[Federal Register Volume 64, Number 138 (Tuesday, July 20, 1999)]
[Notices]
[Pages 38888-38890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18461]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-588-837]


Large Newspaper Printing Presses and Components Thereof, Whether 
Assembled or Unassembled, from Japan: Notice of Initiation of Changed 
Circumstances Review of the Antidumping Duty Order

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

ACTION: Notice of initiation of changed circumstances antidumping duty 
review.

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SUMMARY: In accordance with 19 CFR 351.216(b), Goss Graphic Systems, 
Inc., an interested party in this proceeding, requested a changed 
circumstances review. In response to this request, the Department of 
Commerce is initiating a changed circumstances review on large 
newspaper printing presses and components thereof, whether assembled or 
unassembled, from Japan.

EFFECTIVE DATE: July 20, 1999.

FOR FURTHER INFORMATION CONTACT: Dinah McDougall or David J. 
Goldberger, Office 2, AD/CVD Enforcement Group I, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone: (202) 482-3773 or (202) 482-4136, respectively.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as

[[Page 38889]]

amended (the Act), are references to the provisions effective January 
1, 1995, the effective date of the amendments made to the Act by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department of Commerce's (the 
Department's) regulations are to the regulations at 19 CFR Part 351 
(1998).

SUPPLEMENTARY INFORMATION:

Background

    On May 28, 1999, Goss Graphic Systems, Inc. (Goss), the petitioner 
in this proceeding, requested that the Department revoke in part the 
antidumping duty order on large newspaper printing presses (LNPP) and 
components thereof, whether assembled or unassembled, from Japan. 
Specifically, Goss requested that the Department revoke the order with 
respect to imports of the elements and components of LNPP systems, and 
additions thereto, imported to fulfill a contract for one or more 
complete LNPP systems which feature a 22 inch cut-off, 50 inch web 
width and a rated speed no greater than 75,000 copies per hour, 
utilizing exclusively the type of printing unit and color keyless 
inking system detailed in Goss' request, in a tower configuration 
coupled with folder, reel tension paster, conveyance and access 
apparatus, and computerized control system meeting all of the 
specifications described in Goss' request.
    Goss is a domestic producer of the subject merchandise and the 
petitioner in the underlying sales at less-than-fair-value 
investigation. In its changed circumstances request, Goss stated that 
it has no interest in maintaining the antidumping duty order on LNPPs 
from Japan with respect to the specific category of LNPP systems 
identified in its request.
    In its May 28, 1999 letter, Goss also requested that the Department 
publish concurrently its notice of initiation and preliminary results 
of changed circumstances review, pursuant to 19 CFR 351.221(c)(3)(ii). 
Goss stated that it accounts for substantially all of the production of 
the domestic like product for which partial revocation is sought. Thus, 
since this portion of the order is no longer of interest to domestic 
parties, Goss stated that expedited action is warranted in this case. 
Goss requested that the effective date of this partial revocation be 
September 4, 1996, the publication date in the Federal Register of the 
antidumping duty order and amended final determination of sales at 
less-than-fair value.
    On June 15, 1999, Tokyo Kikai Seisakusho, Ltd., (TKS), a Japanese 
exporter of the subject merchandise and a respondent in the underlying 
less-than-fair-value investigation and administrative review covering 
the period September 1, 1997, through August 31, 1998, submitted 
comments on Goss' changed circumstances request. TKS requested that, if 
the changed circumstances review were initiated, the Department 
determine and explain why it would be appropriate to exclude from the 
order the specific merchandise identified by the petitioner, but not 
the broader category of color keyless inking equipment as a whole. TKS 
has also requested that the Department investigate the basis of Goss' 
request.

Scope of Review

    The products covered by this antidumping order are large newspaper 
printing presses, including press systems, press additions and press 
components, whether assembled or unassembled, whether complete or 
incomplete, that are capable of printing or otherwise manipulating a 
roll of paper more than two pages across. A page is defined as a 
newspaper broadsheet page in which the lines of type are printed 
perpendicular to the running of the direction of the paper or a 
newspaper tabloid page with lines of type parallel to the running of 
the direction of the paper.
    In addition to press systems, the scope of this order includes the 
five press system components. They are:
    (1) A printing unit, which is any component that prints in 
monocolor, spot color and/or process (full) color;
    (2) A reel tension paster, which is any component that feeds a roll 
of paper more than two newspaper broadsheet pages in width into a 
subject printing unit;
    (3) A folder, which is a module or combination of modules capable 
of cutting, folding, and/or delivering the paper from a roll or rolls 
of newspaper broadsheet paper more than two pages in width into a 
newspaper format;
    (4) Conveyance and access apparatus capable of manipulating a roll 
of paper more than two newspaper broadsheet pages across through the 
production process and which provides structural support and access; 
and
    (5) A computerized control system, which is any computer equipment 
and/or software designed specifically to control, monitor, adjust, and 
coordinate the functions and operations of large newspaper printing 
presses or press components.
    A press addition is comprised of a union of one or more of the 
press components defined above and the equipment necessary to integrate 
such components into an existing press system.
    Because of their size, large newspaper printing press systems, 
press additions, and press components are typically shipped either 
partially assembled or unassembled, complete or incomplete, and are 
assembled and/or completed prior to and/or during the installation 
process in the United States. Any of the five components, or collection 
of components, the use of which is to fulfill a contract for large 
newspaper printing press systems, press additions, or press components, 
regardless of degree of assembly and/or degree of combination with non-
subject elements before or after importation, is included in the scope 
of this antidumping duty order. Also included in the scope are elements 
of a LNPP system, addition or component, which taken altogether, 
constitute at least 50 percent of the cost of manufacture of any of the 
five major LNPP components of which they are a part.
    For purposes of this antidumping duty order, the following 
definitions apply irrespective of any different definition that may be 
found in Customs rulings, U.S. Customs law or the HTSUS: (1) The term 
``unassembled'' means fully or partially unassembled or disassembled; 
and (2) the term ``incomplete'' means lacking one or more elements with 
which the LNPP is intended to be equipped in order to fulfill a 
contract for a LNPP system, addition or component.
    This scope does not cover spare or replacement parts. Spare or 
replacement parts imported pursuant to a LNPP contract, which are not 
integral to the original start-up and operation of the LNPP, and are 
separately identified and valued in a LNPP contract, whether or not 
shipped in combination with covered merchandise, are excluded from the 
scope of this order. Used presses are also not subject to this scope. 
Used presses are those that have been previously sold in an arm's 
length transaction to a purchaser that used them to produce newspapers 
in the ordinary course of business.
    Further, the scope of the antidumping duty order covers all current 
and future printing technologies capable of printing newspapers, 
including, but not limited to, lithographic (offset or direct), 
flexographic, and letterpress systems. The products covered by this 
order are imported into the United States under subheadings 8443.11.10, 
8443.11.50, 8443.30.00, 8443.59.50, 8443.60.00, and 8443.90.50 of the 
HTSUS. Large newspaper printing presses may also enter under HTSUS 
subheadings 8443.21.00 and 8443.40.00. Large

[[Page 38890]]

newspaper printing press computerized control systems may enter under 
HTSUS subheadings 8471.49.10, 8471.49.21, 8471.49.26, 8471.50.40, 
8471.50.80, and 8537.10.90.
    The products covered by this changed circumstances review are 
elements and components of LNPP systems, and additions thereto, 
imported to fulfill a contract for one or more complete LNPP systems 
which feature a 22 inch cut-off, 50 inch web width and a rated speed no 
greater than 75,000 copies per hour. In addition to the specifications 
set out in this paragraph, all of which must be met in order for the 
product to fall within this changed circumstances review, the product 
must also possess all of the specifications detailed in the five (5) 
numbered sections following this paragraph and in any figures 
referenced below. If one or more of these criteria is not fulfilled, 
the product is not within the scope of this changed circumstances 
review:
    1. Printing Unit: A printing unit which is a color keyless blanket-
to-blanket tower unit with a fixed gain infeed and fixed gain outfeed, 
with a rated speed no greater than 75,000 copies per hour, which 
includes the following features:
     Each tower consisting of four levels, one or more of which 
must be populated.
     Plate cylinders which contain slot lock-ups and blanket 
cylinders which contain reel rod lock-ups both of which are of solid 
carbon steel with nickel plating and with bearers at both ends which 
are configured in-line with bearers of other cylinders.
     Keyless inking system which consists of a passive feed ink 
delivery system, an eight roller ink train, and a non-anilox and non-
porous metering roller.
     The dampener system which consists of a two nozzle per 
page spraybar and two roller dampener with one chrome drum and one form 
roller.
     The equipment contained in the color keyless ink delivery 
system is designed to achieve a constant, uniform feed of ink film 
across the cylinder without ink keys. This system requires use of 
keyless ink which accepts greater water content.
    2. Folder: A module which is a double 3:2 rotary folder with 160 
pages collect capability and double (over and under) delivery, with a 
cut-off length of 22 inches. The upper section consists of three-high 
double formers (total of 6) with six sets of nipping rollers.
    3. RTP: A component which is of the two-arm design with core drives 
and core brakes, designed for 50 inch diameter rolls; and arranged in 
the press line in the back-to-back configuration (left and right hand 
load pairs).
    4. Conveyance and Access Apparatus: Conveyance and access apparatus 
capable of manipulating a roll of paper more than two newspaper 
broadsheets across through the production process, and a drive system 
which is of conventional shafted design.
    5. Computerized Control System: A computerized control system, 
which is any computer equipment and/or software designed specifically 
to control, monitor, adjust, and coordinate the functions and 
operations of large newspaper printing presses or press components.
    The order with regard to imports of other LNPPs is not affected by 
this request.

Initiation of Changed Circumstances Antidumping Duty Review

    Pursuant to section 751(d)(1) of the Act, the Department may 
partially revoke an antidumping or countervailing duty order based on a 
review under section 751(b) of the Act (i.e., a changed circumstances 
review). Section 751(b)(1) of the Act requires a changed circumstances 
review to be conducted upon receipt of a request which shows changed 
circumstances sufficient to warrant a review. 19 CFR 351.222(g) 
provides that the Department will conduct a changed circumstances 
administrative review under 19 CFR 351.216, and may revoke an order (in 
whole or in part), if it determines that producers accounting for 
substantially all of the production of the domestic like product to 
which the order (or the part of the order to be revoked) pertains have 
expressed a lack of interest in the relief provided by the order, in 
whole or in part. In addition, in the event that the Department 
concludes that expedited action is warranted, 19 CFR 351.221(c)(3)(ii) 
permits the Department to combine the notices of initiation and 
preliminary results.
    The Department concludes that it would be inappropriate to expedite 
this action pursuant to 19 CFR 351.221(c)(3)(ii) by issuing a 
preliminary determination prior to conducting an investigation in the 
instant case. The Department may need additional information regarding 
the basis for Goss' request and the ability of the U.S. Customs Service 
to enforce the antidumping duty order under the revised scope as 
proposed by Goss. Therefore, the Department is not issuing preliminary 
results of its changed circumstances antidumping duty administrative 
review at this time.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances antidumping duty 
administrative review, in accordance with 19 CFR 351.221(c)(3)(i), 
which will set forth the factual and legal conclusions upon which our 
preliminary results are based, and a description of any action proposed 
based on those results. Interested parties may submit comments for 
consideration in the Department's preliminary results not later than 20 
days after publication of this notice. Responses to those comments may 
be submitted not later than 10 days following submission of the 
comments. All written comments must be submitted in accordance with 19 
CFR 351.303, and must be served on all interested parties on the 
Department's service list in accordance with 19 CFR 351.303. The 
Department will also issue its final results of review within 270 days 
after the date on which the changed circumstances review is initiated, 
in accordance with 19 CFR 351.216(c), and will publish these results in 
the Federal Register.
    While the changed circumstances administrative review is underway, 
the current requirement for a cash deposit of estimated antidumping 
duties on all subject merchandise, including the LNPP components and 
systems that are the subject of this changed circumstances review, will 
continue unless and until it is modified pursuant to the final results 
of this changed circumstances review.
    This notice is in accordance with sections 751(b)(1) of the Act and 
19 CFR 351.216 and 351.222.

    Dated: July 12, 1999.
Bernard Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-18461 Filed 7-19-99; 8:45 am]
BILLING CODE 3510-DS-P