[Federal Register Volume 72, Number 175 (Tuesday, September 11, 2007)]
[Notices]
[Pages 51791-51792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17859]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-819]


Magnesium Metal from the Russian Federation: Final Results of 
Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 7, 2007, the Department of Commerce (the Department) 
published in the Federal Register its preliminary results of the 
administrative review of the antidumping duty order on magnesium metal 
from the Russian Federation. See Magnesium Metal from the Russian 
Federation: Preliminary Results of Antidumping Duty Administrative 
Review, 72 FR 25740 (May 7, 2007) (Preliminary Results). The review 
covers two respondents, PSC VSMPO-AVISMA Corporation and its affiliated 
U.S. reseller VSMPO-Tirus, U.S. Inc. (collectively AVISMA), and 
Solikamsk Magnesium Works (SMW). The period of review (POR) is October 
4, 2004, through March 31, 2006. We invited interested parties to 
submit comments on our Preliminary Results. Based on our analysis of 
the comments received, we have made changes to our calculations with 
regard to AVISMA. The final dumping margins for this review are listed 
in the ``Final Results of Review'' section below.

EFFECTIVE DATE: September 11, 2007.

FOR FURTHER INFORMATION CONTACT: Mark Hoadley (AVISMA and SMW), Gene 
Calvert (AVISMA), Jack Zhao (SMW); AD/CVD Operations, Office 6, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230, telephone numbers (202) 482-3148, (202) 482-3586, and (202) 482-
1396, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 7, 2007, the Department published the preliminary results of 
this review in the Federal Register. See Preliminary Results. Since the 
Preliminary Results, the following events have occurred. On June 6, 
2007, U.S. Magnesium LLC (U.S. Magnesium), one of the petitioners in 
the original investigation, submitted a case brief regarding the cost 
calculation of certain by-products internally consumed by SMW. On June 
6, 2007, AVISMA submitted a case brief commenting on the calculation of 
AVISMA's General and Administrative (G&A) expenses and a small number 
of sales of cylinders in the home market. On June 15, 2007, SMW filed a 
rebuttal brief regarding U.S. Magnesium's case brief and U.S. Magnesium 
submitted a rebuttal brief regarding AVISMA's case brief. All case and 
rebuttal briefs were timely filed.

Period of Review

    This review covers the period October 4, 2004 through March 31, 
2006.

Scope of the Order

    The merchandise covered by this order is magnesium metal (also 
referred to as magnesium), which includes primary and secondary pure 
and alloy magnesium metal, regardless of chemistry, raw material 
source, form, shape, or size. Magnesium is a metal or alloy containing 
by weight primarily the element magnesium. Primary magnesium is 
produced by decomposing raw materials into magnesium metal. Secondary 
magnesium is produced by recycling magnesium-based scrap into magnesium 
metal. The magnesium covered by this order includes blends of primary 
and secondary magnesium.
    The subject merchandise includes the following pure and alloy 
magnesium metal products made from primary and/or secondary magnesium, 
including, without limitation, magnesium cast into ingots, slabs, 
rounds, billets, and other shapes, and magnesium ground, chipped, 
crushed, or machined into raspings, granules, turnings, chips, powder, 
briquettes, and other shapes: (1) products that contain at least 99.95 
percent magnesium, by weight (generally referred to as ``ultra-pure'' 
magnesium); (2) products that contain less than 99.95 percent but not 
less than 99.8 percent magnesium, by weight (generally referred to as 
``pure'' magnesium); and (3) chemical combinations of magnesium and 
other material(s) in which the magnesium content is 50 percent or 
greater, but less that 99.8 percent, by weight, whether or not 
conforming to an ``ASTM Specification for Magnesium Alloy''.
    The scope of this order excludes: (1) magnesium that is in liquid 
or molten form; and (2) mixtures containing 90 percent or less 
magnesium in granular or powder form by weight and one or more of 
certain non-magnesium granular materials to make magnesium-based 
reagent mixtures, including lime, calcium metal, calcium silicon, 
calcium carbide, calcium carbonate, carbon, slag coagulants, fluorspar, 
nephaline syenite, feldspar, alumina (Al203), calcium aluminate, soda 
ash, hydrocarbons, graphite, coke, silicon, rare earth metals/
mischmetal, cryolite, silica/fly ash, magnesium oxide, periclase, 
ferroalloys, dolomite lime, and colemanite.\1\
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    \1\ This second exclusion for magnesium-based reagent mixtures 
is based on the exclusion for reagent mixtures in the 2000-2001 
investigations of magnesium from China, Israel, and Russia. See 
Notice of Final Determination of Sales at Less Than Fair Value: Pure 
Magnesium in Granular Form From the People's Republic of China, 66 
FR 49345 (September 27, 2001); Notice of Final Determination of 
Sales at Less Than Fair Value: Pure Magnesium From Israel, 66 FR 
49349 (September 27, 2001); Notice of Final Determination of Sales 
at Not Less Than Fair Value: Pure Magnesium From the Russian 
Federation, 66 FR 49347 (September 27, 2001). These mixtures are not 
magnesium alloys, because they are not chemically combined in liquid 
form and cast into the same ingot.
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    The merchandise subject to this order is currently classifiable 
under items 8104.11.00, 8104.19.00, 8104.30.00, and 8104.90.00 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS item numbers are provided for convenience and customs purposes, 
the written description of the merchandise covered by this order is 
dispositive.
    On November 9, 2006, in response to U.S. Magnesium's request for 
scope rulings, the Department issued a final scope ruling in which we 
determined that the processing of pure magnesium ingots, imported from 
Russia by Timminco, a Canadian company, into pure magnesium extrusion 
billets constitutes substantial transformation. Therefore, such alloy 
magnesium extrusion billets produced and exported by Timminco are a 
product of Canada, and thus not included within the scope of the order. 
See November 9, 2006 Memorandum for Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, from Barbara E. Tillman, Director, 
Office 6, and Wendy Frankel, Director, Office 8, China/NME Group, AD/
CVD Operations: Pure Magnesium from the People's Republic of China (A-
570-832), Magnesium Metal from the People's Republic of China (A-570-
896), and Magnesium Metal from Russia (A-821-819): Final Ruling in the 
Scope Inquiry on Russian and Chinese Magnesium Processed in Canada.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this proceeding are listed in the Appendix to

[[Page 51792]]

this notice and 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 Administrative Review of the Antidumping 
Duty Order on Magnesium Metal from the Russian Federation (Decision 
Memorandum), dated concurrently with this notice, which is hereby 
adopted by this notice. Parties can find a complete discussion of the 
issues raised in this review in this public memorandum which is on file 
in the Central Records Unit (CRU), room B-099 of the Department of 
Commerce building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Internet at: http://www.trade.gov/ia. The paper copy and the electronic version of the 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on the comments received from the interested parties, we have 
made changes to the margin calculations used in the Preliminary 
Results. These adjustments are discussed in detail in the Decision 
Memorandum. For AVISMA, we adjusted AVISMA's general and administrative 
(``G&A'') expense rate. For SMW, we made no change in response to 
petitioner's argument for rejecting SMW's claim for an offset to the 
magnesium products' cost for the chlorine gas generated by the 
magnesium production unit. The specifics of respondent's and 
petitioner's arguments and the Department's response to them require 
the reference to business proprietary information. Therefore, the 
parties' arguments and our position are fully discussed in a separate 
business proprietary memorandum. See Memorandum from Christopher Zimpo 
to Neal Halper, Cost of Production and Constructed Value Calculation 
Adjustments for the Final Results--Solikamsk Magnesium Works, dated 
concurrently with this notice.

Final Results of Review

    We determine that the following weighted-average antidumping 
margins exist for the period October 4, 2004 through March 31, 2006:

------------------------------------------------------------------------
                                                       Weighted-Average
                Manufacturer/exporter                  Margin (percent)
------------------------------------------------------------------------
PSC VSMPO-AVISMA Corporation........................   0.41 (de minimis)
Solikamsk Magnesium Works...........................                3.77
------------------------------------------------------------------------

Duty Assessment

    The Department shall determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries. In accordance with 19 CFR 351.212(b)(1), we will issue 
importer-specific assessment instructions for entries of subject 
merchandise during the POR. The Department intends to issue assessment 
instructions directly to CBP 15 days after the date of publication of 
these final results of review.
    The Department clarified its ``automatic assessment'' regulation in 
Antidumping and Countervailing Duty Proceedings: Assessment of 
Antidumping Duties, 68 FR 23954 (May 6, 2003). This clarification will 
apply to entries of subject merchandise during the POR produced by 
companies included in these final results of review for which the 
reviewed companies did not know their merchandise was destined for the 
United States. In such instances, if there is no rate for the 
intermediate company(ies) involved in the transaction, we will instruct 
CBP to liquidate unreviewed entries at the all others rate of 21.01 
percent established in the less than fair value (LTFV) investigation. 
See Notice of Antidumping Duty Order: Magnesium Metal From the Russian 
Federation, 70 FR 19930 (April 15, 2005) (Antidumping Duty Order). See 
also Section 751(a)(2)(C) of the Tariff Act of 1930, as amended (the 
Act).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, consistent 
with section 751(a)(2)(C) of the Act: (1) for the companies covered by 
this review, the cash deposit rate will be zero for AVISMA and 3.77 
percent for SMW; (2) if the exporter is not a firm covered in this 
review, but was covered in a previous review or the original LTFV 
investigation, the cash deposit rate will continue to be the company-
specific rate published for the most recent period; (3) if the exporter 
is not a firm covered in this review, a prior review, or the original 
LTFV investigation, but the manufacturer is, the cash deposit rate will 
be the rate established for the most recent period for the manufacturer 
of the merchandise; and (4) if neither the exporter nor the 
manufacturer is a firm covered in this or any previous review conducted 
by the Department, the cash deposit rate will continue to be 21.01 
percent, the ``All Others'' rate established in the LTFV investigation. 
See Antidumping Duty Order. These cash deposit requirements, when 
imposed, shall remain in effect until further notice.

Notification to Importers

    This notice also serves as the final 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 in the subsequent 
assessment of double antidumping duties.

Notification Regarding Administrative Protective Order

    This notice also serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO as explained in the APO itself. See 19 CFR 351.305(a)(3). 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 the APO is a sanctionable 
violation.
    This notice is issued and published in accordance with sections 
751(a)(1) and 777(i)(1) of the Act.

    Dated: September 04, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix

List of Issues Covered in the Decision Memorandum

Part I AVISMA

    Comment 1: Fiscal Year Versus POR G&A Expenses
    Comment 2: Error in Reported G&A Expenses
    Comment 3: Auxiliary Services in G&A Expenses
    Comment 4: Impact of AVIMSA's Merger with VSMPO on G&A Expense Rate
    Comment 5: Financial Expense Ratio
    Comment 6: Certain Sales of Cylinders in the Home Market

Part II SMW

    Comment 7:Chlorine Gas Offset
[FR Doc. E7-17859 Filed 9-10-07; 8:45 am]
BILLING CODE 3510-DS-S