73 FR 14218, March 17, 2008
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 September 10, 2007, 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,
2005, through December 31, 2005.
Following the preliminary results, we conducted verification and
provided interested parties with an opportunity to comment on the
preliminary results and our verification findings. Based on information
received since the preliminary results and our analysis of the comments
received, the Department has revised the net subsidy rate for Hynix.
The final net subsidy rate for Hynix is listed below in the section
entitled ``Final Results of Review.''
EFFECTIVE DATE: March 17, 2008.
FOR FURTHER INFORMATION CONTACT: David Neubacher or Shane Subler, AD/
CVD Operations, Office 1, Import Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC
20230; telephone: (202) 482-5823 or (202) 482-0189, 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
[[Page 14219]]
Review, 72 FR 51609 (September 10, 2007) (``Preliminary Results'').
From November 9 to November 14, 2007, we conducted verification of
the questionnaire responses submitted by the Government of Korea
(``GOK'') and Hynix Semiconductor Inc. (``Hynix''), the only company
covered in this review. On December 28, 2007, we received a hearing
request from the GOK and Hynix. On January 18, 2008, we received a
hearing request from the petitioner, Micron Technology, Inc.
(``Micron''). On January 30, 2008, Micron also requested a closed
hearing to discuss one of the issues it raised in its case brief. On
January 30, 2008, we received a case brief from Micron and a joint case
brief from Hynix and the GOK. We received rebuttal briefs from Hynix
and the GOK, Micron, and Qimonda North America, a domestic interested
party, on February 6, 2008. A hearing was held at the Department on
February 12, 2008. The hearing comprised both a public session and a
closed session.
On October 2, 2007, we extended the time limit for the final
results of this administrative review by 60 days (to March 10, 2008),
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: Extension of Time Limit for Final Results of
Countervailing Duty Administrative Review, 72 FR 56052 (October 2,
2007).
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 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, 8542.21.8020 through 8542.21.8030, and
8542.32.0001 through 8542.32.0023 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
8473.30.1040, 8473.30.1080, 8473.30.1140, and 8473.30.1180 of the
HTSUS. Removable memory modules placed on motherboards are classifiable
under subheadings 8443.99.2500, 8443.99.2550, 8471.50.0085,
8471.50.0150, 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, 8542.21.8005,
8542.21.8020, 8542.21.8021, 8542.21.8022, 8542.21.8023, 8542.21.8024,
8542.21.8025, 8542.21.8026, 8542.21.8027, 8542.21.8028, 8542.21.8029,
8542.21.8030, 8542.31.0000, 8542.33.0000, 8542.39.0000, 8543.89.9300,
and 8543.89.9600 of the HTSUS. However, the product description, and
not the HTSUS classification, is dispositive of whether merchandise
imported into the United States falls within the scope.
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, 2005, through December 31, 2005.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this administrative review are addressed in the March 10, 2008, Issues
and Decision Memorandum for the Final Results in the Third
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 1117 of the main Department building. In addition,
a complete version of the public Decision Memorandum can be accessed
directly on the Internet at http://www.enforcement.trade.gov/frn. 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, 2005, through December 31, 2005, we find that the ad
valorem net subsidy rate for Hynix is 23.78 percent.
Assessment Rates
Fifteen days after the date of publication of these final results
of this review, the Department will instruct CBP to liquidate shipments
of DRAMS by Hynix entered or withdrawn from warehouse, for consumption
from January 1, 2005, through December 31, 2005, at 23.78 percent ad
valorem of the F.O.B. invoice price.
Cash Deposits
The Department also intends to instruct CBP to collect cash
deposits of estimated countervailing duties at 23.78 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: March 10, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
Appendix I
Comments in the Issues and Decision Memorandum
Comment 1: Timing of the Benefit on a Previously Countervailed Debt-to-Equity Swap ("DES")
Comment 2: Allegation that Hynix is Circumventing the Order
Comment 3: Application of Adverse Facts Available ("AFA") for Undiscosed Grant Presented at Verification
Comment 4: Whether Deposit Rate Should Be Adjusted to Provide a Reasonable Estimate of Future CVD Liability
Comment 5: Whether There Are Errors that Lead to Double and Triple Counting of Benefits of Principalized Interest Loans
Comment 6: Whether the Import Duty Reduction Program is Specific to Hynix
[FR Doc. E8-5302 Filed 3-14-08; 8:45 am]
BILLING CODE 3510-DS-S