CV: China Raw Flexible Magnets

CV Liquidation Suspended Thru June 23, Liquidation Reinstated on June 24

The ITA previously instructed CBP to discontinue the suspension of liquidation/cash deposit/bond requirements for CV duty purposes on all shipments of subject merchandise with a time of entry on or after June 24, 2008, but to continue the suspension of liquidation of shipments with a time of entry of February 25, 2008 through June 23, 2008.

CV suspension of liquidation and cash deposit requirements will not resume unless and until the ITA imposes a CV order on subject merchandise.

Entries of RFM During Gap Period Are Not Liable for CV Duties

Shipments with a time of entry during the "gap period," when CV liquidation was reinstated, will not be liable for any CV duties. (The "gap period" began on June 24, 2008 and ends on the day before a CV order, if any, is imposed.)

CV Liquidation to be Suspended Again, CV Cash Deposit Required, if Final Injury

The ITA will issue a CV duty order and reinstate the suspension of liquidation for subject merchandise if the ITC issues a final affirmative CV injury determination (or threat thereof), and will require a cash deposit of estimated CV duties for such entries of merchandise in the amounts indicated below.

(If the ITC determines that CV material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled.)

Changes to the Scope of the Investigation

The ITA has amended the scope of this investigation from its initiation notice, as follows (deleted text is crossed out, added text is underlined; see final determination for scope of investigation without changes annotated):

(1) "The products covered by this investigation are certain flexible magnet sheeting, strips, and profile shapes magnets regardless of shape,¹ color, or packaging.² Subject flexible magnet sheeting, strips, and profile shapesmagnets 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.

¹The term "shape" includes, but is not limited to profiles, which are flexible magnets with a non-rectangular cross-section.

²Packaging includes retail or specialty packaging such as digital printer cartridges.

(2) "Subject flexible magnet sheeting, strips, and profile shapes magnets are capable of being permanently magnetized but may be imported in either magnetized or unmagnetized (including demagnetized) condition, Subject merchandise may be of any color and may or may not be fully or partially laminated or fully or partially bonded with paper, plastic, or other material, which paper, plastic, or other material may be of any composition and/or color. Subject merchandiseflexible magnets may be uncoated or may be coated with an adhesive or any other coating or combination of coatings. Subject merchandise is within the scope of this investigation whether it is in rolls, coils, sheets, or pieces and regardless of physical dimensions or packaging, including specialty packaging such as digital printer cartridges."

(3) "Specifically excluded from the scope of this investigation is retail printed flexible magnet sheetingare printed flexible magnets, defined as flexible magnet sheeting 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 magnet sheeting 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 sheeting 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 sheeting 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 investigation. The products subject to the investigation are currently classifiable principally under Harmonized Tariff Schedule (HTS) subheadings 8505.19.10 and 8505.19.20. The HTS subheadings are provided only for convenience and customs purposes; the written description of the scope of this proceeding is dispositive.

(See ITA notice for more information, including scope comments, etc.

See ITT's Online Archives or 02/26/08 news, 08022630, for BP summary of the ITA's preliminary affirmative CV determination.

See ITT's Online Archives or 07/02/08 news, 08070235, for BP summary of CBP's liquidation instructions for the discontinuation of the suspension of liquidation for the subject CV duty order.

See today's issue of ITT, 08071150, for BP summary of the final affirmative antidumping duty determination for RFM from China.)

ITA contact -Kristen Johnson (202) 482-4793

ITA notice (FR Pub 07/10/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-15735.pdf

ITA fact sheet available at http://ia.ita.doc.gov/download/factsheets/factsheet_china-taiwan-magnets-final-070308.pdf