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]

Download as PDF 9998 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: rfrederick on PROD1PC67 with NOTICES 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, 14:34 Feb 22, 2008 Jkt 214001 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 VerDate Aug<31>2005 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). PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 [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: E:\FR\FM\25FEN1.SGM 25FEN1 Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices rfrederick on PROD1PC67 with NOTICES 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. VerDate Aug<31>2005 14:34 Feb 22, 2008 Jkt 214001 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 PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 9999 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. E:\FR\FM\25FEN1.SGM 25FEN1 10000 Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices 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). rfrederick on PROD1PC67 with NOTICES 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. VerDate Aug<31>2005 14:34 Feb 22, 2008 Jkt 214001 PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 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 E:\FR\FM\25FEN1.SGM 25FEN1 Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices rfrederick on PROD1PC67 with NOTICES 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 VerDate Aug<31>2005 14:34 Feb 22, 2008 Jkt 214001 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 PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 10001 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 E:\FR\FM\25FEN1.SGM 25FEN1 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 PO 00000 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]


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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
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