[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39667-39668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-15735]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-570-923)


Raw Flexible Magnets from the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has made a final 
determination that countervailable subsidies are being provided to 
producers and exporters of raw flexible magnets (RFM) from the People's 
Republic of China (PRC). For information on the estimated subsidy 
rates, see the ``Suspension of Liquidation'' section of this notice.

EFFECTIVE DATE: July 10, 2008.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office 3, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Room 4012, 14\th\ Street and Constitution 
Avenue, NW, Washington, DC 20230; telephone: 202-482-4793.

SUPPLEMENTARY INFORMATION:

Petitioner

    The petitioner in this investigation is Magnum Magnetics 
Corporation (petitioner).

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation (POI), is January 1, 2006, through December 31, 2006.

Case History

    On February 25, 2008, the Department published in the Federal 
Register its preliminary affirmative determination in the 
countervailing duty (CVD) investigation of RFM from the PRC. See Raw 
Flexible Magnets from the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination with Final Antidumping Duty 
Determination, 73 FR 9998 (February 25, 2008) (RFM Preliminary 
Determination).
    On April 29, 2008, we received a case brief from the Government of 
the People's Republic of China (GOC). Petitioner submitted a rebuttal 
brief on May 5, 2008. Neither the GOC nor petitioner requested a 
hearing.

Scope of Investigation

    The products covered by this investigation are certain flexible 
magnets regardless of shape,\1\ color, or packaging.\2\ Subject 
flexible magnets are bonded magnets composed (not necessarily 
exclusively) of (i) any one or combination of various flexible binders 
(such as polymers or co-polymers, or rubber) and (ii) a magnetic 
element, which may consist of a ferrite permanent magnet material 
(commonly, strontium or barium ferrite, or a combination of the two), a 
metal alloy (such as NdFeB or Alnico), any combination of the foregoing 
with each other or any other material, or any other material capable of 
being permanently magnetized.
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    \1\ The term ``shape'' includes, but is not limited to profiles, 
which are flexible magnets with a non-rectangular cross-section.
    \2\ Packaging includes retail or specialty packaging such as 
digital printer cartridges.
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    Subject flexible magnets may be in either magnetized or 
unmagnetized (including demagnetized) condition, and may or may not be 
fully or partially laminated or fully or partially bonded with paper, 
plastic, or other material, of any composition and/or color. Subject 
flexible magnets may be uncoated or may be coated with an adhesive or 
any other coating or combination of coatings.
    Specifically excluded from the scope of this investigation are 
printed flexible magnets, defined as flexible magnets (including 
individual magnets) that are laminated or bonded with paper, plastic, 
or other material if such paper, plastic, or other material bears 
printed text and/or images, including but not limited to business 
cards, calendars, poetry, sports event schedules, business promotions, 
decorative motifs, and the like. This exclusion does not apply to such 
printed flexible magnets if the printing concerned consists of only the 
following: a trade mark or trade name; country of origin; border, 
stripes, or lines; any printing that is removed in the course of 
cutting and/or printing magnets for retail sale or other disposition 
from the flexible magnet; manufacturing or use instructions (e.g., 
``print this side up,'' ``this side up,'' ``laminate here''); printing 
on adhesive backing (that is, material to be removed in order to expose 
adhesive for use such as application of laminate) or on any other 
covering that is removed from the flexible magnet prior or subsequent 
to final printing and before use; non-permanent printing (that is, 
printing in a medium that facilitates easy removal, permitting the 
flexible magnet to be re-printed); printing on the back (magnetic) 
side; or any combination of the above.
    All products meeting the physical description of subject 
merchandise that are not specifically excluded are within the scope of 
this investigation. The products subject to the investigation are 
currently classifiable principally under subheadings 8505.19.10 and 
8505.19.20 of the Harmonized Tariff Schedule of the United States 
(HTSUS). The HTSUS subheadings are provided only for convenience and 
customs purposes; the written description of the scope of this 
proceeding is dispositive.

Scope Comments

    Interested parties submitted comments on the scope of 
investigation. Those comments are fully addressed in the Decision 
Memorandum, which is hereby adopted by this notice.

Injury Test

    Because the PRC is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Tariff Act of 1930, as amended, (the 
Act), section 701(a)(2) of the Act applies to this investigation. 
Accordingly, the International Trade Commission (ITC) must determine 
whether imports of the subject merchandise from the PRC materially 
injure, or threaten material injury to a U.S. industry. On November 9, 
2007, the ITC published its preliminary determination that there is

[[Page 39668]]

a reasonable indication that an industry in the United States is 
materially injured or threatened with material injury by reason of 
imports from the PRC of subject merchandise. See Raw Flexible Magnets 
from China and Taiwan, Investigation Nos. 701-TA-452 and 731-TA-1129 
and 1130 (Preliminary), 72 FR 63629 (November 9, 2007).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Decision Memorandum. Attached 
to this notice as an Appendix is a list of the issues that parties 
raised and to which we have responded in the Decision Memorandum. 
Parties can find a complete discussion of all issues raised in this 
investigation and the corresponding recommendations in this public 
memorandum, which is on file in the Department's Central Records Unit 
(CRU). In addition, a complete version of the Decision Memorandum can 
be accessed directly on the Internet at http://ia.ita.doc.gov/frn/. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Application of Facts Available, Including the Application of Adverse 
Inferences

    For purposes of this final determination, we have relied on facts 
available and have used adverse inferences to determine the 
countervailable subsidy rates for the two mandatory respondents: China 
Ningbo Cixi Import Export Corporation (Cixi) and Polyflex Magnets Ltd. 
(Polyflex), in accordance with sections 776(a) and (b) of the Act. A 
full discussion of our decision to apply adverse facts available (AFA) 
is presented in the Decision Memorandum in the section ``Application of 
Facts Available and Use of Adverse Inferences'' and in ``Analysis of 
Comments'' at Comment 6.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 
calculated an individual rate for the companies under investigation, 
Cixi and Polyflex. With respect to the all-others rate, section 
705(c)(5)(A)(ii) of the Act provides that if the countervailable 
subsidy rates established for all exporters and producers individually 
investigated are determined entirely under section 776 of the Act, the 
Department may use any reasonable method to establish an all-others 
rate for exporters and producers not individually investigated. In this 
case, the rate calculated for the two investigated companies is based 
entirely on facts available under section 776 of the Act. There is no 
other information on the record upon which we could determine an all-
others rate. As a result, we have used the AFA rate calculated for Cixi 
and Polyflex as the all-others rate. This method is consistent with the 
Department's past practice. See Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products From 
Argentina, 66 FR 37007, 37008 (July 16, 2001); see also Final 
Affirmative Countervailing Duty Determination: Prestressed Concrete 
Steel Wire Strand From India, 68 FR 68356, 68357 (December 8, 2003).

------------------------------------------------------------------------
                    Producer/Exporter                      Subsidy Rate
------------------------------------------------------------------------
China Ningbo Cixi Import Export Corporation.............  109.95 percent
                                                              ad valorem
Polyflex Magnets Ltd....................................  109.95 percent
                                                              ad valorem
All Others..............................................  109.95 percent
                                                              ad valorem
------------------------------------------------------------------------

    As a result of our RFM Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed the U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of RFM from the 
PRC which were entered or withdrawn from warehouse, for consumption on 
or after February 25, 2008, the date of the publication of the RFM 
Preliminary Determination in the Federal Register. In accordance with 
section 703(d) of the Act, we instructed CBP to discontinue the 
suspension of liquidation for CVD purposes for subject merchandise 
entered on or after June 24, 2008, but to continue the suspension of 
liquidation of entries made from February 25, 2008, through June 24, 
2008.
    We will issue a CVD order and reinstate the suspension of 
liquidation under section 706(a) of the Act if the ITC issues a final 
affirmative injury determination, and will require a cash deposit of 
estimated countervailing duties for such entries of merchandise in the 
amounts indicated above. If the ITC determines that material injury, or 
threat of material injury, does not exist, this proceeding will be 
terminated and all estimated duties deposited or securities posted as a 
result of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an APO, without the written consent of the Assistant Secretary 
for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an administrative protective order (APO) of their 
responsibility concerning the destruction of proprietary information 
disclosed under APO in accordance with 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 an APO is a violation which is 
subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: July 2, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1: Application of CVD Law to China
Comment 2: Imposition of CVD Law on China and Administrative Procedures 
Act
Comment 3: Specificity of Tax Programs to Foreign-Invested Enterprises
Comment 4: Countervailability of Value Added Tax (VAT) Export Rebates
Comment 5: VAT and Import Duty Exemptions on Imported Equipment Are One 
Program
Comment 6: AFA Rates for Provincial Programs
[FR Doc. E8-15735 Filed 7-9-08; 8:45 am]
BILLING CODE 3510-DS-S