[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Notices]
[Pages 55790-55792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22249]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-841-805]


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

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

EFFECTIVE DATE: August 30, 2002.

SUMMARY: We determine that carbon and certain alloy steel wire rod 
(wire rod) from Moldova 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 margin of sales at LTFV is shown in the 
Final Determination of Investigation section of this notice.

FOR FURTHER INFORMATION CONTACT: Thomas Gilgunn or Scott Lindsay at 
(202) 482-4236 or (202) 482-0780, respectively, AD/CVD Enforcement, 
Office 7, Group III, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations are references to the 
provisions of the Tariff Act of 1930, as amended (the Act). In 
addition, unless otherwise indicated, all citations to Department of 
Commerce (the Department) regulations are to 19 CFR part 351 (2001).

Case History

    On April 10, 2002, the Department published the preliminary 
determination of the antidumping investigation of wire rod from 
Moldova. See Notice of Preliminary Determination of Sales at Less Than 
Fair Value: Carbon and Certain Alloy Steel Wire Rod from Moldova, 67 FR 
17401 (April 10, 2002) (Preliminary Determination). We gave interested 
parties an opportunity to comment on our Preliminary Determination. On 
April 12, 2002, MSW informed the Department that it would not 
participate in verification. On April 27, 2002, MSW requested the 
Department postpone the final determination in accordance with section 
735(a)(2)(A) of the Tariff Act. MSW also requested that the Department 
extend to six months any provisional measures imposed pursuant to 
section 733(d) of the Tariff Act. On May 13, 2002, we postponed the 
final determination of these proceedings. See Postponement of Final 
Antidumping Duty Determinations; Carbon and Certain Alloy Steel Wire 
Rod from Germany, Indonesia and Moldova, 67 FR 32013 (May 13, 2002). On 
June 17, 2002, Co-Steel Raritan, Inc., GS Industries, Keystone 
Consolidated Industries, Inc., and North Star Steel Texas, Inc. 
(petitioners) and MSW submitted timely case briefs. On June 24, 2002, 
the petitioners submitted a rebuttal brief. The Department did not 
receive any requests for a public hearing.

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

[[Page 55791]]

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 (Co-Steel Raritan, Inc., GS 
Industries, Keystone Consolidated Industries, Inc., and North Star 
Steel Texas, Inc.) 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.

Scope of Investigation

    The merchandise covered by these investigations 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 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 (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 in accordance 
with 19 CFR 351.204(b).

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 for the Antidumping Investigation of Carbon and Certain 
Alloy Steel Wire Rod from Moldova,'' dated August 23, 2002, (Decision 
Memorandum) which is hereby adopted by this notice. Parties

[[Page 55792]]

can find a complete discussion of the issues raised in this 
investigation and the corresponding recommendations in this public 
memorandum which is on file in the Central Records Unit, room B-099 (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.

Non-Market Economy Status

    The Department has treated Moldova as a non-market-economy (NME) 
country in all past antidumping investigations. See, e.g., Notice of 
Final Determination of Sales at Less Than Fair Value: Steel Reinforcing 
Bars from Moldova, 66 FR 33525 (June 22, 2001). In accordance with 
section 771(18)(C)(i) of the Act, a country's NME status continues 
until the Department revokes it. MSW requested that the Department 
revoke Moldova's NME status. The Government of the Republic of Moldova 
(GORM), however, did not support the treatment of the entire country as 
a market economy pursuant to MSW's request. Therefore, in accordance 
with section 771(18) of the Act, we continue to consider the Republic 
of Moldova as an NME country. See Decision Memorandum.

Changes Since the Preliminary Determination

    We have not made any adjustments to the calculation methodologies 
used in the Preliminary Determination in determining the final dumping 
margin in this proceeding.

Use of Facts Available

    As noted above, MSW refused to participate in verification. Section 
776(b) of the Act provides that, if the Department finds that an 
interested party ``has failed to cooperate by not acting to the best of 
its ability to comply with a request for information,'' the Department 
may draw an inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available. In light of MSW's 
refusal to participate in verification, we determine that MSW has 
failed to cooperate to the best of its ability and have applied adverse 
facts available to MSW. For a complete discussion of our analysis, see 
the Decision Memorandum and memorandum Determination of Facts Available 
for Moldova Steel Works in Carbon and Certain Alloy Steel Wire Rod from 
Moldova, dated August 23, 2002.

Critical Circumstances

    On February 4, 2002, the Department preliminarily determined that 
critical circumstances exist with respect to wire rod from Moldova. See 
Memorandum to Faryar Shirzad Re: Antidumping Duty Investigation of 
Carbon and Certain Alloy Steel Wire Rod from Moldova--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). We received 
no comments from MSW or the petitioners regarding our preliminary 
finding that critical circumstances exist for imports of wire rod from 
Moldova. Therefore, we have not changed our determination and continue 
to find that critical circumstances exist for imports of wire rod from 
Moldova.

Final Determination of Investigation

    We determine that the following weighted-average percentage margin 
exists for the period January 1, 2001 through June 30, 2001:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Exporter/manufacturer                       margin
                                                            (percentage)
------------------------------------------------------------------------
Moldova-wide rate.........................................        369.10
------------------------------------------------------------------------

    The Moldova-wide rate applies to all entries of the subject 
merchandise from Moldova.

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we will instruct the 
U.S. Customs Service (Customs) to continue to suspend liquidation of 
all entries of wire rod from Moldova that are entered, or withdrawn 
from warehouse, for consumption on or after January 10, 2002 (90 days 
prior to the date of publication of the Preliminary Determination in 
the Federal Register). Customs shall continue to require a cash deposit 
or the posting of a bond equal to the estimated amount by which the 
normal value exceeds the U.S. price as shown above. The suspension of 
liquidation instructions will remain in effect until further notice.

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. As our final 
determination is affirmative, the ITC will determine, within 45 days, 
whether these imports are causing material injury or threatening 
material injury to an industry in the United States. If the ITC 
determines that material injury, or threat of injury does not exist, 
the 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 
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.

Notification Regarding Administrative Protective Order (APO)

    This notice also serves as a reminder to parties subject to 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 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--Issues in Decision Memorandum

1. Use of Adverse Facts Available
2. Basis of Adverse Facts Available
3. Request for Revocation of NME Status
4. Market Economy Responses

[FR Doc. 02-22249 Filed 8-29-02; 8:45 am]
BILLING CODE 3510-DS-P