[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Pages 26403-26405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11866]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-923]


Raw Flexible Magnets From the People's Republic of China: Final 
Results of the Expedited Second Sunset Review of the Countervailing 
Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: As a result of this second sunset review, the Department of 
Commerce (Commerce) finds that revocation of the countervailing duty 
(CVD) order on raw flexible magnets from the People's Republic of China 
(China) would be likely to lead to the continuation or recurrence of a 
countervailable subsidy at the levels indicated in the ``Final Results 
of Review'' section of this notice.

DATES: Applicable June 6, 2019.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401

[[Page 26404]]

Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
4793.

SUPPLEMENTARY INFORMATION:

Background

    On September 17, 2008, Commerce published in the Federal Register 
the Order on raw flexible magnets from China.\1\ On February 5, 2019, 
Commerce initiated the second sunset review of the Order pursuant to 
section 751(c) of the Tariff Act of 1930, as amended (the Act).\2\
---------------------------------------------------------------------------

    \1\ See Raw Flexible Magnets from the People's Republic of 
China: Countervailing Duty Order, 73 FR 53849 (September 17, 2008) 
(Order).
    \2\ See Initiation of Five-Year (Sunset) Reviews, 84 FR 1705 
(February 5, 2019).
---------------------------------------------------------------------------

    On February 8, 2019, Commerce received a notice of intent to 
participate from Magnum Magnetics Corporation, hereinafter referred to 
as Magnum or the petitioner, within the deadline specified in 19 CFR 
351.218(d)(1)(i).\3\ Magnum, a domestic producer of the subject 
merchandise, claimed interested party status under section 771(9)(C) of 
the Act.\4\
---------------------------------------------------------------------------

    \3\ See Letter from Magnum, ``Notice of Intent to Participate,'' 
dated February 8, 2019.
    \4\ Id. at 2.
---------------------------------------------------------------------------

    On March 7, 2019, Commerce received an adequate substantive 
response from Magnum within the 30-day deadline specified in 19 CFR 
351.218(d)(3)(i).\5\ Commerce did not receive a substantive response 
from the Government of China or a respondent interested party to this 
proceeding. On March 20, 2019, Commerce notified the U.S. International 
Trade Commission (ITC) that it did not receive an adequate substantive 
response from respondent interested parties.\6\ As a result, pursuant 
to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), 
Commerce conducted an expedited (120-day) sunset review of the Order.
---------------------------------------------------------------------------

    \5\ See Letter from Magnum, ``Domestic Industry Substantive 
Response,'' dated March 7, 2019.
    \6\ See Letter from Commerce to ITC, ``Sunset Review Initiated 
on February 5, 2019 Applicable to January 2019,'' dated March 20, 
2019 (50-day Letter).
---------------------------------------------------------------------------

Scope of the Order

    The products covered by this order are certain flexible magnets 
regardless of shape,\7\ color, or packaging.\8\ 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. 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.
---------------------------------------------------------------------------

    \7\ The term ``shape'' includes, but is not limited to profiles, 
which are flexible magnets with a non-rectangular cross-section.
    \8\ Packaging includes retail or specialty packaging such as 
digital printer cartridges.
---------------------------------------------------------------------------

    Specifically excluded from the scope of this order 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 order. The products subject to the order 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 the order is dispositive. A full 
description of the scope of the order is contained in the Issues and 
Decision Memorandum.\9\
---------------------------------------------------------------------------

    \9\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Expedited Second Sunset Review of Raw Flexible 
Magnets from the People's Republic of China,'' dated concurrently 
with and adopted by this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in this review, specifically the likelihood of 
continuation or recurrence of a countervailable subsidy and the net 
countervailable subsidy likely to prevail if the Order was to be 
revoked, are addressed in the Issues and Decision Memorandum. The 
Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at http://access.trade.gov and 
in the Central Records Unit, Room B8024 of the main Department of 
Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/.

Final Results of Review

    Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce 
determines that revocation of the Order on raw flexible magnets from 
China would be likely to lead to continuation or recurrence of a net 
countervailable subsidy at the following rates: \10\
---------------------------------------------------------------------------

    \10\ Id.

------------------------------------------------------------------------
                                                               Net
                                                         countervailable
            Manufacturer/producer/ exporter                 subsidy Ad
                                                           Valorem rate
                                                            (percent)
------------------------------------------------------------------------
China Ningbo Cixi Import Export Corporation............           109.95
Polyflex Magnets Ltd...................................           109.95
All Others.............................................           109.95
------------------------------------------------------------------------

Notification Regarding Administrative Protective Order

    This notice 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 in accordance with 19 CFR 351.305. Timely written notification of 
the destruction of APO materials or conversion to judicial protective 
order is hereby requested. Failure to comply with the regulations and 
the terms of an APO is violation which is subject to sanction.
    We are issuing and publishing the results and notice in accordance 
with sections 751(c), 752(b), and 777(i)(1) of the Act and 19 CFR 
351.218.


[[Page 26405]]


    Dated: May 31, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-11866 Filed 6-5-19; 8:45 am]
BILLING CODE 3510-DS-P