[Federal Register Volume 70, Number 89 (Tuesday, May 10, 2005)]
[Notices]
[Pages 24514-24516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2287]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-588-837


Large Newspaper Printing Presses and Components Thereof, Whether 
Assembled or Unassembled, from Japan: Initiation of Changed 
Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has obtained 
information with respect to Tokyo Kikai Seisakusho, Ltd. (TKS), a 
producer/exporter of large newspaper printing presses, sufficient to 
warrant the self-initiation of a changed circumstances review. 
Interested parties are invited to submit comments, as indicated below.

EFFECTIVE DATE: May 10, 2005.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Kate Johnson, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone (202) 482-4136 and (202) 482-4929, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 4, 1996, the Department published in the Federal 
Register an amended final determination and antidumping duty order on 
large newspaper printing presses and components thereof, whether 
assembled or unassembled, from Japan (LNPPs) (61 FR 46621). One of the 
producer/exporters covered by the order was TKS. Its rate from the 
less-than-fair-value investigation was 56.28 percent. The Department 
conducted administrative reviews of TKS for the following periods: 
September 1, 1997 - August 31, 1998, September 1, 1998 - August 31, 
1999, and September 1, 1999 - August 31, 2000. The administrative 
review for the 2000-2001 review period was rescinded. A zero margin was 
found for TKS in the 1997-1998, 1998-1999, and 1999-2000 review 
periods. Effective January 16, 2002, the antidumping duty order was 
revoked with respect to TKS (Large Newspaper Printing Presses and 
Components Thereof, Whether Assembled or Unassembled, From Japan: Final 
Results of Antidumping Duty Administrative Review and Revocation in 
Part, 67 FR 2190, (January 16, 2002)) based on the three consecutive 
reviews resulting in zero dumping margins (see 19 CFR 351.222(b)). On 
February 25, 2002, the Department revoked the antidumping duty order 
under a five-year sunset review pursuant to section 751(c)(3)(A) of the 
Tariff Act of 1930, as amended (the Act) (Large Newspaper Printing 
Presses and Components Thereof, Whether Assembled or Unassembled, from 
Japan (A-588-837) and Germany (A-428-821): Notice of Final Results of 
Five-Year Sunset Reviews and Revocation of Antidumping Duty Orders, 67 
FR 8522 (February 25, 2002)).

Scope of the Changed Circumstances Review

    The products covered by this changed circumstances review 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 review 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

[[Page 24515]]

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 review. 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 review, 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): (1) 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 review. Used presses are also not subject to this scope. 
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.
    Also excluded from the scope, in accordance with the Department's 
determination in a previous changed circumstances review of the 
antidumping duty order which resulted in the partial revocation of the 
order with respect to certain merchandise, are elements and components 
of LNPP systems, and additions thereto, which feature a 22-inch cut-
off, 50-inch web width and a rated speed no greater than 75,000 copies 
per hour. See Large Newspaper Printing Presses Components Thereof, 
Whether Assembled or Unassembled, from Japan: Final Results of Changed 
Circumstances Antidumping Duty Administrative Review and Intent to 
Revoke Antidumping Duty Order, In Part, 64 FR 72315 (Dec. 27, 1999). In 
addition to the specifications set out in this paragraph, all of which 
must be met in order for the product to be excluded from the scope of 
the review, the product must also meet all of the specifications 
detailed in the five numbered sections following this paragraph. If one 
or more of these criteria is not fulfilled, the product is not excluded 
from the scope of the review.
1. Printing Unit: A printing unit which is a color keyless blanket-to-
blanket tower unit with a fixed gain infeed and fixed gain outfeed, 
with a rated speed no greater than 75,000 copies per hour, which 
includes the following features:
 Each tower consisting of four levels, one or more of which 
must be populated.
 Plate cylinders which contain slot lock-ups and blanket 
cylinders which contain reel rod lock-ups both of which are of solid 
carbon steel with nickel plating and with bearers at both ends which 
are configured in-line with bearers of other cylinders.
 Keyless inking system which consists of a passive feed ink 
delivery system, an eight roller ink train, and a non-anilox and non-
porous metering roller.
 The dampener system which consists of a two nozzle per page 
spraybar and two roller dampener with one chrome drum and one form 
roller.
 The equipment contained in the color keyless ink delivery 
system is designed to achieve a constant, uniform feed of ink film 
across the cylinder without ink keys. This system requires use of 
keyless ink which accepts greater water content.
2. Folder: A module which is a double 3:2 rotary folder with 160 pages 
collect capability and double (over and under) delivery, with a cut-off 
length of 22 inches. The upper section consists of three-high double 
formers (total of 6) with six sets of nipping rollers.
3. RTP: A component which is of the two-arm design with core drives and 
core brakes, designed for 50 inch diameter rolls; and arranged in the 
press line in the back-to-back configuration (left and right hand load 
pairs).
4. Conveyance and Access Apparatus: Conveyance and access apparatus 
capable of manipulating a roll of paper more than two newspaper 
broadsheets across through the production process, and a drive system 
which is of conventional shafted design.
5. Computerized Control System: 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.
    Further, this review 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 review 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 review is dispositive.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Act, the Department is self-
initiating a changed circumstances review based upon information 
contained in a recent federal court decision, Goss International Corp. 
v. Tokyo Kikai Seisakusho, Ltd., 321 F.Supp.2d 1039 (N.D. Iowa 2004) 
(Goss Int'l). See Elkem Metals Co. v. United States, 193 F. Supp. 2d 
1314, 1321 (CIT 2002). In the Goss Int'l proceeding, evidence was

[[Page 24516]]

presented demonstrating that TKS provided false information regarding 
its sales to the Dallas Morning News (DMN), the subject of the 
Department's 1997-1998 review. Specifically,
    The jury further heard evidence at trial that TKS agreed to a 
fraudulent price increase and secret $2.2 million rebate to keep the 
DMN from purchasing the two towers {the sale under the 97-98 
administrative review{time}  from Goss in 1996. To make it appear to 
Goss that the 1996 sale was not dumped, TKS and the DMN agreed to 
increase the price on paper to $7.4 million. In exchange, TKS and the 
DMN agreed that TKS would secretly rebate $2.2 million to the DMN 
through a combination of $1 million in cash and a promise of $1.2 
million in free digital ink pumps or credit to be delivered in the 
future.
    TKS and its counsel engaged in a concerted effort to conceal the 
secret rebates * * *. {TKS's counsel{time}  told TKS that 'there should 
be no apparent linkage between {the digital ink pumps'{time}  give-away 
and the towers' price,' and urged TKS (USA) to falsify its business 
records. * * * There was also evidence presented at trial that TKS and 
its counsel attempted to destroy documents to conceal the secret 
rebates. See Goss Int'l 321 F. Supp. 2d at 1045.
    The final results of the 1997-1998 administrative review were a 
factor in the Department's decisions to revoke TKS from the antidumping 
duty order, as well as to sunset the order. (See Large Newspaper 
Printing Presses and Components Thereof, Whether Assembled or 
Unassembled, from Japan: Final Results of Antidumping Duty 
Administrative Review and Partial Rescission of Administrative Reviews, 
65 FR 7492 (February 15, 2000). We will place on the record of this 
review the Court decision, Goss Int'l, as well as a number of public 
documents we obtained from the court record of Goss Int'l.
    Interested parties may submit comments on the above-referenced 
information and the actions the Department should take not later than 
30 days after publication of this notice. Any responses to those 
comments must be submitted not later than seven days following 
submission of the comments. All written comments must be submitted in 
accordance with 19 CFR 351.303 (2004), and must be served on all 
interested parties on the Department's service list in accordance with 
19 CFR 351.303(f) (2004).
    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) (2004), which will set forth the factual and 
legal conclusions upon which its preliminary results are based, and a 
description of any action proposed based on those results. The 
Department will afford the interested parties the opportunity to 
comment prior to issuing its final results of review, in accordance 
with 19 CFR 351.216(e) (2004), which will be published in the Federal 
Register.
    This notice is in accordance with sections 751(b)(1) of the Act, 
and 19 CFR 351.216 and 351.221(c)(3)(i).

    Dated: May 4, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-2287 Filed 5-9-05; 8:45 am]
BILLING CODE 3510-DS-S