[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: 94-5883]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF COMMERCE
[C-428-819]

 

Initiation of Countervailing Duty Investigation: Steel Wire Rod 
From Germany

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

EFFECTIVE DATE: March 14, 1994.

FOR FURTHER INFORMATION CONTACT: Gary Bettger (202) 482-2239 or 
Jennifer Yeske (202) 482-0189, Office of Countervailing Investigations, 
Import Administration, room 3099, U.S. Department of Commerce, 
Washington, DC 20230.

The Petition

    On February 14, 1994, we received a petition from by Connecticut 
Steel Corp., Georgetown Steel Corp., North Star Steel Texas, Inc., Co-
Steel Raritan Co., Keystone Consolidated Industries and Northwestern 
Steel & Wire Co. (``Petitioners'') on behalf of the United States steel 
wire rod industry. In accordance with 19 CFR 355.12, petitioners allege 
that manufacturers, producers, or exporters of steel wire rod in 
Germany receive subsidies within the meaning of section 701 of the 
Tariff Act of 1930, as amended (the Act).

Injury Test

    Because Germany is a ``country under the Agreement'' within the 
meaning of section 701(b) of the Act, title VII of the Act applies to 
this investigation. Accordingly, the U.S. International Trade 
Commission (ITC) must determine whether imports of the subject 
merchandise from Germany are materially injuring, or threatening 
material injury to, a U.S. industry.

Standing

    Petitioners have stated that they are interested parties, as 
defined in section 771(9)(C) of the Act, and that they have filed the 
petition on behalf of the U.S. industry producing steel wire rod. 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, this petition, such party should file a written 
notification with the Assistant Secretary for Import Administration, in 
accordance with 19 CFR 355.31.

Exclusion Requests

    Under the Department's regulations, any producer or reseller 
seeking exclusion from a potential countervailing duty order must 
submit its request for exclusion within 30 days of the date of 
publication of this notice. The procedures and requirements regarding 
the filing of such requests are contained in 19 CFR 355.14.

Scope of Investigation

    The products covered by this investigation 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%, phosphorus 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 reinforcing bars; and
     Wire rod 7.9 to 18 mm in diameter, containing 0.48 to 
0.73% carbon by weight, and having partial decarbonization and seams no 
more than 0.75 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 remains 
dispositive.

Allegations of Subsidies

    Section 702(b) of the Act requires the Department to initiate a 
countervailing duty proceeding whenever an interested party files a 
petition, on behalf of an industry, that (1) alleges the elements 
necessary for the imposition of a duty under section 701(a), and (2) is 
accompanied by information reasonably available to the petitioner 
supporting the allegations.

Initiation of Investigation

    The Department has examined the petition on steel wire rod from 
Germany and found that it complies with the requirements of section 
702(b) of the Act. Therefore, in accordance with section 702 of the 
Act, we are initiating a countervailing duty investigation to determine 
whether manufacturers, producers or exporters of steel wire rod receive 
countervailable subsidies. The following programs are included in our 
investigation.

1. ``Ruckzahlungsverpflichten'' (RZVs)
2. Government Assumption of Debt
3. Debt Forgiveness by Private Banks
4. Worker Assistance under the European Coal and Steel Community's 
Article 56(2)(b).

    We are not including the following program which was alleged to be 
benefiting producers of the subject merchandise in Germany.

The Government of Saarland's Capital Contribution to DHS of DM 145.1 
Million

    Petitioners alleged that a DM 145.1 million payment by the 
Government of Saarland (GOS) constitutes a countervailable equity 
infusion. Petitioners base this allegation on their claim that the 
shares which the GOS received in exchange for this payment had a value 
of only DM 82.5 million, DM 62.5 million less than what the GOS paid.
    The question of whether this transaction constitutes a 
countervailable equity infusion was addressed in Certain Hot Rolled 
Lead and Bismuth Carbon Steel Products From Germany (58 FR 6233, 
January 27, 1993). The Department determined that the funds were 
provided on terms consistent with commercial considerations because at 
the same time that the GOS invested, two private investors also 
invested in DHS on the same terms. Petitioners have provided no new 
information in this petition indicating that this determination was 
incorrect. Therefore, the Department does not intend to re-investigate 
whether the investment was consistent with commercial considerations.

ITC Notification

    Pursuant to section 702(d) of the Act, we have notified the ITC of 
this initiation.

Preliminary Determinations By the ITC

    The ITC will determine by March 31, 1994, whether there is a 
reasonable indication that a United States industry is being materially 
injured, or threatened with material injury, by reason of steel wire 
rod imports from Germany. If the ITC makes a negative determination, we 
will terminate this proceeding; otherwise, the investigation will 
proceed according to statutory and regulatory time limits.
    This notice is published pursuant to 702(c)(2) of the Act and 19 
CFR 355.13(b).

    Dated: March 4, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-5883 Filed 3-11-94; 8:45 am]
BILLING CODE 3510-DS-P