[Federal Register Volume 64, Number 90 (Tuesday, May 11, 1999)]
[Notices]
[Pages 25276-25277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11886]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-122-814]


Pure Magnesium From Canada; Preliminary Results of Antidumping 
Duty Administrative Review and Notice of Intent Not To Revoke Order in 
Part

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

ACTION: Notice of preliminary results of 1997-1998 administrative 
review and intent not to revoke.

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SUMMARY: The Department of Commerce is conducting an administrative 
review of the antidumping duty order on pure magnesium from Canada. The 
period of review is August 1, 1997 through July 31, 1998. This review 
covers imports of pure magnesium from one producer/exporter.

    We have preliminarily found that sales of subject merchandise have 
not been made below normal value. Further, we intend not to revoke the 
order with respect to pure magnesium from Canada produced by Norsk 
Hydro Canada Inc. If these preliminary results are adopted in our final 
results, we will instruct the Customs Service not to assess antidumping 
duties.
    Interested parties are invited to comment on these preliminary 
results. We will issue the final results not later than 120 days from 
the date of publication of this notice.

EFFECTIVE DATE: May 11, 1999.

FOR FURTHER INFORMATION CONTACT: Zak Smith or Melani Miller, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington D.C. 
20230; telephone (202) 482-0189 or (202) 482-0116, respectively.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (``the Act'') by 
the Uruguay Round Agreements Act. In addition, unless otherwise 
indicated, all citations to the Department of Commerce's (``the 
Department's'') regulations refer to the regulations, codified at 19 
CFR part 351 (62 FR 27399, May 19, 1997).

Background

    The Department published an antidumping duty order on pure 
magnesium from Canada on August 31, 1992 (57 FR 39390). On August 11, 
1998, the Department published a notice of ``Opportunity to Request an 
Administrative Review'' of the antidumping duty order on pure magnesium 
from Canada (63 FR 42821). On August 25, 1998, Magnesium Corporation of 
America (the ``petitioner'') requested an administrative review of 
imports of the subject merchandise produced by Norsk Hydro Canada Inc. 
(``NHCI'') during the period August 1, 1997, through July 31, 1998. 
NCHI made a similar request for review on August 28, 1998. In 
accordance with 19 CFR 351.221, we initiated the review on September 
29, 1998. The Department is now conducting this administrative review 
in accordance with section 751 of the Act.

Scope of Review

    The product covered by this review is pure magnesium. Pure 
unwrought magnesium contains at least 99.8 percent magnesium by weight 
and is sold in various slab and ingot forms and sizes. Granular and 
secondary magnesium are excluded from the scope currently classifiable 
under subheading 8104.11.0000 of the Harmonized Tariff Schedule 
(``HTS''). The HTS item number is provided for convenience and for 
customs purposes. The written description remains dispositive.

Export Price

    For sales to the United States, we used export price (``EP'') as 
defined in section 772(a) of the Act because the merchandise was sold 
directly to the first unaffiliated purchaser in the United States prior 
to importation. The use of constructed export prices was not warranted 
based on the facts of the record. EP was based on the packed, 
delivered, duties unpaid price to unaffiliated purchasers in the United 
States. We made a deduction for movement expenses in accordance with 
section 772(c)(2)(A) of the Act; this included the foreign and U.S. 
inland freight expenses.

[[Page 25277]]

Normal Value

    We compared the aggregate quantity of home market and U.S. sales 
and determined that the quantity of the company's sales in its home 
market was more than five percent of the quantity of its sales to the 
U.S. market. Consequently, pursuant to section 773(a)(1) of the Act, we 
based normal value (``NV'') on home market sales.
    We made adjustments for differences in packing in accordance with 
sections 773(a)(6)(A) and B(i) of the Act. We also made adjustments for 
movement expenses, consistent with section 773(a)(6)(B)(ii) of the Act, 
for inland freight. In addition, we made adjustments for differences in 
circumstances of sale (``COS'') in accordance with section 
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410. We made COS 
adjustments by deducting direct selling expenses incurred on home 
market sales (credit expenses) and adding U.S. direct selling expenses 
(credit expenses).

Revocation

    Pursuant to 19 CFR 351.222(b)(2), NHCI requested revocation of the 
antidumping duty order, in part. In accordance with 19 CFR 351.222(e), 
the request was accompanied by certifications that NHCI had not sold 
the subject merchandise at less than normal value during the current 
period of review and would not do so in the future. NHCI further 
certified that it sold the subject merchandise to the United States in 
commercial quantities for a period of at least three consecutive years. 
NHCI also agreed to immediate reinstatement of the antidumping duty 
order, as long as any exporter or producer is subject to the order, if 
the Department concludes that NHCI, subsequent to the revocation, sold 
the subject merchandise at less than normal value.
    We must determine, as a threshold matter, in accordance with 19 CFR 
351.222, whether the company requesting revocation sold the subject 
merchandise in commercial quantities in each of the three years forming 
the basis of the request. See Pure Magnesium From Canada; Final Results 
of Antidumping Duty Administrative Review and Determination Not to 
Revoke Order in Part, 64 FR 12977, 12978 (March 16, 1999) (``Fifth 
Review''). In the Fifth Review, we determined that NHCI did not sell 
the subject merchandise in the United States in commercial quantities 
in any of the three years cited by NHCI to support its request for 
revocation. Two of those three years have been cited by NHCI in support 
of its current request for revocation. Based on our findings in the 
Fifth Review, we preliminarily find that NHCI does not qualify for 
revocation of the order on pure magnesium because it does not have 
three consecutive years of sales in commercial quantities at not less 
than normal value, as provided for in 19 CFR 351.222(b) and (e)(1)(ii). 
Therefore, we do not need to address the issue of whether NHCI's sales 
in the current review period were in commercial quantities.

Preliminary Results of the Review

    As a result of this review, we preliminarily determine that NHCI's 
margin for the period August 1, 1997, through July 31, 1998, is zero.
    Any interested party may request a hearing within 30 days of 
publication. Any hearing, if requested, will be held 42 days after the 
publication of this notice, or the first workday thereafter. Issues 
raised in the hearing will be limited to those raised in the respective 
case and rebuttal briefs. Interested parties may submit case briefs 
within 30 days of the date of publication of this notice. Rebuttal 
briefs, which must be limited to issues raised in the case briefs, may 
be filed not later than 35 days after the date of publication of this 
notice.
    Parties who submit case briefs or rebuttal briefs in this 
proceeding are requested to submit with each argument (1) a statement 
of the issue and (2) a brief summary of the argument with an electronic 
version included. The Department will publish the final results of this 
administrative review subsequently, including the results of its 
analysis of issues raised in any such written briefs or hearing. The 
Department will issue final results of this review within 120 days of 
publication of these preliminary results.
    Furthermore, the following deposit requirements will be effective 
upon completion of the final results of this administrative review for 
all shipments of pure magnesium from Canada entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(1) of the Act: (1) The cash deposit rate for the reviewed 
company will be the rate established in the final results of this 
administrative review (except no cash deposit will be required for the 
company if its weighted-average margin is de minimis, i.e., less than 
0.5 percent); (2) for merchandise exported by manufacturers or 
exporters not covered in this review but covered in the original less 
than fair value investigation or a previous review, the cash deposit 
will continue to be the most recent rate published in the final 
determination or final results for which the manufacturer or exporter 
received an individual rate; (3) if the exporter is not a firm covered 
in this review, the previous review, or the original investigation, but 
the manufacturer is, the cash deposit rate will be the rate established 
for the most recent period for the manufacturer of the merchandise; and 
(4) if neither the exporter nor the manufacturer is a firm covered in 
this or any previous reviews, the cash deposit rate will be 21 percent, 
the ``all others'' rate established in Pure Magnesium from Canada; 
Amendment of Final Determination of Sales At Less Than Fair Value and 
Order in Accordance With Decision on Remand (58 FR 62643, November 29, 
1993).
    This notice serves as a preliminary reminder to importers of their 
responsibility to file a certificate regarding the reimbursement of 
antidumping duties prior to liquidation of the relevant entries during 
this review period. Failure to comply with this requirement could 
result in the Secretary's presumption that reimbursement of antidumping 
duties occurred and the subsequent assessment of double antidumping 
duties.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 3, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-11886 Filed 5-10-99; 8:45 am]
BILLING CODE 3510-DS-P