65 FR 10766, February 29, 2000
[C-122-815 (alloy), C-122-815 (pure)]
Alloy Magnesium and Pure Magnesium From Canada;
Preliminary Results of Full Sunset Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Preliminary Results of Full Sunset Reviews: Alloy
Magnesium and Pure Magnesium from Canada.
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SUMMARY: On August 2, 1999, the Department of Commerce (``the
Department'') initiated sunset reviews of the countervailing duty
orders on alloy magnesium and pure magnesium from Canada (64 FR 41915)
pursuant to section 751(c) of the Tariff Act of 1930, as amended (``the
Act''). On the basis of a notice of intent to participate filed on
behalf of the domestic industry and substantive comments filed on
behalf of the domestic industry and respondent interested parties, the
Department is conducting a full review. As a result of this review, the
Department preliminarily finds that revocation of the countervailing
duty orders would be likely to lead to continuation or recurrence of a
countervailable subsidy. The net countervailable subsidy and the nature
of the subsidy are identified in the Preliminary Results of Reviews
section of this notice.
EFFECTIVE DATE: February 29, 2000.
FOR FURTHER INFORMATION CONTACT: Darla D. Brown or Melissa G. Skinner,
Office of Policy for Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th & Constitution,
Washington, D.C. 20230; telephone: (202) 482-3207 or (202) 482-1560,
respectively.
SUPPLEMENTARY INFORMATION:
Statute and Regulations
This review is being conducted pursuant to sections 751(c) and 752
of the Act. The Department's procedures for the conduct of sunset
reviews are set forth in Procedures for Conducting Five-year
(``Sunset'') Reviews of Antidumping and Countervailing Duty Orders, 63
FR 13516 (March 20, 1998) (``Sunset Regulations'') and in 19 CFR Part
351 (1999) in general. Guidance on methodological or analytical issues
relevant to the Department's conduct of sunset reviews is set forth in
the Department's Policy Bulletin 98:3--Policies Regarding the Conduct
of Five-year (``Sunset'') Reviews of Antidumping and Countervailing
Duty Orders; Policy Bulletin, 63 FR 18871 (April 16, 1998) (``Sunset
Policy Bulletin'').
Background
On August 2, 1999, the Department initiated sunset reviews of the
countervailing duty orders on alloy magnesium and pure magnesium from
[[Page 10767]]
Canada (64 FR 41915), pursuant to section 751(c) of the Act. The
Department received a notice of intent to participate on behalf of the
Magnesium Corporation of America (``Magcorp'') on August 13, 1999,
within the deadline specified in section 351.218(d)(1)(i) of the Sunset
Regulations. Pursuant to 19 U.S.C. 1677(9)(C), Magcorp claimed
interested party status as a domestic producer of the subject
merchandise. Moreover, Magcorp stated that it was a petitioner in the
original countervailing duty investigations and has participated in all
of the administrative reviews conducted by the Department. The
Department received a complete substantive response from Magcorp on
September 1, 1999, within the 30-day deadline specified in the Sunset
Regulations under section 351.218(d)(3)(i).
The Department also received a complete substantive response on
behalf of NHCI on September 1, 1999, within the deadline specified in
the Sunset Regulations under section 351.218(d)(3)(i). NHCI claimed
interested party status under 19 U.S.C. 1677(9)(A) as a manufacturer
and exporter of the subject merchandise to the United States. In its
substantive response, NHCI stated that it participated in the original
investigation and all of the subsequent administrative reviews.
In addition, the Department received a substantive response on
behalf of the Government of Quebec (``GOQ'') on September 1, 1999,
within the deadline specified in the Sunset Regulations under section
351.218(d)(3)(i). The GOQ claimed interested party status under 19
U.S.C. 1677(9)(B) as a provincial government of the country in which
the subject merchandise is produced and from which it is exported. The
GOQ also claimed interested party status under 19 U.S.C. 1677(3), as a
political subdivision of Canada and, therefore, the ``country'' of
Canada, where the subject merchandise is produced and from which it is
exported.
The Department determined that NHCI's and the GOQ's responses
constituted an adequate response to the notice of initiation. As a
result, the Department determined, in accordance with section
351.218(e)(2) of the Sunset Regulations, to conduct full (240 day)
reviews.\1\
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\1\ See Memorandum to Jeffrey A. May, RE: Sunset Reviews of
Alloy Magnesium and Pure Magnesium from Canada: Adequacy of
Respondent Interested Party Response to the Notice of Initiation,
September 21, 1999.
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On September 13, 1999, the Department received rebuttal comments
from Magcorp NHCI, and the GOQ.\2\
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\2\ On September 3, 1999, the Department received and granted a
request from Magcorp for a five working-day extension of the
deadline for filing rebuttal comments in this sunset review. This
extension was granted for all participants eligible to file rebuttal
comments in this review. The deadline for filing rebuttals to the
substantive comments therefore became September 13, 1999.
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In accordance with section 751(c)(5)(C)(v) of the Act, the
Department may treat a sunset review as extraordinarily complicated if
it is a review of a transition order (i.e., an order in effect on
January 1, 1995). On November 30, 1999, the Department determined that
the sunset reviews of the countervailing duty orders on alloy magnesium
and pure magnesium from Canada are extraordinarily complicated pursuant
to section 751(c)(5)(C)(v) of the Act, and extended the time limit for
completion of the preliminary results of these reviews until not later
than February 18, 2000, in accordance with section 751(c)(5)(B) of the
Act.\3\
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\3\ See Extension of Time Limit for Preliminary Results of Full
Five-Year Reviews, 64 FR 66879 (November 30, 1999).
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Scope
The products covered by these orders are pure magnesium and alloy
magnesium from Canada. Pure magnesium contains at least 99.8 percent
magnesium by weight and is sold in various slab and ingot forms and
sizes. Magnesium alloys contain less than 99.8 percent magnesium by
weight with magnesium being the largest metallic element in the alloy
by weight, and are sold in various ingot and billet forms and sizes.
The merchandise is currently classifiable under items 8104.11.0000 and
8104.19.0000 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Although the HTSUS subheadings are provided for
convenience and customs purposes, our written description of the scope
remains dispositive. Secondary and granular magnesium are not included
in the scope of these orders.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
these sunset reviews are addressed in the ``Issues and Decision
Memorandum'' (``Decision Memo'') from Jeffrey A. May, Director, Office
of Policy, Import Administration, to Robert S. LaRussa, Assistant
Secretary for Import Administration, dated February 18, 2000, which is
hereby adopted and incorporated by reference into this notice. The
issues discussed in the attached Decision Memo include the likelihood
of continuation or recurrence of a countervailable subsidy, the net
countervailable subsidy likely to prevail were the orders revoked, and
the nature of the subsidy. Parties can find a complete discussion of
all issues raised in this review and the corresponding recommendations
in this public memorandum which is on file in B-099.
In addition, a complete version of the Decision Memo can be
accessed directly on the Web at www.ita.doc.gov/import--admin/records/
frn/, under the heading ``Canada.'' The paper copy and electronic
version of the Decision Memorandum are identical in content.
Preliminary Results of Reviews
As a result of these reviews, the Department preliminarily finds
that revocation of the countervailing duty orders would be likely to
lead to continuation or recurrence of a countervailable subsidy. The
net countervailable subsidy is 1.84 percent ad valorem for NHCI and
4.48 percent ad valorem for ``all others.'' Timminco, which was found
to have an estimated net subsidy of zero in the original
investigations, remains excluded from the orders.\4\
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\4\ See Final Affirmative Countervailing Duty Determinations:
Pure Magnesium and Alloy Magnesium from Canada, 57 FR 30946 (July
13, 1992).
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Although the program included in our calculation of the net
countervailable subsidy likely to prevail if the orders were revoked
does not fall within the definition of an export subsidy under Article
3.1(a) of the Subsidies Agreement, it may be a subsidy described in
Article 6, if the net countervailable subsidy exceeds 5 percent, as
measured in accordance with Annex IV of the Subsidies Agreement. The
Department, however, has no information with which to make such a
calculation, nor do we believe it appropriate to attempt such a
calculation in the course of a sunset review.\5\ Rather, we are
providing the Commission the following program description.
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\5\ Moreover, we note that as of January 1, 2000, Article 6.1
has ceased to apply (see Article 31 of the Subsidies Agreement).
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Article 7 (``SDI'') Grants from the Quebec Industrial Development
Corporation
Acting on special mandates from the GOQ, the SDI provides
assistance under Article 7 in the form of loans, loan guarantees,
grants, assumptions of costs on loans, and equity investments.
Any interested party may request a hearing within 30 days of
publication of this notice in accordance with 19 CFR
[[Page 10768]]
351.310(c). Any hearing, if requested, will be held on April 19, 2000.
Interested parties may submit case briefs no later than April 10, 2000,
in accordance with 19 CFR 351.309(c)(1)(i). Rebuttal briefs, which must
be limited to issues raised in the case briefs, may be filed not later
than April 17, 2000. The Department will issue a notice of final
results of this sunset review, which will include the results of its
analysis of issues raised in any such comments, no later than June 27,
2000.
Dated: February 18, 2000.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 00-4800 Filed 2-28-00; 8:45 am]
BILLING CODE 3510-DS-P