[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5881]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF COMMERCE
[A-423-807, A-428-818]

 

Initiation of Antidumping Duty Investigations: Steel Wire Rod 
From Belgium and Germany

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: March 14, 1994.

FOR FURTHER INFORMATION CONTACT: Ellen Grebasch or Erik Warga, Office 
of Antidumping Investigations, 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) 482-0922, respectively.

Initiation of Investigations:

The Petitions

    On February 14, 1994, we received petitions filed in proper form by 
the Connecticut Steel Corp., Georgetown Steel Corp., Keystone Steel & 
Wire Co., North Star Steel Texas, Inc., Co-Raritan River Steel Co., and 
Northwestern Steel & Wire Co. (petitioners). At the request of the 
Department of Commerce (the Department), petitioners filed a supplement 
to the petitions to correct methodological errors and support the data 
presented. In accordance with 19 CFR 353.12, petitioners allege that 
imports of steel wire rod (SWR) from Belgium and Germany are being, or 
are likely to be, sold in the United States at less than fair value 
within the meaning of section 731 of the Tariff Act of 1930, as amended 
(the Act), and that these imports are materially injuring, or threaten 
material injury to, a U.S. industry.
    Petitioners have stated that they have standing to file the 
petitions because they are interested parties, as defined under section 
771(9)(C) of the Act, and because the petitions are filed on behalf of 
the U.S. industry producing the product subject to these 
investigations. If any interested party, as described under paragraphs 
(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register 
support for, or opposition to, these petitions, it should file a 
written notification with the Acting Assistant Secretary for Import 
Administration.
    Under the Department's regulations, any producer or reseller 
seeking exclusion from a potential antidumping duty order must submit 
its request for exclusion within 30 days of the date of the publication 
of this notice. The procedures and requirements are contained in 19 CFR 
353.14.

Scope of Investigations

    The products covered by these investigations are hot-rolled carbon 
steel and alloy steel wire rod, in coils, of approximately round cross 
section, between 0.20 and 0.75 inches in solid cross-sectional 
diameter. The following products are excluded from the scope of this 
investigation:
     Steel wire rod 5.5 mm or less in diameter, with tensile 
strength greater than or equal to 1040 MPa, and the following chemical 
content, by weight: carbon greater than or equal to 0.79%, aluminum 
less than or equal to 0.005%, phosphorous plus sulfur less than or 
equal to 0.040%, and nitrogen less than or equal to 0.006%;
     Free-machining steel containing, by weight, 0.03% or more 
of lead, 0.05% or more of bismuth, 0.08% or more of sulfur, more than 
0.4% of phosphorus, more than 0.05% of selenium, and/or more than 0.01% 
of tellurium;
     Stainless steel rods, tool steel rods, ball bearing steel 
rods, and deformed concrete reinforcing bars; and
     Wire rod 7.9 to 18 mm in diameter, containing 0.48 to 
0.73% carbon by weight, and having partial decarburization and seams no 
more than 0.075 mm in depth.
    The products under investigation are currently classifiable under 
subheadings 7213.31.3000, 7213.31.6000, 7213.39.0030, 7213.39.0090, 
7213.41.3000, 7213.41.6000, 7213.49.0030, 7213.49.0090, 7213.50.0020, 
7213.50.0040, 7213.50.0080, 7227.20.0000, and 7227.90.6050 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
our written description of the scope of this investigation is 
dispositive.

United States Price and Foreign Market Value

Belgium
    Petitioners based United States Price (USP) on competitive pricing 
information obtained through their own business activity and supported 
with affidavits. This information included delivered prices of SWR to 
unrelated U.S. customers. Petitioners calculated USP by subtracting 
movement charges (including U.S. customs duties), and adjusting for 
Belgian taxes.
    FMV was based on home market price quotes for identical 
merchandise, exclusive of value-added tax (VAT). Petitioners calculated 
FMV by subtracting movement charges, and converted the prices to U.S. 
dollars using contemporaneous exchange rates found in the U.S. Customs 
Bulletin. Petitioners made a circumstance of sale adjustment for 
differences in credit expenses. Petitioners also calculated the amount 
of VAT in accordance with the Department's methodology as discussed in 
Stainless Steel Wire Rod from France (58 FR 68865, December 29, 1993) 
(Final Determination) and added the resulting amount to both USP and 
FMV.
Germany
    Petitioners based USP on competitive pricing information obtained 
through their own business activity and supported with affidavits. This 
information included delivered prices of SWR to unrelated U.S. 
customers. Petitioners calculated USP by subtracting movement charges 
(including U.S. customs duties), and adjusting for German taxes.
    FMV was based on home market price quotes for identical merchandise 
or, if non-identical, merchandise which would presumably have a lower 
cost of production (COP) than the U.S. merchandise, exclusive of value-
added tax (VAT). Petitioners calculated FMV by subtracting movement 
charges, and converted the prices to U.S. dollars using contemporaneous 
exchange rates found in the U.S. Customs Bulletin. Petitioners made a 
circumstance of sale adjustment for differences in credit expenses. 
Petitioners also calculated the amount of VAT in accordance with the 
Department's methodology as discussed in Stainless Steel Wire Rod from 
France (58 FR 68865, December 29, 1993)(Final Determination) and added 
the resulting amount to both USP and FMV.

Allegations of Sales Below Cost of Production

    Petitioners allege that Forges de Thy-Marcinelle, a potential 
respondent in the Belgium investigation, is selling the subject 
merchandise in the home market at prices below its COP. This allegation 
is based on a comparison of company-specific home market prices with 
the COP. COP was based on the costs of a comparable U.S. producer 
adjusted for known differences in the country of production.
    Based on the information presented, we have reasonable grounds to 
believe or suspect that the home market sales of Forges de Thy-
Marcinelle are being made at less than COP. See Memorandum to Marie E. 
Parker from C.M. Miller dated March 4, 1994, which is on file in the 
Import Administration Central Records Unit. Accordingly, pursuant to 
section 773(b) of the Act and 19 CFR 353.51, we will initiate a COP 
investigation with respect to this company if it is named as a 
respondent in the investigation.
    Petitioners also allege that specific potential respondents in the 
German investigation are selling the subject merchandise in the home 
market at prices below their COP. These allegations are based on a 
comparison of company-specific home market prices with the COP. COP was 
based on the costs of a comparable U.S. producer adjusted for known 
differences in the country of production, and/or company-specific 
information, and on the company's financial statements, when 
applicable.
    Based on the information presented, we have reasonable grounds to 
believe or suspect that the home market sales of the following German 
producers are being made at less than COP: Stahl-und Walzwerk 
Brandenburg GmbH, Saarstahl AG, and Thyssen Stahl AG. See Memorandum to 
Marie E. Parker from C.M. Miller dated March 4, 1994, which is on file 
in the Import Administration Central Records Unit. Accordingly, 
pursuant to Section 773(b) of the Act and 19 CFR 353.51, we will 
initiate COP investigations with respect to each of these companies if 
they are named as a respondent in the investigation.

Alleged Dumping Margins

    The range of positive dumping margins of SWR from Belgium based on 
price-to-price and price-to-CV comparisons of USP to FMV alleged by 
petitioners, corrected for minor errors, is 5.69% to 52.34%.
    The range of positive dumping margins of SWR from Germany based on 
price-to-price and price-to-CV comparisons of USP to FMV alleged by 
petitioners, corrected for minor errors, is 2.77% to 72.09%.

Initiation of Investigations

    We have examined the petitions for SWR from Belgium and Germany, as 
amended, and have found that the petitions meet the requirements of 
section 732(b) of the Act. Therefore, we are initiating antidumping 
duty investigations to determine whether imports of SWR from Belgium 
and Germany are being, or are likely to be, sold in the United States 
at less than fair value. If these investigations proceed normally, we 
will make our preliminary determinations by July 25, 1994.

ITC Notification

    Section 732(d) of the Act requires us to notify the International 
Trade Commission (ITC) of these actions and we have done so.

Preliminary Determinations by the ITC

    The ITC will determine by March 31, 1994, whether there is a 
reasonable indication that imports of SWR from Belgium and Germany are 
materially injuring, or threaten material injury to, a U.S. industry. A 
negative ITC determination in any of these investigations will result 
in its termination; otherwise, the investigations will proceed 
according to statutory and regulatory time limits.
    This notice is published pursuant to section 732(c)(2) of the Act 
and 19 CFR 353.13(b).

    Dated: March 7, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-5881 Filed 3-11-94; 8:45 am]
BILLING CODE 3510-DS-P