[Federal Register Volume 73, Number 242 (Tuesday, December 16, 2008)]
[Notices]
[Pages 76336-76338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-29775]


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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 Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On June 9, 2008, the Department published its preliminary 
results in the antidumping duty administrative review of pure magnesium 
from the PRC.\1\ The period of review (``POR'') for the administrative 
review is May 1, 2006, through April 30, 2007. We have determined that 
both mandatory respondents, Shanxi Datuhe Coke & Chemicals, Co., Ltd. 
(``Datuhe'') and Tianjin Magnesium International Co., Ltd.(``TMI''), 
made sales in the United States at prices below normal value (``NV''). 
There are no other respondents covered by this review. We invited 
interested parties to comment on our preliminary results in this 
review. Based on our analysis of the comments we received in the 
administrative review, we made certain changes to our calculations for 
both mandatory respondents. The final dumping margins for this review 
are listed in the ``Final Results Margins'' section below.
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    \1\ See Pure Magnesium from the People's Republic of China: 
Preliminary Results of Antidumping Duty Administrative Review, 73 FR 
32549 (June 9, 2008) (``Preliminary Results``).

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EFFECTIVE DATE: December 16, 2008.

FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Katharine Huang, 
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-
4243 or (202) 482-1271, respectively.

Background

    The Department published its preliminary results on June 9, 
2008.\2\ We invited parties to comment on the Preliminary Results. We 
received comments from Petitioner\3\, Datuhe and TMI. Interested 
parties submitted case and rebuttal briefs on July 17 and July 23, 
2008, respectively. On September 29, 2008, the Department extended the 
deadline for the final results of review to December 8, 2008.\4\ We 
held a hearing on October 30, 2008, in which all interested parties 
participated. We issued a supplemental questionnaire to TMI on November 
17, 2008, requesting that it document the amount of by-products sold as 
reported in its section D response. TMI responded to the Department's 
request on November 20, 2008. On November 26, 2008, Petitioner provided 
comments on TMI's November 20, 2008, submission.
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    \2\ See Preliminary Results.
    \3\ United States Magnesium LLC.
    \4\ See Pure Magnesium From the People's Republic of China: 
Extension of Time for the Final Results of the Antidumping Duty 
Administrative Review, 73 FR 56553 (September 29, 2008).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this review are addressed in the memorandum from Stephen J. Claeys, 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to David M. Spooner, Assistant Secretary for Import 
Administration, ``Issues and Decision Memorandum for the Final Results 
of the Antidumping Duty Administrative Review and New Shipper Review of 
Pure Magnesium from the People's Republic of China,'' dated December 8, 
2008, which is hereby adopted by this notice (``Issues and Decision 
Memorandum''). A list of the issues which parties raised and to which 
we respond in the Issues and Decision Memorandum is attached to this 
notice as an Appendix. The Issues and Decision Memorandum is a public 
document and is on file in the Central Records Unit (``CRU''), Main 
Commerce Building, Room 1117, 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.

Period of Review

    The POR is May 1, 2006, through April 30, 2007.

Scope of the 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

[[Page 76337]]

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.

Surrogate Country

    In the Preliminary Results, we stated that we selected India as the 
appropriate surrogate country to use in this review for the following 
reasons: (1) it is a significant producer of comparable merchandise; 
(2) it is at a similar level of economic development comparable to that 
of the PRC; and (3) we have reliable data from India that we can use to 
value the factors of production.\5\ For the final determination, we 
received no comments and made no changes to our findings with respect 
to the selection of a surrogate country.
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    \5\ See Preliminary Results.
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Changes Since the Preliminary Results

    Based on an analysis of the comments received, the Department has 
made certain changes in the margin calculations. For the final results, 
the Department has made the following changes:

General Issues

Calculation of Surrogate Financial Ratios

 We determined the surrogate financial ratios using only the 
financial statements of Madras Aluminium Company Limited (``MALCO'').

Recalculation of Surrogate Values

 We based the surrogate value for dolomite on the average 
purchase price for dolomite reflected in the financial statements for 
Tata Steel Ltd. and Tata Sponge Iron Limited as of March 31, 2007.
 We valued TMI's magnesium scrap using the HTS 8104.11.00, for 
material unwrought containing 99.8 percent magnesium.
 We multiplied the value of truck freight by one thousand to 
express the freight rates in metric tons.
 We based the surrogate value for magnesium chloride and flux 
no. 2 on the values reported for magnesium chloride, potassium chloride 
and sodium chloride in Chemical Weekly.
 We continued to use the Heat Content percentage methodology. 
However, we calculated a ratio using the heat value Datuhe reported for 
its coal gas and the heat value of natural gas derived from the 
Ministry of Petroleum and Natural Gas of the Indian Government, and 
applied this ratio to the natural gas value derived from the World 
Trade Atlas Thailand import statistics as the surrogate value for the 
coal gas.

Company-Specific Issues

Datuhe

 For the Preliminary Results, we granted Datuhe a by-product 
offset in full. For the final results, we granted Datuhe a by-product 
offset for magnesium residue sales substantiated by the sales receipts 
it provided.

TMI

 We revised our calculation of NV to include a by-product 
offset for TMI.

Final Results Margins

    We determine that the following weighted-average percentage margins 
exist for the POR:

                       Pure Magnesium from the PRC
------------------------------------------------------------------------
                                                       Weighted-Average
                      Exporter                         Margin (Percent)
------------------------------------------------------------------------
Datuhe..............................................      111.73[percnt]
TMI.................................................        0.63[percnt]
PRC-Wide............................................      108.26[percnt]
------------------------------------------------------------------------

Assessment Rates

    The Department will determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. For customers/importers of the respondents for 
whom we do not have entered value, we have calculated customer/
importer-specific antidumping duty assessment amounts based on the 
ratio of the total amount of antidumping duties calculated for the 
examined sales of subject merchandise to the total quantity of subject 
merchandise sold in those transactions. For customers/importers of the 
respondents that reported entered value, we have calculated customer-
specific antidumping duty assessment amounts based on customer/
importer-specific ad valorem rates in accordance with 19 CFR 
351.212(b)(1). The Department intends to issue assessment instructions 
to CBP 15 days after the date of publication of these final results of 
administrative review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of these final results of administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: 1) for the exporters 
listed above, the cash deposit rate will be the rates shown for those 
companies; 2) for previously investigated or reviewed PRC and non-PRC 
exporters not listed above that have separate rates, the cash deposit 
rate will continue to be the exporter-specific rate published for the 
most recent period; 3) for all PRC exporters of subject merchandise 
which have not been found to be entitled to a separate rate, the cash 
deposit rate will be the PRC-wide rate of 108.26 percent; and 4) for 
all non-PRC exporters of subject merchandise which have not received 
their own rate, the cash deposit rate will be the rate applicable to 
the PRC exporters that supplied that non-PRC exporter. These deposit 
requirements shall remain in effect until further notice.

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 the APO in accordance with 19 CFR 351.305(a)(3), 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.

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).
    We are issuing and publishing these final results and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.


[[Page 76338]]


    Dated: December 8, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

List of Issues

Surrogate Values

Comment 1: Dolomite
Comment 2: Magnesium Chloride and Flux No. 2
Comment 3: Magnesium Scrap
Comment 4: Coal Gas
Comment 5: Truck Freight

Surrogate Financial Statements

Comment 6: Surrogate Financial Statements
 A. Sterlite
 B. MALCO
 C. HINDALCO and NALCO
 D. Zinc, Copper, Brass and Ferro-Alloys as Comparable Products
 E. Zinc Producers: Binani, Hindustan Zinc and Rose Zinc
 F. Extruded Aluminum and Downstream Copper-Products Producers
Comment 7: Calculation Issues with Respect to Surrogate Financial 
Statements
 A. Investment Income for MALCO
 B. The Valuation of Self-Generated Electrical Power for MALCO
 C. The Deduction of Interest Income from Interest expense for MALCO
 D. Interest Income Offset for HINDALCO and NALCO

Company Specific Issues

Comment 8: By-Product Offset for Datuhe
Comment 9: By-Product Offset for TMI
Comment 10: Combination Rate for TMI
[FR Doc. E8-29775 Filed 12-15-08; 8:45 am]
BILLING CODE 3510-DS-S