12-5-265 Pure Magnesium from China

UNITED STATES INTERNATIONAL TRADE COMMISSION

Investigation No. 731-TA-895 (Second Review)
PURE MAGNESIUM FROM CHINA
Institution of a five-year review concerning the antidumping duty order on pure magnesium in granular
form from China.
AGENCY: United States International Trade Commission.
ACTION: Notice.
SUMMARY: The Commission hereby gives notice that it has instituted a review pursuant to section
751(c) of the Tariff Act of 1930 (19 U.S.C. ' 1675(c)) (the Act) to determine whether revocation of the
antidumping duty order on pure magnesium in granular form from China would be likely to lead to
continuation or recurrence of material injury. Pursuant to section 751(c)(2) of the Act, interested parties
are requested to respond to this notice by submitting the information specified below to the Commission;1
to be assured of consideration, the deadline for responses is March 2, 2012. Comments on the adequacy of
responses may be filed with the Commission by April 16, 2012. For further information concerning the
conduct of this review and rules of general application, consult the Commission=s Rules of Practice and
Procedure, part 201, subparts A through E (19 CFR part 201), and part 207, subparts A, D, E, and F (19
CFR part 207), as most recently amended at 74 FR 2847 (January 16, 2009).
EFFECTIVE DATE: DATE OF PUBLICATION IN THE FEDERAL REGISTER
FOR FURTHER INFORMATION CONTACT: Mary Messer (202-205-3193), Office of Investigations,
U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Hearing-impaired
persons can obtain information on this matter by contacting the Commission=s TDD terminal on
202-205-1810. Persons with mobility impairments who will need special assistance in gaining access to
the Commission should contact the Office of the Secretary at 202-205-2000. General information
concerning the Commission may also be obtained by accessing its internet server (http://www.usitc.gov).
The public record for this review may be viewed on the Commission=s electronic docket (EDIS) at
http://edis.usitc.gov.

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No response to this request for information is required if a currently valid Office of Management and Budget
(OMB) number is not displayed; the OMB number is 3117-0016/USITC No. 12-5-265, expiration date June 30, 2014.
Public reporting burden for the request is estimated to average 15 hours per response. Please send comments
regarding the accuracy of this burden estimate to the Office of Investigations, U.S. International Trade Commission,
500 E Street, SW, Washington, DC 20436.

SUPPLEMENTARY INFORMATION:
Background.-- On November 19, 2001, the Department of Commerce issued an antidumping duty
order on imports of pure magnesium in granular form from China (66 FR 57936). Following expedited
first five-year reviews by Commerce and the Commission, effective March 26, 2007, Commerce issued a
continuation of the antidumping duty order on imports of pure magnesium in granular form from China (72
FR 5417). The Commission is now conducting a second review to determine whether revocation of the
order would be likely to lead to continuation or recurrence of material injury to the domestic industry within
a reasonably foreseeable time. It will assess the adequacy of interested party responses to this notice of
institution to determine whether to conduct a full review or an expedited review. The Commission=s
determination in any expedited review will be based on the facts available, which may include information
provided in response to this notice.
Definitions.--The following definitions apply to this review:
(1)

Subject Merchandise is the class or kind of merchandise that is within the scope of the
five-year review, as defined by the Department of Commerce.

(2)

The Subject Country in this review is China.

(3)

The Domestic Like Product is the domestically produced product or products which are
like, or in the absence of like, most similar in characteristics and uses with, the Subject
Merchandise. In its original determination, the Commission defined one Domestic Like
Product-pure magnesium that included both granular magnesium and magnesium ingot.
Two Commissioners defined the Domestic Like Product differently in the original
determination. They found two Domestic Like Products corresponding to granular pure
magnesium and pure magnesium ingot. In its expedited first five-year review
determination, the Commission found one Domestic Like Product to include primary and
secondary pure and alloy magnesium whether in ingot or granular form. One
Commissioner defined the Domestic Like Product differently in the expedited first
five-year review, instead finding that pure magnesium and alloy magnesium (including
secondary magnesium) were separate Domestic Like Products.

(4)

The Domestic Industry is the U.S. producers as a whole of the Domestic Like Product, or
those producers whose collective output of the Domestic Like Product constitutes a major
proportion of the total domestic production of the product. In its original determination,
the Commission defined the Domestic Industry as producers of pure magnesium, including
grinding operations. One Commissioner defined the Domestic Industry differently in the
original determination (i.e, not including grinders), and two Commissioners defined two
separate Domestic Industries (i.e., domestic producers of granular pure magnesium and
domestic producers of pure magnesium ingot, including grinders). The Commission also
found that appropriate circumstances existed to exclude ESM from the Domestic Industry.
In its expedited first five-year review determination, the Commission defined the Domestic
Like Product as domestic producers of pure and alloy magnesium, including primary and
secondary magnesium, and magnesium in ingot and granular form. The Commission also
included grinders in the Domestic Industry producing magnesium. One Commissioner
defined the Domestic Industry differently in the first five-year review, instead finding that
grinders were not included in the Domestic Industry. Another Commissioner defined the
Domestic Industry differently in the first five-year review, instead finding that there was
one Domestic Industry composed of the domestic producers of pure magnesium whether in
ingot or granular form, including grinders.

(5)

An Importer is any person or firm engaged, either directly or through a parent company or
subsidiary, in importing the Subject Merchandise into the United States from a foreign
manufacturer or through its selling agent.

Participation in the review and public service list.--Persons, including industrial users of the
Subject Merchandise and, if the merchandise is sold at the retail level, representative consumer
organizations, wishing to participate in the review as parties must file an entry of appearance with the
Secretary to the Commission, as provided in section 201.11(b)(4) of the Commission=s rules, no later than
21 days after publication of this notice in the Federal Register. The Secretary will maintain a public
service list containing the names and addresses of all persons, or their representatives, who are parties to the
review.
Former Commission employees who are seeking to appear in Commission five-year reviews are
advised that they may appear in a review even if they participated personally and substantially in the
corresponding underlying original investigation. The Commission=s designated agency ethics official has
advised that a five-year review is not considered the Asame particular matter@ as the corresponding
underlying original investigation for purposes of 18 U.S.C. ' 207, the post employment statute for Federal
employees, and Commission rule 201.15(b)(19 CFR ' 201.15(b)), 73 FR 24609 (May 5, 2008). This
advice was developed in consultation with the Office of Government Ethics. Consequently, former
employees are not required to seek Commission approval to appear in a review under Commission rule 19
CFR ' 201.15, even if the corresponding underlying original investigation was pending when they were
Commission employees. For further ethics advice on this matter, contact Carol McCue Verratti, Deputy
Agency Ethics Official, at 202-205-3088.
Limited disclosure of business proprietary information (BPI) under an administrative protective
order (APO) and APO service list.--Pursuant to section 207.7(a) of the Commission=s rules, the Secretary
will make BPI submitted in this review available to authorized applicants under the APO issued in the
review, provided that the application is made no later than 21 days after publication of this notice in the
Federal Register. Authorized applicants must represent interested parties, as defined in 19 U.S.C. '
1677(9), who are parties to the review. A separate service list will be maintained by the Secretary for those
parties authorized to receive BPI under the APO.
Certification.--Pursuant to section 207.3 of the Commission=s rules, any person submitting
information to the Commission in connection with this review must certify that the information is accurate
and complete to the best of the submitter=s knowledge. In making the certification, the submitter will be
deemed to consent, unless otherwise specified, for the Commission, its employees, and contract personnel
to use the information provided in any other reviews or investigations of the same or comparable products
which the Commission conducts under Title VII of the Act, or in internal audits and investigations relating
to the programs and operations of the Commission pursuant to 5 U.S.C. Appendix 3.
Written submissions.--Pursuant to section 207.61 of the Commission=s rules, each interested party
response to this notice must provide the information specified below. The deadline for filing such
responses is March 2, 2012. Pursuant to section 207.62(b) of the Commission=s rules, eligible parties (as
specified in Commission rule 207.62(b)(1)) may also file comments concerning the adequacy of responses
to the notice of institution and whether the Commission should conduct an expedited or full review. The
deadline for filing such comments is April 16, 2012. All written submissions must conform with the
provisions of sections 201.8 and 207.3 of the Commission=s rules and any submissions that contain BPI
must also conform with the requirements of sections 201.6 and 207.7 of the Commission=s rules. Please be
aware that the Commission’s rules with respect to electronic filing have been amended. The amendments
took effect on November 7, 2011. See 76 Fed. Reg. 61937 (Oct. 6, 2011) and the newly revised
Commission’s Handbook on E-Filing, available on the Commission’s web site at http://edis.usitc.gov.
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Also, in accordance with sections 201.16(c) and 207.3 of the Commission=s rules, each document filed by a
party to the review must be served on all other parties to the review (as identified by either the public or
APO service list as appropriate), and a certificate of service must accompany the document (if you are not a
party to the review you do not need to serve your response).
Inability to provide requested information.--Pursuant to section 207.61(c) of the Commission=s
rules, any interested party that cannot furnish the information requested by this notice in the requested form
and manner shall notify the Commission at the earliest possible time, provide a full explanation of why it
cannot provide the requested information, and indicate alternative forms in which it can provide equivalent
information. If an interested party does not provide this notification (or the Commission finds the
explanation provided in the notification inadequate) and fails to provide a complete response to this notice,
the Commission may take an adverse inference against the party pursuant to section 776(b) of the Act in
making its determination in the review.
INFORMATION TO BE PROVIDED IN RESPONSE TO THIS NOTICE OF INSTITUTION: As used
below, the term Afirm@ includes any related firms.
(1)

The name and address of your firm or entity (including World Wide Web address) and name,
telephone number, fax number, and E-mail address of the certifying official.

(2)

A statement indicating whether your firm/entity is a U.S. producer of the Domestic Like Product, a
U.S. union or worker group, a U.S. importer of the Subject Merchandise, a foreign producer or
exporter of the Subject Merchandise, a U.S. or foreign trade or business association, or another
interested party (including an explanation). If you are a union/worker group or trade/business
association, identify the firms in which your workers are employed or which are members of your
association.

(3)

A statement indicating whether your firm/entity is willing to participate in this review by providing
information requested by the Commission.

(4)

A statement of the likely effects of the revocation of the antidumping duty order on the Domestic
Industry in general and/or your firm/entity specifically. In your response, please discuss the
various factors specified in section 752(a) of the Act (19 U.S.C. ' 1675a(a)) including the likely
volume of subject imports, likely price effects of subject imports, and likely impact of imports of
Subject Merchandise on the Domestic Industry.

(5)

A list of all known and currently operating U.S. producers of the Domestic Like Product. Identify
any known related parties and the nature of the relationship as defined in section 771(4)(B) of the
Act (19 U.S.C. ' 1677(4)(B)).

(6)

A list of all known and currently operating U.S. importers of the Subject Merchandise and
producers of the Subject Merchandise in the Subject Country that currently export or have exported
Subject Merchandise to the United States or other countries after 2005.

(7)

A list of 3-5 leading purchasers in the U.S. market for the Domestic Like Product and the Subject
Merchandise (including street address, World Wide Web address, and the name, telephone
number, fax number, and E-mail address of a responsible official at each firm).

(8)

A list of known sources of information on national or regional prices for the Domestic Like Product
or the Subject Merchandise in the U.S. or other markets.

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(9)

(10)

(11)

If you are a U.S. producer of the Domestic Like Product, provide the following information on your
firm=s operations on that product during calendar year 2011, except as noted (report quantity data in
metric tons and value data in U.S. dollars, f.o.b. plant). If you are a union/worker group or
trade/business association, provide the information, on an aggregate basis, for the firms in which
your workers are employed/which are members of your association.
(a)

Production (quantity) and, if known, an estimate of the percentage of total U.S. production
of the Domestic Like Product accounted for by your firm=s(s=) production;

(b)

Capacity (quantity) of your firm to produce the Domestic Like Product (i.e., the level of
production that your establishment(s) could reasonably have expected to attain during the
year, assuming normal operating conditions (using equipment and machinery in place and
ready to operate), normal operating levels (hours per week/weeks per year), time for
downtime, maintenance, repair, and cleanup, and a typical or representative product mix);

(c)

the quantity and value of U.S. commercial shipments of the Domestic Like Product
produced in your U.S. plant(s);

(d)

the quantity and value of U.S. internal consumption/company transfers of the Domestic
Like Product produced in your U.S. plant(s); and

(e)

the value of (i) net sales, (ii) cost of goods sold (COGS), (iii) gross profit, (iv) selling,
general and administrative (SG&A) expenses, and (v) operating income of the Domestic
Like Product produced in your U.S. plant(s) (include both U.S. and export commercial
sales, internal consumption, and company transfers) for your most recently completed
fiscal year (identify the date on which your fiscal year ends).

If you are a U.S. importer or a trade/business association of U.S. importers of the Subject
Merchandise from the Subject Country, provide the following information on your firm=s(s=)
operations on that product during calendar year 2011 (report quantity data in metric tons and value
data in U.S. dollars). If you are a trade/business association, provide the information, on an
aggregate basis, for the firms which are members of your association.
(a)

The quantity and value (landed, duty-paid but not including antidumping duties) of U.S.
imports and, if known, an estimate of the percentage of total U.S. imports of Subject
Merchandise from the Subject Country accounted for by your firm=s(s=) imports;

(b)

the quantity and value (f.o.b. U.S. port, including antidumping duties) of U.S. commercial
shipments of Subject Merchandise imported from the Subject Country; and

(c)

the quantity and value (f.o.b. U.S. port, including antidumping duties) of U.S. internal
consumption/company transfers of Subject Merchandise imported from the Subject
Country.

If you are a producer, an exporter, or a trade/business association of producers or exporters of the
Subject Merchandise in the Subject Country, provide the following information on your firm=s(s=)
operations on that product during calendar year 2011 (report quantity data in metric tons and value
data in U.S. dollars, landed and duty-paid at the U.S. port but not including antidumping duties).
If you are a trade/business association, provide the information, on an aggregate basis, for the firms
which are members of your association.

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(a)

Production (quantity) and, if known, an estimate of the percentage of total production of
Subject Merchandise in the Subject Country accounted for by your firm=s(s=) production;

(b)

Capacity (quantity) of your firm to produce the Subject Merchandise in the Subject
Country (i.e., the level of production that your establishment(s) could reasonably have
expected to attain during the year, assuming normal operating conditions (using equipment
and machinery in place and ready to operate), normal operating levels (hours per
week/weeks per year), time for downtime, maintenance, repair, and cleanup, and a typical
or representative product mix); and

(c)

the quantity and value of your firm=s(s=) exports to the United States of Subject
Merchandise and, if known, an estimate of the percentage of total exports to the United
States of Subject Merchandise from the Subject Country accounted for by your firm=s(s=)
exports.

(12)

Identify significant changes, if any, in the supply and demand conditions or business cycle for the
Domestic Like Product that have occurred in the United States or in the market for the Subject
Merchandise in the Subject Country after 2005, and significant changes, if any, that are likely to
occur within a reasonably foreseeable time. Supply conditions to consider include technology;
production methods; development efforts; ability to increase production (including the shift of
production facilities used for other products and the use, cost, or availability of major inputs into
production); and factors related to the ability to shift supply among different national markets
(including barriers to importation in foreign markets or changes in market demand abroad).
Demand conditions to consider include end uses and applications; the existence and availability of
substitute products; and the level of competition among the Domestic Like Product produced in the
United States, Subject Merchandise produced in the Subject Country, and such merchandise from
other countries.

(13)

(OPTIONAL) A statement of whether you agree with the above definitions of the Domestic Like
Product and Domestic Industry; if you disagree with either or both of these definitions, please
explain why and provide alternative definitions.

AUTHORITY: This review is being conducted under authority of title VII of the Tariff Act of 1930; this
notice is published pursuant to section 207.61 of the Commission=s rules.
By order of the Commission.

James R. Holbein
Secretary to the Commission
Issued:

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