[Federal Register Volume 62, Number 204 (Wednesday, October 22, 1997)]
[Notices]
[Pages 54966-54972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27988]


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DEPARTMENT OF COMMERCE

International Trade Administration
[C-307-814]


Suspension of Countervailing Duty Investigation: Steel Wire Rod 
From Venezuela

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

SUMMARY: The Department of Commerce (the Department) has suspended the 
countervailing duty investigation involving steel wire rod from 
Venezuela. The basis for the suspension is an agreement between the 
Department and the Government of Venezuela (GOV) wherein the GOV has 
agreed not to provide any export subsidies or import substitution 
subsidies on the subject merchandise and has agreed to restrict the 
volume of direct or indirect exports to the United States of subject 
merchandise from all Venezuelan producers/exporters in order to 
eliminate completely the injurious effects of exports of this 
merchandise to the United States.

EFFECTIVE DATE: October 22, 1997.

FOR FURTHER INFORMATION CONTACT: Jean Kemp or Donna Kinsella, Office of 
Antidumping/Countervailing Duty Enforcement, Group III, Import 
Administration, U.S. Department of Commerce, Room 1874, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
2104.

SUPPLEMENTARY INFORMATION:

Background

    On March 24, 1997, the Department initiated a countervailing duty 
investigation under section 702 of the Tariff Act of 1930, (the Act), 
as amended, to determine whether manufacturers, producers, or exporters 
of steel wire rod from Venezuela receive subsidies (62 FR 13866). On 
April 30, 1997, the United States International Trade Commission (ITC) 
notified the Department of its affirmative preliminary injury 
determination. On May 2, 1997, we postponed the preliminary 
determination until no later than July 28, 1997 (62 FR 25172, May 8, 
1997).
    On July 28, 1997, the Department preliminarily determined that 
countervailable subsidies are being provided to CVG-Siderurgica del 
Orinoco (62 FR 41927, August 4, 1997). From August 27 through September 
8, 1997, the Department verified the questionnaire responses of the GOV 
and SIDOR in Venezuela.
    The Department and the GOV initialed a proposed agreement 
suspending this investigation on September 12, 1997. Interested parties 
were informed that the Department intended to finalize the agreement on 
October 14, 1997, and were invited to provide written comments on the 
agreement. Comments were timely filed by the GOV on October 3, 1997.
    The Department and the GOV signed the final suspension agreement on 
October 14, 1997.

Scope of Suspension Agreement

    The products covered by this suspension of investigation are set 
forth in section II of the Appendix to this notice.

Suspension of Investigation

    The Department consulted with the parties to the proceeding and has 
considered the comments submitted with respect to the proposed 
suspension agreement. (See October 14, 1997, Memorandum to the File Re: 
Analysis of Comments Submitted by Interested Parties, which is a public 
document on file in the Central Records Unit in room B-099 of the main 
Commerce building.) In accordance with section 704(c) of the Act, we 
have determined that extraordinary circumstances are present

[[Page 54967]]

in this case, as defined by section 704(c)(4) of the Act. (See October 
14, 1997, Extraordinary Circumstances Memorandum to Robert S. LaRussa, 
which is a public document on file in the Central Records Unit in room 
B-099 of the main Commerce building.)
    The suspension agreement provides that: (1) The GOV will restrict 
the volume of direct or indirect exports to the United States of 
subject merchandise from all Venezuelan producers/exporters; and (2) 
the GOV will not provide any export subsidies or import substitution 
subsidies on the subject merchandise.
    We have also determined that the suspension agreement can be 
monitored effectively and is in the public interest, pursuant to 
section 704(d) of the Act. (See October 14, 1997, Public Interest 
Memorandum to Robert S. LaRussa, which is a public document on file in 
the Central Records Unit in room B-099 of the main Commerce building.) 
We find, therefore, that the criteria for suspension of the 
investigation pursuant to section 704(c) of the Act have been met. The 
terms and conditions of the suspension agreement, signed October 14, 
1997, are set forth in the Appendix to this notice.
    The suspension of liquidation ordered in the final affirmative 
determination in this case shall continue in effect, subject to section 
704(h)(3) of the Act. Section 704(f)(2)(B) of the Act provides that the 
Department may adjust the security required to reflect the effect of 
the Agreement. Pursuant to this provision, the Department has found 
that the Agreement eliminates completely the injurious effects of 
imports and, thus, the Department is adjusting the security required 
from producers and/or exporters to zero.
    On October 14, 1997, we received a request from petitioners 
requesting that we continue the investigation. Pursuant to this 
request, we are continuing the investigation in accordance with section 
704(g) of the Act. We will notify the International Trade Commission 
(ITC) of our determination. If the ITC's injury determination is 
negative, the agreement will have no force or effect, and the 
investigation will be terminated (see section 704(f)(3)(A) of the Act). 
If the ITC's determination is affirmative, the Department will not 
issue a countervailing duty order as long as the suspension agreement 
remains in force (see section 704(f)(3)(B) of the Act).
    This notice is published pursuant to section 704(f)(1)(A) of the 
Act.

    Dated: October 14, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

Agreement Suspending the Countervailing Duty Investigation on Steel 
Wire Rod From Venezuela

    For the purpose of encouraging free and fair trade in steel wire 
rod, establishing more normal market relations, and eliminating injury 
to the domestic industry, the United States Department of Commerce 
(``the Department'') and the Government of Venezuela enter into this 
suspension agreement (``the Agreement'').
    Pursuant to this Agreement, the Government of Venezuela agrees not 
to provide any export subsidies on the subject merchandise. The 
Government of Venezuela also will restrict the volume of direct or 
indirect exports to the United States of subject merchandise from all 
Venezuela producers/exporters, subject to the terms and provisions set 
forth below.
    On the basis of this Agreement, pursuant to the provisions of 
Sections 704 (b) and (c) of the Tariff Act of 1930, as amended (the 
``Act'') (19 U.S.C. 1671c (b) and (c)), the Department shall suspend 
its countervailing duty investigation with respect to steel wire rod 
produced in Venezuela, subject to the terms and provisions set forth 
below.

I. Definitions

    For purposes of this Agreement, the following definitions apply:
    A. ``Date of Export'' for imports of subject merchandise into the 
United States shall be considered the date the Export License was 
issued.
    B. ``Party to the Proceeding'' means any interested party, within 
the meaning of Section 355.2(l) of the Department's Regulations, which 
actively participates through written submissions of factual 
information or written argument.
    C. ``Indirect Exports'' means arrangements as defined in Section 
IV.E of this Agreement and exports from Venezuela through one or more 
third countries, whether or not such exports are further processed 
whether or not such exports are sold in one or more third countries 
prior to importation into the United States and whether or not the 
Venezuela producer knew the product was destined to enter the United 
States.
    D. For purposes of this Agreement, ``United States'' shall comprise 
the customs territory of the United States of America (the 50 States, 
the District of Columbia and Puerto Rico) and foreign trade zones 
located in the territory of the United States of America.
    E. ``Export License'' is the document which serves as both an 
export license and a certificate of origin. An Export License must 
accompany all shipments of subject merchandise from Venezuela to the 
United States, and must contain all of the information enumerated in 
the Appendix (U.S. sales), except Date of Entry information and Final 
Destination.
    F. ``Relevant Period'' for the export limit of this Agreement means 
the period October 1 through September 30.
    ``For Consumption'' means all subject merchandise sold to 
customers, such as, trading companies, distributors, resellers, end-
users, or service centers.
    ``End-User'' means an entity, such as a steel service center, 
reseller, trading company, end-user, etc., which consumes the subject 
merchandise as defined in I (G).

II. Product Coverage

    The products covered by this Agreement (``subject merchandise'') 
are certain hot-rolled carbon steel and alloy steel products, in coils, 
of approximately round cross section, between 5.00 mm (0.20 inch) and 
19.0 mm (0.75 inch), inclusive, in solid cross-sectional diameter. 
Specifically excluded are steel products possessing the above noted 
physical characteristics and meeting the Harmonized Tariff Schedule of 
the United States (HTSUS) definitions for (a) stainless steel; (b) tool 
steel; (c) high nickel steel; (d) ball bearing steel; (e) free 
machining steel that contains by weight 0.03 percent or more of lead, 
0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more 
than 0.4 percent of phosphorus, more than 0.05 percent of selenium, 
and/or more than 0.01 percent of tellurium; or (f) concrete reinforcing 
bars and rods.
    The following products are also excluded from the scope of this 
Agreement:
    Coiled products 5.50 mm or less in true diameter with an average 
partial decarburization per coil of no more than 70 microns in depth, 
no inclusions greater than 20 microns, containing by weight the 
following: carbon greater than or equal to 0.68 percent; aluminum less 
than or equal to 0.005 percent; phosphorous plus sulfur less than or 
equal to 0.040 percent; maximum combined copper, nickel and chromium 
content of 0.13 percent; and nitrogen less than or equal to 0.006 
percent. This product is commonly referred to as ``Tire Cord Wire 
Rod.''
    Coiled products 7.9 to 18 mm in diameter, with a partial 
decarburization

[[Page 54968]]

of 75 microns or less in depth and seams no more than 75 microns in 
depth; containing 0.48 to 0.73 percent carbon by weight. This product 
is commonly referred to as ``Valve Spring Quality Wire Rod.''
    The products subject to this Agreement are currently classifiable 
under subheadings 7213.91.3000, 7213.91.4500, 7213.91.6000, 
7213.99.0030, 7213.99.0090, 7227.20.0000, and 7227.90.6050 of the 
HTSUS. Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope of this 
Agreement is dispositive.

III. Non-Provision of Export Subsidies

    A. The Government of Venezuela certifies that all exports of the 
subject merchandise to the United States made on or after the effective 
date of this Agreement are not and will not be eligible for any export 
or import substitution subsidies.
    B. The Government of Venezuela recognizes that the provision of 
export or import substitution subsidies on the production or shipment 
of the subject merchandise exported directly or indirectly from 
Venezuela to the United States may result in termination of this 
Agreement and resumption of the investigation pursuant to the 
provisions of section 704(i) of the Act. Export and import substitution 
subsidies include those subsidies that have been determined to be 
export or import substitution subsidies in the preliminary 
determination in the countervailing duty investigation underlying this 
agreement (unless the investigation is continued and a contrary 
decision is reached in the final determination), in any final U.S. 
countervailing duty investigation of a Venezuela product, or in any 
final review of a Venezuela product under section 751 of the Act, and 
include subsidies which may apply to other products or exports to other 
destinations to the extent that such subsidies cannot be segregated as 
applying solely to such other products or exports.
    C. The Government of Venezuela shall notify the Department in 
writing of any new benefit which is, or which Venezuela has reason to 
know would be, an export or import substitution subsidy on shipments of 
the subject merchandise exported, directly or indirectly, from 
Venezuela to the United States, including subsidies which may apply to 
both the subject merchandise and other products or exports to other 
destinations, to the extent such benefits cannot be segregated as 
applying solely to such other products or exports.

IV. Export Limit

    A. The export limit for subject merchandise in each Relevant Period 
shall be 60,000 short tons. The export limit for each Relevant Period 
shall be allocated in semi-annual quota allocation periods (October-
March, April-September). No more than 60% of the export limit for any 
Relevant Period can be allocated in any given semi-annual quota 
allocation period. Deductions from the export limit shall be made based 
on the ``Date of Export,'' as defined in Section I.
    B. On or after the effective date of this Agreement, the Government 
of Venezuela will restrict the volume of direct or indirect exports of 
subject merchandise to the United States, and the transfer or 
withdrawal from inventory of subject merchandise (consistent with the 
provisions of Section IV.D), in accordance with the export limit then 
in effect.
    C. An export shipment to the United States may not be made for more 
than the entire amount of quota allocated for that semi-annual quota 
allocation period. Any amount exported to the United States during a 
semi-annual quota allocation period shall not, however, when cumulated 
with all prior exports to the United States within the same Relevant 
Period, exceed the annual quota for that Relevant Period.
    D. Any inventories of subject merchandise produced by a Venezuela 
entity, currently held in the United States by a Venezuela entity, and 
imported into the United States between May 6, 1997 and the effective 
date of this Agreement will be subject to the following conditions:
    1. Such inventories will not be transferred or withdrawn from 
inventory for consumption in the United States without an Export 
License issued by the Government of Venezuela. Any such transfers or 
withdrawals from inventory shall be deducted from the export limit in 
effect at the time the Export License is issued.
    2. A request for an Export License under this provision shall be 
accompanied by a report specifying the original date of export, the 
date of entry into the United States, the identity of the original 
exporter and importer, the customer, a complete description of the 
product (including lot numbers and other available identifying 
documentation), and the quantity expressed in pounds.
    3. In the event that there is a surge of sales of subject 
merchandise from such inventory, the Department will decrease the 
export limit to take into account such sales.
    E. Any arrangement involving the exchange, sale, or delivery of 
steel wire rod products, as described in Section II, from Venezuela, to 
the degree it results in the sale or delivery in the United States of 
steel wire rod products, as described in Section II, from a country 
other than Venezuela, is subject to the requirements of Section V and 
will be counted toward the available quota. Any such transaction that 
does not comply with the requirements of Section V will be deducted 
from the available quota pursuant to Section VII.
    F. Where subject merchandise is imported into the United States and 
is subsequently re-exported, or re-packaged and re-exported, the 
available quota shall be increased by the amount of pounds re-exported. 
Such increase will be applicable to the Relevant Period corresponding 
to the time of such re-export. Such increase will be applied only after 
the Department receives, and has the opportunity to verify, evidence 
demonstrating original importation, any re-packaging, and subsequent 
exportation. The re-exported material must be identical to the imported 
material.
    G. Export Licenses for a given Relevant Period may not be issued 
after September 30, except that Export Licenses not so issued may be 
issued during the first three months of the following Relevant Period, 
up to a maximum of 15 percent of the export limit for that following 
Relevant Period. Such ``carried-over'' quota shall be counted against 
the export limit applicable to the previous Relevant Period.
    Export Licenses for up to 15 percent of the export limit for a 
subsequent Relevant Period may be issued as early as August 1 of the 
preceding Relevant Period. Such ``carried-back'' quota shall be counted 
against the export limit applicable to the following Relevant Period.
    H. For the first 90 days after the effective date of this 
Agreement, subject merchandise shall be admitted into the United States 
with an ``Export License/Certificate of Origin (Temporary Papers).''
    The volume of any such imports will be deducted from the export 
limit applicable to the first Relevant Period. A full reporting of any 
such imports, which must correspond to the United States sales 
information detailed in the Appendix, must be submitted to the 
Department no later than 30 days after the conclusion of the 90 day 
period. This data must be sorted on the basis of date of export.

[[Page 54969]]

V. Export License

    A. The Government of Venezuela will restrict the volume of direct 
or indirect exports of subject merchandise to the United States by 
means of semi-annual quota allocations and Export Licenses. Export 
Licenses shall be issued by the Government of Venezuela for all direct 
or indirect exports of subject merchandise to the United States in 
accordance with the export limit in Section IV.
    B. Thirty days following the semi-annual allocation of quota rights 
for any Relevant Period, the Government of Venezuela shall provide to 
the Department a report identifying each quota recipient and the volume 
of quota which each recipient has been accorded (``report of quota 
allocation results'').
    C. Before it issues an Export License, the Government of Venezuela 
will ensure that neither the annual quota for the Relevant Period nor 
the semi-annual quota allocation is exceeded.
    D. The Government of Venezuela shall take action, including the 
imposition of penalties, as may be necessary to make effective the 
obligations resulting from the export limit and Export Licenses. The 
Government of Venezuela will inform the Department of any violations 
concerning the export limit and/or Export Licenses which come to its 
attention and the action taken with respect thereto.
    The Department will inform the Government of Venezuela of 
violations concerning the export limit and/or Export Licenses which 
come to its attention and the action taken with respect thereto.
    E. Export Licenses will be issued sequentially, will be endorsed 
against the export limit for the Relevant Periods, and will reference 
the report of quota allocation results for the appropriate Relevant 
Period.
    F. Export Licenses must be issued no earlier than one month before 
the day, month, and year on which the merchandise is accepted by a 
transportation company, as indicated in the bill-of-lading or a 
comparable transportation document, for export. Export Licenses must 
contain an English language translation.
    G. On or after the effective date of this Agreement, the United 
States shall require presentation of an Export License as a condition 
for entry of subject merchandise into the United States. The United 
States will prohibit the entry of any subject merchandise not 
accompanied by an Export License.

VI. Implementation

A. Export Subsidies

    The Government of Venezuela shall certify to the Department, in 
accordance with the reporting schedule in Section VIII.C., whether it 
continues to be in compliance with the Agreement by providing that all 
exports of the subject merchandise to the United States are not and 
will not be eligible for any export subsidies, as provided in Section 
III.A. Failure to supply such information or certification in a timely 
fashion may result in the immediate resumption of the investigation or 
issuance of a countervailing duty order.

B. Export Limit

    In order to effectively restrict the volume of exports of subject 
merchandise to the United States, the Government of Venezuela agrees to 
implement the following procedures:
    1. Establish an Export License program for all exports of subject 
merchandise to, or destined directly or indirectly for consumption in, 
the United States, no later than 90 days after the effective date of 
this Agreement.
    2. Ensure compliance by any official Venezuela institution, 
chamber, or other entities authorized by the Government of Venezuela, 
all producers, exporters, brokers, and traders of the subject 
merchandise, and their affiliated parties, with all procedures 
established in order to effectuate this Agreement.
    3. Collect information from all Venezuela producers, exporters, 
brokers, and traders of the subject merchandise, and their affiliated 
parties, on the sale of the subject merchandise, and report such 
information pursuant to Section VIII of this Agreement.
    4. Prohibit, by resolution, decree, legislation or equivalent 
Government action, direct and indirect exports to the United States of 
subject merchandise except with an Export License issued pursuant to 
Section V.A. and impose strict sanctions, such as penalties or 
prohibition from participation in the export limit allowed by the 
Agreement, in the event that any Venezuela or Venezuela-affiliated 
party does not comply in full with all the terms of the Agreement.

VII. Anticircumvention

    A. The Government of Venezuela will take all appropriate measures 
under Venezuela law to prevent circumvention of this Agreement. It 
shall promptly conduct an inquiry into any and all allegations of 
circumvention, including allegations raised by the Department, and 
shall complete such inquiries in a timely manner (normally within 45 
days). The Government of Venezuela shall notify the Department of the 
results of its inquiries within ten days of the conclusion of such 
inquiries. Within 15 days of a request from the Department, the 
Government of Venezuela shall share with the Department all facts known 
to the Government of Venezuela regarding its inquiries, its analysis of 
such facts and the results of such inquiries. The Government of 
Venezuela will require all Venezuela exporters of steel wire rod 
products, as described in Section II, to include a provision in their 
contracts for sales to countries other than the United States that the 
steel wire rod sold through such contracts cannot be re-exported, 
transhipped or swapped to the United States, or otherwise used to 
circumvent the export limit of this Agreement. The Government of 
Venezuela will also establish appropriate mechanisms to enforce this 
requirement.
    B. If, in an inquiry pursuant to paragraph A, the Government of 
Venezuela determines that a Venezuela company has participated in a 
transaction that resulted in circumvention of the export limit of this 
Agreement, then the Government of Venezuela shall impose penalties on 
such company including, but not limited to, denial of access to the 
steel wire rod quota. Additionally, the Government of Venezuela shall 
deduct an amount of steel wire rod equivalent to the amount involved in 
such circumvention from the available quota and shall immediately 
notify the Department of the amount deducted. If sufficient quota is 
not available in the current Relevant Period, then the remaining amount 
necessary shall be deducted from the subsequent Relevant Period.
    C. If the Government of Venezuela determines that a company from a 
third country has circumvented the Agreement and the signatories agree 
that no Venezuela entity participated in or had knowledge of such 
activities, then the signatories shall hold consultations for the 
purpose of sharing evidence regarding such circumvention and reaching 
mutual agreement on the appropriate steps to be taken to eliminate such 
circumvention, such as the Government of Venezuela prohibiting sales of 
Venezuela steel wire rod to the company responsible or reducing steel 
wire rod exports to the country in question. If the signatories are 
unable to reach mutual agreement within 45 days, then the Department 
may take appropriate action, such as deducting the amount of steel wire 
rod involved in such circumvention from

[[Page 54970]]

the available quota, taking into account all relevant factors. Before 
taking such action, the Department will notify the Government of 
Venezuela of the facts and reasons constituting the basis for the 
Department's intended action and will afford the Government of 
Venezuela ten days in which to comment.
    D. If the Department determines that a Venezuela entity 
participated in circumvention, the signatories shall hold consultations 
for the purpose of sharing evidence regarding such circumvention and 
reaching mutual agreement on an appropriate resolution of the problem. 
If the signatories are unable to reach mutual agreement within 45 days, 
the Department may take appropriate action, such as deducting the 
amount of steel wire rod involved in such circumvention from the 
available quota or instructing the U.S. Customs Service to deny entry 
to any subject merchandise sold by the entity found to be circumventing 
the Agreement. Before taking such action, the Department will notify 
the Government of Venezuela of the facts and reasons constituting the 
basis for the Department's intended action and will afford the 
Government of Venezuela ten days in which to comment.
    E. The Department shall direct the U.S. Customs Service to require 
all importers of steel wire rod, as described in Section II, into the 
United States, regardless of stated country of origin, to submit at the 
time of entry a written statement certifying that the steel wire rod 
being imported was not obtained under any arrangement, swap, or other 
exchange which would result in the circumvention of the export limit 
established by this Agreement. Where the Department has reason to 
believe that such a certification has been made falsely, the Department 
will refer the matter to the U.S. Customs Service or the Department of 
Justice for further action.
    F. Given the fungibility of the world steel wire rod market, the 
Department will take the following factors into account in 
distinguishing normal steel wire rod market arrangements, swaps, or 
other exchanges from arrangements which would result in the 
circumvention of the export limit established by this Agreement:
    1. Existence of any verbal or written arrangements which would 
result in the circumvention of the export limit established by this 
Agreement;
    2. Existence of any arrangement as defined in Section IV.E that was 
not reported to the Department pursuant to Section VIII.A;
    3. Existence and function of any subsidiaries or affiliates of the 
parties involved;
    4. Existence and function of any historical and/or traditional 
trading patterns among the parties involved;
    5. Deviations (and reasons for deviation) from the above patterns, 
including physical conditions of relevant steel wire rod facilities;
    6. Existence of any payments unaccounted for by previous or 
subsequent deliveries, or any payments to one party for merchandise 
delivered or swapped by another party;
    7. Sequence and timing of the arrangements; and
    8. Any other information relevant to the transaction or 
circumstances.
    G. ``Swaps'' include, but are not limited to:
    Ownership swaps--involve the exchange of ownership of any type of 
steel wire rod product(s) without physical transfer. These may include 
exchange of ownership of steel wire rod products in different 
countries, so that the parties obtain ownership of products located in 
different countries; or exchange of ownership of steel wire rod 
products produced in different countries, so that the parties obtain 
ownership of products of different national origin.
    Flag swaps--involve the exchange of indicia of national origin of 
steel wire rod products without any exchange of ownership.
    Displacement swaps--involve the sale or delivery of any type of 
steel wire rod product(s) from Venezuela to an intermediary country (or 
countries) which can be shown to have resulted in the ultimate delivery 
or sale into the United States of displaced steel wire rod products of 
any type, regardless of the sequence of the transaction.
    H. The Department will enter its determinations regarding 
circumvention into the record of the Agreement.

VIII. Monitoring

    The Government of Venezuela will provide to the Department such 
information as is necessary and appropriate to monitor the 
implementation of and compliance with the terms of this Agreement. The 
Department of Commerce shall provide semi-annual reports to the 
Government of Venezuela indicating the volume of imports of the subject 
merchandise to the United States, together with such additional 
information as is necessary and appropriate to monitor the 
implementation of this Agreement.
    A. The Government of Venezuela shall immediately notify and provide 
copies to the Department of any resolution, decree, legislation or 
equivalent Government action governing any export or import 
substitution subsidy which is issued, altered or amended in any way as 
to be applicable or available to producers/exporters of the subject 
merchandise to the United States.
    B. The Government of Venezuela shall notify the Department if any 
exporters of the subject merchandise transship the subject merchandise 
through third countries. The Government of Venezuela also shall notify 
the Department if any exporter applies for or receives, directly or 
indirectly, the benefits of any export or import substitution subsidy.
    C. Beginning on the effective date of this Agreement, the 
Government of Venezuela shall collect and provide to the Department the 
information set forth, in the agreed format, in the Appendix. All such 
information will be provided to the Department by May 1 of each year 
for exports during the period from October 1 of the previous year 
through March 31. In addition, such information will be provided to the 
Department by November 1 for exports from April 1 through September 30, 
or within 90 days of a request made by the Department. Such information 
will be subject to the verification provision identified in Section 
VIII.G of this Agreement. The Government of Venezuela agrees to allow 
sales of subject merchandise only by those producers and through those 
brokers and trading companies which permit full reporting and 
verification of data. The Department may disregard any information 
submitted after the deadlines set forth in this Section or any 
information which it is unable to verify to its satisfaction.
    Aggregate quantity and value of sales by HTS category to each third 
country will be provided to the Department by May 1 of each year for 
exports during the period from October 1 of the previous year through 
March 31. In addition, such quantity and value information will be 
provided to the Department by November 1 for exports from April 1 
through September 30.
    Transaction specific data for all third country sales will also be 
reported on the schedule provided above in the format provided in the 
Appendix. However, if the Department concludes that the transaction 
specific data is not necessary for a given period, it will notify the 
Government of Venezuela at least 90 days before the reporting deadline 
that transaction specific sales data need not be reported. If the 
Department determines that such data is relevant in connection with 
Section VII

[[Page 54971]]

and requests information on transactions for one or more third 
countries during a period for which the Department waived complete 
reporting, the Government of Venezuela will provide the data listed in 
the Appendix for those specific transactions within 90 days of the 
request.
    D. Both governments recognize that the effective monitoring of this 
Agreement may require that Venezuela provide information additional to 
that which is identified above. Accordingly, the Department may 
establish additional reporting requirements, as appropriate, during the 
course of this Agreement.
    E. The Department shall provide notice to the Government of 
Venezuela of any additional reporting requirements no later than 45 
days prior to the period covered by such reporting requirements unless 
a shorter notice period is mutually agreed.
    F. Other sources for monitoring. The Department will review 
publicly-available data as well as Customs Form 7501 entry summaries 
and other official import data from the Bureau of the Census, on a 
monthly basis, to determine whether there have been imports that are 
inconsistent with the provisions of this Agreement.
    The Department will monitor Bureau of the Census IM-115 
computerized records, which include the quantity and value of each 
entry. Because these records do not provide other specific entry 
information, such as the identity of the producer/exporter which may be 
responsible for such sales, the Department may request the U.S. Customs 
Service to provide such information. The Department may request other 
additional documentation from the U.S. Customs Service.
    The Department may also request the U.S. Customs Service to direct 
ports of entry to forward a Countervailing Duty Report of Importations 
for entries of the subject merchandise during the period this Agreement 
is in effect.
    G. Verification. The Government of Venezuela will permit full 
verification of all information related to the administration of this 
Agreement, including verification of the Venezuela producer and any 
brokers/trading companies utilized in making sales/shipments to the 
United States, on an annual basis or more frequently, as the Department 
deems necessary to ensure that Venezuela is in full compliance with the 
terms of the Agreement. Such verifications may take place in 
association with scheduled consultations whenever possible.

IX. Disclosure and Comment

    A. The Department shall make available to representatives of each 
party to the proceeding, under appropriately-drawn administrative 
protective orders consistent with the Department's Regulations, 
business proprietary information submitted to the Department semi-
annually or upon request, and in any administrative review of this 
Agreement.
    B. Not later than 30 days after the date of disclosure under 
Section VIII.A, the parties to the proceeding may submit written 
comments to the Department, not to exceed 30 pages.
    C. During the anniversary month of this Agreement, each party to 
the proceeding may request a hearing on issues raised during the 
preceding Relevant Period. If such a hearing is requested, it will be 
conducted in accordance with Section 751 of the Act (19 U.S.C. 1675) 
and applicable regulations.

X. Consultations

    The Government of Venezuela and the Department shall hold 
consultations regarding matters concerning the implementation, 
operation and/or enforcement of this Agreement. Such consultations will 
be held each year during the anniversary month of this Agreement. 
Additional consultations may be held at any other time upon request of 
either the Government of Venezuela or the Department.

XI. Violations of the Agreement

A. Violation

    ``Violation'' means noncompliance with the terms of this Agreement 
caused by an act or omission in accordance with Section 355.19 of the 
Department's Regulations.
    The Government of Venezuela and the Department will inform the 
other party of any violations of the Agreement which come to their 
attention and the action taken with respect thereto.
    Imports in excess of the export limit set out in this Agreement 
shall not be considered a violation of this Agreement or an indication 
the Agreement no longer meets the requirements of Section 704 (b) or 
(c) of the Act where such imports are minimal in volume, are the result 
of technical shipping circumstances, and are applied against the export 
limit of the following year.
    Prior to making a determination of an alleged violation, the 
Department will engage in emergency consultations. Such consultations 
shall begin no later than 14 days from the day of request and shall 
provide for full review, but in no event will exceed 30 days. After 
consultations, the Department will provide the Government of Venezuela 
20 days within which to provide comments. The Department will make a 
determination within 30 days.

B. Appropriate Action

    If the Department determines that this Agreement is being or has 
been violated, the Department will take such action as it determines is 
appropriate under Section 704(i) of the Act and Section 355.19 of the 
Department's Regulations.

XII. Duration

    Absent affirmative determinations under the five-year review 
provisions of sections 751 and 752 of the Act, the Department expects 
to terminate this Agreement and the underlying investigation no later 
than October 14, 2002.
    The Government of Venezuela may terminate this Agreement at any 
time upon notice to the Department. Termination shall be effective 60 
days after such notice is given to the Department. Upon termination at 
the request of the Government of Venezuela, the provisions of Section 
704(i) of the Act shall apply.

XIII. Other Provisions

    A. The Department finds that this Agreement is in the public 
interest; that effective monitoring of this Agreement by the United 
States is practicable; and that this Agreement will completely 
eliminate injury to the domestic industry producing the like product by 
imports of the merchandise subject to this Agreement.
    B. The English language version of this Agreement shall be 
controlling.
    C. For all purposes hereunder, the Department and the signatory 
Government shall be represented by, and all communications and notices 
shall be given and addressed to:

Department of Commerce, U.S. Department of Commerce, Assistant 
Secretary for Import Administration, International Trade 
Administration, Washington, D.C. 20230
Government of Venezuela, Ministerio de Industria y Comerio, Direccion 
General Sectorial de Comercio Exterior, Av. Libertador--Centro 
Comercial Los Cedros, Urbanizacion La Florida, Caracas, Venezuela

XIV. Effective Date

    The effective date of this Agreement is the date of its publication 
in the Federal Register.

    For Government of Venezuela.


[[Page 54972]]


    Dated: October 14, 1997.
Alejandro J. Perera,
DCM & Charge D'Affairs of Venezuelan Embassy.
    For U.S. Department of Commerce.

    Dated: October 14, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

Appendix

    In accordance with the established format, the Government of 
Venezuela shall collect and provide to the Department all 
information necessary to ensure compliance with this Agreement. This 
information will be provided to the Department on a semi-annual 
basis, or upon request.
    The Government of Venezuela will collect and maintain sales data 
to the United States, in the home market, and to countries other 
than the United States, on a continuous basis and provide the 
prescribed information to the Department.
    The Government of Venezuela will provide a narrative explanation 
to substantiate all data collected in accordance with the following 
formats.

Report of Inventories

    Report, by location, the inventories held by Venezuela 
producers/exporters in the United States and imported into the 
United States between the period beginning May 6, 1997, through the 
effective date of the Agreement.
    1. Quantity: Indicate original units of measure and in pounds.
    2. Location: Identify where the inventory is currently being 
held. Provide the name and address for the location.
    3. Titled Party: Name and address of party who legally has title 
to the merchandise.
    4. Export License Number: Indicate the number(s) relating to 
each entry now being held in inventory.
    5. Certificate of Origin Number(s): Indicate the number(s) 
relating to each sale or entry.
    6. Date of Original Export: Date the Export License/certificate 
of origin is issued.
    7. Date of Entry: Date the merchandise entered the United States 
or the date book transfer took place.
    8. Original Importer: Name and address.
    9. Original Exporter: Name and address.
    10. Complete Description of Merchandise: Include heat numbers, 
HTS number, physical description, ASTM specification, and other 
available information.

United States Sales

    The Government of Venezuela will provide all Export Licenses, 
which shall contain the following information with the exception of 
item #9, date of entry, and item #16, final destination.
    1. Export License/Certificate of Origin Number(s): Indicate the 
number(s) relating to each sale and/or entry.
    2. Complete Description of Merchandise: Include heat numbers, 
HTS number, physical description, ASTM specification, and other 
available information.
    3. Quantity: Indicate in original units of measure and in 
pounds.
    4. F.O.B. Sales Value: Indicate currency used.
    5. Unit Price: Indicate currency used/per original unit of 
measure.
    6. Date of Sale: The date all terms of order are confirmed.
    7. Sales Order Number(s): Indicate the specification number/
order number relating to each sale and/or shipment.
    8. Date of Export: Date the Export License is issued.
    9. Date of Entry: Date the merchandise entered the United States 
or the date book transfer took place.
    10. Importer of Record: Name and address.
    11. Trading Company/Broker: Name and address of any trading 
company involved in the sale.
    12. Customer: Name and address of the first unaffiliated party 
purchasing from the Venezuela producer/exporter.
    13. Customer Affiliation: Indicate whether the customer is 
affiliated or unaffiliated to the Venezuela exporter.
    14. Quota Allocated to Exporter: Indicate the total amount of 
quota allocated to the individual exporter during the Relevant 
Period.
    15. Quota Remaining: Indicate the remaining quota available to 
the individual exporter during the Relevant Period.
    16. Final Destination: Name and address of the end-user for 
consumption in the United States.
    17. Other: The identity of any party(ies) in the transaction 
chain between the customer and the final destination/end-user.

Mill Certification

    The Government of Venezuela shall ensure that all shipments of 
subject merchandise exported to the United States pursuant to this 
Agreement shall be accompanied by a copy of the original mill 
certification.

Sales Other Than United States

    Pursuant to Section VIII, paragraph C, the Government of Venezuela 
will provide country-specific sales volume and value information for 
all sales of steel wire rod products, as described in Section II, in 
the home market and to third countries.
    1. Quantity: Indicate in original units of measure sold and/or 
entered and in metric tons.
    2. F.O.B. Sales Value: Indicate currency used.
    3. Date of Sale: The date all terms of order are confirmed.
    4. Complete Description of Merchandise: Include heat numbers, 
HTS number, physical description, specification/grade under which 
sold, and other available information.
    5. Sales Order Number(s): Indicate the specification number/
order number relating to each sale and/or shipment.
    6. Date of Export (if third country): Date of shipment from 
Venezuela.
    7. Date of Entry (if third country): Date the merchandise 
entered the third country or the date a book transfer took place.
    8. Importer of Record (if third country): Name and address.
    9. Customer: Name and address of the first party purchasing from 
the Venezuela producer/exporter.
    10. Customer Affiliation: Indicate whether the customer is 
affiliated or unaffiliated.
    11. Final Destination: Name and address of the end-user for 
consumption.
    12. Other: The identity of any party(ies) in the transaction 
chain between the customer and the final destination/end-user.

[FR Doc. 97-27988 Filed 10-21-97; 8:45 am]
BILLING CODE 3510-DS-P