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:

----------------------------------------------------------------------------------------------------------------
                   Producer/Exporter                                        Net Subsidy Rate
----------------------------------------------------------------------------------------------------------------
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]