Federal Register, Volume 76 Issue 9 (Thursday, January 13, 2011)

[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]
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