[Federal Register Volume 67, Number 43 (Tuesday, March 5, 2002)]
[Notices]
[Pages 9957-9959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5207]


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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 Preliminary Results 
of Changed Circumstances Review, Preliminary Intent to Revoke the 
Antidumping Duty Order, and Preliminary Rescission of Administrative 
Reviews

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

ACTION: Notice of preliminary results of changed circumstances review, 
preliminary intent to revoke the antidumping duty order, and 
preliminary rescission of antidumping duty administrative reviews.

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SUMMARY: In response to a request by KBA North America, Inc., Web Press 
Division, a U.S. producer of subject merchandise and an interested 
party in this proceeding, on November 5, 2001, the Department of 
Commerce initiated a changed circumstances review to consider 
revocation of the antidumping duty order on large newspaper printing 
presses from Germany. We have preliminarily determined that the 
producers accounting for all or substantially all of the production of 
the domestic like product to which the order pertains do not have an 
interest in maintaining the order. Consequently, we preliminarily 
intend to revoke the order on large newspaper printing presses from 
Germany with an effective date of September 1, 1999. In addition, the 
Department is rescinding preliminarily the ongoing administrative 
reviews of this order. These reviews cover the periods September 1, 
1999, through August 31, 2000, and September 1, 2000, through August 
31, 2001. Interested parties are invited to comment on these 
preliminary results.

EFFECTIVE DATE: September 1, 1999.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Irene Darzenta 
Tzafolias AD/CVD Enforcement Group I, Office 2, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, D.C. 20230; telephone: 
(202) 482-4136 or (202) 482-0922, respectively.

SUPPLEMENTARY INFORMATION:
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).
Background
    On September 4, 1996, the Department issued the antidumping duty 
order on large newspaper printing presses (LNPPs) from Germany (61 FR 
46623). On September 24, 2001, Koenig & Bauer AG and KBA North America, 
Inc. Web Press Division (KBA NA, a domestic producer of the subject 
mercandise; collectively, K&B) requested that the Department revoke the 
antidumping duty order on LNPPs from Germany through initiation of a 
changed circumstances review. K&B provided information that Goss, the 
petitioner in the antidumping duty order proceeding, 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), a 
foreign producer/exporter of the subject merchandise and its U.S. 
affiliate, requested that the Department revoke the antidumping duty 
order on LNPPs 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. In their submissions, 
both K&B and MAN Roland requested that the order 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 contended 
that the Department should reject the requests for a changed 
circumstances review.
    Based on the information submitted by KBA NA and KBA NA's 
assertions that it accounted for substantially all of the production of 
the domestic like product and had no interest in maintaining the order, 
the Department determined that there was sufficient evidence of changed 
circumstances to warrant a review under section 751(b)(1) of the Act 
and 19 CFR 351.222(g) and 351.216, and consequently, initiated a 
changed circumstances review on November 5, 2001. (See 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, 66 FR 56798 (November 13, 2001) (Initiation Notice).) In 
the Initiation Notice, we stated that we would consider whether there 
is interest in continuing the order on the part of the U.S. industry. 
We also stated that we would publish in the Federal Register a notice 
of preliminary results of changed circumstances review, in accordance 
with 19 CFR 351.221(c)(3)(i), prior to the issuance of the final 
results of the review.

[[Page 9958]]

    Since the Department's notice of initiation of this review, the 
following events have occurred. On December 7, 2001, the Department 
issued a questionnaire to Goss seeking to better understand its current 
operations and to assess its status as a domestic producer of LNPPs. 
While it never responded directly to the questions in this 
questionnaire, on December 21, 2001, Goss filed a letter stating that 
it was no longer interested in participating in any of the current 
antidumping proceedings concerning LNPPs from Germany (and Japan), 
including the changed circumstances review, and therefore was 
withdrawing from them. Subsequent to the filing of Goss's letter, on 
December 31, 2001 and January 8, 2002, MAN Roland and K&B, 
respectively, submitted letters urging the Department to conclude based 
on the facts of the record that Goss is not a domestic producer of the 
subject merchandise and to revoke the order on the basis of changed 
circumstances with respect to all unliquidated entries of the subject 
merchandise, including those that are subject to the current 
administrative reviews. Specifically, K&B requested that the effective 
date of revocation of the order be September 1, 1999. On January 31, 
2002, MAN Roland specified an effective revocation date of September 1, 
2000. Other than the additional comments filed by K&B and MAN Roland, 
no other interested parties filed comments.
Scope of 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 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.
Preliminary Results of Changed Circumstances Review and Preliminary 
Intent to Revoke the Antidumping Duty Order
    We interpret Goss's withdrawal from all of the ongoing LNPP 
proceedings to mean that Goss no longer has interest in the maintenance 
of this order. Both Goss, the original petitioner, and KBA NA, a U.S. 
producer of LNPPs which claims it accounts for substantially all of the 
production of the domestic like product, are no longer interested in 
the maintenance of this order, and no other interested party has filed 
any objection to the revocation of this order pursuant to the 
Department's solicitation of comments in its Initiation Notice.
    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 other changed circumstances exist sufficient to warrant revocation. 
Furthermore, it is

[[Page 9959]]

the Department's practice to revoke an antidumping order so that the 
effective date of revocation covers entries that have not been subject 
to a completed administrative review. There has not been a completed 
administrative review for K&B since September 1, 1999, because the 
Department deferred for one year the initiation of the administrative 
review of K&B for the period September 1, 1999, through August 31, 
2000. See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, Requests for Revocation in Part and Deferral of 
Administrative Reviews, 65 FR 64662, (October 30, 2000).\1\
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    \1\ There has been a completed administrative review of the 
order for MAN Roland since the specified effective date of 
revocation (i.e., covering the period September 1, 1999 through 
August 31, 2000) (see Large Newspaper Printing Presses and 
Components Thereof, Whether Assembled or Unassembled, from Germany: 
Final Results of Antidumping Duty Administrative Review, 67 FR 2192 
(January 16, 2002)); however, the margin resulting from the 
completed review for MAN Roland for the period September 1, 1999, 
through August 31, 2000, was zero, and thus, notwithstanding the 
Department's decision to revoke the order, the Department would 
otherwise instruct the Customs Service to liquidate the entries 
relevant to this review period in the same manner as it would with 
respect to revocation of the order effective September 1, 1999 
(i.e., it would instruct the Customs Service to liquidate the 
entries at issue without regard to antidumping duties). The 
effective date would have no impact on MAN Roland.
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    The Department preliminarily determines that the producers 
accounting for substantially all of the domestic like product to which 
the order pertains have expressed a lack of interest in the relief 
provided by this order, dating back to September 1, 1999, and thus, 
sufficient changed circumstances exist to warrant revocation of the 
order. The Department also preliminarily determines that the effective 
date of revocation for this order is September 1, 1999, the date of the 
suspension of liquidation for the 1999-2000 administrative review for 
K&B. Therefore, the Department preliminarily determines that it shall 
revoke, effective September 1, 1999, the order on LNPPs from Germany in 
whole, pursuant to sections 751(b) and (d) and 782(h) of the Act, as 
well as 19 CFR 351.216 and 351.222(g).
Preliminary Rescission of Antidumping Administrative Reviews
    As discussed above, on October 30, 2001, the Department published 
in the Federal Register (65 FR 64662) a notice stating that it would 
defer for one year the initiation of the administrative review for the 
period September 1, 1999 through August 31, 2000, for K&B. On October 
26, 2001, the Department published in the Federal Register (66 FR 
54195) a notice of initiation of an administrative review for the 
period September 1, 2000 through August 31, 2001 for K&B and MAN 
Roland. Because we are preliminarily revoking the order for the reasons 
stated above, effective September 1, 1999, we are preliminarily 
rescinding the ongoing administrative reviews of LNPPs from Germany 
pursuant to section 751(d)(3) of the Act.
Instructions to the Customs Service
    If our final results do not differ from our preliminary results 
with respect to revocation, the Department, in accordance with 19 CFR 
351.222, will instruct the Customs Service to terminate the suspension 
of liquidation and to liquidate, without regard to antidumping duties, 
all unliquidated entries of LNPPs from Germany, entered, or withdrawn 
from warehouse, for consumption on or after September 1, 1999, the date 
of the suspension of liquidation for the 1999-2000 administrative 
review for K&B. The Department will further instruct the Customs 
Service to refund with interest any estimated duties collected with 
respect to unliquidated entries of LNPPs from Germany entered, or 
withdrawn from warehouse, for consumption on or after September 1, 
1999, in accordance with section 778 of the Act. These instructions 
will not be issued until either the conclusion of the ongoing 
litigation with respect to the final determination of the Department's 
less-than-fair-value investigation of LNPPs from Germany, pursuant to 
which entries have been enjoined from liquidation, or the injunction in 
that case is lifted or amended to allow liquidation of entries. (See 
Koenig & Bauer Albert v. United States, Fed. Cir. Court No. 00-1387 
(CIT 96-10-02298).)
Public Comment
    Interested parties are invited to comment on these preliminary 
results. Case briefs may be submitted by interested parties not later 
than 10 days after the date of publication of this notice. Rebuttal 
briefs, limited to the issues raised in the case briefs, may be filed 
not later than five days after the deadline for submission of case 
briefs. Parties who submit argument in this proceeding are requested to 
submit with the argument (1) a statement of the issue, and (2) a brief 
summary of the argument. All written comments shall be submitted in 
accordance with 19 CFR 351.303 and shall be served on all interested 
parties on the Department's service list in accordance with 19 CFR 
351.303. Parties to the proceedings may request a hearing within 10 
days of publication of this notice. Any hearing, if requested, will be 
held no later than two days after the deadline for the submission of 
rebuttal briefs, or the first workday thereafter. Persons interested in 
attending the hearing should contact the Department for the date and 
time of the hearing. The Department will publish the final results of 
this changed circumstances review, which will include the results of 
its analysis of issues raised in any case or rebuttal briefs or at the 
hearing.
    This notice of preliminary results of changed circumstances review 
and intent to revoke the antidumping duty order are in accordance with 
sections 751(b) and (d), and 777 of the Act and 19 CFR 351.216(d) and 
351.222(g). The 1999-2000 and 2000-2001 antidumping duty administrative 
reviews of LNPPs from Germany are being preliminarily rescinded in 
accordance with section 751(d)(3) of the Act.

    February 27, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-5207 Filed 3-4-02; 8:45 am]
BILLING CODE 3510-DS-S