Notice of Initiation of Changed Circumstances Antidumping Duty Administrative Review: Dynamic Random Access Memory Semiconductors From Korea

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-812]

Notice of Initiation of Changed Circumstances Antidumping Duty

Administrative Review: Dynamic Random Access Memory Semiconductors From

Korea

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Initiation of Changed Circumstances Antidumping Duty

Administrative Review.

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SUMMARY: In accordance with 19 CFR 351.216, Micron Technology Inc.

(``Micron''), a U.S. producer of dynamic random access memory

semiconductors (``DRAMs'') and the petitioner in the less-than-fair-

value (``LTFV'') investigation of DRAMs from Korea, requested a changed

circumstances review pursuant to section 751(b) of the Tariff Act of

1930, as amended (``the Act''). In response to this request, the

Department of Commerce (``the Department'') is initiating a changed

circumstances review on DRAMs from Korea.

EFFECTIVE DATE: December 13, 1999.

FOR FURTHER INFORMATION CONTACT: Ron Trentham or Tom Futtner, AD/CVD

Enforcement, Group II, Office 4, Import Administration, International

Trade Administration, U.S. Department of Commerce, 14th and

Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-

6320 or (202) 482-3814, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

Unless otherwise stated, all citations to the Act are references to

the provisions as of January 1, 1995, the effective date of the

amendments made to the Act by the Uruguay Round Agreements Act

(``URAA''). In addition, unless otherwise indicated, all references to

the regulations of the Department are to 19 CFR part 351 (1998).

Background

On May 10, 1993, the Department published in the Federal Register

(58 FR 27250) the antidumping duty order on DRAMs from Korea. On

November 12, 1999, Micron submitted a letter stating that LG Semicon

Co., Ltd., (``LG Semicon'') and Hyundai Electronics Industries Co.,

Ltd., (``Hyundai''), two Korean DRAMs producers, merged on October 14,

1999, thus creating a new business entity--Hyundai MicroElectronics

Co., Ltd. Micron further states that since both DRAM producers are

subject to the DRAM antidumping duty order, the newly established

entity should receive a blended cash deposit based on the weighed

average dumping margins that the Department will establish for each of

the respondents in the impending final results of the 1997-1998 (fifth)

administrative review of the order.

In its November 12, 1999 letter, the petitioner also requested that

the Department issue the final results of the changed circumstances

review on an expedited schedule, to coincide with release of the final

results of the fifth administrative review of the order.

Scope of Review

Imports covered by the review are shipments of DRAMs from Korea.

Included in the scope are assembled and unassembled DRAMs. Assembled

DRAMs include all package types. Unassembled DRAMs include processed

wafers, uncut die, and cut die. Processed wafers produced in Korea, but

packaged or assembled into memory modules in a third country, are

included in the scope; wafers produced in a third country and assembled

or packaged in Korea are not included in the scope.

The scope of this review includes memory modules. A memory module

is a collection of DRAMs, the sole function of which is memory. Modules

include single in-line processing modules (``SIPs''), single in-line

memory modules (``SIMMs''), 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 which contain additional items which alter the

function of the module to something other than memory, such as video

graphics adapter (``VGA'') boards and cards, are not included in the

scope. The scope of this review also includes video random access

memory semiconductors (``VRAMS''), as well as any future packaging and

assembling of DRAMs; and, removable memory modules placed on

motherboards, with or without a central processing unit (``CPU''),

unless the importer of motherboards certifies with the Customs Service

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 review does not include DRAMs or memory modules that are

reimported for repair or replacement.

The DRAMS and modules subject to this review are currently

classifiable under subheadings 8471.50.0085, 8471.91.8085,

8542.11.0024, 8542.11.8026, 8542.13.8034, 8471.50.4000, 8473.30.1000,

8542.11.0026, 8542.11.8034, 8471.50.8095, 8473.30.4000, 8542.11.0034,

8542.13.8005, 8471.91.0090, 8473.30.8000, 8542.11.8001, 8542.13.8024,

8471.91.4000, 8542.11.0001, 8542.11.8024 and 8542.13.8026 of the

Harmonized Tariff Schedule of the United States (``HTSUS''). Although

the HTSUS subheadings are provided for convenience and customs

purposes, the Department's written description of the scope of this

review remains dispositive.

Initiation of Changed Circumstances Antidumping Duty Review

In accordance with section 751(b) of the Act, the Department is

initiating a changed circumstances review to determine whether Hyundai

MicroElectronics Co., Ltd., is the successor-in-interest to LG Semicon

and Hyundai for purposes of determining antidumping duty liability. In

making such a successor-in-interest determination, the Department

typically examines several factors including, but not limited to,

changes in: (1) Management; (2) production facilities; (3) supplier

relationships; and (4) customer base. See Brass Sheet and Strip from

Canada: Notice of Final Results of Antidumping Administrative Review,

57 FR 20460 (May 13, 1992) (``Canadian Brass''). While no one or a

combination of these factors will necessarily provide a dispositive

indication, the Department will generally consider the new company to

be the successor to a previous company if its resulting operation is

not materially dissimilar to that of its predecessor. See Industrial

Phosphoric Acid from Israel: Final Results of Changed Circumstances

Review, 59 FR 6944 (February 14, 1994) and Canadian

[[Page 69493]]

Brass, 57 FR 20460. Thus, if the record evidence, subject to

verification, demonstrates that, with respect to the production and

sale of the subject merchandise, the new company operates as the same

business entity as the former company, the Department may assign the

new company a cash deposit rate of its predecessor. See e.g. Fresh and

Chilled Atlantic Salmon from Norway: Final Results of Changes

Circumstances Antidumping Duty Administrative Review, 64 FR 9979, 9980

(March 1, 1999). In addition, in the event that the Department

concludes that expedited action is warranted, 19 CFR 351.221(c)(3)(ii)

permits the Department to combine the notices of initiation and

preliminary results.

The Department concludes that it would be inappropriate to expedite

this action pursuant to 19 CFR 351.221(c)(3)(ii) by issuing a

preliminary determination prior to conducting an investigation in the

instant case. The Department may need additional information regarding

the Hyundai-LG Semicon merger which would make expedited action

impracticable. Therefore, the Department is not issuing preliminary

results of its changed circumstances antidumping duty administrative

review at this time.

The Department will publish in the Federal Register a notice of

preliminary results of changed circumstances antidumping duty

administrative review in accordance with 19 CFR 351.221(c)(3)(i), which

will set forth the factual and legal conclusions upon which our

preliminary results are based, and a description of any action proposed

based on those results. Interested parties may submit comment for

consideration in the Department's preliminary results not later than 20

days after publication of this notice. Responses to those comments may

be submitted no later than 10 days following submission of the

comments. All written comments must be submitted in accordance with 19

CFR 351.303, and must be served on all interested parties on the

Department's service list in accordance with 19 CFR 351.303. The

Department will publish in the Federal Register the final results of

the changed circumstances review within 270 days after the date on

which the changed circumstances review is initiated, in accordance with

19 CFR 351.216(e). This initiation of review notice is in accordance

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

Dated: December 6, 1999.

Richard W. Moreland,

Acting Assistant Secretary for Import Administration.

[FR Doc. 99-32227 Filed 12-10-99; 8:45 am]

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