[Federal Register Volume 68, Number 79 (Thursday, April 24, 2003)]
[Notices]
[Pages 20112-20114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10193]


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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 Partial Rescission of Review

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

ACTION: Notice of preliminary results of 2001-2002 administrative 
review.

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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, 2001, through July 31, 2002. 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. 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: April 24, 2003.

FOR FURTHER INFORMATION CONTACT: Jarrod Goldfeder or Scott Holland, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington DC 20230; telephone (202) 482-0189 or (202) 482-1279, 
respectively.

Background

    On August 31, 1992, the Department published in the Federal 
Register (57 FR 39390) an antidumping duty order on pure magnesium from 
Canada. On August 6, 2002, the Department published a notice in the 
Federal Register (67 FR 50856) of ``Opportunity to Request an 
Administrative Review'' of this order. On August 28, 2002, U.S. 
Magnesium, LLC (``the petitioner'') requested an administrative review 
of imports of the subject merchandise produced by Norsk Hydro Canada, 
Inc. (``NHCI'') and Magnola Metallurgy Inc. (``Magnola''). On August 
30, 2002, NCHI made a request for review and also requested that the 
Department revoke the antidumping duty order with respect to NHCI. On 
September 25, 2002, the Department published a notice in the Federal 
Register (67 FR 60210) initiating the review for the period August 1, 
2001, through July 31, 2002.
    On September 6, 2002, Magnola reported that it had no shipments of 
subject merchandise to the United States during the August 1, 2001, 
through July 31, 2002, period of review (``POR''). See ``Partial 
Rescission'' section, below.
    On September 17, 2002, the petitioner submitted comments objecting 
to NHCI's August 30, 2002, request for revocation. According to the 
petitioner, NHCI failed to meet the Department's requirements for 
revocation, as described in 19 CFR 351.222. On

[[Page 20113]]

October 15, 2002, NHCI withdrew its August 30, 2002, request for 
revocation.
    On October 9, 2002, the Department issued an antidumping 
questionnaire to NHCI. On November 22, 2002, we received NHCI's 
questionnaire response. We issued a supplemental questionnaire to NHCI 
on January 13, 2003, and received the response on February 10, 2003.

Scope of the Order

    The product covered by this order 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.

Partial Rescission

    In accordance with 19 CFR 351.213(d)(3), we are rescinding this 
review with respect to Magnola, which reported that it made no 
shipments of subject merchandise during this POR. We examined shipment 
data furnished by the Customs Service and are satisfied that the record 
does not indicate that there were U.S. shipments of subject merchandise 
from Magnola during the POR.

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 price to 
unaffiliated purchasers in the United States. We adjusted the price for 
billing adjustments. We made deductions, consistent with section 
772(c)(2)(A) of the Act, for the following movement expenses: inland 
freight from the plant to the distribution warehouse, pre-sale 
warehousing expense, inland freight from the distribution warehouse to 
the unaffiliated customer, and foreign brokerage and handling.

Normal Value

    In order to determine whether there was a sufficient volume of 
sales of pure magnesium in the home market to serve as a viable basis 
for calculating NV, we compared NHCI's volume of home market sales of 
the foreign like product to the volume of U.S. sales of the subject 
merchandise, in accordance with section 773(a) of the Act. Because the 
aggregate volume of home market sales of the foreign like product was 
greater than five percent of the respective aggregate volume of U.S. 
sales for the subject merchandise, we determined that the home market 
provided a viable basis for calculating NV. Therefore, in accordance 
with section 773(a)(1)(B)(i) of the Act, we based NV on the prices at 
which the foreign like product was first sold for consumption in the 
exporting country, in the usual commercial quantities and in the 
ordinary course of trade.
    We calculated NV based on the price to unaffiliated customers. We 
adjusted the price for billing adjustments. 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, consistent with 
section 773(a)(6)(B)(ii) of the Act, for the following movement 
expenses: inland freight from the plant to the distribution warehouse, 
warehousing expense, and inland freight from the plant/warehouse to the 
customer. In addition, we made adjustments for differences in 
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).

Preliminary Results of the Review

    As a result of this review, we preliminarily determine that NHCI's 
margin for the period August 1, 2001, through July 31, 2002, is 0.01 
percent, de minimis.
    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 issue the final results of this administrative 
review, including the results of its analysis of issues raised in any 
such written briefs or hearing, within 120 days of publication of these 
preliminary results.

Assessment Rates and Cash Deposit Requirements

    Pursuant to 19 CFR 351.212(b), the Department calculates an 
assessment rate for each importer of the subject merchandise. Upon 
issuance of the final results of this administrative review, if any 
importer-specific assessment rates calculated in the final results are 
above de minimis (i.e., at or above 0.5 percent), the Department will 
issue appraisement instructions directly to the Customs Service to 
assess antidumping duties on appropriate entries by applying the 
assessment rate to the entered value of the merchandise. For assessment 
purposes, we calculate importer-specific assessment rates for the 
subject merchandise by aggregating the dumping duties due for all U.S. 
sales to each importer and dividing the amount by the total entered 
value of the sales to that importer.
    Pending the final disposition of a NAFTA panel appeal by NHCI, the 
Department will not order the liquidation of entries of pure magnesium 
from Canada exported by NHCI on or after August 1, 2000, at this time 
(see, letter from Jarrod Goldfeder to NHCI, dated January 28, 2003, 
granting NHCI's request). Liquidation will occur at the rates described 
in the final results of review following the final judgement in the 
NAFTA panel appeals process.
    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 a firm not covered 
in this or any previous reviews, the cash deposit rate will be 21 
percent, the ``all others'' rate established in Pure Magnesium from

[[Page 20114]]

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).

Notification to Importers

    This notice also serves as a preliminary 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 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: April 16, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-10193 Filed 4-23-03; 8:45 am]
BILLING CODE 3510-DS-P