[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Notices]
[Pages 6685-6687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3541]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-829]


Stainless Steel Wire Rod From Korea; Final Results of Antidumping 
Duty Administrative Review

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

ACTION: Notice of final results of antidumping duty administrative 
review.

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SUMMARY: On October 9, 2001, the Department of Commerce (the 
Department) published the preliminary results of administrative review 
of the antidumping duty order on stainless steel wire rod (SSWR) from 
Korea (66 FR 51385). This review covers two manufacturers/exporters of 
the subject merchandise. The period of review (POR) is September 1, 
1999, through August 31, 2000.
    We gave interested parties an opportunity to comment on the 
preliminary results. Based on our analysis of the comments received and 
the correction of certain clerical errors, we have made changes in the 
margin calculations presented in the preliminary results of review. The 
final weighted-average dumping margins for the company under review is 
listed below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: February 13, 2002.

FOR FURTHER INFORMATION CONTACT: Alexander Amdur or Karine Gziryan, 
Office of AD/CVD Enforcement, Group II, Office 4, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230; telephone (202) 482-5346 and (202) 482-4081, respectively.

SUPPLEMENTARY INFORMATION:

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's regulations are 
to 19 CFR Part 351 (2000).

Background

    This review covers two manufacturers/exporters, Changwon Specialty 
Steel Co., Ltd. (Changwon) and Dongbang Specialty Steel Co., Ltd. 
(Dongbang) (collectively, respondents).
    The POR is September 1, 1999, through August 31, 2000.
    On October 9, 2001, the Department published in the Federal 
Register the preliminary results of administrative review of the 
antidumping duty order on stainless steel wire rod (SSWR) from Korea. 
See Stainless Steel Wire Rod from Korea; Preliminary Results of 
Antidumping Duty Administrative Review, 66 FR 51385 (October 9, 2001) 
(Preliminary Results).
    We invited parties to comment on our preliminary results of review. 
On December 5, 2001, the respondents submitted a case brief. The 
petitioners (i.e., Carpenter Technology Corp., Empire Specialty Steel, 
and the United Steel Workers of America, AFL-CIO/CLC), submitted a 
rebuttal brief on December 12, 2001.
    The Department has conducted this administrative review in 
accordance with section 751 of the Act.
Scope of the Order
    For purposes of this review, 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

[[Page 6686]]

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 in diameter.
    Two stainless steel grades are excluded from the scope of the 
review. SF20T and K-M35FL are excluded. The chemical makeup for the 
excluded grades is as follows:

                                  SF20T
Carbon...............................................           0.05 max
Chromium.............................................        19.00/21.00
Manganese............................................           2.00 max
Molybdenum...........................................          1.50/2.50
Phosphorous..........................................           0.05 max
Lead-added...........................................        (0.10/0.30)
Sulfur...............................................           0.15 max
Tellurium-added......................................         (0.03 min)
Silicon..............................................           1.00 max
------------------------------------------------------------------------


                                 K-M35FL
Carbon...............................................          0.015 max
Nickel...............................................           0.30 max
Silicon..............................................          0.70/1.00
Chromium.............................................        12.50/14.00
Manganese............................................           0.40 max
Lead.................................................          0.10/0.30
Phosphorous..........................................           0.04 max
Aluminum.............................................          0.20/0.35
Sulfur...............................................           0.03 max
------------------------------------------------------------------------

    The products subject to this review 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 scope 
of this review is dispositive.
Duty Absorption
    On November 14, 2000, the petitioners requested that the Department 
determine whether antidumping duties had been absorbed during the POR 
by the respondents. Section 751(a)(4) of the Act provides for the 
Department, if requested, to determine during an administrative review 
initiated two or four years after the publication of the order, whether 
antidumping duties have been absorbed by a foreign producer or 
exporter, if the subject merchandise is sold in the United States 
through an affiliated importer. Because the collapsed entity Pohang 
Iron and Steel Co., Ltd. (POSCO)/Changwon/Dongbang (see ``Collapsing'' 
section of this notice) sold to unaffiliated customers in the United 
States, in part, through an importer, Pohang Steel America Corporation, 
that is affiliated, and because this review was initiated two years 
after the publication of the order, we will make a duty absorption 
determination in this segment of the proceeding within the meaning of 
section 751(a)(4) of the Act.
    On February 16, 2001, the Department requested evidence from each 
respondent to demonstrate that U.S. purchasers will pay any ultimately 
assessed duties charged to them. The Department requested that this 
information be provided no later than March 2, 2001. No respondent 
provided such evidence. Furthermore, in the Preliminary Results, 66 FR 
at 51386, we notified interested parties that, if they wish to submit 
evidence that the unaffiliated purchasers in the United States will pay 
any ultimately assessed duty charged to affiliated importers, they must 
do so no later than 15 days after publication of the preliminary 
results. No interested party provided such evidence. Accordingly, based 
on the record, we cannot conclude that the unaffiliated purchaser in 
the United States will ultimately pay the assessed duty. Consequently, 
we have determined that duty absorption by the collapsed entity POSCO/
Changwon/Dongbang has occurred in this administrative review.
Collapsing
    During the less than fair value (LTFV) investigation, POSCO was the 
sole supplier to Dongbang of black coil (unfinished SSWR). See Notice 
of Final Determination of Sales at Less than Fair Value: Stainless 
Steel Wire Rod from Korea, 63 FR 40404, 40410 (July 29, 1998) (Final 
Determination). Based on this fact, and the fact that Dongbang was not 
able to obtain suitable black coil from alternative sources, the 
Department determined that POSCO and its wholly-owned subsidiary, 
Changwon, were affiliated with Dongbang through a close supplier 
relationship pursuant to section 771(33)(G) of the Act and section 
351.102(b) of the Department's regulations. See id. The Department, in 
the investigation stage, also collapsed Changwon, POSCO, and Dongbang 
as a single entity for purposes of the dumping analysis in accordance 
with section 351.401(f) of the Department's regulations. See id.
    Because neither POSCO, Changwon, nor Dongbang has provided any new 
evidence showing that this finding no longer holds true, and because we 
have not found any new evidence to change this finding, we have 
continued to find that POSCO and Changwon are affiliated with Dongbang 
through a close supplier relationship.\1\ Further, we have continued to 
treat POSCO, Changwon, and Dongbang as a single entity and to calculate 
a single margin for them. (See, e.g., Frozen Concentrated Orange Juice 
from Brazil; Final Results and Partial Rescission of Antidumping Duty 
Administrative Review, 66 FR 51008 (October 5, 2001)).
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    \1\ During the POR, Changwon, and not POSCO, was Dongbang's sole 
supplier of black coil. However, since we continue to treat POSCO 
and Changwon as a single entity (as we did in the LTFV 
investigation), this does not change our determination that POSCO/
Changwon are affiliated with Dongbang through a close supplier 
relationship.
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Analysis of Comments Received
    All issues raised in the case and rebuttal briefs by parties to 
this proceeding and to which we have responded are listed in the 
Appendix to this notice and addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum), dated February 6, 2002, which is 
hereby adopted by this notice. Parties can find a complete discussion 
of the issues raised in this review and the corresponding 
recommendations in the public Decision Memorandum which is on file in 
the Central Records Unit, room B-099 of the main Department building. 
In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Web at http://ia.ita.doc.gov. The paper copy 
and electronic version of the Decision Memorandum are identical in 
content.
Changes Since the Preliminary Results
    Based on our analysis of comments received, we have made 
adjustments to the preliminary results calculation methodologies in 
calculating the final dumping margin in this proceeding. A summary of 
these adjustments is discussed below:
1. We included an amortized portion of the deferred foreign exchange 
losses of

[[Page 6687]]

POSCO and Dongbang Transport Logistics Co., Ltd. that these two 
companies wrote off in 1999 to retained earnings in the calculation of 
the respondents' financial expense. See Comments 2 and 3 of the 
Decision Memorandum.
2. We included POSCO's consolidated gain on valuation on certain short-
term financial instrument in the calculation of the respondents' 
financial expense. See Comment 4A of the Decision Memorandum.
3. We included a gain on the disposition of fixed assets in POSCO's G&A 
calculation. See Comment 4B of the Decision Memorandum.
4. We included a casualty insurance refund in Changwon's G&A 
calculations. See Comment 4D of the Decision Memorandum.
5. We corrected currency conversion errors in the CEP pr of it 
calculation. See Comment 5 of the Decision Memorandum.
6. We corrected the calculation of foreign market unit price in U.S. 
dollars. See Comment 6 of the Decision Memorandum.
7. We included missing instructions to identify the identical grades 
for certain grades in model matching. See Comment 7 of the Decision 
Memorandum.
8. We applied the variable costs of manufacturing and total costs of 
manufacturing from the annual cost database. See Comment 8 of the 
Decision Memorandum.
9. In the preliminary results, we inadvertently applied the Korean won 
exchange rate to the variable ``DINVCARU,'' which was reported in U.S. 
dollars. For the final results, we used the variable ``DINVCARU'' in 
our calculations as it was reported in U.S. dollars. See Final 
Calculation Memorandum.
Final Results of Review
    We determine that the following weighted-average percentage margin 
exists for the period September 1, 1999, through August 31, 2000:

------------------------------------------------------------------------
                Manufacturer/Exporter                   Margin (percent)
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POSCO/Changwon/ Dongbang.............................               6.80
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    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. In accordance with 19 
CFR 351.212(b), the Department calculated an assessment rate for each 
importer of subject merchandise. For Changwon's sales, since Changwon 
reported the entered values and importer for its sales, we have 
calculated importer-specific ad valorem duty assessment rates based on 
the ratio of the total amount of dumping margins calculated for the 
examined sales to the entered value of sales used to calculate those 
duties. For Dongbang's reported sales, since Dongbang did not report 
the entered value for its sales, we have calculated importer-specific 
per unit duty assessment rates based on the ratio of the total amount 
of dumping margins calculated for the examined sales to the quantity of 
sales used to calculate those duties. Where the importer-specific 
assessment rate is above de minimis, we will instruct Customs to assess 
the importer-specific rate uniformly on all entries made during the 
POR.
Cash Deposit Requirements
    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of SSWR from Korea entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(1) of the Act: (1) the cash deposit rate for 
the reviewed firm will be the rate shown above; (2) for previously 
reviewed or investigated companies not listed above, the cash deposit 
rate will continue to be the company-specific rate published for the 
most recent period; (3) if the exporter is not a firm covered in this 
review, a prior review, or the original less-than-fair-value (LTFV) 
investigation, but the manufacturer is, the cash deposit rate will be 
the rate established for the most recent period for the manufacturer of 
the merchandise; and (4) the cash deposit rate for all other 
manufacturers or exporters will continue to be rate of 5.77 percent, 
which is the ``all others'' rate established in the LTFV investigation 
(see Stainless Steel Wire Rod From Korea: Amendment of Final 
Determination of Sales at Less Than Fair Value Pursuant to Court 
Decision, 66 FR 41550 (August 8, 2001)).
    These cash deposit requirements, when imposed. shall remain in 
effect until publication of the final results of the next 
administrative review.
Notification to Importers
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
Notification Regarding APOs
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written notification of 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing this determination and notice in 
accordance with sections section 751(a)(1) and 777(i) (1) of the Act.

    February 6, 2002
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.
Appendix Issues in Decision Memo
1. Affiliation Between the Respondents and Their Customers Through a 
Principal/Agent Relationship
2. Deferred Foreign Exchange Losses
3. Deferred Foreign Exchange Losses of Dongbang Transport
4. Calculation of General and Administrative Expenses:
4A. Gains and Losses on Certain Monetary Instruments
4B. Items Relating to the Disposition of Fixed Assets
4C. Gain and Losses on Futures and Gain on Redemption of Corporate Bond
4D. Casualty Insurance Refund
4E. Down Payment for Other Products
5. Conversion of Values in the Constructed Export Price Profit 
Calculation
6. Calculation of Foreign Market Unit Price in U.S. Dollars
7. Model Match Calculations in the Margin Program
8. Variable Cost of Manufacturing and Total Cost of Manufacturing 
Adjustments
9. Correction of Errors Noted in Changwon's Cost of Production 
Verification Report
10. New Information in the Respondents' Case Brief
[FR Doc. 02-3541 Filed 2-12-02; 8:45 am]
BILLING CODE 3510-DS-S