[Federal Register Volume 64, Number 173 (Wednesday, September 8, 1999)]
[Notices]
[Pages 48805-48807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23329]


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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