[Federal Register Volume 76, Number 9 (Thursday, January 13, 2011)]
[Notices]
[Pages 2336-2337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-615]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-851]


Dynamic Random Access Memory Semiconductors From the Republic of 
Korea: Final Results of Countervailing Duty Administrative Review

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

SUMMARY: On September 14, 2010, the Department of Commerce published in 
the Federal Register its preliminary results of administrative review 
of the countervailing duty order on dynamic random access memory 
semiconductors from the Republic of Korea for the period January 1, 
2008, through August 10, 2008. We provided interested parties with an 
opportunity to comment on the preliminary results. Our analysis of the 
comments submitted led to a change in the net subsidy rate. The final 
net subsidy rate for Hynix Semiconductor, Inc. is listed below in the 
section entitled ``Final Results of Review.''

DATES: Effective Date: January 13, 2011.

FOR FURTHER INFORMATION CONTACT: Shane Subler or Jennifer Meek, AD/CVD 
Operations, Office 1, Import Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-0189 or (202) 482-2778, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The following events have occurred since the publication of the 
preliminary results of this review. See Dynamic Random Access Memory 
Semiconductors From the Republic of Korea: Preliminary Results of 
Countervailing Duty Administrative Review, 75 FR 55764 (September 14, 
2010) (``Preliminary Results'').
    On October 14, 2010, we received a case brief from the petitioner, 
Micron Technology, Inc. (``Micron''), and a joint case brief from Hynix 
Semiconductor, Inc. (``Hynix'') and the Government of the Republic of 
Korea (``GOK''). On October 19, 2010, Micron submitted a rebuttal 
brief. Hynix and the GOK also submitted a joint rebuttal brief on this 
date.

Scope of the Order

    The products covered by the order are dynamic random access memory 
semiconductors (``DRAMS'') from the Republic of Korea (``ROK''), 
whether assembled or unassembled. Assembled DRAMS include all package 
types. Unassembled DRAMS include processed wafers, uncut die, and cut 
die. Processed wafers fabricated in the ROK, but assembled into 
finished semiconductors outside the ROK are also included in the scope. 
Processed wafers fabricated outside the ROK and assembled into finished 
semiconductors in the ROK are not included in the scope.
    The scope of the order additionally includes memory modules 
containing DRAMS from the ROK. A memory module is a collection of 
DRAMS, the sole function of which is memory. Memory modules include 
single in-line processing modules, single in-line memory modules, dual 
in-line memory modules, small outline dual in-line memory modules, 
Rambus in-line memory modules, and memory cards 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 that contain additional items which 
alter the function of the module to something other than memory, such 
as video graphics adapter boards and cards, are not included in the 
scope. The scope also covers future DRAMS module types.
    The scope of the order additionally includes, but is not limited 
to, video random access memory and synchronous graphics random access 
memory, as well as various types of DRAMS, including fast page-mode, 
extended data-out, burst extended data-out, synchronous dynamic RAM, 
Rambus DRAM, and Double Data Rate DRAM. The scope also includes any 
future density, packaging, or assembling of DRAMS. Also included in the 
scope of the order are removable memory modules placed on motherboards, 
with or without a central processing unit, unless the importer of the 
motherboards certifies with U.S. Customs and Border Protection 
(``CBP'') 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 the order does not include DRAMS or memory modules that 
are re-imported for repair or replacement.
    The DRAMS subject to the order are currently classifiable under 
subheadings 8542.21.8005, 8542.21.8020 through 8542.21.8030, and 
8542.32.0001 through 8542.32.0023 of the Harmonized Tariff Schedule of 
the United States (``HTSUS''). The memory modules containing DRAMS from 
the ROK, described above, are currently classifiable under subheadings 
8473.30.1040, 8473.30.1080, 8473.30.1140, and 8473.30.1180 of the

[[Page 2337]]

HTSUS. Removable memory modules placed on motherboards are classifiable 
under subheadings 8443.99.2500, 8443.99.2550, 8471.50.0085, 
8471.50.0150, 8517.30.5000, 8517.50.1000, 8517.50.5000, 8517.50.9000, 
8517.61.0000, 8517.62.0010, 8517.62.0050, 8517.69.0000, 8517.70.0000, 
8517.90.3400, 8517.90.3600, 8517.90.3800, 8517.90.4400, 8542.21.8005, 
8542.21.8020, 8542.21.8021, 8542.21.8022, 8542.21.8023, 8542.21.8024, 
8542.21.8025, 8542.21.8026, 8542.21.8027, 8542.21.8028, 8542.21.8029, 
8542.21.8030, 8542.31.0000, 8542.33.0000, 8542.39.0000, 8543.89.9300, 
and 8543.89.9600 of the HTSUS. However, the product description, and 
not the HTSUS classification, is dispositive of whether merchandise 
imported into the United States falls within the scope.

Scope Rulings

    On December 29, 2004, the Department of Commerce (``Department'') 
received a request from Cisco Systems, Inc., to determine whether 
removable memory modules placed on motherboards that are imported for 
repair or refurbishment are within the scope of the CVD Order. See 
Notice of Countervailing Duty Order: Dynamic Random Access Memory 
Semiconductors from the Republic of Korea, 68 FR 47546 (August 11, 
2003) (``CVD Order''). The Department initiated a scope inquiry 
pursuant to 19 CFR 351.225(e) on February 4, 2005. On January 12, 2006, 
the Department issued a final scope ruling, finding that removable 
memory modules placed on motherboards that are imported for repair or 
refurbishment are not within the scope of the CVD Order provided that 
the importer certifies that it will destroy any memory modules that are 
removed for repair or refurbishment. See Memorandum from Stephen J. 
Claeys to David M. Spooner, regarding Final Scope Ruling, 
Countervailing Duty Order on DRAMs from the Republic of Korea (January 
12, 2006).

Period of Review

    The period for which we are measuring subsidies, i.e., the period 
of review (``POR''), is January 1, 2008, through August 10, 2008.

Analysis of Comments Received

    We have addressed all issues raised in the case and rebuttal briefs 
in the January 5, 2011, Issues and Decision Memorandum for the Final 
Results in the Sixth Administrative Review of the Countervailing Duty 
Order on Dynamic Random Access Memory Semiconductors from the Republic 
of Korea from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Ronald K. Lorentzen, 
Deputy Assistant Secretary for Import Administration (``Decision 
Memorandum''), which is hereby adopted by this notice. Attached to this 
notice as an appendix is a list of the issues which parties have raised 
and to which we have responded in the Decision Memorandum. Parties can 
find a complete discussion of all issues raised in this review and the 
corresponding recommendations in this public memorandum, which is on 
file in the Department's Central Records Unit, Room 7046 of the main 
Department building. In addition, a complete version of the public 
Decision Memorandum can be accessed directly on the Internet at http://www.ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(5), we calculated an 
individual subsidy rate for the producer, Hynix. For the period January 
1, 2008, through August 10, 2008, we find that the ad valorem net 
subsidy rate for Hynix is 1.93 percent.

Assessment Rates

    The Department intends to issue assessment instructions to CBP 
fifteen days after the date of publication of these final results of 
this review. The Department will instruct CBP to liquidate shipments of 
DRAMS by Hynix entered or withdrawn from warehouse, for consumption 
from January 1, 2008, through August 10, 2008, at 1.93 percent ad 
valorem of the F.O.B. invoice price, or 0.0033 U.S. dollars per 
megabit, as appropriate.\1\
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    \1\ For the calculation of the per-megabit rate, see Memorandum 
to the File from Shane Subler and Jennifer Meek, ``Final Results 
Calculations for Hynix Semiconductor, Inc.'' (January 5, 2010).
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Cash Deposits

    On October 3, 2008, the Department published a Federal Register 
notice that, inter alia, revoked this order, effective August 11, 2008. 
See Dynamic Random Access Memory Semiconductors From the Republic of 
Korea: Final Results of Sunset Review and Revocation of Order, 73 FR 
57594 (October 3, 2008). As a result, CBP is no longer suspending 
liquidation for entries of subject merchandise occurring after the 
revocation. Therefore, there is no need to issue new cash deposit 
instructions pursuant to the final results of this administrative 
review.
    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of 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.
    This administrative review and notice are issued and published in 
accordance with section 751(a)(1) of the Tariff Act of 1930, as 
amended.

    Dated: January 5, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I--Comments in the Decision Memorandum

    Comment 1: Income Tax Treatment of Hynix's Debt Restructuring
    Comment 2: Allocation Method for Tax Benefit
    Comment 3: Clerical Error Allegations
    Comment 4: Circumvention of the Order

[FR Doc. 2011-615 Filed 1-12-11; 8:45 am]
BILLING CODE 3510-DS-P