68 FR 44290, July 28, 2003
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-851]
Notice of Amended Final Affirmative Countervailing Duty
Determination: Dynamic Random Access Memory Semiconductors from the
Republic of Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of amended final affirmative countervailing duty
determination.
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SUMMARY: On June 16, 2003, the Department of Commerce issued the Final
Affirmative Countervailing Duty Determination: Dynamic Random Access
Memory Semiconductors from the Republic of Korea. On June 23, 2003, the
Department published in the Federal Register the Final Affirmative
Countervailing Duty Determination: Dynamic Random Access Memory
Semiconductors from the Republic of Korea, 68 FR 37122. On June 24,
2003, Hynix Semiconductors, Inc., filed allegations of ministerial
errors. On June 30, 2003, the petitioner, Micron Technologies, Inc.,
filed a response to the allegations. Based on our review of the
comments received from all parties regarding the alleged ministerial
errors, we have revised the estimated countervailing duty rate for
Hynix Semiconductors, Inc., as well as the ``All Others'' rate. The
revisions to the estimated countervailing duty rates are listed below
in the ``Amended Final Determination'' section.
EFFECTIVE DATE: July 28, 2003.
FOR FURTHER INFORMATION CONTACT: Ryan Langan or Jesse Cortes, Office of
Antidumping/Countervailing Duty Enforcement, Group 1, Import
Administration, U.S. Department of Commerce, Room 3099, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone(202) 482-
2613 and (202) 482-3986, respectively.
SUPPLEMENTARY INFORMATION:
Scope of Investigation
The products covered by this investigation are dynamic random
access memory semiconductors (``DRAMS'') from the Republic of Korea
(``ROK''), whether assembled or unassembled. Assembled DRAMS include
all package types. Unassembled DRAMS include processed wafers, uncut
die, and cut die. Processed wafers fabricated in the ROK, but assembled
into finished semiconductors outside the ROK are also included in the
scope. Processed wafers fabricated outside the ROK and assembled into
finished semiconductors in the ROK are not included in the scope.
The scope of this investigation additionally includes memory
modules containing DRAMS from the ROK. A memory module is a collection
of DRAMS, the sole function of which is memory. Memory modules include
single in-line processing modules, single in-line memory modules, dual
in-line memory modules, small outline dual in-line memory modules,
Rambus in-line memory modules, and memory cards or other collections of
DRAMS, whether unmounted or mounted on a circuit board. Modules that
contain other parts that are needed to support the function of memory
are covered. Only those modules that contain additional items which
alter the function of the module to something other than memory, such
as video graphics adapter boards and cards, are not included in the
scope. This investigation also covers future DRAMS module types.
The scope of this investigation additionally includes, but is not
limited to, video random access memory and synchronous graphics random
access memory, as well as various types of DRAMS, including fast page-
mode, extended data-out, burst extended data-out, synchronous dynamic
RAM, Rambus DRAM, and Double Data Rate DRAM. The scope also includes
any future density, packaging, or assembling of DRAMS. Also included in
the scope of this investigation are removable memory modules placed on
motherboards, with or without a central processing unit, unless the
importer of the motherboards certifies with the U.S. Bureau of Customs
and Border Protection (``Customs'') that neither it, nor a party
related to it or under contract to it, will remove the modules from the
motherboards after importation. The scope of this investigation does
not include DRAMS or memory modules that are re-imported for repair or
replacement.
The DRAMS subject to this investigation are currently classifiable
under subheadings 8542.21.8005 and 8542.21.8021 through 8542.21.8029 of
the Harmonized Tariff Schedule of the United States (``HTSUS''). The
memory modules containing DRAMS from the ROK, described above, are
currently classifiable under subheadings 8473.30.10.40 or 8473.30.10.80
of the HTSUS. Removable memory modules placed on motherboards are
classifiable under subheading 8471.50.0085. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
Department's written description of the scope of this investigation
remains dispositive.
Period of Investigation
The period for which we are measuring subsidies, or period of
investigation, is January 1, 2001, through June 30, 2002.
Amended Final Determination
In accordance with section 705(d) of the Tariff Act of 1930, as
amended, (``the Act''), on June 23, 2003, the Department published in
the Federal Register the Final Affirmative Countervailing Duty
Determination: Dynamic Random Access Memory Semiconductors from the
Republic of Korea, 68 FR 37122. Subsequently, on June 24, 2003, Hynix
Semiconductor, Inc. (``Hynix'' or ``respondent'') submitted timely
ministerial error allegations pursuant to 19 CFR 351.224(c)(2). On June
30, 2003, the petitioner, Micron Technologies, Inc. (``Micron''),
submitted a rebuttal to Hynix' allegations.
Hynix alleged that, for certain loans, the Department erroneously
applied uncreditworthy benchmark interest rates to financing obtained
before Hynix was determined to be uncreditworthy. The petitioner
rebutted these allegations stating that they related to methodological
issues, not ministerial issues. Additionally, the petitioner identified
data that showed that Hynix' allegations were for loans that were
[[Page 44291]]
refinanced and, therefore, the Department correctly used uncreditworthy
benchmark rates for these loans after the refinancing date. Hynix
further alleged that the Department used long-term benchmark rates in
the benefit calculations for three short-term loans, which were
refinanced for an additional year. Micron claimed that this allegation
is methodological, not ministerial, and should be rejected. Hynix then
alleged that the Department erroneously included interest payments that
accrued outside of the POI in its benefit calculations. Micron argued
that this does not constitute a ministerial error because it is solely
related to the methodology used by the Department. Hynix also alleged
that the Department attributed the wrong percentage of KDB Fast Track
bonds to Hynix' creditors because of debt conversions that occurred in
June and December, 2001. Micron claimed that this allegation
constitutes a methodological error allegation and, therefore, should be
rejected by the Department. Finally, Hynix alleged that the Department
failed to include the second of two interest payments that were made
for the same bond but were reported separately. Micron stated that
there is no evidence on the record linking the alleged second payment
to the bonds identified by Hynix and, therefore, the Department must
reject this allegation.
After analyzing the submissions, we have determined, in accordance
with section 705(e) of the Act and 19 CFR 351.224, that we made the
following ministerial errors in the margin calculations for Hynix: 1)
For certain loans, we did not use the correct benchmark for financing
obtained prior to the period during which we found Hynix to be
uncreditworthy; 2) We incorrectly used a long-term benchmark interest
rate for one loan that was refinanced for one year; 3) For KDB Fast
Track bonds, we incorrectly calculated the percentage of these bonds
held by Hynix' creditors after June 2001, and December 2001. For a
detailed discussion of the ministerial error allegations and the
Department's analysis, see the July 21, 2003 memorandum from Team to
Laurie Parkhill, Acting Deputy Assistant Secretary entitled Ministerial
Error Allegations for the Final Determination, which is on file in the
Department's Central Records Unit in Room B-099 of the main Department
building.
Therefore, we are amending the final determination for the
countervailing duty investigation of dynamic random access memory
semiconductors from the Republic of Korea to reflect the corrections of
the above-noted ministerial errors. The revised total estimated net
subsidy rate for each company is as follows:
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Producer/Exporter Net Subsidy Rate
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Samsung Electronics Co., Ltd.......................... 0.04 percent (de minimis) (unchanged from the Final
Determination)
Hynix Semiconductor Inc. (formerly, Hyundai 44.29 percent
Electronics Industries Co., Ltd.)....................
All Others............................................ 44.29 percent
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Suspension of Liquidation
In accordance with section 705(c)(1)(B) of the Act, we are
directing Customs to continue suspending liquidation on all imports of
subject merchandise from the Republic of Korea, except for imports of
subject merchandise from Samsung Electronics Co., Ltd., that are
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of this notice in the Federal Register. Customs
shall require a cash deposit or the posting of a bond equal to the
margin/subsidy rates indicated in the chart above. These suspension of
liquidation instructions will remain in effect until further notice.
We will issue a countervailing duty order if the International
Trade Commission (``ITC'') issues a final affirmative injury
determination. 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 amended final determination.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: July 21, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Grant Aldonas, Under Secretary.
[FR Doc. 03-19141 Filed 7-25-03; 8:45 am]