[Federal Register Volume 65, Number 91 (Wednesday, May 10, 2000)]
[Notices]
[Pages 30070-30071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11600]


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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 1998-1999 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, 1998 through July 31, 1999. 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. We have also preliminarily determined 
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 10, 2000.

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 19 CFR Part 351 (1998).

Background

    The Department published an antidumping duty order on pure 
magnesium from Canada on August 31, 1992 (57 FR 39390). On August 11, 
1999, the Department published a notice of ``Opportunity to Request an 
Administrative Review'' of this order (64 FR 43649). On August 13, 
1999, Magnesium Corporation of America (the ``petitioner'') requested 
an administrative review of imports of the subject merchandise produced 
by Norsk Hydro Canada, Inc. (``NHCI''). NCHI made a similar request for 
review on August 18, 1999. We initiated the review on October 1, 1999. 
This review covers the period August 1, 1998 through July 31, 1999.
    The Department is 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.

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 773(a)(6)(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

[[Page 30071]]

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'') and Pure Magnesium From Canada; Final Results of Antidumping 
Duty Administrative Review and Determination Not to Revoke Order in 
Part, 64 FR 50489, 50490 (September 17, 1999) (``Sixth 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 (the 
administrative review years 1994-1995, 1995-1996, and 1996-1997). In 
the Sixth Review, we determined that NHCI did not sell the subject 
merchandise in the United States in commercial quantities in two of the 
three years cited by NHCI to support its request for revocation (the 
administrative review years 1995-1996 and 1996-1997). Consistent with 
our findings in the Fifth Review and Sixth 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). In particular, NHCI's sales in 1996-
1997 were not in commercial quantities. (See the Memorandum from Team 
to Susan Kuhbach, ``Commercial Quantities,'' dated April 20, 2000, for 
a discussion of NHCI's selling activity).

Preliminary Results of the Review

    As a result of this review, we preliminarily determine that NHCI's 
margin for the period August 1, 1998, through July 31, 1999, is zero.
    Any interested party may request a hearing within 30 days of 
publication of this notice. 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 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 2, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-11600 Filed 5-9-00; 8:45 am]
BILLING CODE 3510-DS-P