[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Notices]
[Pages 55785-55788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22247]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-823-812]


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

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

EFFECTIVE DATE: August 30, 2002.

FOR FURTHER INFORMATION CONTACT: Carrie Blozy, Stephen Bailey, or Lisa 
Shishido, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-0165, (202) 482-1102, and 
(202) 482-1382, respectively.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute, are 
references to 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 the Department of Commerce (``the 
Department'') regulations refer to the regulations at 19 CFR part 351 
(2001).

Final Determination

    We determine that carbon and certain alloy steel wire rod from 
Ukraine 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 ``Suspension of 
Liquidation'' section of this notice.

Case History

    This investigation was initiated on September 24, 2001. See Notice 
of Initiation of Antidumping Duty Investigations: Carbon and Certain 
Alloy Steel Wire Rod From Brazil, Canada, Egypt, Germany, Indonesia, 
Mexico, Moldova, South Africa, Trinidad and Tobago, Ukraine, and 
Venezuela, 66 FR 50164 (October 2, 2001) (``Notice of Initiation''). 
The sole participating respondent in this investigation is 
Krivorozhstal State Mine-Metallurgical Works (``Krivorozhstal''). The 
petitioners in this investigation are Co-Steel Raritan, Inc., 
Georgetown Steel Company, Keystone Consolidated Industries, Inc., and 
North Star Steel Texas, Inc. (``Petitioners''). On October 17, 2001, 
the Government of Ukraine (``GOU'') submitted a request for, and 
information in support of, graduation to market economy status for 
Ukraine. On April 10, 2002, the Department of Commerce (``the 
Department'') published its Notice of Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final Determination: 
Carbon and Certain Alloy Steel Wire Rod From Ukraine, 67 FR 17367 
(April 10, 2002) (``Preliminary Determination''). Since the Preliminary 
Determination of the investigation, the following events have occurred.
    On April 17, 2002, the Department issued to Krivorozhstal a letter 
regarding its March 19, 2002 submission. On April 24, 2002, 
Krivorozhstal responded to this letter.
    On April 17, and April 18, 2002, respectively, the GOU submitted a 
request and proposal for a suspension agreement in accordance with the 
Department's regulations at 19 CFR 351.208. On April 24, 2002, the GOU 
submitted a request to discuss its proposed suspension agreement.
    On April 24, 2002, Krivorozhstal submitted a request that the 
Department issue to it a market economy questionnaire. On April 30, 
2002, Petitioners submitted a letter in opposition to this request.
    On May 20 and May 21, 2002, Krivorozhstal submitted public pricing 
information regarding its factors of production. On May 21, 2002, 
Krivorozhstal requested that the Department allow the late submission 
of its public pricing information concerning water. On May 24, 2002, 
Petitioners submitted a letter in opposition to this request. On June 
6, 2002, the Department issued a questionnaire to Krivorozhstal 
regarding public pricing information, including the information 
concerning water. On June 20, 2002, Krivorozhstal responded to this 
questionnaire.
    On June 24, 2002, Krivorozhstal submitted production and sales 
documentation for byproducts that it claimed it generated and sold 
during the POI. On June 26, 2002, the Department requested information 
from Krivorozhstal regarding its June 24, 2002, submission. See 
Memorandum to the File from Lori Ellison to James C. Doyle, June 26, 
2002. On June 27, 2002, Krivorozhstal provided a response to this 
request.
    On June 6, 2002, the Department issued a verification agenda to 
Krivorozhstal. On June 27, 2002, Petitioners submitted comments 
regarding the Department's verification. The Department conducted a 
verification of Krivorozhstal's sales and factors of production data at 
Krivorozhstal's headquarters in Krivoii Rog, Ukraine from July 1, 2002, 
through July 5, 2002. See Memorandum to the File from Lori Ellison and 
Stephen Bailey: Verification of Sales and Factors of Production for 
Krivorozhstal in the Antidumping Duty Investigation of Carbon and 
Certain Alloy Steel Wire Rod from Ukraine, July 19, 2002 
(``Verification Report'').
    On July 26, 2002, Petitioners and Krivorozhstal submitted case 
briefs with respect to the sales and factors of production verification 
and the Department's Preliminary Determination. Petitioners and 
Krivorozhstal submitted rebuttal briefs on July 31, 2002.
    The Department has conducted and completed the investigation in 
accordance with section 735 of the Act.

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

[[Page 55786]]

(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 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.

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 Petitioners' June 28 submission on July 8, 11, 17, 
and 29, 2002, respectively. The RMA filed additional comments on July 
30, 2002.\1\
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    \1\ 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.

Period of Investigation

    The POI is January 1, 2001, through June 30, 2001. This period 
corresponds to the two 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 verified the 
information submitted by Krivorozhstal for use in our final 
determination. We used standard verification procedures including 
examination of relevant accounting and production records, and original 
source documents provided by Krivorozhstal. We made no changes from the 
Preliminary Determination as a result of verification. See Analysis 
Memorandum for Krivorozhstal (August 23, 2002) (``Analysis 
Memorandum'').

[[Page 55787]]

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs to this 
investigation are addressed in the Issues and Decision Memorandum from 
Joseph A. Spetrini, Deputy Assistant Secretary, to Faryar Shirzad, 
Assistant Secretary (August 23, 2002) (``Decision Memorandum''), which 
is hereby adopted by this notice. A list of the issues which parties 
have raised and to which we have responded, and other issues addressed, 
is attached to this notice as an Appendix. Parties can find a complete 
discussion of all issues raised in this investigation and the 
corresponding recommendations in the Decision Memorandum, a public 
memorandum which is on file at the U.S. Department of Commerce, in the 
Central Records Unit, in room B-099. 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 Determination

    Based on our analysis of comments received, we have made 
adjustments to the calculation methodology in calculating the final 
dumping margin in this proceeding. See Analysis Memorandum.

Critical Circumstances

    On December 5, 2001, Petitioners alleged that there that there was 
a reasonable basis to believe or suspect that critical circumstances 
exist with respect to imports of wire rod from Brazil, Germany, Mexico, 
Moldova, Turkey, and Ukraine.\2\ On February 4, 2002, the Department 
preliminarily determined that critical circumstances exist with respect 
to wire rod from Ukraine. See Memorandum to Faryar Shirzad Re: 
Antidumping Duty Investigation of Carbon and Certain Alloy Steel Wire 
Rod from Ukraine--Preliminary Affirmative Determination of Critical 
Circumstances (February 4, 2002); See also Carbon and Alloy Wire Rod 
from Germany, Mexico, Moldova, Trinidad and Tobago, and Ukraine: Notice 
of Preliminary Determination of Critical Circumstances, 67 FR 6224 
(February 11, 2002) (``Critical Circumstances Notice'').
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    \2\ On December 21, 2001 Petitioners further alleged that there 
was a reasonable basis to believe or suspect that critical 
circumstances exist with respect to imports of wire rod from 
Trinidad and Tobago.
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    In the Department's Preliminary Determination, we determined that 
critical circumstances exist for imports of carbon and certain alloy 
steel wire rod from Ukraine manufactured and/or exported by 
Krivorozhstal. Neither Petitioners nor Krivorozhstal provided comments 
on this issue in their briefs. Therefore, for this final determination, 
we continue to find critical circumstances for imports of carbon and 
certain alloy steel wire rod from Ukraine manufactured and/or exported 
by Krivorozhstal.

Non-Market Economy Country

    The Department has treated Ukraine as a nonmarket economy (``NME'') 
country in all past antidumping investigations. See, e.g., Notice of 
Final Determination of Sales at Less Than Fair Value: Solid 
Agricultural Grade Ammonium Nitrate from Ukraine, 66 FR 38632 (July, 
25, 2001), (``Ammonium Nitrate from Ukraine''); Notice of Preliminary 
Determinations of Sales at Less Than Fair Value: Steel Concrete 
Reinforcing Bars from Poland, Indonesia, and Ukraine, 66 FR 8343 
(January 30, 2001); and Notice of Final Determination of Sales at Less 
Than Fair Value: Certain Cut-to-Length Carbon Steel Plate from Ukraine, 
62 FR 61754 (November 19, 1997) (``CTL Plate from Ukraine''). This NME 
designation remains in effect until it is revoked by the Department 
(see section 771(18)(C) of the Act). As explained in the ``Case 
History'' section, on October 17, 2001, the GOU submitted a request 
for, and information in support of, graduation to market economy status 
for Ukraine. The Department has decided to defer this decision in order 
to evaluate the broad range of issues and information regarding 
Ukraine's economic reforms and request for market economy status. See 
Notice to Defer a Decision Regarding Ukraine's Non-Market Economy 
Status, 67 FR 51536 (August 8, 2002) (``Ukraine's Non-Market Status''). 
As explained further in Ukraine's Non-Market Status, since a country's 
NME status remains in effect until revoked, we have continued to treat 
Ukraine as an NME country for purposes of the final determination.
    When the Department is investigating imports from an NME, section 
773(c)(1) of the Act directs us to base the normal value (``NV'') on 
the NME producer's factors of production, valued in a comparable market 
economy that is a significant producer of comparable merchandise. The 
sources of individual factor prices are discussed under the ``Normal 
Value'' section of the Preliminary Determination, the preliminary 
Analysis Memorandum, or the Analysis Memorandum.

Separate Rates

    For the final determination, the Department will calculate a 
separate antidumping margin for Krivorozhstal, based on its ability to 
demonstrate an absence of government control of Respondent's export 
functions. For a complete discussion of this issue, see Decision 
Memorandum, comment 3.

Ukraine-Wide Rate

    As discussed in our Preliminary Determination, the Ukraine-wide 
rate is the calculated margin for Krivorozhstal, the sole exporter. See 
``Ukraine-Wide Rate'' section of our Preliminary Determination. There 
has been no other evidence submitted since the Preliminary 
Determination to change this determination. Accordingly, we have 
calculated a Ukraine-wide rate for this investigation based on the 
weighted-average margin determined for Krivorozhstal. This Ukraine-wide 
rate applies to all entries of subject merchandise.

Suspension Agreement

    As discussed above under ``Case History,'' on April 17, and April 
18, 2002, respectively, the GOU submitted a request and proposal for a 
suspension agreement in accordance with the Department's regulations at 
19 C.F.R. 351.208. On April 24, 2002, the GOU submitted a request to 
discuss its proposed suspension agreement. No agreement was concluded.

Fair Value Comparisons

    To determine whether sales of wire rod from Ukraine were made in 
the United States at LTFV, we compared export price (``EP'') to NV, as 
described in the ``Export Price'' and ``Normal Value'' sections of the 
Preliminary Determination. In accordance with section 777A(d)(1)(A)(i) 
of the Act, we calculated weighted-average EPs.

Surrogate Country

    For purposes of the final determination, we continue to find that 
Indonesia remains the appropriate primary surrogate country for 
Ukraine. For further discussion and analysis regarding the surrogate 
country selection for Ukraine, see the ``Surrogate Country'' section of 
our Preliminary Determination.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the U.S. Customs Service (``Customs'') to continue to suspend 
liquidation of all imports of subject merchandise entered, or withdrawn 
from warehouse, for

[[Page 55788]]

consumption on or after the date of publication of the Preliminary 
Determination in the Federal Register. We will instruct Customs to 
continue to require a cash deposit or the posting of a bond equal to 
the weighted-average amount by which the NV exceeds the EP, as 
indicated below. These suspension of liquidation instructions will 
remain in effect until further notice. The weighted-average dumping 
margin is as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Exporter/manufacturer                     margin  (in
                                                               percent)
------------------------------------------------------------------------
Krivorozhstal..............................................       116.37
------------------------------------------------------------------------

Disclosure

    The Department will disclose calculations performed, within five 
days of the date of publication of this notice, to the parties in this 
investigation, in accordance with section 351.224(b) of the 
Department's regulations.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
ITC of our affirmative determination of sales at LTFV. As our final 
determination is affirmative, the ITC will determine within 45 days 
after our final determination whether imports of wire rod from Ukraine 
are materially injuring, or threaten material injury to, the U.S. 
industry. If the ITC determines that material injury, or threat of 
material injury does not exist, the proceeding will be terminated and 
all securities posted will be refunded or cancelled. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order directing Customs officials to assess 
antidumping duties on all imports of the subject merchandise entered 
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 discussed under 
APO in accordance with 19 C.F.R. 351.305. Timely notification of 
return/destruction of APO materials or conversion to judicial order is 
hereby requested. Failure to comply with the regulations and the terms 
of an APO is a sanctionable violation. This determination is issued and 
published in accordance with sections 735(d) and 777(i)(1) of the Act.

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

Appendix I

Comment 1: Whether the Department Should Use Domestic Indonesian 
Surrogate Values When Valuing Certain Factors of Production
Comment 2: Whether the Department Should Use the Surrogate Value for 
Tap Water Submitted by Krivorozhstal
Comment 3: Whether Krivorozhstal is Entitled to a Separate Dumping 
Margin
Comment 4: Whether the Department Should Value Factors Used to Mine 
Iron Ore
Comment 5: Whether Krivorozhstal Should Receive Full Credit for All 
Byproducts

[FR Doc. 02-22247 Filed 8-29-02; 8:45 am]
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