[Federal Register Volume 66, Number 198 (Friday, October 12, 2001)]
[Notices]
[Pages 52097-52100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25711]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-812]


Dynamic Random Access Memory Semiconductors of One Megabit or 
Above From the Republic of Korea: Final Results of Antidumping Duty 
Administrative Review

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

ACTION: Notice of final results of Antidumping Duty Administrative 
Review.

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SUMMARY: On June 7, 2001, the Department of Commerce (the Department) 
published the preliminary results of administrative review of the 
antidumping duty order on dynamic random access memory semiconductors 
of one megabit or above (DRAMs) from the Republic of Korea. The 
merchandise covered by this order is DRAMs from the Republic of Korea. 
The review covers two manufacturers, Hyundai Electronics Industries 
Co., Ltd. and Hyundai Electronics America (collectively Hyundai), and 
LG Semicon Co., Ltd. and LG Semicon America (collectively LG), and six 
resellers of subject merchandise to the United States. The period of 
review (POR) is May 1, 1999, through December 31, 1999. Based on our 
analysis of the comments received, we have made changes in the margin 
calculations. Therefore, the final results differ from the preliminary 
results. The final weighted-average dumping margins for the reviewed 
firms are listed below in the section entitled ``Final Results of the 
Review.''

EFFECTIVE DATE: October 12, 2001.

FOR FURTHER INFORMATION CONTACT: Paige Rivas or Ron Trentham, AD/CVD 
Enforcement, Office 4, Group II, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Ave., NW., Washington, DC 20230; telephone: (202) 482-0651 
or 482-6320, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as 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's regulations are 
to 19 CFR part 351 (1999).

Background

    The antidumping duty order for DRAMs from Korea was revoked, 
pursuant to the sunset procedures established by statute, effective 
January 1, 2000. See Dynamic Random Access Memory Semiconductors 
(DRAMs) of One Megabit and Above From the Republic of Korea; Final 
Results of Full Sunset Review and Revocation of Order, 65 FR 1471366 
(October 5, 2000). Therefore, we are conducting this review of exports 
of the subject merchandise to the United States by Hyundai Electronics 
Industries Co., Ltd. and LG Semicon Co., Ltd. (LG) for the 8-month 
period from May 1, 1999 through December 31, 1999.
    On June 7, 2001, the Department published the preliminary results 
of administrative review of the antidumping duty order on DRAMs from 
Korea. See Dynamic Random Access Memory Semiconductors of One Megabit 
or Above From the Republic of Korea: Preliminary Results of Antidumping 
Duty Administrative Review and Notice of Intent Not to Revoke Order in 
Part, 66 FR 30688 (June 7, 2001) (Preliminary Results). As stated in 
the Preliminary Results, we are collapsing Hyundai and LG into one 
entity for the purposes of in this administrative review (collectively 
Hyundai). See Preliminary Results, 66 FR at 30690. We invited parties 
to comment on our preliminary results of review. On July 9, 2001, we 
received case briefs from Micron Technology, Inc. (Micron), the 
petitioner, and Hyundai. On July 13, 2001, we received rebuttal briefs 
from Micron and Hyundai. The petitioner requested a public hearing on 
July 12, 2001, and a public hearing was held on July 17, 2001. The 
Department has conducted this administrative review in accordance with 
section 751 of the Act.

Scope of Review

    Imports covered by the review are shipments of DRAMs from Korea. 
Included in the scope are assembled and unassembled DRAMs. Assembled 
DRAMs include all package types. Unassembled DRAMs include processed 
wafers, uncut die, and cut die. Processed wafers produced in Korea, but 
packaged or assembled into memory modules in a third country, are 
included in the scope; wafers produced in a third country and assembled 
or packaged in Korea are not included in the scope.
    The scope of this review includes memory modules. A memory module 
is a collection of DRAMs, the sole function of which is memory. Modules 
include single in-line processing modules (SIPs),

[[Page 52098]]

single in-line memory modules (SIMMs), 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 which contain additional items which alter 
the function of the module to something other than memory, such as 
video graphics adapter (VGA) boards and cards, are not included in the 
scope. The scope of this review also includes video random access 
memory semiconductors (VRAMS), as well as any future packaging and 
assembling of DRAMs; and, removable memory modules placed on 
motherboards, with or without a central processing unit (CPU), unless 
the importer of motherboards certifies with the Customs Service 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 review does not include DRAMs or memory modules that are 
reimported for repair or replacement.
    The DRAMS and modules subject to this review are currently 
classifiable under subheadings 8471.50.0085, 8471.91.8085, 
8542.11.0024, 8542.11.8026, 8542.13.8034, 8471.50.4000, 8473.30.1000, 
8542.11.0026, 8542.11.8034, 8471.50.8095, 8473.30.4000, 8542.11.0034, 
8542.13.8005, 8471.91.0090, 8473.30.8000, 8542.11.8001, 8542.13.8024, 
8471.91.4000, 8542.11.0001, 8542.11.8024 and 8542.13.8026 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the Department's written description of the scope of this review 
remains dispositive.

Facts Available (FA)

    In accordance with section 776(a) of the Act, we have determined 
that the use of adverse FA is warranted for G5 Corporation (G5), Kim's 
Marketing, Jewon Trading (Jewon), Wooyang Industry Co., Ltd. (Wooyang), 
Jae Won Microelectronics (Jae Won), and Techsan Electronics (Techsan) 
for these final results of review.

1. Application of FA

    Section 776(a) of the Act provides that, if an interested party 
withholds information that has been requested by the Department, fails 
to provide such information in a timely manner or in the form or manner 
requested, significantly impedes a proceeding under the antidumping 
statute, or provides information which cannot be verified, the 
Department shall use, subject to sections 782(d) and (e) of the Act, 
facts otherwise available in reaching the applicable determination. In 
this review, as described in detail below, the above-referenced 
companies failed to provide the necessary information in the form and 
manner requested and, in some instances, the submitted information 
could not be verified. Thus, pursuant to section 776(a) of the Act, the 
Department is required to apply, subject to section 782(d), facts 
otherwise available.
    Section 782(d) of the Act provides that, if the Department 
determines that a response to a request for information does not comply 
with the request, the Department will inform the person submitting the 
response of the nature of the deficiency and shall, to the extent 
practicable, provide that person the opportunity to remedy or explain 
the deficiency. If that person submits further information that 
continues to be unsatisfactory, or this information is not submitted 
within the applicable time limits, the Department may, subject to 
section 782(e), disregard all or part of the original and subsequent 
responses, as appropriate.
    Pursuant to section 782(e) of the Act, notwithstanding the 
Department's determination that the submitted information is 
``deficient'' under section 782(d) of the Act, the Department shall not 
decline to consider such information if all of the following 
requirements are satisfied: (1) The information is submitted by the 
established deadline; (2) the information can be verified; (3) the 
information is not so incomplete that it cannot serve as a reliable 
basis for reaching the applicable determination; (4) the interested 
party has demonstrated that it acted to the best of its ability; and 
(5) the information can be used without undue difficulties.
    The Department has concluded that, because G5, Kim's Marketing, 
Jewon, Jae Won, Techsan, and Wooyang failed to respond to the 
Department's questionnaire, a determination based on a total FA is 
warranted for these companies. See the Preliminary Results for a 
detailed discussion of this analysis.

2. Selection of FA

    In selecting from among the facts otherwise available, section 
776(b) of the Act authorizes the Department to use an adverse inference 
if the Department finds that an interested party failed to cooperate by 
not acting to the best of its ability to comply with the request for 
information. See, e.g., Certain Welded Carbon Steel Pipes and Tubes 
From Thailand: Final Results of Antidumping Duty Administrative Review, 
62 FR 53808, 53819-20 (October 16, 1997). In the Preliminary Results, 
the Department determined that by not responding to the Department's 
questionnaire, each of these six companies did not act to the best of 
its respective abilities, and therefore an adverse inference is 
warranted in applying facts available for these companies.
    For the final results, no interested party comments were submitted 
regarding this issue and we continue to find that the failure of G5, 
Kim's Marketing, Jewon, Jae Won, Techsan, and Wooyang to respond to the 
Department's questionnaire in this review demonstrates that these 
entities failed to cooperate by not acting to the best of their 
ability. Thus, consistent with the Department's practice in cases where 
a respondent fails to respond to the Department's questionnaire, in 
selecting FA for G5, Kim's Marketing, Jewon, Jae Won, Techsan, and 
Wooyang in this review, an adverse inference is warranted. See Static 
Random Access Memory Semiconductors From Taiwan; Final Determination of 
Sales at Less Than Fair Value, 63 FR 8909, 8932 (February 23, 1998). 
Therefore, we are assigning G5, Kim's Marketing, Jewon, Jae Won, 
Techsan, and Wooyang an adverse FA rate of 10.44 percent, the rate 
calculated for Hyundai in a previous review and the highest margin from 
any segment of the proceeding related to DRAMS from Korea.
    Information from prior segments of the proceeding, such as involved 
here, constitutes ``secondary information'' under section 776(c) of the 
Act. Section 776(c) of the Act provides that the Department shall, to 
the extent practicable, corroborate secondary information used for FA 
by reviewing independent sources reasonably at its disposal. The SAA 
provides that to ``corroborate'' means simply that the Department will 
satisfy itself that the secondary information to be used has probative 
value. See SAA at 870. As noted in Tapered Roller Bearings and Parts 
Thereof, Finished and Unfinished, from Japan, and Tapered Roller 
Bearings, Four Inches or Less in Outside Diameter, and Components 
Thereof, from Japan; Preliminary Results of Antidumping Duty 
Administrative Reviews and Partial Termination of Administrative 
Reviews, 61 FR 57391, 57392 (November 6, 1996) (TRBs), to corroborate 
secondary information, the Department will, to the extent practicable, 
examine the reliability and relevance of the information used. However, 
unlike other types of

[[Page 52099]]

information, such as input costs or selling expenses, there are no 
independent sources from which the Department can derive calculated 
dumping margins; the only source for margins is administrative 
determinations. Thus, in an administrative review, if the Department 
chooses as total adverse FA a calculated dumping margin from a prior 
segment of the proceeding, it is not necessary to question the 
reliability of the margin for that time period.
    As to the relevance of the margin used for adverse FA, the 
Department stated in TRBs that it will ``consider information 
reasonably at its disposal as to whether there are circumstances that 
would render a margin irrelevant. Where circumstances indicate that the 
selected margin is not appropriate as adverse FA, the Department will 
disregard the margin and determine an appropriate margin.'' Id.; see 
also Fresh Cut Flowers from Mexico; Preliminary Results of Antidumping 
Duty Administrative Review, 60 FR 49567 (February 22, 1996), where we 
disregarded the highest margin in the case as best information 
available because the margin was based on another company's 
uncharacteristic business expense resulting in an extremely high 
margin.
    As stated above, the highest rate determined in any prior segment 
of the proceeding is 10.44 percent, a calculated rate from the fifth 
administrative review. See Dynamic Random Access Memory Semiconductors 
of One Megabit or Above From the Republic of Korea: Final Results of 
Antidumping Duty Administrative Review and Determination Not To Revoke 
the Order in Part, 64 FR 69694 (December 14, 1999). In the absence of 
information on the administrative record that application of the 10.44 
percent rate to G5, Kim's Marketing, Jewon, Jae Won, Techsan, and 
Wooyang would be inappropriate as an adverse FA rate in the instant 
review, that the margin is not relevant, or that leads us to re-examine 
this rate as adverse facts available in the instant review, we have 
applied, as FA, the 10.44 percent margin from a prior administrative 
review of this order, and have satisfied the corroboration requirements 
under section 776(c) of the Act.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) from Bernard T. Carreau, Deputy 
Assistant Secretary, Import Administration, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated October 5, 2001, 
which is hereby adopted by this notice. A list of the issues which 
parties have raised and to which we have responded, all of which are in 
the Decision Memorandum, is attached to this notice as an Appendix. 
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 Central Records Unit, room B-099 of the main 
Department building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn/summary/list.htm. The paper copy and electronic 
version of the Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations. These changes are listed below and 
discussed in the relevant sections of the Decision Memorandum.
    1. We corrected an error in the CEP offset calculation, see Comment 
8.
    2. We corrected two errors in the margin part of the program, see 
Comment 9.
    3. We recalculated HM credit expense, see Comment 10.
    4. We recalculated CEP profit ratio, see Comment 11.
    5. We recalculated U.S. credit expense, see Comment 12.

Final Results of Review

    We determine that the following percentage weighted-average margins 
exist for the period May 1, 1999 through, December 31, 1999:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Hyundai....................................................         2.92
G5.........................................................        10.44
Wooyang....................................................        10.44
Jae Won....................................................        10.44
Jewon......................................................        10.44
Techsan....................................................        10.44
Kim's Marketing............................................        10.44
------------------------------------------------------------------------

Assessment

    The Department will not issue cash deposit instructions to Customs 
based on the results of this review. Since the order was revoked 
effective January 1, 2000, current and future imports of DRAMs from 
Korea shall be entered into the United States without regard to 
antidumping duties. We have already instructed Customs to liquidate all 
entries on or after January 1, 2000, without regard to antidumping 
duties.
    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries during the POR. 
The Department will issue appraisement instructions directly to the 
Customs Service. Where the importer-specific assessment rate is above 
de minimis, we will instruct Customs to assess antidumping duties on 
that importer's entries of subject merchandise.
    These final results of review shall be the basis for the assessment 
of antidumping duties on entries of merchandise covered by this review. 
For duty-assessment purposes with respect to Hyundai, we calculated 
importer-specific assessment rates by aggregating the dumping margins 
calculated for all U.S. sales to each importer and dividing this amount 
by the total estimated entered value reported for those sales. Hyundai, 
in accordance with the Department's questionnaire, estimated the 
entered value of these sales by calculating the average of the entered 
value of each control number for the POR. For all other respondents, we 
based the assessment rate on the facts available margin percentage.

Notification

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) 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 doubled antidumping duties.
    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. Timely 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.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i) of the Act.


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    Dated: October 5, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

Comments and Responses

1. Offset to Foreign Currency Translation Losses
2. Research and Development (R&D)
3. Cross-Fertilization of R&D
4. Use of Cost of Goods Sold (COGS) to Calculate R&D Ratio
5. Increase in Useful Lives
6. U.S. Antidumping Statute and World Trade Organization (WTO) 
Antidumping Agreement
7. Post-POR Sales of Subject Merchandise Entered During the POR
8. Offset for CEP Sales
9. Recalculation of Expenses in Margin Program
10. Calculation of Home Market Credit Expense
11. CEP Profit Ratio--Calculation of Total Profit
12. U.S. Credit Expense

[FR Doc. 01-25711 Filed 10-11-01; 8:45 am]
BILLING CODE 3510-DS-P