Color Television Receivers From Korea; Preliminary Results of Changed Circumstances Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-008]

Color Television Receivers From Korea; Preliminary Results of

Changed Circumstances Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of affirmative preliminary determination of changed

circumstances antidumping duty administrative review and intent to

revoke.

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SUMMARY: In response to a request from Samsung Electronics Co., Ltd.

(Samsung), the Department of Commerce (the Department) is conducting a

changed circumstances review of the antidumping duty order on color

television receivers (CTVs) from the Republic of Korea (Korea) (49 FR

18336, April 30, 1984).

We have preliminarily determined that it is appropriate to

partially revoke this AD order with respect to Samsung.

EFFECTIVE DATE: December 31, 1997.

FOR FURTHER INFORMATION CONTACT: Jim Terpstra or Holly Kuga,

Antidumping and Countervailing Duty Enforcement, Group II, Import

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

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

20230; telephone: (202) 482-3965, or 482-4737, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute

Unless otherwise indicated, all citations to the statute are

references to the provisions effective January 1, 1995, the effective

date of amendments made to the Tariff Act of 1930 (the Act) by the

Uruguay Round Agreements Act (URAA). In addition, unless otherwise

indicated, all references to the Department's regulations are to 19 CFR

Part 353 (1997).

Background

On April 30, 1984, the Department published in the Federal Register

(49 FR 18336) the antidumping duty order on CTVs from the Republic of

Korea (the order). On July 20, 1995, the Department received a request

by Samsung for a changed circumstances administrative review to

consider revocation of the antidumping duty order, as it applies to

Samsung. In their request, Samsung cited three reasons why the

Department should revoke the antidumping duty order. First, the timing

of certain court decisions on previous administrative reviews of this

order prevented Samsung from filing in a timely manner for revocation

under Section 751 (a) of the Act. Second, Samsung was found not to be

dumping CTVs in the United States during the last six years that

shipments from Korea had occurred. Third, Samsung has not shipped CTVs

to the United States since early 1991. Zenith Electronics Corporation,

a domestic interested party, and other petitioners filed objections to

Samsung's request on August 4, 1995 and August 11, 1995, respectively.

Pursuant to Samsung's request, the Department published an

initiation of changed circumstance review in the Federal Register on

June 24, 1996 (61 FR 32426). On December 6, 1996, the Department issued

the changed circumstance questionnaire to Samsung, who filed its

response on February 24, 1997. Petitioners submitted their comments on

Samsung's questionnaire response on June 17, 1997. Subsequently, both

petitioners and Samsung have submitted additional comments.

On December 19, 1997, Petitioners requested that the

anticircumvention inquiry on Korean CTVs be terminated. Accordingly, on

December 19, 1997, we terminated that inquiry.

Scope of Review

Imports covered by this review include Samsung CTVs, complete and

incomplete, from the Republic of Korea. This merchandise is

classifiable under the 1996 Harmonized Tariff Schedule (HTS) as item

8528.12.04, 8528.12.08, 8528.12.12, 8528.12.16, 8528.12.20, 8528.12.24,

8528.12.28, 8528.12.32, 8528.12.36, 8528.12.40, 8528.12.44, 8528.12.48,

8528.12.52, 8528.12.56, 8528.12.62, 8528.12.64, 8528.12.68, 8528.12.72,

8528.12.76, 8528.12.80, 8528.12.84, and 8528.12.88. The order covers

all CTVs regardless of HTS classification. The HTS subheadings are

provided for convenience and for customs purposes. The written

description of the scope of the order remains dispositive.

Analysis

Based upon our analysis, we preliminarily determine that changed

circumstances exist sufficient to warrant partial revocation of the

antidumping duty order on CTVs with respect to Samsung. Therefore, we

intend to partially revoke the order with respect to Samsung. The

Department may grant a partial revocation of an antidumping duty order

under 19 CFR 353.25(b). To do so it must find that producers or

resellers have sold the subject merchandise at not less than foreign

market value for a period of not less than three consecutive years and

that it is not likely that the producers or resellers will in the

future sell the merchandise at not less than foreign market value. 19

CFR 353.25(a)(2)(i) and (ii). Further, the producers or resellers must

agree in writing to immediate reinstatement in the order if the

Department concludes that the producer or reseller, subsequent to

revocation, sold the merchandise at less than foreign market value. 19

CFR 353.25(a)(2)(iii).

In the present case, Samsung has met the eligibility requirement of

three consecutive years of de minimis margins, and the Department has

found that it is not likely that Samsung will sell the merchandise at

not less than foreign market value in the future. Samsung sold subject

merchandise at not less than foreign market value for a period of six

consecutive years.

Samsung has also argued that because it has not shipped CTVs from

Korea to the United States, it is not likely that dumping will resume.

We do not consider this argument relevant because the Department

explicitly excluded the lack of shipments as a basis for revocation.

See Antidumping Duties, Final Rule, 54 FR 12742; March 28, 1989.

Nonetheless, if Samsung were to resume shipping CTVs from Korea, we

do not find it likely that such imports would be sold in the United

States at prices less than foreign market value. Samsung has

established a significant history of selling Korean CTVs in the United

States at prices that are not less than foreign market value. Absent

evidence that conditions in the United States or Korean CTV markets

have changed, or that Samsung's pricing methods have changed after its

six years of de minimis margins, the Department preliminarily finds

that Samsung is not likely to resume dumping of CTVs in

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the United States. Accordingly, we find that the antidumping duty order

as to Samsung is no longer necessary and preliminarily determine to

revoke the order in part as to Samsung, provided Samsung agrees in

writing to immediate reinstatement in the order in the event it sells

the merchandise at less than normal value subsequent to revocation.

The Unions have argued that Samsung is likely to resume dumping

based on Samsung's price and cost data. They contend that price

comparison data submitted by Samsung indicate that Samsung would sell

CTVs at less than normal value if the company resumed shipments of CTVs

from Korea. Further, the Unions contend that Samsung will likely resume

shipments from Korea for newly developed technologies which its

operations in Mexico cannot produce.

As stated above, the likelihood of Samsung resuming shipments is

not relevant to our finding here. Instead, we must address the issue of

whether dumping would be likely to occur if shipments were to resume.

Petitioners claim that Samsung's prices in Korea are likely to be

significantly higher than prices Samsung is charging on shipments of

CTVs from Mexico sold in the United States. Petitioners' arguments are

premised on their allegation that Samsung's shipments from Mexico are

circumventing the order on CTVs from Korea. However, on December 19,

1997, petitioners requested that the Department terminate the anti-

circumvention inquiry, and the Department has not address the issue of

potential circumvention.

Thus, petitioners have not addressed the issue of potential price

differentials between Samsung's sales in the Korean and U.S. markets if

Samsung were to resume sales from Korea. With respect to the Unions'

argument that products resulting from newly developed or developing

technologies are likely to be dumped, we do not find persuasive

evidence of record that shows that such products are likely to be

dumped.

Public Comment

Interested parties are invited to submit comments on these

preliminary results. In light of the termination of the

Anticircumvention Inquiry, interested parties are encouraged to submit

comments on the likelihood of resumption issue in particular. Case

briefs and/or written comments from interested parties may be submitted

no later than 30 days after the date of publication/notification of

this notice. Rebuttal briefs and rebuttals to comments, limited to

issues raised in those briefs or comments, may be filed no later than

37 days after publication/notification of this notice. Any hearing, if

requested, will be held 44 days after publication/notification of this

notice.

Affirmative Preliminary Determination of Changed Circumstances

Based on our analysis discussed above, we preliminarily find that

it is appropriate to partially revoke the AD order with respect to

Samsung. This preliminary affirmative changed circumstances

determination is in accordance with section 751(b) of the Act and 19

C.F.R. 353.22(f).

Dated: December 19, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 97-33981 Filed 12-30-97; 8:45 am]

BILLING CODE 3510-DS-P