# Pure Magnesium and Alloy Magnesium From Canada: Final Results of Countervailing Duty Administrative Reviews

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URL: https://www.frixlaw.com/law-library/documents/fr%3A99-23329

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** September 8, 1999
- **Citation:** 64 FR 48805

## Text

DEPARTMENT OF COMMERCE

International Trade Administration
[C-122-815]

Pure Magnesium and Alloy Magnesium From Canada: Final Results of
Countervailing Duty Administrative Reviews

AGENCY: Import Administration, International Trade Administration,
Department of Commerce.

ACTION: Notice of final results of countervailing duty administrative
reviews.

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SUMMARY: On May 7, 1999, the Department of Commerce published in the
Federal Register its preliminary results of the administrative reviews
of the countervailing duty orders on pure magnesium and alloy magnesium
from Canada for the period January 1, 1997, through December 31, 1997.
The Department has now completed these reviews in accordance with
section 751(a) of the Act. For information on the net subsidy rate for
the reviewed company, as well as for all non-reviewed companies, see
the Final Results of Reviews section of this notice. We will instruct
the U.S. Customs Service to assess countervailing duties accordingly.

EFFECTIVE DATE: September 8, 1999.

FOR FURTHER INFORMATION CONTACT: Annika O'Hara or Blanche Ziv, AD/CVD
Enforcement, Group I, Office 1, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-3798 or (202) 482-4207, respectively.

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute are
references to the provisions of the Tariff Act of 1930, as amended by
the Uruguay Round Agreements Act (``URAA''), effective January 1, 1995
(``the Act''). The Department of Commerce (``the Department'') is
conducting these administrative reviews in accordance with section
751(a) of the Act. In addition, unless otherwise indicated, all
citation to the Department's regulations are to the regulations
codified at 19 CFR Part 351 (1998).

Background

On August 31, 1992, the Department published in the Federal
Register the countervailing duty orders on pure magnesium and alloy
magnesium from Canada (57 FR 39392).
In accordance with 19 CFR 351.213(b), the reviews of these orders
cover those producers or exporters of the subject merchandise for which
a review was specifically requested. Accordingly, these reviews cover
only Norsk Hydro Canada, Inc. (``NHCI''), the sole producer or exporter
of the subject merchandise for which a review was requested. The
petitioner in these reviews is the Magnesium Corporation of America.
These reviews cover 17 programs.
In the preliminary results of these reviews, the Department invited
interested parties to comment on the results (See Pure Magnesium and
Alloy Magnesium From Canada: Preliminary Results of the Sixth
Countervailing Duty Administrative Reviews, 64 FR 24585 (May 7, 1999)
(``Preliminary Results'')). However, no case briefs or rebuttal briefs
were filed by interested parties. The Department did not conduct a
hearing for these reviews because none was requested.

Scope of the Reviews

The products covered by these reviews are shipments of pure
magnesium and alloy magnesium from Canada. Pure magnesium contains at
least 99.8 percent magnesium by weight and is sold in various slab and
ingot forms and sizes. Magnesium alloys contain less than 99.8 percent
magnesium by weight with magnesium being the largest metallic element
in the alloy by weight, and are sold in various ingot and billet forms
and sizes.
The merchandise under review is currently classifiable under items
8104.11.0000 and 8104.19.0000 of the Harmonized Tariff Schedule of the
United States (``HTSUS''). Although the HTSUS subheadings are provided
for

[[Page 48806]]

convenience and customs purposes, our written description of the scope
of these reviews is dispositive.
Secondary and granular magnesium are not included in the scope of
these orders. Our reasons for excluding granular magnesium are
summarized in the Preliminary Determination of Sales at Less Than Fair
Value: Pure and Alloy Magnesium From Canada, 57 FR 6094 (February 20,
1992).

Period of Review

The period of review (``POR'') for which we are measuring subsidies
is from January 1, 1997 through December 31, 1997.

Analysis of Programs

I. Programs Conferring Subsidies

I. Programs Conferring Subsidies
A. Exemption from Payment of Water Bills
In the Preliminary Results, we found that this program conferred a
countervailable benefit on the subject merchandise. We also
preliminarily determined that the program was terminated during the
POR, that no residual benefits were being provided or received, and
that no substitute program had been implemented. We have not received
any new information or comments which would lead us to change our
preliminary findings. On this basis, we determine that the net subsidy
rate for this program during the POR is 0.18 percent for NHCI.
Moreover, because this program was terminated during the POR, we do not
intend to examine it in the future and the cash deposit rate will be
zero for this program.

B. Article 7 Grants from the Quebec Industrial Development Corporation

In the Preliminary Results, we found that this program conferred a
countervailable benefit on the subject merchandise. We have not
received any new information or comments which would lead us to change
our preliminary findings. On this basis, we determine that the net
subsidy rate for this program during the POR is 1.84 percent for NHCI.

II. Programs Found Not to be Used

In the Preliminary Results, we found that NHCI did not apply for or
receive benefits under the following programs during the POR:

St. Lawrence River Environment Technology Development Program
Program for Export Market Development
Export Development Corporation
Canada-Quebec Subsidiary Agreement on the Economic Development
of the Regions of Quebec
Opportunities to Stimulate Technology Programs
Development Assistance Program
Industrial Feasibility Study Assistance Program
Export Promotion Assistance Program
Creation of Scientific Jobs in Industries
Business Investment Assistance Program
Business Financing Program
Research and Innovation Activities Program
Export Assistance Program
Energy Technologies Development Program
Transportation Research and Development Assistance Program.

We have not received any new information or comments on these
programs which would lead us to change our findings from the
Preliminary Results.

Final Results of Reviews

In accordance with 19 CFR 351.221(b)(5), we calculated an
individual subsidy rate for each producer or exporter subject to these
administrative reviews. For the period January 1, 1997, through
December 31, 1997, we determine the net subsidy rate for NHCI, the only
producer or exporter subject to these reviews, to be 2.02 percent ad
valorem. We will instruct the U.S. Customs Service (``Customs'') to
assess countervailing duties in this amount for all entries of the
subject merchandise produced and/or exported by NHCI during this
period. The Department will also instruct Customs to collect cash
deposits of estimated countervailing duties (exclusive of the net
subsidy rate calculated for the water program; see section I.A. above)
at the rate of 1.84 percent of the f.o.b. invoice prices on all
shipments of the subject merchandise from NHCI, entered, or withdrawn
from warehouse, for consumption on or after the date of publication of
the final results of these administrative reviews.
Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for
investigated and reviewed companies, the procedures for establishing
countervailing duty rates, including those for non-reviewed companies,
are now essentially the same as those in antidumping cases, except as
provided for in section 777A(e)(2)(B) of the Act. Consequently, the
requested review will normally cover only those companies specifically
named (see 19 CFR 351.213(b)). Pursuant to 19 CFR 351.212(c), for all
companies for which a review was not requested, duties must be assessed
at the cash deposit rate, and cash deposits must continue to be
collected at the rate previously ordered. As such, the countervailing
duty cash deposit rate applicable to a company can no longer change,
except pursuant to a request for a review of that company. See Federal-
Mogul Corporation and The Torrington Company v. United States, 822 F.
Supp. 782 (CIT 1993) and Floral Trade Council v. United States, 822 F.
Supp. 766 (CIT 1993) (interpreting 19 CFR 353.22(e), the antidumping
regulation on automatic assessment, which parallels 19 CFR 355.22(g),
the predecessor to 19 CFR 351.212(c)). Therefore, the cash deposit
rates for all companies except NHCI are unchanged by the results of
these reviews.
We will instruct Customs to continue to collect cash deposits for
non-reviewed companies (except for Timminco Limited, which was excluded
from the order in the original investigations) at the most recent
company-specific or country-wide rate applicable to the company.
Accordingly, the cash deposit rates that will be applied to non-
reviewed companies covered by these orders are those established in the
most recently completed administrative proceeding. See Final Results of
the Second Countervailing Duty Administrative Reviews: Pure Magnesium
and Alloy Magnesium from Canada, 62 FR 48607 (September 16, 1997).
These rates shall apply to all non-reviewed companies until a review of
a company assigned these rates is completed. In addition, for the
period January 1, 1997, through December 31, 1997, the assessment rates
applicable to all non-reviewed companies covered by these orders are
the cash deposit rates in effect at the time of entry, except for
Timminco Limited (which was excluded from the order in the original
investigations).
This notice serves as a reminder to parties subject to an
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.301. Timely written notification of
return or 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.
These administrative reviews and notice are in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.

[[Page 48807]]

Dated: August 31, 1999.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-23329 Filed 9-7-99; 8:45 am]
BILLING CODE 3510-DS-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-23329. Public record. Not legal advice.