64 FR 38888, July 20, 1999 DEPARTMENT OF COMMERCE International Trade Administration [A-588-837] Large Newspaper Printing Presses and Components Thereof, Whether Assembled or Unassembled, from Japan: Notice of Initiation of Changed Circumstances Review of the Antidumping Duty Order AGENCY: Import Administration, International Trade Administration, Department of Commerce. ACTION: Notice of initiation of changed circumstances antidumping duty review. ----------------------------------------------------------------------- SUMMARY: In accordance with 19 CFR 351.216(b), Goss Graphic Systems, Inc., an interested party in this proceeding, requested a changed circumstances review. In response to this request, the Department of Commerce is initiating a changed circumstances review on large newspaper printing presses and components thereof, whether assembled or unassembled, from Japan. EFFECTIVE DATE: July 20, 1999. FOR FURTHER INFORMATION CONTACT: Dinah McDougall or David J. Goldberger, Office 2, AD/CVD Enforcement Group I, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-3773 or (202) 482-4136, respectively. The Applicable Statute and Regulations Unless otherwise indicated, all citations to the Tariff Act of 1930, as [[Page 38889]] amended (the Act), are references to the provisions effective January 1, 1995, the effective date of the amendments made to the Act by the Uruguay Round Agreements Act (URAA). In addition, unless otherwise indicated, all citations to the Department of Commerce's (the Department's) regulations are to the regulations at 19 CFR Part 351 (1998). SUPPLEMENTARY INFORMATION: Background On May 28, 1999, Goss Graphic Systems, Inc. (Goss), the petitioner in this proceeding, requested that the Department revoke in part the antidumping duty order on large newspaper printing presses (LNPP) and components thereof, whether assembled or unassembled, from Japan. Specifically, Goss requested that the Department revoke the order with respect to imports of the elements and components of LNPP systems, and additions thereto, imported to fulfill a contract for one or more complete LNPP systems which feature a 22 inch cut-off, 50 inch web width and a rated speed no greater than 75,000 copies per hour, utilizing exclusively the type of printing unit and color keyless inking system detailed in Goss' request, in a tower configuration coupled with folder, reel tension paster, conveyance and access apparatus, and computerized control system meeting all of the specifications described in Goss' request. Goss is a domestic producer of the subject merchandise and the petitioner in the underlying sales at less-than-fair-value investigation. In its changed circumstances request, Goss stated that it has no interest in maintaining the antidumping duty order on LNPPs from Japan with respect to the specific category of LNPP systems identified in its request. In its May 28, 1999 letter, Goss also requested that the Department publish concurrently its notice of initiation and preliminary results of changed circumstances review, pursuant to 19 CFR 351.221(c)(3)(ii). Goss stated that it accounts for substantially all of the production of the domestic like product for which partial revocation is sought. Thus, since this portion of the order is no longer of interest to domestic parties, Goss stated that expedited action is warranted in this case. Goss requested that the effective date of this partial revocation be September 4, 1996, the publication date in the Federal Register of the antidumping duty order and amended final determination of sales at less-than-fair value. On June 15, 1999, Tokyo Kikai Seisakusho, Ltd., (TKS), a Japanese exporter of the subject merchandise and a respondent in the underlying less-than-fair-value investigation and administrative review covering the period September 1, 1997, through August 31, 1998, submitted comments on Goss' changed circumstances request. TKS requested that, if the changed circumstances review were initiated, the Department determine and explain why it would be appropriate to exclude from the order the specific merchandise identified by the petitioner, but not the broader category of color keyless inking equipment as a whole. TKS has also requested that the Department investigate the basis of Goss' request. Scope of Review The products covered by this antidumping order are large newspaper printing presses, including press systems, press additions and press components, whether assembled or unassembled, whether complete or incomplete, that are capable of printing or otherwise manipulating a roll of paper more than two pages across. A page is defined as a newspaper broadsheet page in which the lines of type are printed perpendicular to the running of the direction of the paper or a newspaper tabloid page with lines of type parallel to the running of the direction of the paper. In addition to press systems, the scope of this order includes the five press system components. They are: (1) A printing unit, which is any component that prints in monocolor, spot color and/or process (full) color; (2) A reel tension paster, which is any component that feeds a roll of paper more than two newspaper broadsheet pages in width into a subject printing unit; (3) A folder, which is a module or combination of modules capable of cutting, folding, and/or delivering the paper from a roll or rolls of newspaper broadsheet paper more than two pages in width into a newspaper format; (4) Conveyance and access apparatus capable of manipulating a roll of paper more than two newspaper broadsheet pages across through the production process and which provides structural support and access; and (5) A computerized control system, which is any computer equipment and/or software designed specifically to control, monitor, adjust, and coordinate the functions and operations of large newspaper printing presses or press components. A press addition is comprised of a union of one or more of the press components defined above and the equipment necessary to integrate such components into an existing press system. Because of their size, large newspaper printing press systems, press additions, and press components are typically shipped either partially assembled or unassembled, complete or incomplete, and are assembled and/or completed prior to and/or during the installation process in the United States. Any of the five components, or collection of components, the use of which is to fulfill a contract for large newspaper printing press systems, press additions, or press components, regardless of degree of assembly and/or degree of combination with non- subject elements before or after importation, is included in the scope of this antidumping duty order. Also included in the scope are elements of a LNPP system, addition or component, which taken altogether, constitute at least 50 percent of the cost of manufacture of any of the five major LNPP components of which they are a part. For purposes of this antidumping duty order, the following definitions apply irrespective of any different definition that may be found in Customs rulings, U.S. Customs law or the HTSUS: (1) The term ``unassembled'' means fully or partially unassembled or disassembled; and (2) the term ``incomplete'' means lacking one or more elements with which the LNPP is intended to be equipped in order to fulfill a contract for a LNPP system, addition or component. This scope does not cover spare or replacement parts. Spare or replacement parts imported pursuant to a LNPP contract, which are not integral to the original start-up and operation of the LNPP, and are separately identified and valued in a LNPP contract, whether or not shipped in combination with covered merchandise, are excluded from the scope of this order. Used presses are also not subject to this scope. Used presses are those that have been previously sold in an arm's length transaction to a purchaser that used them to produce newspapers in the ordinary course of business. Further, the scope of the antidumping duty order covers all current and future printing technologies capable of printing newspapers, including, but not limited to, lithographic (offset or direct), flexographic, and letterpress systems. The products covered by this order are imported into the United States under subheadings 8443.11.10, 8443.11.50, 8443.30.00, 8443.59.50, 8443.60.00, and 8443.90.50 of the HTSUS. Large newspaper printing presses may also enter under HTSUS subheadings 8443.21.00 and 8443.40.00. Large [[Page 38890]] newspaper printing press computerized control systems may enter under HTSUS subheadings 8471.49.10, 8471.49.21, 8471.49.26, 8471.50.40, 8471.50.80, and 8537.10.90. The products covered by this changed circumstances review are elements and components of LNPP systems, and additions thereto, imported to fulfill a contract for one or more complete LNPP systems which feature a 22 inch cut-off, 50 inch web width and a rated speed no greater than 75,000 copies per hour. In addition to the specifications set out in this paragraph, all of which must be met in order for the product to fall within this changed circumstances review, the product must also possess all of the specifications detailed in the five (5) numbered sections following this paragraph and in any figures referenced below. If one or more of these criteria is not fulfilled, the product is not within the scope of this changed circumstances review: 1. Printing Unit: A printing unit which is a color keyless blanket- to-blanket tower unit with a fixed gain infeed and fixed gain outfeed, with a rated speed no greater than 75,000 copies per hour, which includes the following features: Each tower consisting of four levels, one or more of which must be populated. Plate cylinders which contain slot lock-ups and blanket cylinders which contain reel rod lock-ups both of which are of solid carbon steel with nickel plating and with bearers at both ends which are configured in-line with bearers of other cylinders. Keyless inking system which consists of a passive feed ink delivery system, an eight roller ink train, and a non-anilox and non- porous metering roller. The dampener system which consists of a two nozzle per page spraybar and two roller dampener with one chrome drum and one form roller. The equipment contained in the color keyless ink delivery system is designed to achieve a constant, uniform feed of ink film across the cylinder without ink keys. This system requires use of keyless ink which accepts greater water content. 2. Folder: A module which is a double 3:2 rotary folder with 160 pages collect capability and double (over and under) delivery, with a cut-off length of 22 inches. The upper section consists of three-high double formers (total of 6) with six sets of nipping rollers. 3. RTP: A component which is of the two-arm design with core drives and core brakes, designed for 50 inch diameter rolls; and arranged in the press line in the back-to-back configuration (left and right hand load pairs). 4. Conveyance and Access Apparatus: Conveyance and access apparatus capable of manipulating a roll of paper more than two newspaper broadsheets across through the production process, and a drive system which is of conventional shafted design. 5. Computerized Control System: A computerized control system, which is any computer equipment and/or software designed specifically to control, monitor, adjust, and coordinate the functions and operations of large newspaper printing presses or press components. The order with regard to imports of other LNPPs is not affected by this request. Initiation of Changed Circumstances Antidumping Duty Review Pursuant to section 751(d)(1) of the Act, the Department may partially revoke an antidumping or countervailing duty order based on a review under section 751(b) of the Act (i.e., a changed circumstances review). Section 751(b)(1) of the Act requires a changed circumstances review to be conducted upon receipt of a request which shows changed circumstances sufficient to warrant a review. 19 CFR 351.222(g) provides that the Department will conduct a changed circumstances administrative review under 19 CFR 351.216, and may revoke an order (in whole or in part), if it determines that producers accounting for substantially all of the production of the domestic like product to which the order (or the part of the order to be revoked) pertains have expressed a lack of interest in the relief provided by the order, in whole or in part. In addition, in the event that the Department concludes that expedited action is warranted, 19 CFR 351.221(c)(3)(ii) permits the Department to combine the notices of initiation and preliminary results. The Department concludes that it would be inappropriate to expedite this action pursuant to 19 CFR 351.221(c)(3)(ii) by issuing a preliminary determination prior to conducting an investigation in the instant case. The Department may need additional information regarding the basis for Goss' request and the ability of the U.S. Customs Service to enforce the antidumping duty order under the revised scope as proposed by Goss. Therefore, the Department is not issuing preliminary results of its changed circumstances antidumping duty administrative review at this time. The Department will publish in the Federal Register a notice of preliminary results of changed circumstances antidumping duty administrative review, in accordance with 19 CFR 351.221(c)(3)(i), which will set forth the factual and legal conclusions upon which our preliminary results are based, and a description of any action proposed based on those results. Interested parties may submit comments for consideration in the Department's preliminary results not later than 20 days after publication of this notice. Responses to those comments may be submitted not later than 10 days following submission of the comments. All written comments must be submitted in accordance with 19 CFR 351.303, and must be served on all interested parties on the Department's service list in accordance with 19 CFR 351.303. The Department will also issue its final results of review within 270 days after the date on which the changed circumstances review is initiated, in accordance with 19 CFR 351.216(c), and will publish these results in the Federal Register. While the changed circumstances administrative review is underway, the current requirement for a cash deposit of estimated antidumping duties on all subject merchandise, including the LNPP components and systems that are the subject of this changed circumstances review, will continue unless and until it is modified pursuant to the final results of this changed circumstances review. This notice is in accordance with sections 751(b)(1) of the Act and 19 CFR 351.216 and 351.222. Dated: July 12, 1999. Bernard Carreau, Acting Assistant Secretary for Import Administration. [FR Doc. 99-18461 Filed 7-19-99; 8:45 am] BILLING CODE 3510-DS-P