[Federal Register Volume 66, Number 219 (Tuesday, November 13, 2001)]
[Notices]
[Pages 56798-56799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28405]



[[Page 56798]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-821]


Large Newspaper Printing Presses and Components Thereof, Whether 
Assembled or Unassembled, From Germany: Notice of Initiation of Changed 
Circumstances Review and Consideration of Revocation of the Antidumping 
Duty Order

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

ACTION: Notice of initiation of changed circumstances review.

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SUMMARY: In accordance with 19 CFR 351.216(b), KBA North America, Inc. 
Web Press Division, a U.S. producer of subject merchandise and 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 
Germany.

EFFECTIVE DATE: November 13, 2001.

FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Kate Johnson, 
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) 482-4136 or (202) 482-4929, respectively.

The Applicable Statute and Regulations

    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 of Commerce's (the 
Department's) regulations are to the regulations at 19 CFR part 351 
(2001).

SUPPLEMENTARY INFORMATION:

Background

    On September 24, 2001, Koenig & Bauer AG and KBA North America, 
Inc. Web Press Division (KBA NA; collectively, K&B) requested that the 
Department revoke the antidumping duty order on large newspaper 
printing presses (LNPP) and components thereof, whether assembled or 
unassembled, from Germany through initiation of a changed circumstances 
review. K&B provided information that the petitioner in this 
proceeding, Goss Graphics System, Inc. (Goss), closed its sole U.S. 
production facility on August 31, 2001, and is no longer a producer of 
the merchandise subject to the antidumping duty order. On November 2, 
2001, KBA NA stated that it accounts for substantially all of the 
production of the domestic like product and no longer has an interest 
in the continuation of the antidumping order. In addition, prior to 
K&B's request, on September 19, 2001, MAN Roland Druckmaschinen AG and 
MAN Roland Inc. (collectively, MAN Roland) requested that the 
Department revoke the antidumping duty order on LNPP and components 
thereof, whether assembled or unassembled, from Germany through a 
changed circumstances review. MAN Roland provided information similar 
to K&B's regarding the status of Goss's U.S. production facility. Both 
K&B and MAN Roland submitted additional material regarding Goss on 
October 19, 2001, and MAN Roland provided further information on 
October 29, 2001. Accordingly, both K&B and MAN Roland believe that the 
order should be revoked with respect to any entries of LNPPs that have 
not yet been the subject of a completed administrative review.
    On October 3, 2001, the Department requested Goss to state for the 
record whether it is a domestic producer of LNPPs. Goss responded on 
October 19, 2001, stating that it continues to perform certain 
manufacturing functions at a U.S. facility and thus continues to be a 
manufacturer, producer, or wholesaler in the United States within the 
meaning of section 771(9) of the Act. On that basis, Goss contends that 
the requests for a changed circumstances review should be rejected.

Scope of the Order

    The products covered by the 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 the 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 (RTP), 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 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 the order, the following definitions apply 
irrespective of any different definition that may be found in Customs 
rulings, U.S. Customs law or the Harmonized Tariff Schedule of the 
United States (HTSUS): 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

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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 order. 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, this 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 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. Although the HTSUS subheadings 
are provided for convenience and customs purposes, our written 
description of the scope of the order is dispositive.

Initiation of Changed Circumstances Review

    Pursuant to section 782(h)(2) of the Act, the Department may 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 
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, or 
if changed circumstances exist sufficient to warrant revocation.
    In this case, the Department finds that the information submitted 
provides sufficient evidence of changed circumstances to warrant a 
review. Given KBA NA's assertions, we will consider whether there is 
interest in continuing the order on the part of the U.S. industry.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances 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(e), and will publish these results in the Federal Register.
    While the changed circumstances review is underway, the current 
requirement for a cash deposit of estimated antidumping duties on all 
subject merchandise 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: November 5, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-28405 Filed 11-9-01; 8:45 am]
BILLING CODE 3510-DS-P