Pure Magnesium from Canada; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-814]

Pure Magnesium from Canada; Preliminary Results of Antidumping

Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review.

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SUMMARY: In response to a request from one respondent, the Department

of Commerce (the Department) is conducting an administrative review of

the antidumping duty order on pure magnesium from Canada. The review

covers one manufacturer/exporter of the subject merchandise to the

United States for the period August 1, 1995 through July 31, 1996.

We have preliminarily determined that U.S. sales have not been made

below the normal value (NV). We invite interested parties to comment on

these preliminary results. Parties who submit comments in this

proceeding are requested to submit with each argument (1) A statement

of the issue, and (2) a brief summary of the argument.

EFFECTIVE DATE: May 5, 1997.

FOR FURTHER INFORMATION CONTACT: Mark Ross or Richard Rimlinger, Import

Administration, International Trade Administration, U.S. Department of

Commerce, 14th Street and Constitution Avenue, NW, Washington, DC

20230, telephone: (202) 482-4733.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

Unless otherwise indicated, all citations to the Tariff Act of

1930, as amended (the Tariff Act), are references to the provisions

effective January 1, 1995, the effective date of the amendments made to

the Tariff Act by the Uruguay Round Agreements Act. In addition, unless

otherwise indicated, all citations to the Department's regulations are

to the current regulations as amended by the interim regulations

published in the Federal Register on May 11, 1995 (60 FR 25130).

Background

On August 31, 1992, the Department published in the Federal

Register (57 FR 39399) the antidumping duty order on pure magnesium

from Canada. On August 12, 1996, the Department published a notice of

``Opportunity to Request Administrative Review'' of this antidumping

duty order for the period of August 1, 1995 through July 31, 1996 (61

FR 41768). We received a timely request for review from the respondent,

Norsk Hydro Canada Inc. (NHCI). On September 17, 1996, the Department

initiated a review of NHCI (61 FR 48883).

Scope of the Review

The product covered by this review is pure magnesium. Pure

unwrought magnesium contains at least 99.8 percent magnesium by weight

and is sold in various slab and ingot forms and sizes. Granular and

secondary magnesium are excluded from the scope currently classified

under subheading 8104.11.0000 of the Harmonized Tariff Schedule (HTS).

The HTS item number is provided for convenience and for Customs

purposes. The written description remains dispositive.

The review covers one Canadian manufacturer/exporter, NHCI, and the

period August 1, 1995 through July 31, 1996.

Export Price (EP)

We calculated an EP for NHCI's U.S. transaction in accordance with

section 772(a) of the Tariff Act because the subject merchandise was

sold to an unaffiliated U.S. purchaser prior to the date of

importation.

We calculated EP based on the packed and delivered price to the

unaffiliated customer in the United States. We made deductions from the

gross unit price for freight in accordance with section 772(c)(2)(A) of

the Tariff Act.

No other adjustment to EP was claimed or allowed.

Normal Value (NV)

We compared the aggregate quantity of home market and U.S. sales

and found the quantity of foreign like product the respondent sold in

the exporting country was sufficient to permit a proper comparison with

the sale of the subject merchandise to the United States pursuant to

section 773(a) of the Tariff Act. Specifically, we found

[[Page 24418]]

that the company's quantity of sales in its home market was greater

than five percent of its sale to the United States. In addition, we did

not find any information that a particular market situation in the

exporting country does not permit a proper comparison with the sales of

the subject merchandise to the United States. Therefore, in accordance

with section 773(a)(1)(B)(i) of the Tariff Act, we based NV on the

prices at which the foreign like product was first sold for consumption

in the home market.

Pursuant to section 777A(d)(2) of the Tariff Act, we compared the

EP of the individual transaction to the monthly weighted-average price

of sales of the foreign like product in the home market. We compared

the EP sale to sales in the home market of identical merchandise.

We based NV on the price at which the foreign like product is first

sold for consumption in the home market, in the usual commercial

quantities, in the ordinary course of trade, and at the same level of

trade as the EP, in accordance with section 773(a)(1)(B)(i) of the

Tariff Act. See the April 11, 1997, memorandum from Mark Ross to the

File for a detailed description of our level-of-trade analysis for

these preliminary results. Where applicable, in accordance with

sections 773(a)(6)(B)(ii) and 773(a)(6)(C)(iii) of the Tariff Act,

respectively, we deducted movement expenses from home market price and

made a circumstance-of-sale adjustment for differences in credit

expenses. We made the circumstance-of-sale adjustment to home market

price by deducting HM credit expenses and adding U.S. credit expenses.

Since the home market price of the foreign like product was reported

net of direct taxes (which were not collected on the sale of the

subject merchandise), we did not have to adjust the price of the

foreign like product pursuant to section 773(a)(6)(B)(iii) of the

Tariff Act. We increased home market price by U.S. packing costs in

accordance with section 773(a)(6)(A) of the Tariff Act and reduced it

by home market packing costs in accordance with section 773(a)(6)(B) of

the Tariff Act. No other adjustments were claimed or allowed.

Preliminary Results of Review

As a result of our review, we preliminarily determine the weighted-

average dumping margin (in percent) for the period August 1, 1995,

through July 30, 1996 to be as follows:

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Manufacturer/Exporter Margin

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Norsk Hydro Canada, Inc.................................... 0.00

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Parties to the proceeding may request disclosure within five days

of the date of publication of this notice. Any interested party may

request a hearing within 10 days of the date of publication of this

notice. A hearing, if requested, will be held 44 days after the date of

publication or the first workday thereafter. Issues raised in hearings

will be limited to those raised in the respective briefs and rebuttal

briefs. Case briefs from interested parties may be submitted not later

than 30 days after the date of publication. Rebuttal briefs, limited to

issues raised in the case briefs, may be filed not later than 37 days

after the date of publication. Parties who submit briefs or rebuttal

briefs in this proceeding are requested to submit with each argument

(1) A statement of the issue and (2) a brief summary of the argument.

The Department will issue the final results of this administrative

review, including the results of its analysis of issues raised in any

such written briefs or at a hearing, within 120 days of publication of

these preliminary results.

The Department shall determine, and the Customs Service shall

assess, antidumping duties on all appropriate entries. The final

results of this review shall be the basis for the assessment of

antidumping dumping duties on entries of merchandise covered by the

determination and for future deposits of estimated duties. The

Department will issue appraisement instructions directly to the Customs

Service upon completion of this review.

Furthermore, the following deposit requirements will be effective

for all shipments of the subject merchandise entered, or withdrawn from

warehouse, for consumption on or after the publication date of the

final results of this administrative review, as provided by section

751(a)(1) of the Tariff Act: (1) The cash deposit rate for NHCI will be

the rate established in the final results of this administrative

review; (2) for manufacturers or exporters other than NHCI that were

covered in the original less-than-fair-value investigation or a

previous review, the cash deposit rate will continue to be the most

recent rate published in the final determination or final results for

which the manufacturer or exporter received a company-specific rate;

(3) if the exporter is not a firm covered in this review, a prior

review, or the original less-than-fair-value investigation, but the

manufacturer is, the cash deposit rate will be the rate established for

the most recent period for the manufacturer of the merchandise; and (4)

the cash deposit rate for all other manufacturers or exporters will

continue to be 21 percent, the ``all others'' rate established in Pure

Magnesium From Canada: Amendment of Final Determination of Sales At

Less Than Fair Value and Order in Accordance With Decision on Remand,

58 FR 62643, November 29, 1993.

This notice also serves as a preliminary reminder to importers of

their responsibility under 19 CFR 353.26 to file a certificate

regarding the reimbursement of antidumping duties prior to liquidation

of the relevant entries during this review period. Failure to comply

with this requirement could result in the Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and notice are in accordance with

section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19

CFR 353.22.

Dated: April 28, 1997.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 97-11658 Filed 5-2-97; 8:45 am]

BILLING CODE 3510-DS-P