[Federal Register: July 10, 2008 (Volume 73, Number 133)]
[Notices]
[Page 39667-39668]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jy08-33]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 https://enforcement.trade.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