Pure Magnesium From Canada; Preliminary Results of Antidumping Duty Administrative Review and Notice of Intent Not To Revoke Order in Part

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-814]

Pure Magnesium From Canada; Preliminary Results of Antidumping

Duty Administrative Review and Notice of Intent Not To Revoke Order in

Part

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of 1997-1998 administrative

review and intent not to revoke.

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SUMMARY: The Department of Commerce is conducting an administrative

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

period of review is August 1, 1997 through July 31, 1998. This review

covers imports of pure magnesium from one producer/exporter.

We have preliminarily found that sales of subject merchandise have

not been made below normal value. Further, we intend not to revoke the

order with respect to pure magnesium from Canada produced by Norsk

Hydro Canada Inc. If these preliminary results are adopted in our final

results, we will instruct the Customs Service not to assess antidumping

duties.

Interested parties are invited to comment on these preliminary

results. We will issue the final results not later than 120 days from

the date of publication of this notice.

EFFECTIVE DATE: May 11, 1999.

FOR FURTHER INFORMATION CONTACT: Zak Smith or Melani Miller, Import

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

Commerce, 14th Street and Constitution Avenue, N.W., Washington D.C.

20230; telephone (202) 482-0189 or (202) 482-0116, respectively.

The Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute are

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

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

the Uruguay Round Agreements Act. In addition, unless otherwise

indicated, all citations to the Department of Commerce's (``the

Department's'') regulations refer to the regulations, codified at 19

CFR part 351 (62 FR 27399, May 19, 1997).

Background

The Department published an antidumping duty order on pure

magnesium from Canada on August 31, 1992 (57 FR 39390). On August 11,

1998, the Department published a notice of ``Opportunity to Request an

Administrative Review'' of the antidumping duty order on pure magnesium

from Canada (63 FR 42821). On August 25, 1998, Magnesium Corporation of

America (the ``petitioner'') requested an administrative review of

imports of the subject merchandise produced by Norsk Hydro Canada Inc.

(``NHCI'') during the period August 1, 1997, through July 31, 1998.

NCHI made a similar request for review on August 28, 1998. In

accordance with 19 CFR 351.221, we initiated the review on September

29, 1998. The Department is now conducting this administrative review

in accordance with section 751 of the Act.

Scope of 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 classifiable

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.

Export Price

For sales to the United States, we used export price (``EP'') as

defined in section 772(a) of the Act because the merchandise was sold

directly to the first unaffiliated purchaser in the United States prior

to importation. The use of constructed export prices was not warranted

based on the facts of the record. EP was based on the packed,

delivered, duties unpaid price to unaffiliated purchasers in the United

States. We made a deduction for movement expenses in accordance with

section 772(c)(2)(A) of the Act; this included the foreign and U.S.

inland freight expenses.

[[Page 25277]]

Normal Value

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

and determined that the quantity of the company's sales in its home

market was more than five percent of the quantity of its sales to the

U.S. market. Consequently, pursuant to section 773(a)(1) of the Act, we

based normal value (``NV'') on home market sales.

We made adjustments for differences in packing in accordance with

sections 773(a)(6)(A) and B(i) of the Act. We also made adjustments for

movement expenses, consistent with section 773(a)(6)(B)(ii) of the Act,

for inland freight. In addition, we made adjustments for differences in

circumstances of sale (``COS'') in accordance with section

773(a)(6)(C)(iii) of the Act and 19 CFR 351.410. We made COS

adjustments by deducting direct selling expenses incurred on home

market sales (credit expenses) and adding U.S. direct selling expenses

(credit expenses).

Revocation

Pursuant to 19 CFR 351.222(b)(2), NHCI requested revocation of the

antidumping duty order, in part. In accordance with 19 CFR 351.222(e),

the request was accompanied by certifications that NHCI had not sold

the subject merchandise at less than normal value during the current

period of review and would not do so in the future. NHCI further

certified that it sold the subject merchandise to the United States in

commercial quantities for a period of at least three consecutive years.

NHCI also agreed to immediate reinstatement of the antidumping duty

order, as long as any exporter or producer is subject to the order, if

the Department concludes that NHCI, subsequent to the revocation, sold

the subject merchandise at less than normal value.

We must determine, as a threshold matter, in accordance with 19 CFR

351.222, whether the company requesting revocation sold the subject

merchandise in commercial quantities in each of the three years forming

the basis of the request. See Pure Magnesium From Canada; Final Results

of Antidumping Duty Administrative Review and Determination Not to

Revoke Order in Part, 64 FR 12977, 12978 (March 16, 1999) (``Fifth

Review''). In the Fifth Review, we determined that NHCI did not sell

the subject merchandise in the United States in commercial quantities

in any of the three years cited by NHCI to support its request for

revocation. Two of those three years have been cited by NHCI in support

of its current request for revocation. Based on our findings in the

Fifth Review, we preliminarily find that NHCI does not qualify for

revocation of the order on pure magnesium because it does not have

three consecutive years of sales in commercial quantities at not less

than normal value, as provided for in 19 CFR 351.222(b) and (e)(1)(ii).

Therefore, we do not need to address the issue of whether NHCI's sales

in the current review period were in commercial quantities.

Preliminary Results of the Review

As a result of this review, we preliminarily determine that NHCI's

margin for the period August 1, 1997, through July 31, 1998, is zero.

Any interested party may request a hearing within 30 days of

publication. Any hearing, if requested, will be held 42 days after the

publication of this notice, or the first workday thereafter. Issues

raised in the hearing will be limited to those raised in the respective

case and rebuttal briefs. Interested parties may submit case briefs

within 30 days of the date of publication of this notice. Rebuttal

briefs, which must be limited to issues raised in the case briefs, may

be filed not later than 35 days after the date of publication of this

notice.

Parties who submit case 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 with an electronic

version included. The Department will publish the final results of this

administrative review subsequently, including the results of its

analysis of issues raised in any such written briefs or hearing. The

Department will issue final results of this review within 120 days of

publication of these preliminary results.

Furthermore, the following deposit requirements will be effective

upon completion of the final results of this administrative review for

all shipments of pure magnesium from Canada 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 Act: (1) The cash deposit rate for the reviewed

company will be the rate established in the final results of this

administrative review (except no cash deposit will be required for the

company if its weighted-average margin is de minimis, i.e., less than

0.5 percent); (2) for merchandise exported by manufacturers or

exporters not covered in this review but covered in the original less

than fair value investigation or a previous review, the cash deposit

will continue to be the most recent rate published in the final

determination or final results for which the manufacturer or exporter

received an individual rate; (3) if the exporter is not a firm covered

in this review, the previous review, or the original 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) if neither the exporter nor the manufacturer is a firm covered in

this or any previous reviews, the cash deposit rate will 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 serves as a preliminary reminder to importers of their

responsibility 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.

We are issuing and publishing these results in accordance with

sections 751(a)(1) and 777(i)(1) of the Act.

Dated: May 3, 1999.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 99-11886 Filed 5-10-99; 8:45 am]

BILLING CODE 3510-DS-P