Dynamic Random Access Memory Semiconductors from the Republic of Korea: Final Results of Countervailing Duty Administrative Review, 14218-14220 [E8-5302]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 73, Number 52 (Monday, March 17, 2008)]
[Notices]
[Pages 14218-14220]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5302]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-851]


Dynamic Random Access Memory Semiconductors from the Republic of 
Korea: Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 10, 2007, the Department of Commerce published in 
the Federal Register its preliminary results of administrative review 
of the countervailing duty order on dynamic random access memory 
semiconductors from the Republic of Korea for the period January 1, 
2005, through December 31, 2005.
    Following the preliminary results, we conducted verification and 
provided interested parties with an opportunity to comment on the 
preliminary results and our verification findings. Based on information 
received since the preliminary results and our analysis of the comments 
received, the Department has revised the net subsidy rate for Hynix. 
The final net subsidy rate for Hynix is listed below in the section 
entitled ``Final Results of Review.''

EFFECTIVE DATE: March 17, 2008.

FOR FURTHER INFORMATION CONTACT: David Neubacher or Shane Subler, AD/
CVD Operations, Office 1, Import Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone: (202) 482-5823 or (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The following events have occurred since the publication of the 
preliminary results of this review. See Dynamic Random Access Memory 
Semiconductors from the Republic of Korea: Preliminary Results of 
Countervailing Duty Administrative

[[Page 14219]]

Review, 72 FR 51609 (September 10, 2007) (``Preliminary Results'').
    From November 9 to November 14, 2007, we conducted verification of 
the questionnaire responses submitted by the Government of Korea 
(``GOK'') and Hynix Semiconductor Inc. (``Hynix''), the only company 
covered in this review. On December 28, 2007, we received a hearing 
request from the GOK and Hynix. On January 18, 2008, we received a 
hearing request from the petitioner, Micron Technology, Inc. 
(``Micron''). On January 30, 2008, Micron also requested a closed 
hearing to discuss one of the issues it raised in its case brief. On 
January 30, 2008, we received a case brief from Micron and a joint case 
brief from Hynix and the GOK. We received rebuttal briefs from Hynix 
and the GOK, Micron, and Qimonda North America, a domestic interested 
party, on February 6, 2008. A hearing was held at the Department on 
February 12, 2008. The hearing comprised both a public session and a 
closed session.
    On October 2, 2007, we extended the time limit for the final 
results of this administrative review by 60 days (to March 10, 2008), 
pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as amended 
(``the Act''). See Dynamic Random Access Memory Semiconductors from the 
Republic of Korea: Extension of Time Limit for Final Results of 
Countervailing Duty Administrative Review, 72 FR 56052 (October 2, 
2007).

Scope of the Order

    The products covered by this order are dynamic random access memory 
semiconductors (``DRAMS'') from the Republic of Korea (``ROK''), 
whether assembled or unassembled. Assembled DRAMS include all package 
types. Unassembled DRAMS include processed wafers, uncut die, and cut 
die. Processed wafers fabricated in the ROK, but assembled into 
finished semiconductors outside the ROK are also included in the scope. 
Processed wafers fabricated outside the ROK and assembled into finished 
semiconductors in the ROK are not included in the scope.
    The scope of this order additionally includes memory modules 
containing DRAMS from the ROK. A memory module is a collection of 
DRAMS, the sole function of which is memory. Memory modules include 
single in-line processing modules, single in-line memory modules, dual 
in-line memory modules, small outline dual in-line memory modules, 
Rambus in-line memory modules, and memory cards or other collections of 
DRAMS, whether unmounted or mounted on a circuit board. Modules that 
contain other parts that are needed to support the function of memory 
are covered. Only those modules that contain additional items which 
alter the function of the module to something other than memory, such 
as video graphics adapter boards and cards, are not included in the 
scope. This order also covers future DRAMS module types.
    The scope of this order additionally includes, but is not limited 
to, video random access memory and synchronous graphics random access 
memory, as well as various types of DRAMS, including fast page-mode, 
extended data-out, burst extended data-out, synchronous dynamic RAM, 
Rambus DRAM, and Double Data Rate DRAM. The scope also includes any 
future density, packaging, or assembling of DRAMS. Also included in the 
scope of this order are removable memory modules placed on 
motherboards, with or without a central processing unit, unless the 
importer of the motherboards certifies with CBP that neither it, nor a 
party related to it or under contract to it, will remove the modules 
from the motherboards after importation. The scope of this order does 
not include DRAMS or memory modules that are re-imported for repair or 
replacement.
    The DRAMS subject to this order are currently classifiable under 
subheadings 8542.21.8005, 8542.21.8020 through 8542.21.8030, and 
8542.32.0001 through 8542.32.0023 of the Harmonized Tariff Schedule of 
the United States (``HTSUS''). The memory modules containing DRAMS from 
the ROK, described above, are currently classifiable under subheadings 
8473.30.1040, 8473.30.1080, 8473.30.1140, and 8473.30.1180 of the 
HTSUS. Removable memory modules placed on motherboards are classifiable 
under subheadings 8443.99.2500, 8443.99.2550, 8471.50.0085, 
8471.50.0150, 8517.30.5000, 8517.50.1000, 8517.50.5000, 8517.50.9000, 
8517.61.0000, 8517.62.0010, 8517.62.0050, 8517.69.0000, 8517.70.0000, 
8517.90.3400, 8517.90.3600, 8517.90.3800, 8517.90.4400, 8542.21.8005, 
8542.21.8020, 8542.21.8021, 8542.21.8022, 8542.21.8023, 8542.21.8024, 
8542.21.8025, 8542.21.8026, 8542.21.8027, 8542.21.8028, 8542.21.8029, 
8542.21.8030, 8542.31.0000, 8542.33.0000, 8542.39.0000, 8543.89.9300, 
and 8543.89.9600 of the HTSUS. However, the product description, and 
not the HTSUS classification, is dispositive of whether merchandise 
imported into the United States falls within the scope.

Scope Rulings

    On December 29, 2004, the Department received a request from Cisco 
Systems, Inc. (``Cisco''), to determine whether removable memory 
modules placed on motherboards that are imported for repair or 
refurbishment are within the scope of the CVD Order. See Notice of 
Countervailing Duty Order: Dynamic Random Access Memory Semiconductors 
from the Republic of Korea, 68 FR 47546 (August 11, 2003) (``CVD 
Order''). The Department initiated a scope inquiry pursuant to 19 CFR 
351.225(e) on February 4, 2005. On January 12, 2006, the Department 
issued a final scope ruling, finding that removable memory modules 
placed on motherboards that are imported for repair or refurbishment 
are not within the scope of the CVD Order provided that the importer 
certifies that it will destroy any memory modules that are removed for 
repair or refurbishment. See Memorandum from Stephen J. Claeys to David 
M. Spooner, regarding Final Scope Ruling, Countervailing Duty Order on 
DRAMs from the Republic of Korea (January 12, 2006).

Period of Review

    The period for which we are measuring subsidies, i.e., the period 
of review (``POR''), is January 1, 2005, through December 31, 2005.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the March 10, 2008, Issues 
and Decision Memorandum for the Final Results in the Third 
Administrative Review of the Countervailing Duty Order on Dynamic 
Random Access Memory Semiconductors from the Republic of Korea 
(``Decision Memorandum'') from Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, to David M. Spooner, Assistant 
Secretary for Import Administration, which is hereby adopted by this 
notice. Attached to this notice as an appendix is a list of the issues 
which parties have raised and to which we have responded in the 
Decision Memorandum. Parties can find a complete discussion of all 
issues raised in this review and the corresponding recommendations in 
this public memorandum, which is on file in the Department's Central 
Records Unit, Room 1117 of the main Department building. In addition, a 
complete version of the public Decision Memorandum can be accessed 
directly

[[Page 14220]]

on the Internet at https://www.ia.ita.doc.gov/frn. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(5), we calculated an 
individual subsidy rate for the producer/exporter, Hynix. For the 
period January 1, 2005, through December 31, 2005, we find that the ad 
valorem net subsidy rate for Hynix is 23.78 percent.

Assessment Rates

    Fifteen days after the date of publication of these final results 
of this review, the Department will instruct CBP to liquidate shipments 
of DRAMS by Hynix entered or withdrawn from warehouse, for consumption 
from January 1, 2005, through December 31, 2005, at 23.78 percent ad 
valorem of the F.O.B. invoice price.

Cash Deposits

    The Department also intends to instruct CBP to collect cash 
deposits of estimated countervailing duties at 23.78 percent ad valorem 
of the entered value on all shipments of the subject merchandise from 
Hynix, entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this 
administrative review.
    We will instruct CBP to continue to collect cash deposits for non-
reviewed companies at the most recent company-specific rate applicable 
to the company. The Department has previously excluded Samsung 
Electronics Co., Ltd. from this order. See Notice of Amended Final 
Affirmative Countervailing Duty Determination: Dynamic Random Access 
Memory Semiconductors from the Republic of Korea, 68 FR 44290 (July 28, 
2003). Thus, the ``all others'' rate shall apply to all non-reviewed 
companies until a review of a company assigned this rate is requested.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    This administrative review and notice are issued and published in 
accordance with section 751(a)(1) of the Act.

    Dated: March 10, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

Comments in the Issues and Decision Memorandum

Comment 1: Timing of the Benefit on a Previously Countervailed Debt-to-
Equity Swap (``DES'')
Comment 2: Allegation that Hynix is Circumventing the Order
Comment 3: Application of Adverse Facts Available (``AFA'') for 
Undiscosed Grant Presented at Verification
Comment 4: Whether Deposit Rate Should Be Adjusted to Provide a 
Reasonable Estimate of Future CVD Liability
Comment 5: Whether There Are Errors that Lead to Double and Triple 
Counting of Benefits of Principalized Interest Loans
Comment 6: Whether the Import Duty Reduction Program is Specific to 
Hynix
[FR Doc. E8-5302 Filed 3-14-08; 8:45 am]
BILLING CODE 3510-DS-S