August 15, 2008
News Release 08-079
Inv. Nos. 701-TA-452 and 731-TA-1129-1130 (Final)
Contact: Peg O'Laughlin, 202-205-1819

RAW FLEXIBLE MAGNETS FROM CHINA AND TAIWAN THREATEN U.S. INDUSTRY, SAYS ITC

The United States International Trade Commission (ITC) today re-announced its determination that a U.S. industry is threatened with material injury by reason of imports of raw flexible magnets from China that the U.S. Department of Commerce has determined are subsidized and from China and Taiwan that Commerce has determined are sold in the United States at less than fair value.

Chairman Shara L. Aranoff and Commissioners Irving A. Williamson and Dean A. Pinkert made affirmative threat determinations in all investigations. Commissioner Charlotte R. Lane made affirmative material injury determinations in all investigations. Vice Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun made affirmative threat determinations with respect to China and negative determinations with respect to Taiwan.

As a result of the Commission's affirmative determinations, the Department of Commerce will issue a countervailing duty order on imports of this product from China and antidumping duty orders on imports of this product from China and Taiwan.

The Commissioners originally announced their individual votes in these investigations on August 12, 2008, during a public meeting. During that meeting, two Commissioners inadvertently issued announcements that did not fully reflect their actual votes. Accordingly, in the interests of transparency, the Commissioners decided to re-announce and clarify their votes in these investigations today.

The Commission's public report Raw Flexible Magnets from China and Taiwan (Investigation Nos. 701-TA-452 and 731-TA-1129-1130 (Final), USITC Publication 4030, August 2008) will contain the views of the Commission and information developed during the investigations.

Copies may be obtained after September 12, 2008, by emailing pubrequest@usitc.gov, calling 202- 205-2000, or by writing the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.


UNITED STATES INTERNATIONAL TRADE COMMISSION
Office of Industries
Washington, DC 20436

FACTUAL HIGHLIGHTS

Raw Flexible Magnets from China and Taiwan
Investigation Nos. 701-TA-452 and 731-TA-1129 and 1130 (Final)

Product Description:

The products covered by these investigations are certain flexible magnets, regardless of shape, color, or packaging. The subject merchandise may be in either magnetized or unmagnetized condition and may be laminated; bonded with paper, plastic, or other material; or coated with an adhesive or other coating. Typical uses include flexible magnetic sheet on which printed advertising, business cards, and calendars can be affixed. These same magnets can hold loose items to refrigerators and metal filing cabinets. Extruded flexible magnets can be used as closures for refrigerator and shower doors. Printed flexible magnets are not covered by these investigations. The merchandise subject to these investigations is provided for in subheadings 8505.19.10 and 8505.19.20 of the Harmonized Tariff Schedule of the United States (HTS).

Status of Proceedings:

1. Types of investigations:  Final antidumping and countervailing duty.
2. Petitioner:  Magnum Magnetics Corp. (Magnum).
3. Investigations instituted by USITC: September 21, 2007.
4. Hearing:  July 10, 2008.
5. USITC vote:  August 12, 2008.
6. USITC notification of Department of Commerce:  August 25, 2008.    

U.S. Industry:

1. Number of U.S. firms involved in production of raw flexible magnets in 2007:  7.
2. Production volume is concentrated in Ohio and Indiana.
3. Employment of production and related workers:  328.
4. U.S. producers' shipments in 2007:  70.4 million pounds, valued at $79.2 million.
5. Apparent U.S. consumption in 2007:  78.4 million pounds, valued at $86.7 million.
6. Ratio of quantity of total shipments of imports to apparent U.S. consumption in 2007:  10.2 percent.

U.S. Imports:

1. Quantity of subject imports in 2007:  (1)
2. Value of subject imports in 2007:  (1)

(1) Withheld to avoid disclosure of business proprietary information.

-- 30 --

________________________ 1 Withheld to avoid disclosure of business proprietary information.