[Federal Register Volume 63, Number 178 (Tuesday, September 15, 1998)]
[Notices]
[Pages 49331-49332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24773]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-580-829]


Notice of Amendment of Final Determination of Sales at Less Than 
Fair Value and Antidumping Duty Order: Stainless Steel Wire Rod From 
Korea

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

EFFECTIVE DATE: September 15, 1998.

FOR FURTHER INFORMATION CONTACT: Frank Thomson, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-4793.

The Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Act), are references to the provisions effective 
January 1, 1995, the effective date of the amendments made to the Act 
by the Uruguay Round Agreements Act (URAA). In addition, unless 
otherwise indicated, all citations to the Department of Commerce's 
(Department's) regulations are to the regulations at 19 CFR part 351, 
62 FR 27296 (May 19, 1997).

Amendment to the Final Determination

    On July 20, 1998, in accordance with section 735(a) of the Act, the 
Department made a final determination that stainless steel wire rod 
(SSWR) from Korea is being, or likely to be, sold in the United States 
at less than fair value. See Notice of Final Determination of Sales at 
Less Than Fair Value: Stainless Steel Wire Rod from Korea, 63 FR 40404 
(July 29, 1998) (final determination). On July 27 and 30, 1998, 
Dongbang Special Steel Co. Ltd. (Dongbang)/Changwon Specialty Steel Co. 
Ltd. (Changwon)/Pohang Iron & Steel Co. Ltd. (POSCO) (collectively, 
respondent) and petitioners (AL Tech Specialty Steel Corp., Carpenter 
Technology Corp., Republic Engineered Steels, Talley Metals Technology, 
Inc., and the United Steel Workers of America, AFL-CIO/CLC), 
respectively, filed timely allegations that the Department had made 
ministerial errors in its final determination. The respondent's 
allegation asserts that the Department did not incorporate necessary 
adjustments to the cost of materials figures utilized on the sales tape 
(i.e., the variable cost of manufacture field). Respondent alleges that 
the Department's failure to adjust the cost of materials resulted in 
incorrect difference in merchandise (DIFMER) adjustments on the sales 
file. The respondent notes that the Department correctly made the 
necessary adjustments to the cost of materials figures in the cost 
files. As a result, the respondent claims that the DIFMER adjustment 
utilized by the Department in the final determination does not 
accurately reflect the costs as adjusted by the Department. To correct 
this alleged error, the respondent suggests that the Department 
recalculate the materials, labor, and variable overhead figures (both 
for home market and the U.S. market) used to derive the DIFMER 
adjustment for both Dongbang and Changwon's calculations. For 
Dongbang's home market and U.S. variable cost of manufacturing 
calculation, the respondent claims the Department should include 
Dongbang's cost of materials less the fixed cost portions, POSCO's cost 
of materials, and POSCO's general and administrative expenses. For 
Changwon's home market and U.S. variable cost of manufacturing 
calculation, the respondent asserts that the Department should include 
Changwon's cost of materials less the fixed cost portions, and POSCO's 
cost of production, which includes POSCO's general and administrative 
expenses.
    Petitioners' July 30, 1998, submission addressed the respondent's 
ministerial error allegation and contained one additional ministerial 
error allegation. Petitioners agreed with the respondent that an error 
occurred in the calculation of the DIFMER adjustment. However, in 
addition to the respondent's proposed solution, petitioners also claim 
that for Dongbang's variable cost of manufacture calculation, the 
Department should also add POSCO's interest expense for both the home 
and U.S. market calculations. Petitioners also allege that the 
Department inadvertently used an incorrect home market diameter 
variable when conducting the product concordance.
    On August 4, 1998, the respondent filed comments addressing 
petitioners' ministerial error allegations. The respondent agrees with 
petitioners' proposed changes regarding Dongbang and Changwon's 
variable cost of manufacturing calculations, with one exception. The 
respondent asserts that the Department should not include

[[Page 49332]]

POSCO's interest expense field in these calculations because these 
financing costs are not considered a component of variable cost of 
manufacturing.
    We have determined, in accordance with 19 CFR 351.224, that a 
ministerial error (as alleged by petitioners) was made regarding the 
product concordance program in the final determination.
    However, we have also determined that the nature of the 
respondent's alleged error concerning the calculation of Dongbang and 
Changwon's variable cost of manufacturing calculations in the 
respondent's sales data base is methodological, rather than ministerial 
as defined above, and the allegation does not address an unintentional 
decision by the Department. Accordingly, we have not made any revisions 
with regard to this alleged error.
    Therefore, in accordance with 19 CFR 351.224(e), we are amending 
the final determination of the antidumping duty investigation of 
stainless steel wire rod from Korea. The revised weighted-average 
dumping margins are in the ``Antidumping Order'' section below.

Scope of Order

    For purposes of this investigation, SSWR comprises products that 
are hot-rolled or hot-rolled annealed and/or pickled and/or descaled 
rounds, squares, octagons, hexagons or other shapes, in coils, that may 
also be coated with a lubricant containing copper, lime or oxalate. 
SSWR is made of alloy steels containing, by weight, 1.2 percent or less 
of carbon and 10.5 percent or more of chromium, with or without other 
elements. These products are manufactured only by hot-rolling or hot-
rolling, annealing, and/or pickling and/or descaling, are normally sold 
in coiled form, and are of solid cross-section. The majority of SSWR 
sold in the United States is round in cross-sectional shape, annealed 
and pickled, and later cold-finished into stainless steel wire or 
small-diameter bar.
    The most common size for such products is 5.5 millimeters or 0.217 
inches in diameter, which represents the smallest size that normally is 
produced on a rolling mill and is the size that most wire-drawing 
machines are set up to draw. The range of SSWR sizes normally sold in 
the United States is between 0.20 inches and 1.312 inches diameter. Two 
stainless steel grades, SF20T and K-M35FL, are excluded from the scope 
of the investigation. The chemical makeup for the excluded grades is as 
follows:

SF20T

Carbon--0.05 max
Manganese--2.00 max
Phosphorous--0.05 max
Sulfur--0.15 max
Silicon--1.00 max
Chromium--19.00/21.00
Molybdenum--1.50/2.50
Lead--added (0.10/0.30)
Tellurium--added (0.03 min)

K-M35FL

Carbon--0.015 max
Silicon--0.70/1.00
Manganese--0.40 max
Phosphorous--0.04 max
Sulfur--0.03 max
Nickel--0.30 max
Chromium--12.50/14.00
Lead--0.10/0.30
Aluminum--0.20/0.35
    The products subject to this order are currently classifiable under 
subheadings 7221.00.0005, 7221.00.0015, 7221.00.0030, 7221.00.0045, and 
7221.00.0075 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the merchandise is 
dispositive.

Antidumping Order

    On September 8, 1998, in accordance with section 735(d) of the Act, 
the U.S. International Trade Commission (ITC) notified the Department 
that a U.S. industry is materially injured by reason of imports of 
stainless steel wire rod from Korea, pursuant to section 735(b)(1)(A) 
of the Act. Therefore, in accordance with section 736(a)(1) of the Act, 
the Department will direct the United States Customs Service to assess, 
upon further advice by the Department, antidumping duties equal to the 
amount by which the normal value of the merchandise exceeds the export 
price of the merchandise for all relevant entries of stainless steel 
wire rod from Korea. These antidumping duties will be assessed on all 
unliquidated entries of stainless steel wire rod from Korea entered, or 
withdrawn from warehouse, for consumption on or after March 5, 1998, 
the date on which the Department published its preliminary 
determination notice in the Federal Register (63 FR 10825).
    On or after the date of publication of this notice in the Federal 
Register, U.S. customs officers must require, at the same time as 
importers would normally deposit estimated duties, the cash deposits 
listed below for the subject merchandise. The ``All Others'' rate 
applies to all exporters of stainless steel wire rod not specifically 
listed below.
    The revised final weight-averaged margins are as follows:

------------------------------------------------------------------------
                                                   Original     Revised 
                                                     final       final  
         Manufacturer/producer/exporter             margin      margin  
                                                  percentage  percentage
------------------------------------------------------------------------
Dongbang Special Steel Co., Ltd./Changwon                               
 Specialty Steel Co., Ltd./Pohang Iron and Steel                        
 Co., Ltd.......................................       3.18        5.19 
Sammi Steel Co., Ltd............................      28.44       28.44 
All Others......................................       3.18        5.19 
------------------------------------------------------------------------

    This notice constitutes the antidumping duty order with respect to 
stainless steel wire rod from Korea, pursuant to section 736(a) of the 
Act. Interested parties may contact the Central Records Unit, Room B-
099 of the Main Commerce Building, for copies of an updated list of 
antidumping duty orders currently in effect.
    This order is published in accordance with section 736(a) of the 
Act and 19 CFR Sec. 351.211.

    Dated: September 10, 1998.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 98-24773 Filed 9-14-98; 8:45 am]
BILLING CODE 3510-DS-P