[Federal Register Volume 73, Number 181 (Wednesday, September 17, 2008)]
[Notices]
[Pages 53849-53850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21719]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-923]


Raw Flexible Magnets from the People's Republic of China: 
Countervailing Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the Department) and the International Trade Commission (ITC), 
the Department is issuing a countervailing duty order on raw flexible 
magnets (RFM) from the People's Republic of China (PRC).
    We released a Notice of Countervailing Duty Order to the parties 
released on August 28, 2008. The notice we released contained incorrect 
language regarding suspension of liquidation. This notice contains the 
correct language. See ``Countervailing Duty Order'' section below. The 
error was discovered prior to publication in the Federal Register. 
Consequently, this notice is being published in its place.

EFFECTIVE DATE: December 17, 2008.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office 3, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-4793.

SUPPLEMENTARY INFORMATION:

Background

    On July 10, 2008, the Department published its final determination 
in the countervailing duty investigation on RFM from the PRC. See Raw 
Flexible Magnets from the People's Republic of China: Final Affirmative 
Countervailing Duty Determination, 73 FR 39667 (July 10, 2008).
    On August 25, 2008, the ITC notified the Department of its final 
determination pursuant to section 705(b)(1)(A)(i) of the Tariff Act of 
1930, as amended (the Act), that an industry in the United States is 
threatened with material injury by reason of subsidized imports of 
subject merchandise from the PRC. See Letter from the ITC to the 
Secretary of Commerce, Notification of Final Affirmative Determination 
of Raw Flexible Magnets from the People's Republic of China and Taiwan 
(Investigation Nos. 701-TA-452, 731-TA-1129, 731-TA-1130), dated August 
25, 2008. Pursuant to section 736(a) of the Act, the Department is 
publishing a

[[Page 53850]]

countervailing duty order on the subject merchandise.

Scope of the Order

    The products covered by this order are certain flexible magnets 
regardless of shape,\1\ color, or packaging.\2\ Subject flexible 
magnets are bonded magnets composed (not necessarily exclusively) of 
(i) any one or combination of various flexible binders (such as 
polymers or co-polymers, or rubber) and (ii) a magnetic element, which 
may consist of a ferrite permanent magnet material (commonly, strontium 
or barium ferrite, or a combination of the two), a metal alloy (such as 
NdFeB or Alnico), any combination of the foregoing with each other or 
any other material, or any other material capable of being permanently 
magnetized.
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    \1\ The term ``shape'' includes, but is not limited to profiles, 
which are flexible magnets with a non-rectangular cross-section.
    \2\``Packaging includes retail or specialty packaging such as 
digital printer cartridges.
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    Subject flexible magnets may be in either magnetized or 
unmagnetized (including demagnetized) condition, and may or may not be 
fully or partially laminated or fully or partially bonded with paper, 
plastic, or other material, of any composition and/or color. Subject 
flexible magnets may be uncoated or may be coated with an adhesive or 
any other coating or combination of coatings.
    Specifically excluded from the scope of this order are printed 
flexible magnets, defined as flexible magnets (including individual 
magnets) that are laminated or bonded with paper, plastic, or other 
material if such paper, plastic, or other material bears printed text 
and/or images, including but not limited to business cards, calendars, 
poetry, sports event schedules, business promotions, decorative motifs, 
and the like. This exclusion does not apply to such printed flexible 
magnets if the printing concerned consists of only the following: a 
trade mark or trade name; country of origin; border, stripes, or lines; 
any printing that is removed in the course of cutting and/or printing 
magnets for retail sale or other disposition from the flexible magnet; 
manufacturing or use instructions (e.g., ``print this side up,'' ``this 
side up,'' ``laminate here''); printing on adhesive backing (that is, 
material to be removed in order to expose adhesive for use such as 
application of laminate) or on any other covering that is removed from 
the flexible magnet prior or subsequent to final printing and before 
use; non-permanent printing (that is, printing in a medium that 
facilitates easy removal, permitting the flexible magnet to be re-
printed); printing on the back (magnetic) side; or any combination of 
the above.
    All products meeting the physical description of subject 
merchandise that are not specifically excluded are within the scope of 
this order. The products covered by the order are currently 
classifiable principally under subheadings 8505.19.10 and 8505.19.20 of 
the Harmonized Tariff Schedule of the United States (HTSUS). The HTSUS 
subheadings are provided only for convenience and customs purposes; the 
written description of the scope of this order is dispositive.

Countervailing Duty Order

    In accordance with section 706(a)(1) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by the Department, countervailing duties equal to 
the amount of the net countervailable subsidy for all relevant entries 
of RFM from the PRC.
    According to section 706(b)(2) of the Act, duties shall be assessed 
on subject merchandise entered or withdrawn from warehouse, for 
consumption on or after September 2, 2008, the date of publication of 
the ITC's notice of final determination if that determination is based 
on the threat of material injury and is no accompanied by a finding 
that injury would have resulted without the imposition of suspension of 
liquidation of entries since the Department's preliminary 
determination. In addition, section 706(b)(2) of the Act requires CBP 
to refund any cash deposits or bonds of estimated countervailing duties 
posted since the Department's preliminary countervailing duty 
determination if the ITC's final determination is threat-based.
    Because the ITC's final determination in this case is based on the 
threat of material injury and is not accompanied by a finding that 
injury would have resulted but for the imposition of suspension of 
liquidation of entries since the Department's preliminary 
determination,\3\ section 706(b)(2) of the Act is applicable. 
Therefore, the Department will direct CBP to assess countervailing 
duties on all unliquidated entries of RFM from the PRC entered, or 
withdrawn from warehouse, for consumption on or after September 2, 
2008, the date of publication of the ITC's notice of final 
determination of threat of material injury in the Federal Register,\4\ 
based on the net countervailable subsidy rates listed below:
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    \3\ See Raw Flexible Magnets from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Countervailing Duty Determination with Final 
Antidumping Duty Determination, 73 FR 9998 (February 25, 2008).
    \4\ See Raw Flexible Magnets from China and Taiwan, 73 FR 51317 
(September 2, 2008).

------------------------------------------------------------------------
                                                       Net Subsidy Rate
                  Producer/exporter                        (percent)
------------------------------------------------------------------------
China Ningbo Cixi Import Export Corporation.........   109.95 percent ad
                                                                 valorem
Polyflex Magnets Ltd................................   109.95 percent ad
                                                                 valorem
All Others..........................................   109.95 percent ad
                                                                 valorem
------------------------------------------------------------------------

    Effective September 2, 2008, CBP will require, at the same time as 
importers would normally deposit estimated duties, cash deposits for 
the subject merchandise equal to the net subsidy rates listed above. 
The all-others rate applies to all producers and exporters of subject 
merchandise not specifically listed.
    The Department will also instruct CBP to terminate the suspension 
of liquidation for entries of RFM from the PRC entered, or withdrawn 
from warehouse, for consumption prior to September 2, 2008, and refund 
any cash deposit made and release any bonds posted between the 
publication of the Department's preliminary determination on February 
25, 2008, and the publication of the ITC's final determination on 
September 2, 2008.
    This notice constitutes the countervailing duty order with respect 
to RFM from the PRC pursuant to section 706(a) of the Act. Interested 
parties may contact the Department's Central Records Unit, Room 1117 of 
the main Department Building, for copies of an updated list of 
countervailing duty orders currently in effect.
    This countervailing duty order is issued and published in 
accordance with section 706(a) of the Act and 19 CFR 351.211.

    Dated: September 9, 2008.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E8-21719 Filed 9-16-08; 8:45 am]
BILLING CODE: 3510-DS-S