[Federal Register Volume 71, Number 200 (Tuesday, October 17, 2006)]
[Notices]
[Pages 61019-61021]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17267]



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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-832


Pure Magnesium from the People's Republic of China: Final Results 
of 2004-2005 Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') published its 
preliminary results of administrative review of the antidumping duty 
order on pure magnesium from the People's Republic of China (``PRC'') 
on April 10, 2006. The period of review (``POR'') is May 1, 2004, 
through April 30, 2005. We invited interested parties to comment on our 
preliminary results. Based on our analysis of the comments received, we 
have made changes to our margin calculations. Therefore, the final 
results differ from the preliminary results. The final dumping margin 
for this review is listed in the ``Final Results of Review'' section 
below.

EFFECTIVE DATE: October 17, 2006.

FOR FURTHER INFORMATION CONTACT: Eugene Degnan or Hua Lu, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-0414 
or (202) 482-6478, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 10, 2006, the Department published its preliminary results 
of review. See Pure Magnesium from the People's Republic of China: 
Preliminary Results of Antidumping Duty Administrative Review, 71 FR 
18067 (April 10, 2006) (``Preliminary Results''). On April 28, 2006, 
Tianjin Magnesium International, Ltd. (``TMI'') submitted additional 
surrogate value information. On May 8, 2006, TMI requested a hearing. 
On May 10, 2006, TMI submitted its case brief. US Magnesium LLC 
(``Petitioner'') submitted a rebuttal brief on May 17, 2006. On July 
19, 2006, the Department held a public hearing. On July 31, 2006, the 
Department published a notice extending the time limit for the final 
results of review until September 7, 2006. See Notice of Extension of 
Final Results of the 2004-2005 Administrative Review of Pure Magnesium 
from the People's Republic of China, 71 FR 43110 (July 31, 2006). On 
September 12, 2006, the Department published a notice extending the 
time limit for the final results of review until September 29, 2006. 
See Notice of Extension of Final Results of the 2004-2005 
Administrative Review of Pure Magnesium from the People's Republic of 
China, 71 FR 53662 (September 12, 2006). On October 6, 2006, the 
Department published a notice extending the time limit for the final 
results of review until October 10, 2006. See Pure Magnesium from the 
People's Republic of China: Notice of Extension of Final Results of the 
2004-2005 Administrative Review, 71 FR 59078 (October 6, 2006).
    We have conducted this administrative review in accordance with 
section 751 of the Tariff Act of 1930, as amended (``the Act''), and 19 
CFR 351.213.

Period of Review

    The POR is May 1, 2004, through April 30, 2005.

Scope of Order

    Merchandise covered by this order is pure magnesium regardless of 
chemistry, form or size, unless expressly excluded from the scope of 
this order. Pure magnesium is a metal or alloy containing by weight 
primarily the element magnesium and produced by decomposing raw 
materials into magnesium metal. Pure primary magnesium is used 
primarily as a chemical in the aluminum alloying, desulfurization, and 
chemical reduction industries. In addition, pure magnesium is used as 
an input in producing magnesium alloy. Pure magnesium encompasses 
products (including, but not limited to, butt ends, stubs, crowns and 
crystals) with the following primary magnesium contents:
    (1) Products that contain at least 99.95[percnt] primary magnesium, 
by weight (generally referred to as ``ultra pure'' magnesium);
    (2) Products that contain less than 99.95[percnt] but not less than 
99.8[percnt] primary magnesium, by weight (generally referred to as 
``pure'' magnesium); and
    (3) Products that contain 50[percnt] or greater, but less than 
99.8[percnt] primary magnesium, by weight, and that do not conform to 
ASTM specifications for alloy magnesium (generally referred to as 
``off-specification pure'' magnesium).
    ``Off-specification pure'' magnesium is pure primary magnesium 
containing magnesium scrap, secondary magnesium, oxidized magnesium or 
impurities (whether or not intentionally added) that cause the primary 
magnesium content to fall below 99.8[percnt] by weight. It generally 
does not contain, individually or in combination, 1.5[percnt] or more, 
by weight, of the following alloying elements: aluminum, manganese, 
zinc, silicon, thorium, zirconium and rare earths.
    Excluded from the scope of this order are alloy primary magnesium 
(that meets specifications for alloy magnesium), primary magnesium 
anodes, granular primary magnesium (including turnings, chips and 
powder) having a maximum physical dimension (i.e., length or diameter) 
of one inch or less, secondary magnesium (which has pure primary 
magnesium content of less than 50[percnt] by weight), and remelted 
magnesium whose pure primary magnesium content is less than 50[percnt] 
by weight.
    Pure magnesium products covered by this order are currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 8104.11.00, 8104.19.00, 8104.20.00, 8104.30.00, 
8104.90.00, 3824.90.11, 3824.90.19 and 9817.00.90. Although the HTSUS 
subheadings are provided for convenience and customs purposes, our 
written description of the scope is dispositive.

Analysis of Comments Received

    All issues raised in the post-preliminary comments by parties in 
this review are addressed in the memorandum from Stephen J. Claeys, 
Deputy Assistant Secretary for Import Administration, to David M. 
Spooner, Assistant Secretary for Import Administration, ``Issues and 
Decision Memorandum for the Final Results of Administrative Review of 
the Antidumping Duty Order on Pure Magnesium from the People's Republic 
of China,'' dated October 10, 2006 (``Issues and Decision Memo''), 
which is hereby adopted by this notice. A list of the issues which 
parties raised and to which we responded in the Issues and Decision 
Memo is attached to this notice as an appendix. The Issues and Decision 
Memo is a public document which is on file in the Central Records Unit 
(``CRU'') in room B-099 in the main Department building, and is 
accessible on the Web at http://ia.ita.doc.gov/frn. The paper copy and 
electronic version of the memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculations for TMI.
 In the preliminary results, we used Indian imports statistics 
from World Trade Atlas (``WTA'') to value dolomite. For the final 
results, we have determined to average dolomite prices from the 
financial statements of Indian Iron & Steel Company, Ltd. and Tata

[[Page 61020]]

Sponge Iron Ltd. See Issues and Decision Memo at Comment 1 for a 
thorough discussion of this issue and ``Tianjin Magnesium 
International, Ltd. Program Analysis for the Final Results of Review'' 
from Hua Lu, Case Analyst, through Robert Bolling, Program Manager, to 
the File, dated October 10, 2006 (``Final Analysis Memorandum.'').
 In the preliminary results, we calculated the surrogate value 
for flux No. 2 based on the HTSUS subheading for magnesium chloride, 
which is one of the constituent materials that make up flux No. 2. For 
the final results, we valued flux No. 2 based on the three compounds 
included in flux No. 2 (i.e., magnesium chloride, sodium chloride and 
potassium chloride) according to their respective proportions. See 
Issues and Decision Memo at Comment 3 and Final Analysis Memorandum.
 In the preliminary results, we used the price for grade A coal 
from the 2003/2004 Tata Energy Research Institute's Energy Data 
Directory & Yearbook (``TERI data'') to value the coal used by TMI in 
the production of pure magnesium. For the final results, we have 
determined to value coal using grade C coal prices from the TERI data. 
See Issues and Decision Memo at Comment 4 and Final Analysis 
Memorandum.

Surrogate Country

    In the Preliminary Results, we stated that we treat the PRC as a 
non-market economy (``NME'') country, and, therefore, we calculated 
normal value in accordance with section 773(c) of the Act, which 
applies to NME countries. Also, we stated that we had selected India as 
the appropriate surrogate country to use in this review for the 
following reasons: 1) India is at a level of economic development 
comparable to that of the PRC; 2) India is a significant producer of 
comparable merchandise; 3) India provides the best opportunity to use 
quality, publicly available data to value the factors of production; 
pursuant to section 773(c)(4) of the Act. See Preliminary Results, 71 
FR 18069. For the final results, we made no changes to our findings 
with respect to the selection of a surrogate country.

Separate Rates

    In proceedings involving NME countries, the Department begins with 
a rebuttable presumption that all companies within the country are 
subject to government control and, thus, should be assigned a single 
antidumping duty deposit rate. It is the Department's policy to assign 
all exporters of merchandise subject to administrative review in an NME 
country this single rate unless an exporter can demonstrate that it is 
sufficiently independent so as to be entitled to a separate rate.
    In the Preliminary Results, we found that TMI demonstrated its 
eligibility for separate-rate status. For the final results, we 
continue to find that the evidence placed on the record of this review 
by TMI demonstrates an absence of government control, both in law and 
in fact, with respect to its exports of the merchandise under review 
and, thus, determine that TMI is eligible for separate-rate status.

Final Results of Review

    We determine that the following dumping margin exists:

------------------------------------------------------------------------
                                                       Weighted-average
                Exporter/manufacturer                  margin percentage
------------------------------------------------------------------------
TMI.................................................                0.00
------------------------------------------------------------------------

Assessment Rates

    The Department will issue appraisement instructions directly to 
U.S. Customs and Border Protection (``CBP'') within 15 days of 
publication of these final results of administrative review. In 
accordance with 19 CFR 351.212(b)(1), we have calculated importer-
specific assessment rates for merchandise subject to this review. We 
divided the total dumping margins of reviewed sales by the total 
entered value of reviewed sales for each applicable importer to 
calculate ad valorem assessment rates. We will direct CBP to assess the 
resulting assessment rates against the entered customs values for the 
subject merchandise on each importer's entries under the relevant order 
during the POR.
    To determine whether the duty assessment rates were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer-specific ad valorem rates. For TMI, we aggregated 
the dumping margins calculated for all U.S. sales to each importer and 
divided this amount by the entered value of the sales to each importer. 
Where an importer-specific ad valorem rate is de minimis, we will order 
CBP to liquidate appropriate entries without regard to antidumping 
duties.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of pure magnesium from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(1) of the Act: (1) The cash deposit rate for 
TMI is zero; (2) for previously reviewed or investigated companies not 
listed above that have a separate rate, the cash deposit rate will 
continue to be the company-specific rate published for the most recent 
period; (3) the cash deposit rate for all other PRC exporters will be 
108.26 percent, the current PRC-wide rate; and (4) the cash deposit 
rate for all non-PRC exporters will be the rate applicable to the PRC 
exporter that supplied that exporter. These deposit requirements, when 
imposed, shall remain in effect until publication of the final results 
of the next administrative review.

Notification of Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 the antidumping duties occurred and the subsequent 
assessment of double antidumping duties. This notice also serves as a 
reminder to parties subject to administrative protective orders 
(``APOs'') of their responsibility concerning the return or destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305, which continues to govern business proprietary information 
in this segment of the proceeding. Timely written notification of the 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and terms of an APO is a violation which is subject to 
sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: October 10, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum
Comment 1: Surrogate Value for Dolomite
Comment 2: Surrogate Value for Ferrosilicon
Comment 3: Surrogate Value for Flux No. 2

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Comment 4: Surrogate Value for Coal
Comment 5: Surrogate Value for Electricity
Comment 6: Ocean Freight
[FR Doc. E6-17267 Filed 10-16-06; 8:45 am]
BILLING CODE 3510-DS-S