99-6281. Pure Magnesium From Canada; Final Results of Antidumping Duty Administrative Review and Determination Not To Revoke Order in Part  

  • [Federal Register Volume 64, Number 50 (Tuesday, March 16, 1999)]
    [Notices]
    [Pages 12977-12982]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-6281]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-122-814]
    
    
    Pure Magnesium From Canada; Final Results of Antidumping Duty 
    Administrative Review and Determination Not To Revoke Order in Part
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of final results of administrative review and 
    determination not to revoke order in part.
    
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    SUMMARY: On May 12, 1998, the Department of Commerce published the 
    preliminary results of the administrative review of the antidumping 
    duty order on pure magnesium from Canada and its notice of intent not 
    to revoke the order with respect to pure magnesium produced by Norsk 
    Hydro Canada Inc. We gave interested parties an opportunity to comment 
    on the preliminary results. Based on our analysis of the comments 
    received, we have made certain changes for the final results.
        This review covers one producer/exporter of pure magnesium to the 
    United States during the period August 1, 1996, through July 31, 1997. 
    The review indicates no dumping margins during the review period.
    
    EFFECTIVE DATE: March 16, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Zak Smith or Stephanie Hoffman, Import 
    Administration, AD/CVD Enforcement Group I, Office 1, U.S. Department 
    of Commerce, 14th Street and Constitution Avenue, NW, Washington, D.C. 
    20230; telephone (202) 482-0189 or 482-4198, respectively.
    
    SUPPLEMENTARY INFORMATION:
    
    Applicable Statute and Regulations
    
        The Department of Commerce (``the Department'') is conducting this 
    administrative review in accordance with section 751 of the Tariff Act 
    of 1930 (``the Act''), as amended. 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 Act
    
    [[Page 12978]]
    
    by the Uruguay Round Agreements Act. In addition, unless otherwise 
    indicated, all citations to the Department's regulations are to those 
    codified at 19 CFR part 351 (April 1998).
    
    Background
    
        On May 12, 1998, the Department published the preliminary results 
    of the administrative review of the antidumping duty order on pure 
    magnesium from Canada and notice of the intent not to revoke the order 
    in part (63 FR 26147) (``Preliminary Results''). The producer/exporter 
    in this review is Norsk Hydro Canada Inc. (``NHCI''). We received 
    comments and rebuttal comments from NHCI and petitioner, Magnesium 
    Corporation of America (``Magcorp'') (see Interested Party Comments, 
    below). A hearing was held on July 29, 1998. The time limit for the 
    final results of this administrative review was extended on both 
    September 16, and November 18, 1998.
        Subsequent to the Department's decision in Certain Corrosion-
    Resistant Carbon Steel Flat Products and Certain Cut-to-Length Carbon 
    Steel Plate From Canada: Final Results of Antidumping Duty 
    Administrative Review and Determination To Revoke in Part (64 FR 2173, 
    (January 13, 1999) (``Corrosion-Resistant Steel from Canada''), NHCI 
    made a submission commenting upon the position taken by the Department 
    in that case. Although the deadline for submission of argumentation had 
    passed, given the length of time (more than six months) that has 
    elapsed since our formal comment period and in light of the potential 
    relevance of the Department's determination in Corrosion-Resistant 
    Steel from Canada, we decided to place NHCI's submission on the record 
    and take it into account in these final results. We also permitted 
    petitioner to comment upon Corrosion-Resistant Steel from Canada and 
    respondent's submission concerning that determination.
    
    Scope of the 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 of this review. Pure 
    magnesium is currently classified 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.
    
    Determination Not To Revoke Order in Part
    
        The Department ``may revoke, in whole or in part'' an antidumping 
    duty order upon completion of a review under section 751 of the Act. 
    While Congress has not specified the procedures that the Department 
    must follow in revoking an order, the Department has developed a 
    procedure for revocation that is described in 19 CFR 351.222. This 
    regulation requires, inter alia, that a company requesting revocation 
    must submit the following: (1) A certification that the company has 
    sold the subject merchandise at not less than normal value (``NV'') in 
    the current review period and that the company will not sell at less 
    than NV in the future; (2) a certification that the company sold the 
    subject merchandise in each of the three years forming the basis of the 
    request in commercial quantities; and (3) an agreement to reinstatement 
    in the order if the Department concludes that the company, subsequent 
    to the revocation, sold subject merchandise at less than NV. See 19 CFR 
    351.222(e)(1). Upon receipt of such a request, the Department may 
    revoke an order, in part, if it concludes that (1) the company in 
    question has sold subject merchandise at not less than NV for a period 
    of at least three consecutive years; (2) it is not likely that the 
    company will in the future sell the subject merchandise at less than 
    NV; and (3) the company has agreed to its immediate reinstatement in 
    the order if the Department concludes that the company, subsequent to 
    the revocation, sold subject merchandise at less than NV. See 19 CFR 
    351.222(b)(2).
        In our Preliminary Results, we determined that ``based on the 
    evidence on the record, we cannot reasonably conclude that NHCI is not 
    likely to dump in the future if the order were revoked'' (see 
    Memorandum to Gary Taverman, dated May 4, 1998).
        After consideration of the various comments that were submitted in 
    response to the preliminary results, we have concluded that 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. As stated in Corrosion-Resistant Steel from Canada (at 
    2189), ``respondents must meet the threshold criterion of three 
    consecutive years of sales in commercial quantities at not less than 
    [normal value] in order to be eligible for revocation.''
        We determine 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. Specifically, NHCI made 
    one sale in two of the relevant years and two sales in the other. One 
    or two sales to the United States during a one year period is not 
    consistent with NHCI's selling activity prior to the order nor is it 
    consistent with NHCI's selling activity in the home market (see 
    Memorandum from Team to Susan Kuhbach, ``Commercial Quantities,'' dated 
    March 8, 1999, for a discussion of NHCI's selling activity). 
    Furthermore, we found that, for each year, the volume of merchandise 
    sold was less than one-half of one percent of the volume of merchandise 
    sold in the last completed fiscal year prior to the order. These sales 
    and volume figures are so small, both in absolute terms and in 
    comparison with the period of investigation, that we cannot reasonably 
    conclude that the zero margins NHCI received are reflective of the 
    company's normal commercial experience. More specifically, the 
    abnormally low level of sales activity does not provide a reasonable 
    basis for determining that the discipline of the order is no longer 
    necessary to offset dumping. Therefore, we find that NHCI does not 
    qualify for revocation of the order on pure magnesium under 19 CFR 
    351.222(b) and (e)(1)(ii).
    
    Comparisons
    
        We calculated export price and normal value based on the same 
    methodology used in the Preliminary Results, with the following 
    exceptions:
        Based upon comments received from respondent, when determining the 
    appropriate home market sales to use for comparison purposes the 
    Department is now matching to identical sales. Also, based upon 
    comments received from respondent, we have made the necessary changes 
    such that home market freight charges are being converted 
    appropriately.
    
    Interested Party Comments
    
        In accordance with 19 CFR 351.309, we invited interested parties to 
    comment on our Preliminary Results. On June 11 and June 16, 1998, 
    petitioner and respondent submitted case briefs and rebuttal briefs, 
    respectively. At the request of respondent, a public hearing was held 
    on July 29, 1998. In addition, we received interested party comments 
    from Chicago White Metal Casting, Inc., Magnesium Products of America, 
    Inc., Reynolds Metals Company, and Alcan Aluminum Corporation.
    
    [[Page 12979]]
    
    Comment 1: Commercial Quantities
    
        Petitioner opposes revocation of the antidumping duty order in 
    part, arguing that respondent has not met the requirements for 
    revocation. Specifically, petitioner points to 19 CFR 351.222(e)(1)(ii) 
    which requires respondents to certify that they have sold the subject 
    merchandise in commercial quantities to the United States during each 
    of the three consecutive years. Petitioner argues that NHCI's sales to 
    the United States during the last three review periods were far too 
    small to be considered commercial quantities. In petitioner's view, 
    these were merely token sales whose only purpose was to obtain three 
    years of zero antidumping margins and qualify for revocation.
        Petitioner contends that the concept of commercial quantities 
    refers to the aggregate volume of sales made by a respondent over the 
    course of the entire period of review (``POR'') and not to the size of 
    a single sale used in the calculation of an antidumping margin. In 
    support for this argument, petitioner claims that there would be no 
    reason for the requirement of commercial quantities in 19 CFR 
    351.222(e)(1)(ii) if the term merely referred to the existence of any 
    sale recognizable as a U.S. sale for calculating an antidumping margin 
    because there would be no reason for the Department to ask a respondent 
    to certify a fact that has already been established.
        Petitioner further argues that only if a respondent's sales are 
    sufficiently large will a zero antidumping margin offer any valid 
    indication that the respondent can continue to export the subject 
    merchandise to the United States at normal prices if the antidumping 
    duty order were revoked. As an example, petitioner points to the 
    Department's decision not to revoke the antidumping duty order in Brass 
    Sheet and Strip From Germany; Final Results of Antidumping Duty 
    Administrative Review and Determination Not to Revoke in Part, 61 FR 
    49727 (September 23, 1996) (``German Brass Sheet'') due to the small 
    volume of shipments. Petitioner also refers to the preamble of the 
    final regulations in which the Department states that a revocation 
    based on the absence of dumping is based on the fact that when a 
    respondent sells in commercial quantities without dumping it has 
    demonstrated that it will not resume dumping if the order is revoked 
    (see Antidumping Duties; Countervailing Duties; Final Rule (``Final 
    Regulations''), 62 FR 27296, 27326 (May 19, 1997)).
        Respondent argues that the term ``commercial quantities'' refers 
    not to the number or volume of sales, but to whether any individual 
    sale was a normal size transaction for the industry. In support for 
    this argument, respondent points to the proposed regulations in which 
    the Department states that it will ``establish whether sales were made 
    in commercial quantities based upon examination of the normal sizes of 
    sales by the producer/exporter and other producers of subject 
    merchandise.'' (See Antidumping Duties; Countervailing Duties, Proposed 
    Rule (``Proposed Regulations''), 61 FR 7308, 7320 (February 27, 1996)). 
    Respondent believes that the Department never intended to consider the 
    aggregate volume of sales made throughout the POR. Rather, NHCI argues, 
    the concept of commercial quantities was included in the regulations to 
    ensure that individual sales made during an intervening year were of 
    sufficient size to permit the Department to conduct a review had one 
    been requested (as opposed to sales of samples or prototypes and sales 
    so small that they could not be regarded as bona fide commercial 
    transactions). Respondent further argues that the Department's 
    application of the criterion in Corrosion-Resistant Steel from Canada 
    inappropriately disqualifies respondents from revocation, even when 
    reviews are conducted in all three years.
        Department's Position: NHCI has requested revocation based on the 
    absence of dumping. As explained above, to consider such a request we 
    must determine, as a threshold matter, 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 19 CFR 
    351.222(e)(1)(i)-(iii); see also, 19 CFR 351.222(d)(1).
        We disagree with NHCI's argument that the commercial quantities 
    criterion requires only that there be a bona fide commercial 
    transaction during a given period. As the Department recently 
    explained, ``sales during the POR which, in the aggregate, are an 
    abnormally small quantity do not provide a reasonable basis for 
    determining that the discipline of the order is no longer necessary to 
    offset dumping'' (see Corrosion-Resistant Steel from Canada at 2175). 
    As the record of this case demonstrates, 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. 
    Regardless of the bona fide nature of each transaction, these sales, in 
    the aggregate, are abnormally small in quantity and do not provide the 
    Department with a reasonable basis to make a revocation determination 
    (see Memorandum from Team to Susan Kuhbach, ``Commercial Quantities,'' 
    dated March 8, 1999).
        We also note that while the regulation requiring sales in 
    commercial quantities may have developed from the unreviewed 
    intervening year regulation, its application in all revocation cases 
    based on an absence of dumping is reasonable and mandated by the 
    regulations. The application of this requirement to all such cases is 
    reflected not only in the provision for unreviewed intervening years 
    (see 19 CFR 351.222(d)(1)), but also in the new general requirement 
    that parties seeking revocation certify to sales in commercial 
    quantities in each of the years on which revocation is to be based. See 
    19 CFR 351.222(e)(1)(ii). This requirement ensures that the 
    Department's revocation determination is based upon a sufficient 
    breadth of information regarding a company's normal commercial 
    practice. As in Corrosion-Resistant Steel from Canada (at 2175), in 
    this case the number of sales and the total sales volumes are so small, 
    both in absolute terms and in comparison with the period of 
    investigation and other review periods, that these sales do not provide 
    sufficient information on a company's normal commercial experience to 
    make a revocation decision. If sales are not reflective of a company's 
    normal commercial activities, they can offer no basis upon which to 
    make a revocation determination, regardless of whether we conducted a 
    review or the sales took place in an intervening year.
    
    Comment 2: Sales Drop-Off
    
        Petitioner argues that NHCI's withdrawal from the U.S. market in 
    the two first review periods after imposition of the antidumping duty 
    order and the company's insignificant U.S. sales in the subsequent 
    three review periods demonstrates that NHCI cannot sell commercially 
    significant quantities without resorting to dumping. Petitioner points 
    to the Statement of Administrative Action (``SAA'') accompanying the 
    Uruguay Round Trade Agreements which  states  that   ``. . . the 
    cessation of imports after the order, is highly probative of the 
    likelihood of continuation or recurrence of dumping'' (see H.R. Doc. 
    316, Vol. 1, 103d Cong., 2d Sess. 870 (1994) p. 889). Petitioner argues 
    that although this statement was made in the context of sunset reviews, 
    it provides guidance on how a respondent would act in the absence of an 
    antidumping order.
    
    [[Page 12980]]
    
        Respondent states that it made no sales to the United States in the 
    first and second review periods because of the prohibitively high 
    antidumping and countervailing duty cash deposit rates. This lack of 
    sales activity is irrelevant, according to NHCI, since NHCI made sales 
    to the United States during the third, fourth, and fifth review periods 
    which constituted a significant increase in sales compared to the first 
    two review periods.
        Moreover, respondent argues that it would be incorrect to use the 
    original period of investigation as a benchmark for NHCI's normal 
    commercial behavior because at that time, the company was still in the 
    process of ramping up production and establishing its customer base. 
    Respondent explains that after the imposition of the antidumping duty 
    order, it redirected its marketing strategy toward other export markets 
    and developed a strong home market for pure magnesium. NHCI, along with 
    other interested parties, notes that it also increased its production 
    and sales of alloy magnesium to the extent that by 1997, it had become 
    primarily a producer of alloy magnesium.
        Regarding petitioner's reference to the SAA, respondent argues that 
    the cited portion deals with sunset and changed circumstances reviews 
    and, therefore, does not apply to revocation reviews based on the 
    absence of dumping. In sunset reviews, it is presumed that a drop-off 
    in exports after the imposition of an antidumping duty order indicates 
    increased likelihood of continued or resumed dumping if the order were 
    revoked, but such presumption does not exist in the context of a 
    revocation based on the absence of dumping, according to respondent.
        Department's Position: We have considered the parties' arguments 
    regarding the post-order sales drop-off in a different context for 
    these final results, which rely on the absence of sales in commercial 
    quantities rather than the likelihood of future dumping. Regarding 
    respondent's claim that it would be incorrect to use the original 
    period of investigation as a benchmark for NHCI's normal commercial 
    behavior, we disagree. Assessment of the threshold regulatory 
    requirement that there be sales in commercial quantities during each of 
    the three years of review cannot take place in a vacuum. The period of 
    investigation is a logical and reasonable benchmark for this 
    assessment, especially given that it is the only time period for which 
    we have evidence concerning NHCI's commercial behavior with respect to 
    exports to the United States without the discipline of an antidumping 
    duty order. While we recognize that NHCI was a relatively new company 
    at the time of the original investigation, logically this would tend to 
    support the argument that their sales should have increased, rather 
    than decreased.
        In addition to examining NHCI's commercial activity during the 
    period of investigation, the Department also examined information 
    regarding NHCI's sales of pure magnesium to other markets for the three 
    years in question. Examination of the number and volume of sales made 
    in these markets further supports our determination that the sales to 
    the United States were not made in commercial quantities. Moreover, 
    this very evidence indicates that NHCI has not completely redirected 
    its market focus toward alloy magnesium but, in fact, maintains 
    significant pure magnesium sales volumes in other pure magnesium 
    markets, all of which are markedly smaller and more distant than the 
    U.S. market.
    
    Comment 3: Alleged Creation of New Revocation Requirement and Deviation 
    from Normal Practice
    
        NHCI objects to the application by the Department of a new 
    requirement in its Preliminary Results; namely, that a company must 
    ``participate meaningfully in the U.S. market'' to qualify for 
    revocation. In support of its argument, NHCI points to the Department's 
    statements in its Proposed Regulations and in the Notice of Final 
    Results of Antidumping Duty Administrative Review and Determination Not 
    to Revoke Order in Part: Dynamic Random Access Memory Semiconductors of 
    One Megabyte or Above From the Republic of Korea, 62 FR 39809 (July 24, 
    1997) (``DRAMS from Korea'') where it said that the Final Regulations 
    did not change the previous revocation requirements. Furthermore, 
    respondent refers to past cases (e.g., Antifriction Bearings (Other 
    Than Tapered Roller Bearings) and Parts Thereof from Italy, 60 FR 10959 
    (February 28, 1995) and Industrial Phosphoric Acid from Israel, 57 FR 
    10008 (March 23, 1992)) in which the Department decided to revoke 
    antidumping duty orders although the exporters' U.S. sales were small.
        Respondent and other interested parties further argue that although 
    the Department's regulations require a finding that respondent is 
    unlikely to sell the subject merchandise below normal value in the 
    future, the Department has generally agreed to revocation based on two 
    criteria: three consecutive years of zero dumping margins; and an 
    agreement by respondent to immediate reinstatement of the order if it 
    resumes dumping in the future. According to NHCI, the Department has 
    consistently found that these two criteria are dispositive of the ``not 
    likely'' analysis and that the Department generally does not conduct 
    such an analysis. Thus, NHCI claims that by not revoking the 
    antidumping duty order based on these two criteria, the Department has 
    deviated from its normal practice.
        Petitioner argues that, contrary to respondent's contention, there 
    is no ``normal practice'' of revoking orders based on three years of 
    zero deposit rates and certain certifications by respondent. Petitioner 
    states that when determining the likelihood of resumed dumping in past 
    cases (e.g., German Brass Sheet, Certain Circular Welded Carbon Steel 
    Pipes and Tubes from Taiwan, 56 FR 8741 (March 1, 1991), and DRAMs from 
    Korea), the Department has considered factors other than the 
    respondent's most recent dumping margins and its certification that it 
    will not resume dumping.
        Department's Position: While the Department's substantive 
    revocation criteria have not changed, the new regulations added a 
    threshold criterion for revocation proceedings. Specifically, the 
    Department now requires the company requesting revocation to have sold 
    the subject merchandise in commercial quantities in each of the three 
    years forming the basis of the request. See 19 CFR 351.222(e)(1)(ii). 
    Because the threshold requirement of sales in commercial quantities has 
    not been met in this case, the analysis in these final results does not 
    address the likelihood issue.
    
    Comment 4: Failure to Revoke the Order Would be in Conflict With the 
    WTO Agreement
    
        Respondent argues that a revocation of the order is mandated by the 
    1994 WTO Antidumping Agreement because Article 11.1 of this agreement 
    states that an antidumping duty ``shall remain in force only as long as 
    and to the extent necessary to counteract dumping which is causing 
    injury.'' Respondent supports this position by noting that in DRAMS 
    from Korea a WTO panel found that the ``continued imposition [of an 
    antidumping duty] must . . . be essentially dependent on, and therefore 
    assignable to, a foundation of positive evidence that circumstances 
    demand it'' (see United States--Anti-Dumping Duty on Dynamic Random 
    Access Memory Semiconductors (DRAMS) of One Megabit or Above From 
    Korea, WTO Doc. WT/DS99/R (January 29, 1999)) (``DRAMS Panel''). 
    Respondent further argues that the Department's decision in
    
    [[Page 12981]]
    
    Corrosion-Resistant Steel from Canada is inconsistent with this panel 
    finding because it automatically disqualified a respondent from 
    obtaining revocation without a foundation of positive evidence for 
    doing so.
        Department's Position: The Department's revocation procedures are 
    fully consistent with Article 11.1. Parties need only demonstrate that 
    they are no longer dumping while commercially engaged in the U.S. 
    market over a three year period. The requirement to which respondent 
    objects merely establishes a reasonable evidentiary threshold. Absent 
    commercially meaningful sales activity we do not have a sufficient 
    record to make a reasoned judgement as to revocation. Thus, the 
    threshold requirement of commercial quantities is necessary, 
    appropriate, and consistent with our WTO obligations and the DRAMS 
    Panel decision, because it is an objective condition by which the 
    Department can make a reasonable determination based on positive 
    evidence.
    
    Comment 5: Failure To Revoke the Order Would Be Punitive
    
        Respondent argues that failure to revoke would improperly punish 
    NHCI in light of the Department's determinations that the company has 
    not been dumping. Moreover, NHCI states that the order and the review 
    process have imposed a substantial burden on the company.
        Department's Position: Application of the regulatory requirements 
    for revocation is not punitive; rather, these requirements reflect the 
    Department's view that the actual revocation of an order can only occur 
    after the collection and analysis of all the relevant information. 
    While NHCI raised concerns during the proceeding that certain requests 
    for information were burdensome, we note that NHCI was able to meet all 
    such requests.
    
    Comment 6: Market Conditions and Trends
    
        Petitioner claims that conditions in the U.S. magnesium market make 
    dumping more likely because magnesium is a homogenous commodity product 
    which consumers buy from the seller offering the lowest price. 
    Petitioner cites to statements by an NHCI official to the effect that 
    the future magnesium market can be characterized as one of declining 
    real prices and oversupply. These trends, according to petitioner, 
    increase the likelihood that NHCI would revert to dumping in order to 
    boost its sales of the subject merchandise. Petitioner contends that 
    the magnesium prices quoted by respondent are list prices to which 
    discounts are applied before the actual transaction price is reached. 
    In petitioner's view, such list prices have little meaning as 
    indicators of the actual price level in the market.
        Petitioner claims that plans are underway to expand the production 
    capacity of pure and alloy magnesium, both in Canada and other 
    countries, and that this increased production will intensify 
    competition and lead to a continuation of the drop in magnesium prices. 
    Petitioner also contends that NHCI's new capacity will be utilized for 
    the production of pure magnesium and it will be directed toward the 
    U.S. market. Finally, petitioner asserts that it is very likely that 
    NHCI will have to switch significant production capacity from alloy to 
    pure magnesium.
        Respondent, along with other interested parties, disagrees with 
    petitioner's description of pricing practices in the magnesium market. 
    First, respondent says, customers do not always buy from the supplier 
    offering the lowest price because other factors are also important. 
    Second, magnesium is not a homogenous product and NHCI competes by 
    offering high-quality products. Third, respondent disputes petitioner's 
    allegation that it would have to undercut the prices of other producers 
    by pointing to the sales it has made in the United States at market 
    prices in the last three review periods.
        According to respondent, U.S. market prices have increased since 
    the antidumping investigation. While conceding that there have been 
    moderate adjustments in market prices, respondent argues that in real 
    terms, magnesium prices increased significantly between 1990 and 1996. 
    Thus, in respondent's opinion, prices will remain well above the level 
    where dumping would be inevitable. Respondent further claims that 
    petitioner has provided the prices of imported Russian and Chinese 
    magnesium and, according to other interested parties as well, the 
    pricing practices of these non-Western producers are inappropriate for 
    comparison to a Western producer like NHCI. Finally, respondent 
    contends that the price trends provided by petitioner are inconsistent 
    with those of the U.S. Geological Survey.
        Respondent also disputes the notion that there is an oversupply of 
    pure magnesium, stating that petitioner focuses on the demand/supply 
    situation in 1996. According to respondent and other interested 
    parties, the situation changed significantly in 1997 and current supply 
    conditions are tight with inventories below normal levels. Respondent 
    further states that demand for pure and alloy magnesium is expected to 
    increase in both the United States and Canada. Respondent argues that 
    it is, therefore, not at all certain that a major portion of NHCI's new 
    capacity will be sold as pure magnesium.
        With respect to its expansion plans, respondent maintains that it 
    has not made a final decision about expanding its magnesium-producing 
    plant and that petitioner's allegation about a doubling of NHCI's 
    production capacity, therefore, is wrong. Furthermore, petitioner's 
    assertion that an expansion by NHCI would lead to a resumption of 
    dumping is mere speculation, according to respondent.
        Respondent dismisses petitioner's allegations regarding other 
    producers' expansion plans and states that some of these companies have 
    not yet decided to build new magnesium plants. Finally, respondent 
    argues, even if all the proposed new plants were built, there is no 
    basis for petitioner's allegation that this increased competition would 
    result in dumping because dumping does not occur as a result of lower 
    prices, but as a result of price discrimination. In this context, 
    respondent emphasizes that it has signed a certification that it will 
    not engage in dumping in the future.
        Respondent and other interested parties also dispute petitioner's 
    assertion that NHCI could easily switch its production from alloy to 
    pure magnesium. Among other things, respondent points to its long-term 
    supply contracts for alloy as evidence that it cannot easily switch 
    production to pure magnesium.
        Department's Position: Because we have determined that NHCI is not 
    eligible for revocation, we do not reach the likelihood of future 
    dumping issue.
    
    Comment 7: Case Precedents Used in the Preliminary Results
    
        Respondent argues that the case precedents on revocation cited by 
    the Department in its Preliminary Results do not apply to the present 
    case because the factual situation is different and because the 
    Department considered mainly negative revocation decisions while it 
    ignored an affirmative decision.
        Department's Position: As explained above, given the Department's 
    finding that NHCI did not sell in commercial quantities, we do not 
    reach the likelihood issue.
    
    Comment 8: The Department Can Grant Revocation Over Petitioner's 
    Objection
    
        Respondent argues that petitioner, Magcorp, cannot purport to 
    represent the U.S. industry because the
    
    [[Page 12982]]
    
    Department determined in the investigation that petitioner represented 
    only 22 percent of U.S. magnesium producers. Respondent contends that 
    Magcorp is merely one producer objecting to the revocation of the order 
    and that the Department has revoked orders in the past over the 
    objections of a single producer.
        Department's Position: NHCI contested Magcorp's authority to 
    represent the US industry in its challenge to the original less than 
    fair value determination but did not prevail. (See Magnesium from 
    Canada, No. USA-92-1904-03 (August 16, 1993).) Nothing has changed 
    which would warrant a different conclusion in this proceeding. Because 
    Magcorp is an interested party, it is entitled to participate and 
    comment on revocation. Finally, our determination is based on the fact 
    that NHCI has not met the revocation requirements, not on Magcorp's 
    objection.
    
    Final Results of Review
    
        As a result of this review, we find that the following margin 
    exists for the period August 1, 1996, through July 31, 1997:
    
    ------------------------------------------------------------------------
                                                                  Margin
            Manufacturer/exporter                Period          (percent)
    ------------------------------------------------------------------------
    Norsk Hydro Canada Inc...............     8/1/96-7/31/97               0
    ------------------------------------------------------------------------
    
        Parties to the proceeding may request disclosure within five days 
    of the date of publication of this notice. The results of this review 
    shall be the basis for the assessment of antidumping duties on entries 
    of merchandise covered by the review and for future deposits of 
    estimated duties for the manufacturers/exporters subject to this 
    review. The Department will issue appraisement instructions directly to 
    the Customs Service.
        Furthermore, the following deposit requirements will be effective 
    for all shipments of the subject merchandise entered, or withdrawn from 
    warehouse, for consumption on or after the publication date of these 
    final results of this new shipper 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 indicated above; (2) for companies 
    not covered in this review, but covered in previous reviews or the 
    original less-than-fair-value investigation, the cash deposit rate will 
    continue to be the company-specific rate published for the most recent 
    period; (3) if the exporter is not a firm covered in this review, a 
    prior review, or the original investigation, but the manufacturer is, 
    the cash deposit rate will be the most recent rate established for the 
    manufacturer of the merchandise; and (4) if neither the exporter nor 
    the manufacturer is a firm covered in this or any previous review or 
    the original investigation, the cash deposit rate will be the ``all 
    others'' rate of 21 percent established in the amended final 
    determination of sales at less than fair value (58 FR 62643 (November 
    29, 1993)).
        These deposit requirements will remain in effect until publication 
    of the final results of the next administrative review.
        This notice also serves as a final reminder to importers of their 
    responsibility under 19 CFR 351.402(f) 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.
        This notice also serves as a reminder to parties subject to 
    administrative protective orders (``APOs'') of their responsibility 
    concerning the disposition of proprietary information disclosed under 
    APO in accordance with 19 CFR 351.306. Timely written notification of 
    the return/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.
        We are issuing and publishing this administrative review and notice 
    in accordance with sections 751(a)(1) and 771(i)(1) of the Act.
    
        Dated: March 8, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-6281 Filed 3-15-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
3/16/1999
Published:
03/16/1999
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of final results of administrative review and determination not to revoke order in part.
Document Number:
99-6281
Dates:
March 16, 1999.
Pages:
12977-12982 (6 pages)
Docket Numbers:
A-122-814
PDF File:
99-6281.pdf