience and customs purposes,
however, and the written description of the scope of this proceeding is
dispositive.
Scope Comments
In accordance with the Preamble to the Department's regulations
(see Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May
19, 1997) (Preamble)), in our Initiation Notice, we set aside a period
of time for parties to raise issues regarding product coverage, and
encouraged all parties to submit comments within 20 calendar days of
publication of the Initiation Notice. On November 7, 2007, SH
Industries, an interested party, submitted timely scope comments.\3\ In
its comments, SH Industries argues that magnetic photo pockets, which
are flexible magnets with clear plastic laminations that form a pocket
into
[[Page 10000]]
which photographs and other items may be inserted for display, should
be excluded from the scope of the antidumping (AD) and CVD
investigations on RFM from the PRC and Taiwan. On November 13, 2007,
petitioner filed a response to SH Industries' comments arguing that
magnetic photo pockets are properly within the scope of the
investigations.\4\ The Department is evaluating the comments submitted
by both parties and will issue its decision regarding the scope of the
investigations in the preliminary determination of the companion AD
investigations due on April 18, 2008.
---------------------------------------------------------------------------
\3\ This public document is available on the public record of
each investigation (A-570-922, A-583-842, and C-570-923) in the
Department's CRU.
\4\ The public version of petitioner's submission is available
on the public record of each investigation (A-570-922, A-583-842,
and C-570-923) in the Department's CRU.
---------------------------------------------------------------------------
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, the International Trade
Commission (the ITC) is required to determine whether imports of the
subject merchandise from the PRC materially injure, or threaten
material injury to a U.S. industry. On November 9, 2007, the ITC
published its preliminary determination finding that there is a
reasonable indication that an industry in the United States is
materially injured by reason of imports from the PRC of subject
merchandise. See Raw Flexible Magnets from China and Taiwan,
Investigation Nos. 701-TA-452 and 731-TA-1129 and 1130 (Preliminary),
72 FR 63629 (November 9, 2007).
Alignment of Final Countervailing Duty Determination With Final
Antidumping Duty Determination
On October 11, 2007, the Department initiated AD and CVD
investigations of RFM from the PRC and Taiwan. See Notice of Initiation
of Antidumping Duty Investigations: Raw Flexible Magnets from the
People's Republic of China and Taiwan, 72 FR 59071 (October 18, 2007),
and also Initiation Notice (for the PRC CVD investigation). The CVD
investigation and the AD investigations have the same scope with regard
to the merchandise covered.
On February 12, 2008, the petitioner submitted a letter, in
accordance with section 705(a)(1) of the Act, requesting alignment of
the final CVD determination with the final determination in the
companion AD investigation of RFM from the PRC. Therefore, in
accordance with section 705(a)(1) of the Act, and 19 CFR 351.210(b)(4),
we are aligning the final CVD determination with the final
determination in the companion AD investigation of RFM from the PRC.
The final CVD determination will be issued on the same date as the
final AD determination, which is currently scheduled to be issued on or
about July 2, 2008.
Period of Investigation
The period of investigation (the POI) for which we are measuring
subsidies is January 1, 2006, through December 31, 2006. See 19 CFR
351.204(b)(2).
Application of the Countervailing Duty Law to Imports From the PRC
On October 25, 2007, the Department published the final
determination of coated free sheet paper from the PRC. See Coated Free
Sheet Paper from the Republic of China: Final Determination of
Countervailing Duty Investigation, 72 FR 60645 (October 25, 2007) (CFS
China Final), and accompanying Issues and Decision Memorandum (CFS
Decision Memorandum). In that determination, the Department found,
``given the substantial differences between the Soviet-style economies
and the PRC's economy in recent years, the Department's previous
decision not to apply the CVD law to these Soviet-style economies does
not act as a bar to proceeding with a CVD investigation involving
products from China.'' See CFS Decision Memorandum at Comment 6,
``Comparison of the Department's Findings in the Georgetown Memo and
the August 30 Market Economy Status Memo,'' see also Memorandum to
David M. Spooner, ``Countervailing Duty Investigation of Coated Free
Sheet Paper from the People's Republic of China--Whether the Analytical
Elements of the Georgetown Steel Opinion are Applicable to China's
Present-day Economy,'' (March 29, 2007) at 2.\5\
---------------------------------------------------------------------------
\5\ This public document is available on the public record of
the investigation of coated free sheet paper from the PRC (C-570-
907) in the Department's CRU.
---------------------------------------------------------------------------
Recently, the Department has preliminarily determined that it is
appropriate and administratively desirable to identify a uniform date
from which the Department will identify and measure subsidies in the
PRC for purposes of the CVD law. See Circular Welded Carbon Quality
Steel Pipe from the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination; Preliminary Affirmative
Determination of Critical Circumstances; and Alignment of Final
Countervailing Duty Determination with Final Antidumping Duty
Determination, 72 FR 63875 (November 13, 2007) (CWP from the PRC); see
also Light-walled Rectangular Pipe and Tube from the People's Republic
of China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Countervailing Duty Determination with Final
Antidumping Duty Determination, 72 FR 67703 (November 30, 2007);
Laminated Woven Sacks from the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination; Preliminary Affirmative
Determination of Critical Circumstances, In Part; and Alignment of
Final Countervailing Duty Determination With Final Antidumping Duty
Determination, 72 FR 67893 (December 3, 2007); and Certain New
Pneumatic Off-the-Road Tires from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, 72 FR 71360
(December 17, 2007).
In CWP from the PRC, we preliminarily determined that date to be
December 11, 2001, the date on which the PRC became a member of the
WTO. Therefore, for the reasons outlined in CWP from the PRC, we have
limited our analysis to subsidies bestowed after December 11, 2001, for
this preliminary determination.
Use of Facts Otherwise Available
Sections 776(a)(1) and (2) of the Act provide that the Department
shall apply ``facts otherwise available'' if, inter alia, necessary
information is not on the record or an interested party or any other
person: (A) withholds information that has been requested; (B) fails to
provide information within the deadlines established, or in the form
and manner requested by the Department, subject to subsections (c)(1)
and (e) of section 782 of the Act; (C) significantly impedes a
proceeding; or (D) provides information that cannot be verified as
provided by section 782(i) of the Act.
Where the Department determines that a response to a request for
information does not comply with the request, section 782(d) of the Act
provides that the Department will so inform the party submitting the
response and will, to the extent practicable, provide that party the
opportunity to remedy or explain the deficiency. If the party fails to
remedy the deficiency within the applicable time limits and subject to
section 782(e) of the Act, the Department may disregard all or part of
the original and subsequent responses, as appropriate. Section 782(e)
of the Act provides that the Department ``shall not decline to consider
information that is submitted by an interested party and is necessary
to the determination but does not meet
[[Page 10001]]
all applicable requirements established by the administering
authority'' if the information is timely, can be verified, is not so
incomplete that it cannot be used, and if the interested party acted to
the best of its ability in providing the information. Where all of
these conditions are met, the statute requires the Department to use
the information if it can do so without undue difficulties.
In this case, Cixi did not provide the requested information that
is necessary to determine a CVD rate for this preliminary
determination. Specifically, Cixi did not respond to either the
Department's October 25, 2007, shipment data questionnaire or October
25, 2007, initial CVD questionnaire. Thus, in reaching our preliminary
determination, pursuant to section 776(a)(2)(A) and (C) of the Act, we
have based Cixi's CVD rate on facts otherwise available.
On February 12, 2008, Polyflex, which was the only active mandatory
respondent, withdrew from this investigation. Thus, in reaching our
preliminary determination, pursuant to section 776(a)(2)(C) and (D) of
the Act, we have based Polyflex's CVD rate on facts otherwise
available.
Use of Adverse Inferences
Section 776(b) of the Act further provides that the Department may
use an adverse inference in applying the facts otherwise available when
a party has failed to cooperate by not acting to the best of its
ability to comply with a request for information. Section 776(b) of the
Act also authorizes the Department to use as adverse facts available
(AFA) information derived from the petition, the final determination, a
previous administrative review, or other information placed on the
record.
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation or review, it shall, to the extent
practicable, corroborate that information from independent sources that
are reasonably at its disposal. Secondary information is defined as
``information derived from the petition that gave rise to the
investigation or review, the final determination concerning the subject
merchandise, or any previous review under section 751 concerning the
subject merchandise.'' See Statement of Administrative Action (SAA)
accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d
Cong., 2d Session (1994) at 870. The Department considers information
to be corroborated if it has probative value. See SAA at 870. To
corroborate secondary information, the Department will, to the extent
practicable, examine the reliability and relevance of the information
to be used. The SAA emphasizes, however, that the Department need not
prove that the selected facts available are the best alternative
information. See SAA at 869.
In selecting from among the facts available, the Department has
determined that, in the instant investigation, an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
a response to the Department's CVD questionnaire, Cixi did not
cooperate to the best of its ability in this investigation. We also
find that Polyflex, by withdrawing from the investigation, has failed
to cooperate to the best of its ability in this investigation.
Accordingly, we find that an adverse inference is warranted to ensure
that Cixi and Polyflex will not obtain a more favorable result than had
each company fully complied with our request for information. Thus, in
those instances in which it determines to apply AFA, the Department, in
order to satisfy itself that such information has probative value, will
examine, to the extent practicable, the reliability and relevance of
the information used. With regard to the reliability aspect of
corroboration, unlike other types of information, such as publicly
available data on the national inflation rate of a given country or
national average interest rates, there typically are no independent
sources for data on company-specific benefits resulting from
countervailable subsidy programs.
Selection of the Adverse Facts Available Rate
In deciding which facts to use as AFA, section 776(b) of the Act
and 19 CFR 351.308(c)(1) authorize the Department to rely on
information derived from (1) the petition, (2) a final determination in
the investigation, (3) any previous review or determination, or (4) any
information placed on the record. In selecting the AFA rate, it is the
Department's practice to select, where possible, the highest calculated
final net subsidy rate for the same type of program at issue. Where
such information is not available, it is the Department's practice to
apply the highest subsidy rate for any program otherwise listed. See
CFS Decision Memorandum at ``Use of Adverse Facts Available'' section
and Comment 24.
The Department's practice when selecting an adverse margin from
among the possible sources of information is to ensure that the margin
is sufficiently adverse ``as to effectuate the purpose of the facts
available role to induce respondents to provide the Department with
complete and accurate information in a timely manner.'' See Notice of
Final Determination of Sales at Less than Fair Value: Static Random
Access Memory Semiconductors From Taiwan, 63 FR 8909, 8932 (February
23, 1998). The Department's practice also ensures ``that the party does
not obtain a more favorable result by failing to cooperate than if it
had cooperated fully.'' See SAA at 870. In choosing the appropriate
balance between providing a respondent with an incentive to respond
accurately and imposing a rate that is reasonably related to the
respondent's prior experience, selecting the highest prior margin
``reflects a common sense inference that the highest prior margin is
the most probative evidence of current margins, because, if it were not
so, the importer, knowing of the rule, would have produced current
information showing the margin to be less.'' See Rhone Poulenc, Inc. v.
United States, 899 F. 2d 1185, 1190 (Fed. Cir. 1990).
With respect to the relevance aspect of corroboration, the
Department will consider information reasonably at its disposal as to
whether there are circumstances that would render benefit data not
relevant. Where circumstances indicate that the information is not
appropriate as adverse facts available, the Department will not use it.
See Fresh Cut Flowers from Mexico; Final Results of Antidumping Duty
Administrative Review, 61 FR 6812 (February 22, 1996). In the instant
case, no evidence has been presented or obtained which contradicts the
relevance of the benefit data relied upon in a prior China CVD
investigation. Thus, in the instant case, the Department finds that the
information used has been corroborated to the extent practicable.
Because Cixi and Polyflex failed to act to the best of their
ability in this investigation, as discussed above, for each program
examined, we made the adverse inference that each company benefitted
from each program. To calculate the program rate for the nine alleged
income tax programs pertaining to either the reduction of the income
tax or the payment of no tax, we have applied an adverse inference that
Cixi and Polyflex paid no income tax during the POI. The standard
income tax rate for corporations in China is 30 percent, plus a 3
percent provincial income tax rate. Therefore, the highest possible
benefit for these nine income tax programs is 33 percent. We are
applying the 33 percent AFA rate on a combined basis (i.e., the nine
programs combined provided a 33 percent benefit). This 33
[[Page 10002]]
percent AFA rate does not apply to tax credit and refund programs. For
the remaining programs in this investigation (including the tax credit
and refund programs), we used the approach from the CFS China Final, as
discussed above. Specifically, we are applying, where available, the
highest subsidy rate calculated for a similar program in the CFS China
Final. Absent a subsidy rate calculated for a similar program, we are
applying the highest subsidy rate for any program otherwise listed in
the CFS China Final. See CFS Decision Memorandum at ``Analysis of
Programs.'' On this basis, the AFA countervailable subsidy rate
determined for Cixi and Polyflex is 70.41 percent ad valorem. See
Memorandum to the File regarding Adverse Facts Available Rate for China
Ningbo Cixi Import Export Corporation and Polyflex Magnets Ltd.
(February 19, 2008).\6\
---------------------------------------------------------------------------
\6\ A copy of this public memorandum in on the public file in
the CRU.
---------------------------------------------------------------------------
Due to the circumstances of this case, we are taking public
information concerning subsidy programs from the record of the CFS
China CVD investigation and placing it on the record of this case for
use as AFA because we have no other information on the record of this
case from which to select appropriate AFA rates for non-income tax
programs, and because this is an investigation, we have no previous
segments of the proceeding from which to draw potential AFA rates. See
Memorandum to the File regarding Placing on the RFM Record the Final
Affirmative Countervailing Duty Determination of Coated Free Sheet
Paper from the People's Republic of China (February 19, 2008). For the
final determination, we invite parties to comment on the AFA rates
applied to the programs alleged in this investigation.
Suspension of Liquidation
In accordance with section 703(d)(1)(A)(i) of the Act, we
calculated a countervailable subsidy rate for each producer/exporter of
the subject merchandise individually investigated. With respect to the
all-others rate, section 705(c)(5)(A)(ii) of the Act provides that if
the countervailable subsidy rates established for all exporters and
producers individually investigated are determined entirely under
section 776 of the Act, the Department may use any reasonable method to
establish an all-others rate for exporters and producers not
individually investigated. In this case, the rate calculated for the
two investigated companies is based entirely on facts available under
section 776 of the Act. There is no other information on the record
upon which we could determine an all-others rate. As a result, we have
used the AFA rate calculated for Cixi and Polyflex as the all-others
rate. This method is consistent with the Department's past practice.
See Final Affirmative Countervailing Duty Determination: Certain Hot-
Rolled Carbon Steel Flat Products From Argentina, 66 FR 37007, 37008
(July 16, 2001); see also Final Affirmative Countervailing Duty
Determination: Prestressed Concrete Steel Wire Strand From India, 68 FR
68356, 68357 (December 8, 2003).
------------------------------------------------------------------------
Producer/Exporter Subsidy rate
------------------------------------------------------------------------
China Ningbo Cixi Import Export 70.41 percent ad valorem.
Corporation.
Polyflex Magnets Ltd............ 70.41 percent ad valorem.
All-Others...................... 70.41 percent ad valorem.
------------------------------------------------------------------------
In accordance with sections 703(d)(1)(B) and (2) of the Act, we are
directing U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of the subject merchandise from the PRC that
are entered or withdrawn from warehouse, for consumption on or after
the date of the publication of this notice in the Federal Register, and
to require a cash deposit or bond for such entries of the merchandise
in the amounts indicated above.
This suspension will remain in effect until further notice.
ITC Notification
In accordance with section 703(f) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information relating to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order, without the written consent
of the Assistant Secretary for Import Administration.
In accordance with section 705(b)(2) of the Act, if our final
determination is affirmative, the ITC will make its final determination
within 45 days after the Department makes its final determination.
Disclosure and Public Comment
In accordance with 19 CFR 351.224(b), the Department will disclose
to the parties the calculations for this preliminary determination
within five days of its announcement. Unless otherwise notified by the
Department, interested parties may submit case briefs within 50 days of
the date of publication of the preliminary determination in accordance
with 19 CFR 351.309(c)(i). As part of the case brief, parties are
encouraged to provide a summary of the arguments not to exceed five
pages and a table of statutes, regulations, and cases cited. Rebuttal
briefs, which must be limited to issues raised in the case briefs, must
be filed within five days after the case briefs are filed. See 19 CFR
351.309(d).
In accordance with 19 CFR 351.310(c), we will hold a public
hearing, if requested, to afford interested parties an opportunity to
comment on this preliminary determination. Individuals who wish to
request a hearing must submit a written request within 30 days of the
publication of this notice in the Federal Register to the Assistant
Secretary for Import Administration, U.S. Department of Commerce, Room
1870, 14th Street and Constitution Avenue, NW., Washington, DC 20230.
Parties will be notified of the schedule for the hearing and parties
should confirm the time, date, and place of the hearing 48 hours before
the scheduled time. Requests for a public hearing should contain: (1)
Party's name, address, and telephone number; (2) the number of
participants; and (3) to the extent practicable, an identification of
the arguments to be raised at the hearing.
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.221(b)(4).
[[Page 10003]]
February 19, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-3493 Filed 2-22-08; 8:45 am]
BILLING CODE 3510-DS-P