[Federal Register: February 14, 2007 (Volume 72, Number 30)]
[Notices]               
[Page 7015-7016]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14fe07-35]                         

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-851]

 
Dynamic Random Access Memory Semiconductors from the Republic of 
Korea: Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 11, 2006, the Department of Commerce published in 
the Federal Register its preliminary results of administrative review 
of the countervailing duty order on dynamic random access memory 
semiconductors from the Republic of Korea for the period January 1, 
2004, through December 31, 2004.
    We gave interested parties an opportunity to comment on the 
preliminary results. Our analysis of the comments received on the 
preliminary results did not lead to any changes in the net subsidy 
rate. Therefore, the final results do not differ from the preliminary 
results. The final net subsidy rate for the reviewed company is listed 
below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: February 14, 2007.

FOR FURTHER INFORMATION CONTACT: Steve Williams or Andrew McAllister, 
AD/CVD Operations, Office 1, Import Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone: (202) 482-4619 or (202) 482-1174, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The following events have occurred since the publication of the 
preliminary results of this review. See Dynamic Random Access Memory 
Semiconductors from the Republic of Korea: Preliminary Results of 
Countervailing Duty Administrative Review, 71 FR 46192 (August 11, 
2006) (``Preliminary Results'').
    We invited interested parties to comment on the Preliminary 
Results. On October 2, 2006, we received a case brief and request for a 
hearing from Micron Technology, Inc. (``Micron''). We received a 
rebuttal brief from Hynix Semiconductor Inc. (``Hynix''), the only 
company covered in the review, on October 16, 2006.
    On November 16, 2006, we extended the time limit for the final 
results of this administrative review by 60 days (to February 7, 2007), 
pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as amended 
(``the Act''). See Dynamic Random Access Memory Semiconductors from the 
Republic of Korea: Notice of Extension of Time Limit for Countervailing 
Duty Administrative Review, 71 FR 66751 (November 16, 2006).
    A public hearing was held at the Department on November 2, 2006.

Scope of the Order

    The products covered by this order 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 order 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 order also covers future DRAMS module types.
    The scope of this order 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 order are removable memory modules placed on 
motherboards, with or without a central processing unit, unless the 
importer of the motherboards certifies with CBP that neither it, nor a 
party related to it or under contract to it, will remove the modules 
from the

[[Page 7016]]

motherboards after importation. The scope of this order does not 
include DRAMS or memory modules that are re-imported for repair or 
replacement.
    The DRAMS subject to this order are currently classifiable under 
subheadings 8542.21.8005 and 8542.21.8020 through 8542.21.8030 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 subheadings 8471.50.0085, 8517.30.5000, 8517.50.1000, 
8517.50.5000, 8517.50.9000, 8517.61.0000, 8517.62.0010, 8517.62.0050, 
8517.69.0000, 8517.70.0000, 8517.90.3400, 8517.90.3600, 8517.90.3800, 
8517.90.4400, 8542.31.00, 8542.32.0001, 8542.32.0020, 8542.32.0021, 
8542.32.0022, 8542.32.0023, 8542.33.0000, 8542.39.0000, and 
8543.89.9600 of the HTSUS.

Scope Rulings

    On December 29, 2004, the Department received a request from Cisco 
Systems, Inc. (``Cisco''), to determine whether removable memory 
modules placed on motherboards that are imported for repair or 
refurbishment are within the scope of the CVD Order. See Notice of 
Countervailing Duty Order: Dynamic Random Access Memory Semiconductors 
from the Republic of Korea, 68 FR 47546 (August 11, 2003) (``CVD 
Order''). The Department initiated a scope inquiry pursuant to 19 CFR 
351.225(e) on February 4, 2005. On January 12, 2006, the Department 
issued a final scope ruling, finding that removable memory modules 
placed on motherboards that are imported for repair or refurbishment 
are not within the scope of the CVD Order provided that the importer 
certifies that it will destroy any memory modules that are removed for 
repair or refurbishment. See Memorandum from Stephen J. Claeys to David 
M. Spooner, regarding Final Scope Ruling, Countervailing Duty Order on 
DRAMs from the Republic of Korea (January 12, 2006).

Period of Review

    The period for which we are measuring subsidies, i.e., the period 
of review (``POR''), is January 1, 2004, through December 31, 2004.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the February 7, 2007, 
Issues and Decision Memorandum for the Final Results in the Second 
Administrative Review of the Countervailing Duty Order on Dynamic 
Random Access Memory Semiconductors from the Republic of Korea 
(``Decision Memorandum'') from Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, to David M. Spooner, Assistant 
Secretary for Import Administration, which is hereby adopted by this 
notice. Attached to this notice as an appendix is a list of the issues 
which parties have raised and to which we have responded in the 
Decision Memorandum. 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 the Department's Central 
Records Unit, Room B-099 of the main Department building. In addition, 
a complete version of the Decision Memorandum can be accessed directly 
on the Internet at https://enforcement.trade.gov/frn/index.html. The paper copy 

and electronic version of the Decision Memorandum are identical in 
content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(5), we calculated an 
individual subsidy rate for the producer/exporter, Hynix. For the 
period January 1, 2004, through December 31, 2004, we find the ad 
valorem net subsidy rate for Hynix is 31.86 percent.

Assessment Rates

    The Department will instruct CBP to liquidate shipments of DRAMS by 
Hynix entered or withdrawn from warehouse, for consumption from January 
1, 2004, through December 31, 2004, at 31.86 percent ad valorem of the 
entered value.

Cash Deposits

    The Department also intends to instruct CBP to collect cash 
deposits of estimated countervailing duties at 31.86 percent ad valorem 
of the entered value on all shipments of the subject merchandise from 
Hynix, entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this 
administrative review.
    We will instruct CBP to continue to collect cash deposits for non-
reviewed companies at the most recent company-specific rate applicable 
to the company. The Department has previously excluded Samsung 
Electronics Co., Ltd. from this order. See Notice of Amended Final 
Affirmative Countervailing Duty Determination: Dynamic Random Access 
Memory Semiconductors from the Republic of Korea, 68 FR 44290 (July 28, 
2003). Thus, the ``all others'' rate shall apply to all non-reviewed 
companies until a review of a company assigned this rate is requested.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    This administrative review and notice are issued and published in 
accordance with section 751(a)(1) of the Act.

    Dated: February 7, 2007.
David M. Spooner,
Assistant Secretaryfor Import Administration.

Appendix I

Comments in the Issues and Decision Memorandum

Comment 1: Benefit to Hynix of the 2004 Cash Buyout Program.
Comment 2: The Department's Failure to Investigate Thoroughly the GOK's 
Entrustment or Direction of Hynix's Creditors in Connection with the 
CBO Components of the Non-Memory Asset Sale.
Comment 3: Entrustment or Direction of Hynix's Creditors in Connection 
with the Tranche A Acquisition Financing and CBO Components of the Non-
Memory Asset Sale.
Comment 4: Whether the Department Should Have Investigated Hynix's Sale 
of Its LCD and Non-Memory Assets.
Comment 5: Uncreditworthy Benchmark Interest/Discount Rate.
[FR Doc. E7-2562 Filed 2-13-07; 8:45 am]

BILLING CODE 3510-DS-S