[Federal Register: September 11, 2007 (Volume 72, Number 175)]
[Notices]
[Page 51791-51792]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11se07-32]
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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
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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