[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Notices]
[Pages 7519-7521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3133]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration
[A-821-805, A-821-806, A-823-806]


Notice of Amended Preliminary Determinations of Sales at Less 
Than Fair Value: Antidumping Duty Investigations of Pure and Alloy 
Magnesium From the Russian Federation and Pure Magnesium From Ukraine

AGENCY: Import Administration, International Trade Administration, 
Commerce Department.

EFFECTIVE DATE: February 8, 1995.

FOR FURTHER INFORMATION CONTACT: Dorothy Tomaszewski, Mark Wells, or 
Erik Warga, Office of Antidumping Investigations, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C., 
20230; telephone (202) 482-0631, 482-3003 or 482-0922.

Scopes of Investigations

    These investigations cover pure and alloy primary magnesium. The 
scopes are fully described in the preliminary determinations (see 
Notice of Preliminary Determinations of Sales at Less Than fair Value: 
Pure and Alloy Magnesium from the Russian Federation (59 FR 55427, 
November 7, 1994) and Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Pure Magnesium from Ukraine (59 FR 55420, 
November 7, 1994)).

Case History

    On October 27, 1994, the Department of Commerce (``the 
Department'') made its affirmative preliminary determinations of sales 
at less than fair value in the above-cited investigations concerning 
subject merchandise from Russia and Ukraine. The petitioners, on 
November 14, 1994, alleged that the Department made several ministerial 
errors in those preliminary determinations and requested that the 
Department correct these ministerial errors accordingly.
    On December 22, 1994, the Department found that the petitioners' 
allegations relating to the use of the initiation margins, as 
recalculated by the Department, as best information 
[[Page 7520]] available (``BIA'') for non-cooperative respondents and 
in the weighted-average calculations of the ``all others'' rate, 
involved calculation errors that were ministerial in nature. However, 
the Department determined that these errors did not warrant correction 
since such correction did not result in a combined change of at least 5 
absolute percentage points in, and no less than 25 percent of, any of 
the original preliminary dumping margins--the threshold for amending 
our preliminary determination.
    On January 4, 1995, the petitioners contested the Department's 
finding, stating that the ministerial errors did, in fact, result in a 
combined change of at least 5 absolute percentage points in, and no 
less than 25 percent of, any of the original preliminary dumping 
margins and, therefore, require correction in amended preliminary 
determinations. The petitioners are correct.

Amendment of Preliminary Determinations

    The Department is amending its preliminary determinations. Set 
forth below is the basis for the amended preliminary determinations 
concerning the recalculation of the initiation margin as it relates to 
both the BIA rate for non-cooperative respondents and the ``all 
others'' rate.
    It is not our normal practice to amend preliminary determinations 
since these determinations only establish estimated margins, which are 
subject to verification and which may change in the final 
determination. However, the Department has stated that it will amend a 
preliminary determination to correct for significant ministerial 
errors. (See Amendment to Preliminary Determination of Sales at Less 
Than Fair Value: Certain Welded Stainless Steel Pipes from Taiwan, 57 
FR 33492 (July 29, 1992)).

Russia

    In the preliminary determinations for both pure and alloy magnesium 
from Russia, the highest margins for each class or kind (i.e., pure or 
alloy) of subject merchandise in the petition, as recalculated by the 
Department at initiation to account for errors in arithmetic and/or 
methodology, were assigned as BIA for non-cooperative respondents. In 
turn, the company-specific BIA margins were among the margins used in 
calculating the ``all others'' rate. Certain factor values, based on 
prices in the United States, were not included in the recalculation of 
the petition margin at initiation because (1) petitioners failed to 
follow the Department's established hierarchy with respect to factor 
valuation, and (2) petitioners provided no basis for determining that 
the United States values were representative of the appropriate 
surrogate country values. Specifically, no value for factory overhead 
was included in the constructed value calculation on which the 
initiation margins for pure and alloy magnesium from Russia are based. 
In addition, values for four inputs, fluorspar, magnesium chloride, 
sodium chloride, and barium chloride, as well as a value for packing, 
were not included in the initiation margin calculations. Therefore, the 
petitioners argued that the Department's recalculations result in the 
understatement of the margin assigned as BIA to non-cooperative 
respondents and in the understatement of the margin used in calculating 
the ``all others'' rate as well.
    The Department considers the omission of certain factor values in 
the recalculated margins from the petition to be ministerial errors. 
Because correction of this error would result in a change of at least 5 
absolute percentage points in, but not less than 25 percent of, the BIA 
margins in the preliminary determinations for pure and alloy magnesium 
from Russia, this error constitutes a significant ministerial error.
    The omission of factory overhead has been corrected by applying the 
Brazilian surrogate percentage value for factory overhead to the 
petition's total cost of manufacture and the resulting figure was 
included in the petition's margin calculation. Selling, general and 
administrative (SG&A) expenses and profit in the petition's margin 
calculations for pure and alloy magnesium from Russia were also 
recalculated accordingly to account for factory overhead. In addition, 
the Brazilian surrogate value for fluorspar as a flux additive was also 
included in the revised margin assigned as BIA for non-cooperative 
respondents and used in the calculation of the ``all others'' rate. The 
petitioners requested that the missing factor values be based on U.S. 
experience reported in the petition. However, the factor values in the 
petition were already determined by the Department to be inappropriate. 
Accordingly, the Department is applying the surrogate values, which 
more reasonably reflect the value of these factors in the production 
process.
    No values were included for magnesium chloride, barium chloride, or 
sodium chloride since those factors were never considered in the 
petition's margin calculations. In addition, packing could not be 
valued since the petition provided no specific quantity data on the 
factor for determining an appropriate unit value.

Ukraine

    In the preliminary determination for pure magnesium from Ukraine, 
the highest margin in the petition, as recalculated by the Department 
at initiation to account for errors in arithmetic and/or methodology, 
was assigned as BIA for non-cooperative respondents. In turn, the 
company-specific BIA margins were among the margins used in calculating 
the ``all others'' rate.
    Furthermore, in calculating Gerald Metals' margin for pure 
magnesium from Ukraine, the BIA margin, based on this recalculated 
initiation margin, was applied to certain U.S. sales transactions of 
subject merchandise produced by an uncooperative respondent, 
Zaporozhye.
    Certain factor values, based on prices in the United States, were 
not included in the recalculation of the petition margin at initiation 
because (1) petitioners failed to follow the Department's established 
hierarchy with respect to factor valuation, and (2) petitioners 
provided no basis for determining that the United States values were 
representative of the appropriate surrogate country values. 
Specifically, no values for factory overhead and two material inputs 
used in the production of the subject merchandise were included in the 
constructed value calculation on which the petition margin for pure 
magnesium was based. Therefore, petitioners argued, the Department's 
recalculation of the petition margin resulted in the understatement of 
the margin assigned as BIA to non-cooperative respondents, in the 
understatement of the ``all others'' rate, and in the understatement of 
Gerald Metals' calculated margin.
    The Department considers the omission of certain factor values in 
the recalculated petition margin to be a ministerial error. Because 
correction of this error would result in a change of at least 5 
absolute percentage points in, but not less than 25 percent of, the BIA 
margin in the preliminary determination for pure magnesium from 
Ukraine, this error constitutes a significant ministerial error.
    The ministerial error has been corrected by applying the percentage 
value for factory overhead used in the preliminary determination margin 
calculations (which was the factory overhead rate from the petition 
because a surrogate value for factory overhead from either Indonesia or 
Egypt could not be found) to the petition's total cost of 
[[Page 7521]] manufacture and the resulting figure was added to the 
constructed value in the petition's margin calculation. Selling, 
general and administrative (SG&A) expenses and profit in the petition's 
margin calculations for pure magnesium from Ukraine were also 
recalculated accordingly to account for factory overhead. In addition, 
the Indonesian surrogate value for one of the missing input values was 
also figured in the revised margin calculation. The petitioners 
requested that the missing material values be based on material values 
originally reported in the petition. However, the petition's unit value 
for one of the material inputs at issue was already determined by the 
Department to be inappropriate. Accordingly, the Department determined 
that the surrogate value for the factor more reasonably reflects the 
value of the factor in the production process.
    The other material input in question could not be valued since the 
petition provided no specific quantity data or description of the 
factor for determining an appropriate unit value.

Addenda to Preliminary Determinations

    In our October 27, 1994, preliminary determinations in these 
proceedings, we stated that we would impose company-specific duty 
deposit rates on certain non-participating mandatory respondents whose 
identities were business proprietary and thus could not be disclosed. 
Subsequent to publication of those determinations, we were informed by 
the U.S. Customs Service that it could not administer suspension-of-
liquidation instructions that involved unidentified companies. 
Accordingly, we did not assign company-specific deposit rates to these 
companies; instead, entries of merchandise sold by these companies are 
subject to the ``All Others'' deposit rate.

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct the U.S. Customs Service to continue to require cash 
deposit or posting of bond on all entries of subject merchandise from 
Russia and Ukraine for non-cooperative respondents and for ``all 
others'' at the newly calculated rates, that are entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
this notice in the Federal Register. The suspension-of-liquidation will 
remain in effect until further notice. The revised company-specific BIA 
margins for non-cooperative respondents and the ``all others'' rate as 
well as Gerald Metals' revised margin for pure magnesium from Ukraine 
are as follows:

------------------------------------------------------------------------
                                                       Pure      Alloy  
                                                    magnesium  magnesium
                                                    (percent)  (percent)
------------------------------------------------------------------------
Russia:                                                                 
  F&S.............................................     100.25     153.65
  W&O Bergmann....................................     100.25     153.65
  Derek Raphael & Co..............................     100.25     153.65
  Marco Trading...................................     100.25     153.65
  Wogen Group.....................................     100.25     153.65
  Alex............................................     100.25     153.65
  ``All others''..................................      94.30     153.65
Ukraine:                                                                
  Gerald Metals...................................      83.32           
  Alusuisse-Lonza.................................     104.27           
  Derek Raphael...................................     104.27           
  Marco Trading...................................     104.27           
  Wogen Group.....................................     104.27           
  Alex............................................     104.27           
  Mages...........................................     104.27           
  F&S.............................................     104.27           
  ``All others''..................................      99.81           
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of the amended preliminary determinations. If our final 
determinations are affirmative, the ITC will determine whether imports 
of the subject merchandise are materially injuring, or threaten 
material injury to, the U.S. industry, before the later of 120 days 
after the date of the original preliminary determinations (October 27, 
1994) or 45 days after our final determinations.
    This notice is published pursuant to section 733(f) of the Act and 
19 CFR 353.15(a)(4).

    Dated: January 31, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-3133 Filed 2-7-95; 8:45 am]
BILLING CODE 3510-DS-P