[Federal Register Volume 71, Number 45 (Wednesday, March 8, 2006)]
[Notices]
[Pages 11590-11592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3295]


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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: Final Results of Changed 
Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department has determined to apply an adverse facts 
available rate of 59.67 percent to Tokyo Kikai Seisakusho, Ltd. (TKS) 
in the 1997-1998 administrative review under section 776(b) of the 
Tariff Act of 1930, as amended (the Act), as a result of TKS' 
misconduct during this review. We are also rescinding the company-
specific revocation with respect to TKS and reinstating the order with 
respect to TKS from September 1, 2000, through September 3, 2001, the 
day before the effective date of the sunset revocation. Upon the 
completion of this review, we will reopen for reconsideration the 
sunset review that resulted in revocation of this order.

EFFECTIVE DATE: March 8, 2006.

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

SUPPLEMENTARY INFORMATION:

Background

    On May 10, 2005, the Department of Commerce (the Department) self-
initiated a changed circumstances review of large newspaper printing 
presses and components thereof, whether assembled or unassembled 
(LNPPs), from Japan, to consider 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 
Large Newspaper Printing Presses and Components Thereof, Whether 
Assembled or Unassembled, from Japan: Initiation of Changed 
Circumstances Review, 70 FR 24514 (May 10, 2005) (Notice of 
Initiation). As detailed in our Notice of Initiation, evidence was 
presented in that court proceeding demonstrating that TKS intentionally 
provided false information regarding its sale to the Dallas Morning 
News (DMN), the subject of the Department's 1997-1998 administrative 
review.
    On September 13, 2005, the Department published a notice of 
preliminary results of changed circumstances review in which it 
preliminarily determined that it was appropriate to take the following 
course of action in order to protect the integrity of the Department's 
proceedings: (1) Revise TKS' margin for the 1997-1998 review to apply a 
rate of 59.67 percent based on adverse facts available, pursuant to 
section 776(b) of the Act; (2) rescind the company-specific revocation 
of the antidumping duty order for TKS because TKS no longer qualifies 
for revocation based on three consecutive administrative reviews 
resulting in zero dumping margins under 19 CFR 351.222(b); and (3) 
reconsider the sunset review which resulted in the revocation of the 
entire order, pursuant to section 751(c) of the Act. See Large 
Newspaper Printing Presses and Components Thereof, Whether Assembled or 
Unassembled, From Japan: Preliminary Results of Changed Circumstances 
Review, 70 FR 54019, 54023 (September 13, 2005) (Preliminary Results).
    The interested parties submitted case and rebuttal briefs on 
October 20 and 27, 2005, respectively. Also in October 2005, several 
parties submitted letters addressing the preliminary results, including 
newspaper publishers The Washington Post and North Jersey Media Group, 
Inc. A public hearing and a closed hearing were held on November 15, 
2005.
    On January 26, 2006, we invited comments on the decision of the 
U.S. Court of Appeals for the Eighth Circuit in Goss Int'l Corp. v. Man 
Roland Druckmaschinen Aktiengesellschaft, No. 04-2604, 2006 U.S. App. 
LEXIS 1569 (8\th\ Cir. Jan. 23, 2006), affirming the decision of the 
Iowa district court in Goss Int'l. Goss International Corporation, TKS, 
and Mitsubishi Heavy Industries, Ltd. filed comments on January 31, 
2006.

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 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, LNPP 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 LNPP systems, press additions, or 
press components, regardless of degree of

[[Page 11591]]

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 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 (December 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. LNPPs may also 
enter under HTSUS subheadings 8443.21.00 and 8443.40.00. LNPP 
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.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
parties to this proceeding are listed in the appendix to this notice 
and addressed in the Decision Memorandum hereby adopted by this notice. 
The Decision Memorandum is on file in room B-099 of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the World Wide Web at http://ia.ita.doc.gov. The paper and electronic versions of the Decision 
Memorandum are identical in content.

Final Results

    We affirm our decision to apply an adverse facts available rate of 
59.67 percent to TKS in the 1997-1998 administrative review under 
section 776(b) of the Act as a result of TKS' misconduct during this 
review. For a full discussion of the application of facts available and 
adverse inferences, see the Preliminary Results, 70 FR at 54021-23, and 
the Decision Memorandum accompanying this notice at Comment 5. This 
rate was corroborated at the preliminary results and we have uncovered 
no new information since the preliminary results that warrants 
modification of our analysis. See also AFA Rate Selection Memorandum 
dated September 6, 2005. In addition, because the rate for the 1997-
1998 administrative review is no longer zero, TKS no longer qualifies 
for revocation of the antidumping duty order based on three consecutive 
administrative reviews resulting in zero dumping margins, pursuant to 
19 CFR 351.222(b). Therefore, we are rescinding the revocation with 
respect to TKS and reinstating the order with respect to TKS from 
September 1, 2000, through September 3, 2001, the day before the 
effective date of the sunset revocation. See Comment 2 in the 
accompanying Decision Memorandum. Furthermore, upon the completion of 
this review, we will reopen for reconsideration the sunset review that 
resulted in

[[Page 11592]]

revocation of this order. We will conduct the sunset review following 
the procedures outlined in section 751(c) of the Act and 19 CFR 
351.218. See Comment 3 in the accompanying Decision Memorandum.
    This notice serves as advance notification that we will reopen a 
sunset review approximately 30 days after publication of these final 
results. This advance notification is not required by statute but is 
provided as a service to the international trading community.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(b) and 777(i)(1) of the Act and 19 CFR 
351.216.

    Dated: March 1, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix--Issues in the Decision Memorandum

Comment 1: Department's Authority to Conduct this Review
Comment 2: Department's Authority to Reinstate the Antidumping Duty 
Order
Comment 3: Department's Authority to Reconsider the Sunset Review which 
Resulted in Revocation of the Order
Comment 4: Allegations of TKS' Misconduct in the 1998-1999 and 1999-
2000 Administrative Reviews
Comment 5: Adverse Facts Available Rate Applied to TKS

[FR Doc. E6-3295 Filed 3-7-06; 8:45 am]
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