[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Notices]
[Pages 55782-55785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22246]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-840]


Notice of Final Determination of Sales at Less Than Fair Value: 
Carbon and Certain Alloy Steel Wire Rod From Canada

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

EFFECTIVE DATE: August 30, 2002.

FOR FURTHER INFORMATION CONTACT: Constance Handley or Daniel O'Brien, 
at (202) 482-0631 or (202) 482-1376, respectively; Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to

[[Page 55783]]

the provisions effective January 1, 1995, the effective date of the 
amendments made to the Tariff Act of 1930 (the Act) by the Uruguay 
Round Agreements Act (URAA). In addition, unless otherwise indicated, 
all citations to Department of Commerce (Department) regulations refer 
to the regulations codified at 19 CFR part 351 (2001).

Final Determination

    We determine that carbon and certain alloy steel wire rod (steel 
wire rod) from Canada is being sold, or is likely to be sold, in the 
United States at less than fair value (LTFV), as provided in section 
735 of the Act. The estimated margins of sales at LTFV are shown in the 
``Continuation of Suspension of Liquidation'' section of this notice.

Case History

    The preliminary determination in this investigation was issued on 
April 2, 2002. See Notice of Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination: Carbon and 
Certain Alloy Steel Wire Rod from Canada, 67 FR 17389 (April 10, 2002). 
Since the publication of the preliminary determination, the following 
events have occurred:
    In April and May 2002, the Department verified the responses 
submitted by the three respondents in the investigation: Ispat Sidbec 
Inc. (ISI), Ivaco, Inc. (Ivaco) and Stelco, Inc. (Stelco). Verification 
reports were issued in May and June 2002. On July 8, 2002, we received 
case briefs from the petitioners \1\ and the three respondents. On July 
17, 2002, we received rebuttal briefs from the petitioners and the 
respondents. A public hearing was not held.
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    \1\ The petitioners in this investigation are Co-Steel Raritand, 
Inc., and North Start Steel Texas, Inc.
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Scope Issues

    Since the Preliminary Determination a number of parties have filed 
requests asking the Department to exclude various products from the 
scope of the concurrent antidumping duty (Brazil, Canada, Germany, 
Indonesia, Mexico, Moldova, Trinidad and Tobago and Ukraine) and 
countervailing duty (Brazil, Canada, Germany, Trinidad and Tobago, and 
Turkey) investigations. On May 6, 2002, Ispat Hamburger Stahlwerke GmbH 
and Ispat Walzdraht Hochfeld GmbH (collectively, Ispat Germany) 
requested an exclusion for ``super clean valve spring wire.'' Two 
parties filed additional exclusion requests on June 14, 2002: Bluff 
City Steel asked that the Department exclude ``clean-steel precision 
bar,'' and Lincoln Electric Company sought the exclusion of its EW 2512 
grade of metal inert gas welding wire. On June 28, 2002, petitioners 
filed objections to a range of scope exclusion requests including: (i) 
Bluff City Steel's request for clean precision bar; (ii) Lincoln 
Electric Company's request for EW 2512 grade wire rod; (iii) Ispat 
Germany's request for ``super clean valve spring wire;'' (iv) Tokusen 
USA's January 22, 2002 request for 1070 grade tire cord and tire bead 
quality wire rod (tire cord wire rod); and (v) various parties' request 
for 1090 grade tire cord wire rod.
    In addition, Moldova Steel Works requested the exclusion of various 
grades of tire cord wire rod on July 17, 2002. The Rubber Manufacturers 
Association (the RMA), Ispat Germany, Lincoln Electric and Bluff City 
filed rebuttals to the petitioners' June 28, 2002 submission on July 8, 
11, 17, and 29, 2002, respectively. The RMA filed additional comments 
on July 30, 2002.\2\
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    \2\ On August 9, 2002, Bekaert Corporation requested an 
exclusion for certain high chrome/high silicon steel wire rod, from 
the scope of these investigations. This request was filed too late 
to be considered for the final determinations in these 
investigations.
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    The Department has analyzed these requests and the petitioners' 
objections and we find no modifications to the scope are warranted. See 
Memorandum from Richard Weible to Faryar Shirzad, ``Carbon and Certain 
Alloy Steel Wire Rod; Antidumping Duty (Brazil, Canada, Germany, 
Indonesia, Mexico, Moldova, Trinidad and Tobago, and Ukraine) and 
Countervailing Duty (Brazil, Canada, Germany, Trinidad and Tobago, and 
Turkey) Investigations: Requests for Scope Exclusion'' dated August 23, 
2002, which is on file in room B-099 of the main Commerce building.

Scope of Investigation

    The merchandise covered by this investigation is certain hot-rolled 
products of carbon steel and alloy steel, in coils, of approximately 
round cross section, 5.00 mm or more, but less than 19.00 mm, 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; and (e) concrete 
reinforcing bars and rods. Also excluded are (f) free machining steel 
products (i.e., products that contain by weight one or more of the 
following elements: 0.03 percent or more of lead, 0.05 percent or more 
of bismuth, 0.08 percent or more of sulfur, more than 0.04 percent of 
phosphorus, more than 0.05 percent of selenium, or more than 0.01 
percent of tellurium).
    Also excluded from the scope are 1080 grade tire cord quality wire 
rod and 1080 grade tire bead quality wire rod. This grade 1080 tire 
cord quality rod is defined as: (i) Grade 1080 tire cord quality wire 
rod measuring 5.0 mm or more but not more than 6.0 mm in cross-
sectional diameter; (ii) with an average partial decarburization of no 
more than 70 microns in depth (maximum individual 200 microns); (iii) 
having no inclusions greater than 20 microns; (iv) having a carbon 
segregation per heat average of 3.0 or better using European Method NFA 
04-114; (v) having a surface quality with no surface defects of a 
length greater than 0.15 mm; (vi) capable of being drawn to a diameter 
of 0.30 mm or less with 3 or fewer breaks per ton, and (vii) containing 
by weight the following elements in the proportions shown: (1) 0.78 
percent or more of carbon, (2) less than 0.01 percent of aluminum, (3) 
0.040 percent or less, in the aggregate, of phosphorus and sulfur, (4) 
0.006 percent or less of nitrogen, and (5) not more than 0.15 percent, 
in the aggregate, of copper, nickel and chromium.
    This grade 1080 tire bead quality rod is defined as: (i) Grade 1080 
tire bead quality wire rod measuring 5.5 mm or more but not more than 
7.0 mm in cross-sectional diameter; (ii) with an average partial 
decarburization of no more than 70 microns in depth (maximum individual 
200 microns); (iii) having no inclusions greater than 20 microns; (iv) 
having a carbon segregation per heat average of 3.0 or better using 
European Method NFA 04-114; (v) having a surface quality with no 
surface defects of a length greater than 0.2 mm; (vi) capable of being 
drawn to a diameter of 0.78 mm or larger with 0.5 or fewer breaks per 
ton; and (vii) containing by weight the following elements in the 
proportions shown: (1) 0.78 percent or more of carbon, (2) less than 
0.01 percent of soluble aluminum, (3) 0.040 percent or less, in the 
aggregate, of phosphorus and sulfur, (4) 0.008 percent or less of 
nitrogen, and (5) either not more than 0.15 percent, in the aggregate, 
of copper, nickel and chromium (if chromium is not specified), or not 
more than 0.10 percent in the aggregate of copper and nickel and a 
chromium content of 0.24 to 0.30 percent (if chromium is specified).
    The designation of the products as ``tire cord quality'' or ``tire 
bead quality'' indicates the acceptability of the product for use in 
the production of tire cord, tire bead, or wire for use in other

[[Page 55784]]

rubber reinforcement applications such as hose wire. These quality 
designations are presumed to indicate that these products are being 
used in tire cord, tire bead, and other rubber reinforcement 
applications, and such merchandise intended for the tire cord, tire 
bead, or other rubber reinforcement applications is not included in the 
scope. However, should petitioners or other interested parties provide 
a reasonable basis to believe or suspect that there exists a pattern of 
importation of such products for other than those applications, end-use 
certification for the importation of such products may be required. 
Under such circumstances, only the importers of record would normally 
be required to certify the end use of the imported merchandise.
    All products meeting the physical description of subject 
merchandise that are not specifically excluded are included in this 
scope.
    The products under investigation are currently classifiable under 
subheadings 7213.91.3010, 7213.91.3090, 7213.91.4510, 7213.91.4590, 
7213.91.6010, 7213.91.6090, 7213.99.0031, 7213.99.0038, 7213.99.0090, 
7227.20.0010, 7227.20.0020, 7227.20.0090, 7227.20.0095, 7227.90.6051, 
7227.90.6053, 7227.90.6058, and 7227.90.6059 of the HTSUS. Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this proceeding is dispositive.

Period of Investigation

    The period of investigation is July 1, 2000, through June 30, 2001. 
This period corresponds to the four most recent fiscal quarters prior 
to the month of the filing of the petition (i.e., August 2001).

Verification

    As provided in section 782(i) of the Act, we conducted verification 
of the cost and sales information submitted by the three respondents. 
We used standard verification procedures including examination of 
relevant accounting and production records, and original source 
documents provided by the respondent.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this antidumping proceeding are listed in the appendix to this notice 
and addressed in the Decision Memorandum dated August 23, 2002, and are 
hereby adopted by this notice. The Decision Memorandum is on file in 
room B-099 of the main Department of Commerce building. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the World Wide Web at http://www.ita.doc.gov/import_admin/records/frn. 
The paper and electronic versions of the Decision Memorandum are 
identical in content.

Changes Since the Preliminary Determinations

    Based on our findings at verification, and analysis of comments 
received, we have made adjustments to the preliminary determination 
calculation methodologies in calculating the final dumping margins in 
these proceedings. These adjustments are discussed in the Decision 
Memorandum for this investigation.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of all 
entries of steel wire rod exported from Canada, with the exception of 
merchandise produced by Stelco, Inc., that are entered, or withdrawn 
from warehouse, for consumption on or after the date of the preliminary 
determination. The Customs Service shall continue to require a cash 
deposit or the posting of a bond based on the estimated weighted-
average dumping margins shown below. Because we have determined that 
steel wire rod produced by Stelco, Inc. is not being sold at LTFV, we 
are not directing the Customs Service to suspend liquidation of this 
merchandise. The suspension of liquidation instructions will remain in 
effect until further notice.
    We determine that the following weighted-average dumping margins 
exist for Canada:

------------------------------------------------------------------------
                                                              Margin
                  Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
ISI.....................................................            2.54
Ivaco...................................................           13.35
Stelco..................................................          * 1.18
All Others..............................................           9.91
------------------------------------------------------------------------
* De minimis--excluded from the calculation of the ``All Others'' rate.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. The ITC will 
determine, within 45 days, whether imports of subject merchandise from 
Canada are causing material injury, or threaten material injury, to an 
industry in the United States. If the ITC determines that material 
injury or threat of injury does not exist, this proceeding will be 
terminated and all securities posted will be refunded or canceled. If 
the ITC determines that such injury does exist, the Department will 
issue an antidumping order directing Customs Service officials to 
assess antidumping duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse for consumption on or after the 
effective date of the suspension of liquidation.
    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 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.
    This determinations is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: August 23, 2002.
Faryar Shizad,
Assistant Secretary for Import Administration.

Appendix

Issues Covered in Decision Memorandum

Comment 1: Treatment of Negative Margins

Sales Issues Specific to Ivaco

Comment 2: Reported U.S. Inventory Carrying Costs
Comment 3: Indirect Selling Expenses Incurred in Canada
Comment 4: Facts Available Rate for Further Manufactured Sales
Comment 5: Sivaco Georgia's (SGA) Freight Revenue for Certain Sales
Comment 6: The Department Should Exclude All of Ivaco's Intra-
Company Sales
Comment 7: Three Sales Identified by Ivaco as U.S. Sales
Comment 8: The Department Should Convert Ivaco's Home Market Gross 
Unit Price and Associated Expenses to a Uniform Currency

Cost Issues Specific to Ivaco

Comment 9: Deferred Production Costs
Comment 10: Ivaco's Reported Billet Costs and Cost of Manufacture
Comment 11: Financial Expense Ratio
Comment 12: General and Administrative Expense Ratio

Sales Issues Specific to ISI

Comment 13: Date of Payment for Unpaid Sales to a U.S. Customer
Comment 14: Matching of Prime Material to Non-Prime Material
Comment 15: Walker Wire's Sales of Wire Products

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Comment 16: Segregation of Further-Manufactured Sales from Other 
Constructed Export Price Sales

Cost Issues Specific to ISI

Comment 17: Affiliated Party Inputs
Comment 18: General and Administrative Depreciation Expense
Comment 19: General and Administrative Expense--Further 
Manufacturing
Comment 20: Adjustment to Walker Wire's Cost of Manufacturing

Sales Issues Specific to Stelco

Comment 21: Sale Amount
Comment 22: Stelco's Sales to Stelfil Ltee. (Stelfil)

Cost Issues Specific to Stelco

Comment 23: ``Collapsed Entities'' Rule
Comment 24: Purchase of Pulverized Coal, Bloom Reheating Services 
and Billets
Comment 25: Purchases of Iron Ore
Comment 26: General and Administrative Expense Rates
Comment 27: Foreign Exchange Gains and Losses
Comment 28: Short-Term Interest Income
Comment 29: Further Manufacturing Costs
Comment 30: Minor Errors

[FR Doc. 02-22246 Filed 8-29-02; 8:45 am]
BILLING CODE 3510-DS-P