[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]
-----------------------------------------------------------------------
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