[Federal Register Volume 71, Number 214 (Monday, November 6, 2006)]
[Notices]
[Pages 64927-64930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-18670]


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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: Preliminary Results of 
Reconsideration of Sunset Review

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

SUMMARY: On April 13, 2006, the Department of Commerce (``the 
Department'') published the notice of initiation of the reconsideration 
of the sunset review of the antidumping duty order on large newspaper 
printing presses and components thereof, whether assembled or 
unassembled (LNPP), from Japan. On the basis of the notice of intent to 
participate, as well as adequate substantive responses and rebuttal 
comments filed on behalf of the domestic and respondent interested 
parties, the Department is conducting a full sunset review of the 
antidumping duty order, following the requirements of section 751(c) of 
the Tariff Act of 1930, as amended (``the Act'') and 19 CFR 
351.218(e)(2)(i). As a result of this reconsideration of the sunset 
review, the Department preliminarily finds that revocation of the order 
on LNPP from Japan after the original sunset review period of 1996-2001 
would have likely led to the continuation or recurrence of dumping at 
the levels listed below in the section entitled ``Preliminary Results 
of Review.''

EFFECTIVE DATE: November 6, 2006.

FOR FURTHER INFORMATION CONTACT: David Goldberger, Kate Johnson, or 
Brandon Farlander, AD/CVD Operations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14\th\ 
Street & Constitution Avenue, NW, Washington, DC, 20230; telephone: 
202-482-4136, 202-482-4929, or 202-482-0182, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 25, 2002, the Department revoked the antidumping duty 
order on LNPP from Japan under a five-year sunset review pursuant to 
section 751(c)(3)(A) of the Act, because the only domestic interested 
party in the sunset review, Goss Graphics Corporation (now known as 
Goss International Corporation (``Goss'')), withdrew its participation, 
and, thus, its interest in the review. See Large Newspaper Printing 
Presses and Components

[[Page 64928]]

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) (``2002 Sunset Review'').
    As discussed in Large Newspaper Printing Presses and Components 
Thereof, Whether Assembled or Unassembled, from Japan: Final Results of 
Changed Circumstances Review (71 FR 11590 (March 8, 2006)) (``CCR Final 
Results''), the Department noted that the results of the 2002 Sunset 
Review are unreliable because the misconduct of Tokyo Kikai Seisakusho, 
Ltd. and TKS (U.S.A.), Inc. (``TKS'') during the 1997-1998 
administrative review of the LNPP antidumping duty order, which 
ultimately led to its company-specific revocation from the underlying 
order, substantially tainted the integrity of the proceeding, and may 
have significantly undermined the integrity of the sunset review 
results, including the parties' decisions whether or not to participate 
in the sunset review. TKS' misconduct before the Department was the 
subject of a federal district court decision and was confirmed by the 
8th Circuit Court of Appeals. See id. As a result, the Department 
rescinded TKS' company-specific revocation and stated its intent to 
reconsider the 2002 Sunset Review, which revoked the order in its 
entirety.
    On April 13, 2006, the Department published its notice of 
initiation of the reconsideration of the sunset review of the 
antidumping duty order on LNPP from Japan, in accordance with section 
751(c) of the Act. See Large Newspaper Printing Presses and Components 
Thereof, Whether Assembled or Unassembled, From Japan: Reconsideration 
of Sunset Review, 71 FR 19164 (April 13, 2006) (``Notice of 
Initiation'').
    The Department received a Notice of Intent to Participate from the 
domestic interested party, Goss, within the deadline specified in 19 
CFR 351.218(d)(1)(i). Goss claimed interested party status under 
section 771(9)(C) of the Act, as a producer of the domestic like 
product.
    The Department received a complete substantive response to the 
Notice of Initiation from Goss within the 30-day deadline specified in 
the Department's regulations under 19 CFR 351.218(d)(3)(i). The 
Department received complete substantive responses from respondent 
interested parties, Mitsubishi Heavy Industries, Ltd. (``MHI''), and 
TKS within the deadline specified in 19 CFR 351.218(d)(3)(i). Rebuttal 
comments were filed by Goss, MHI and TKS on May 26, 2006.
    On June 8, 2006, the Department determined that respondent 
interested parties accounted for more than 50 percent of exports of the 
subject merchandise and, therefore, submitted adequate substantive 
responses to the Department's Notice of Initiation. See Memorandum to 
Irene Darzenta Tzafolias, Acting Director, AD/CVD Operations, Office 2; 
Re: Adequacy Determination in the Reconsideration of Sunset Review on 
Large Newspaper Printing Presses and Components Thereof, Whether 
Assembled or Unassembled, from Japan. In accordance with 19 CFR 
351.218(e)(2)(i), the Department determined to conduct a full sunset 
review of this antidumping duty order.\1\
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    \1\ The 2002 Sunset Review was conducted on an expedited basis 
because only the domestic interested party, Goss, submitted a 
response. Nevertheless, in reconsidering the 2002 Sunset Review, the 
Department has determined that it is appropriate to conduct a new 
review applying the standard sunset review procedures and allowing 
all interested parties an opportunity to comment.
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    On June 28, 2006, MHI requested that the Department reconsider its 
adequacy determination issued on June 8, 2006, because it claimed that 
Goss was not a domestic interested party. On July 18, 2006, the 
Department requested additional information from Goss with respect to 
its status as a domestic producer during the POR and subsequently 
through November 30, 2001, which includes the period during which the 
original sunset review would have been conducted. Goss responded to the 
Department's request on August 1, 2006. MHI and TKS submitted comments 
on Goss' submission on August 31, 2006. Goss responded to those 
comments on October 2, 2006, and MHI submitted additional comments on 
October 6, 2006.

Scope of the Order

    The products covered by the scope of 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 the 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 scope, 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.

[[Page 64929]]

    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 the order. 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 (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 order, 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 order.
    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, the scope 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 the scope 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.

Analysis of Comments Received

    All issues raised for the preliminary results of this 
reconsideration of the sunset review are addressed in the ``Issues and 
Decision Memorandum for the Reconsideration of Sunset Review of the 
Antidumping Duty Order on Large Newspaper Printing Presses and 
Components Thereof, Whether Assembled or Unassembled, from Japan: 
Preliminary Results,'' to David M. Spooner, Assistant Secretary for 
Import Administration, (``Decision Memo''), which is hereby adopted by 
this notice. The issues discussed in the Decision Memo include the 
likelihood of continuation or recurrence of dumping and the magnitude 
of the margin likely to have prevailed if the antidumping duty order 
had not been revoked. Parties can find a discussion of the issues 
raised in this reconsideration of the sunset review and the 
corresponding recommendations for these preliminary results in this 
public memo, which is on file in room B-099 of the main Department 
Building. In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper 
copy and electronic version of the Decision Memo are identical in 
content.

Preliminary Results of Review

    The Department preliminarily determines that, for purposes of this 
reconsideration of the sunset review, had the antidumping duty order 
not been revoked in the 2002 Sunset Review, revocation of the 
antidumping duty order on LNPP from Japan would have likely led to 
continuation or recurrence of dumping at the following weighted-average 
margins:

------------------------------------------------------------------------
   Manufacturers/Producers/
          Exporters                Weighted-Average Margin (Percent)
------------------------------------------------------------------------
Mitsubishi Heavy Industries,                                       59.67
 Ltd.........................
Tokyo Kikai Seisakusho, Ltd..                                      51.97
All Others...................                                      55.05
------------------------------------------------------------------------


[[Page 64930]]

    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of this notice, in accordance with 19 CFR 
351.309(c)(1)(i). Rebuttal briefs, which must be limited to issues 
raised in the case briefs, may be filed no later than 5 days after the 
case briefs, in accordance with 19 CFR 351.309(d)(1). Any hearing, if 
requested, will be held two days after rebuttal briefs are due, in 
accordance with 19 CFR 351.310(d)(1). The Department will issue a 
notice of final results of this reconsideration of the sunset review, 
which will include the results of its analysis of issues raised in any 
such briefs, no later than March 9, 2007.
    This reconsideration of sunset review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: October 30, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-18670 Filed 11-3-06; 8:45 am]
BILLING CODE 3510-DS-S