[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Notices]
[Pages 7519-7521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3133]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-821-805, A-821-806, A-823-806]
Notice of Amended Preliminary Determinations of Sales at Less
Than Fair Value: Antidumping Duty Investigations of Pure and Alloy
Magnesium From the Russian Federation and Pure Magnesium From Ukraine
AGENCY: Import Administration, International Trade Administration,
Commerce Department.
EFFECTIVE DATE: February 8, 1995.
FOR FURTHER INFORMATION CONTACT: Dorothy Tomaszewski, Mark Wells, or
Erik Warga, Office of Antidumping Investigations, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C.,
20230; telephone (202) 482-0631, 482-3003 or 482-0922.
Scopes of Investigations
These investigations cover pure and alloy primary magnesium. The
scopes are fully described in the preliminary determinations (see
Notice of Preliminary Determinations of Sales at Less Than fair Value:
Pure and Alloy Magnesium from the Russian Federation (59 FR 55427,
November 7, 1994) and Notice of Preliminary Determination of Sales at
Less Than Fair Value: Pure Magnesium from Ukraine (59 FR 55420,
November 7, 1994)).
Case History
On October 27, 1994, the Department of Commerce (``the
Department'') made its affirmative preliminary determinations of sales
at less than fair value in the above-cited investigations concerning
subject merchandise from Russia and Ukraine. The petitioners, on
November 14, 1994, alleged that the Department made several ministerial
errors in those preliminary determinations and requested that the
Department correct these ministerial errors accordingly.
On December 22, 1994, the Department found that the petitioners'
allegations relating to the use of the initiation margins, as
recalculated by the Department, as best information
[[Page 7520]] available (``BIA'') for non-cooperative respondents and
in the weighted-average calculations of the ``all others'' rate,
involved calculation errors that were ministerial in nature. However,
the Department determined that these errors did not warrant correction
since such correction did not result in a combined change of at least 5
absolute percentage points in, and no less than 25 percent of, any of
the original preliminary dumping margins--the threshold for amending
our preliminary determination.
On January 4, 1995, the petitioners contested the Department's
finding, stating that the ministerial errors did, in fact, result in a
combined change of at least 5 absolute percentage points in, and no
less than 25 percent of, any of the original preliminary dumping
margins and, therefore, require correction in amended preliminary
determinations. The petitioners are correct.
Amendment of Preliminary Determinations
The Department is amending its preliminary determinations. Set
forth below is the basis for the amended preliminary determinations
concerning the recalculation of the initiation margin as it relates to
both the BIA rate for non-cooperative respondents and the ``all
others'' rate.
It is not our normal practice to amend preliminary determinations
since these determinations only establish estimated margins, which are
subject to verification and which may change in the final
determination. However, the Department has stated that it will amend a
preliminary determination to correct for significant ministerial
errors. (See Amendment to Preliminary Determination of Sales at Less
Than Fair Value: Certain Welded Stainless Steel Pipes from Taiwan, 57
FR 33492 (July 29, 1992)).
Russia
In the preliminary determinations for both pure and alloy magnesium
from Russia, the highest margins for each class or kind (i.e., pure or
alloy) of subject merchandise in the petition, as recalculated by the
Department at initiation to account for errors in arithmetic and/or
methodology, were assigned as BIA for non-cooperative respondents. In
turn, the company-specific BIA margins were among the margins used in
calculating the ``all others'' rate. Certain factor values, based on
prices in the United States, were not included in the recalculation of
the petition margin at initiation because (1) petitioners failed to
follow the Department's established hierarchy with respect to factor
valuation, and (2) petitioners provided no basis for determining that
the United States values were representative of the appropriate
surrogate country values. Specifically, no value for factory overhead
was included in the constructed value calculation on which the
initiation margins for pure and alloy magnesium from Russia are based.
In addition, values for four inputs, fluorspar, magnesium chloride,
sodium chloride, and barium chloride, as well as a value for packing,
were not included in the initiation margin calculations. Therefore, the
petitioners argued that the Department's recalculations result in the
understatement of the margin assigned as BIA to non-cooperative
respondents and in the understatement of the margin used in calculating
the ``all others'' rate as well.
The Department considers the omission of certain factor values in
the recalculated margins from the petition to be ministerial errors.
Because correction of this error would result in a change of at least 5
absolute percentage points in, but not less than 25 percent of, the BIA
margins in the preliminary determinations for pure and alloy magnesium
from Russia, this error constitutes a significant ministerial error.
The omission of factory overhead has been corrected by applying the
Brazilian surrogate percentage value for factory overhead to the
petition's total cost of manufacture and the resulting figure was
included in the petition's margin calculation. Selling, general and
administrative (SG&A) expenses and profit in the petition's margin
calculations for pure and alloy magnesium from Russia were also
recalculated accordingly to account for factory overhead. In addition,
the Brazilian surrogate value for fluorspar as a flux additive was also
included in the revised margin assigned as BIA for non-cooperative
respondents and used in the calculation of the ``all others'' rate. The
petitioners requested that the missing factor values be based on U.S.
experience reported in the petition. However, the factor values in the
petition were already determined by the Department to be inappropriate.
Accordingly, the Department is applying the surrogate values, which
more reasonably reflect the value of these factors in the production
process.
No values were included for magnesium chloride, barium chloride, or
sodium chloride since those factors were never considered in the
petition's margin calculations. In addition, packing could not be
valued since the petition provided no specific quantity data on the
factor for determining an appropriate unit value.
Ukraine
In the preliminary determination for pure magnesium from Ukraine,
the highest margin in the petition, as recalculated by the Department
at initiation to account for errors in arithmetic and/or methodology,
was assigned as BIA for non-cooperative respondents. In turn, the
company-specific BIA margins were among the margins used in calculating
the ``all others'' rate.
Furthermore, in calculating Gerald Metals' margin for pure
magnesium from Ukraine, the BIA margin, based on this recalculated
initiation margin, was applied to certain U.S. sales transactions of
subject merchandise produced by an uncooperative respondent,
Zaporozhye.
Certain factor values, based on prices in the United States, were
not included in the recalculation of the petition margin at initiation
because (1) petitioners failed to follow the Department's established
hierarchy with respect to factor valuation, and (2) petitioners
provided no basis for determining that the United States values were
representative of the appropriate surrogate country values.
Specifically, no values for factory overhead and two material inputs
used in the production of the subject merchandise were included in the
constructed value calculation on which the petition margin for pure
magnesium was based. Therefore, petitioners argued, the Department's
recalculation of the petition margin resulted in the understatement of
the margin assigned as BIA to non-cooperative respondents, in the
understatement of the ``all others'' rate, and in the understatement of
Gerald Metals' calculated margin.
The Department considers the omission of certain factor values in
the recalculated petition margin to be a ministerial error. Because
correction of this error would result in a change of at least 5
absolute percentage points in, but not less than 25 percent of, the BIA
margin in the preliminary determination for pure magnesium from
Ukraine, this error constitutes a significant ministerial error.
The ministerial error has been corrected by applying the percentage
value for factory overhead used in the preliminary determination margin
calculations (which was the factory overhead rate from the petition
because a surrogate value for factory overhead from either Indonesia or
Egypt could not be found) to the petition's total cost of
[[Page 7521]] manufacture and the resulting figure was added to the
constructed value in the petition's margin calculation. Selling,
general and administrative (SG&A) expenses and profit in the petition's
margin calculations for pure magnesium from Ukraine were also
recalculated accordingly to account for factory overhead. In addition,
the Indonesian surrogate value for one of the missing input values was
also figured in the revised margin calculation. The petitioners
requested that the missing material values be based on material values
originally reported in the petition. However, the petition's unit value
for one of the material inputs at issue was already determined by the
Department to be inappropriate. Accordingly, the Department determined
that the surrogate value for the factor more reasonably reflects the
value of the factor in the production process.
The other material input in question could not be valued since the
petition provided no specific quantity data or description of the
factor for determining an appropriate unit value.
Addenda to Preliminary Determinations
In our October 27, 1994, preliminary determinations in these
proceedings, we stated that we would impose company-specific duty
deposit rates on certain non-participating mandatory respondents whose
identities were business proprietary and thus could not be disclosed.
Subsequent to publication of those determinations, we were informed by
the U.S. Customs Service that it could not administer suspension-of-
liquidation instructions that involved unidentified companies.
Accordingly, we did not assign company-specific deposit rates to these
companies; instead, entries of merchandise sold by these companies are
subject to the ``All Others'' deposit rate.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, the Department
will direct the U.S. Customs Service to continue to require cash
deposit or posting of bond on all entries of subject merchandise from
Russia and Ukraine for non-cooperative respondents and for ``all
others'' at the newly calculated rates, that are entered, or withdrawn
from warehouse, for consumption on or after the date of publication of
this notice in the Federal Register. The suspension-of-liquidation will
remain in effect until further notice. The revised company-specific BIA
margins for non-cooperative respondents and the ``all others'' rate as
well as Gerald Metals' revised margin for pure magnesium from Ukraine
are as follows:
------------------------------------------------------------------------
Pure Alloy
magnesium magnesium
(percent) (percent)
------------------------------------------------------------------------
Russia:
F&S............................................. 100.25 153.65
W&O Bergmann.................................... 100.25 153.65
Derek Raphael & Co.............................. 100.25 153.65
Marco Trading................................... 100.25 153.65
Wogen Group..................................... 100.25 153.65
Alex............................................ 100.25 153.65
``All others''.................................. 94.30 153.65
Ukraine:
Gerald Metals................................... 83.32
Alusuisse-Lonza................................. 104.27
Derek Raphael................................... 104.27
Marco Trading................................... 104.27
Wogen Group..................................... 104.27
Alex............................................ 104.27
Mages........................................... 104.27
F&S............................................. 104.27
``All others''.................................. 99.81
------------------------------------------------------------------------
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of the amended preliminary determinations. If our final
determinations are affirmative, the ITC will determine whether imports
of the subject merchandise are materially injuring, or threaten
material injury to, the U.S. industry, before the later of 120 days
after the date of the original preliminary determinations (October 27,
1994) or 45 days after our final determinations.
This notice is published pursuant to section 733(f) of the Act and
19 CFR 353.15(a)(4).
Dated: January 31, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-3133 Filed 2-7-95; 8:45 am]
BILLING CODE 3510-DS-P
