[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Notices]
[Pages 55798-55800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22251]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-815]


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

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

EFFECTIVE DATE: August 30, 2002.

FOR FURTHER INFORMATION CONTACT: Michael Ferrier, James Balog, or 
Abdelali Elouaradia at (202) 482-1394, (202) 482-6349, or (202) 482-
1374 respectively; Antidumping and Countervailing Duty Enforcement 
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 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, as amended (the 
Act) by the Uruguay Round Agreements Act (URAA). In addition, unless 
otherwise indicated, all citations to the Department's regulations are 
references to the provisions codified at 19 CFR part 351 (2001).

Final Determination

    We determine that carbon and certain alloy steel wire rod from 
Indonesia 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

    We published in the Federal Register the preliminary determination 
in this investigation on April 10, 2002. See Notice of Preliminary 
Determination of Sales at Not Less Than Fair Value: Carbon and Certain 
Alloy Steel Wire Rod from Indonesia, 67 FR 17374 (April 10, 2002) 
(Preliminary Determination). Since the publication of the Preliminary 
Determination the following events have occurred. On April 11, 2002, 
petitioners requested that the Department extend the deadline for 
issuance of the final determination by the full 60 days. On May 13, 
2002, the Department extended the deadline for the final determination 
to August 23, 2002. 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).
    The Department verified section A-C of Ispat Indo's responses from 
April 16, 2002, to April 19, 2002, at Ispat Indo's facilities in 
Surabaya, Indonesia and at Ispat Indo's trading company on April 23, 
2002, in Dubai, United Arab Emirates. The Department also verified 
section D of Ispat Indo's response from May 20, 2002, to May 24, 2002, 
at Ispat Indo's facilities. See Memorandum to the File; ``Verification 
of the questionnaire responses of P.T. Ispat Indo (``Ispat Indo'') in 
the antidumping duty investigation of carbon and certain alloy steel 
wire rod from Indonesia,'' May 13, 2002 (Sales Verification Report) and 
Memorandum to Neal Halper, Director, Office of Accounting; 
``Verification Report on the Cost of Production and Constructed 
Value,'' June 18, 2002 (Cost Verification Report). Public version of 
these and all other Departmental memoranda referred to herein are on 
file in the Central Records Unit, room B-099 of the main Commerce 
building.
    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 
(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.
    On July 2, 2002, the Department received case briefs from Ispat 
Indo and petitioners. On July 12, 2002, the Department received 
rebuttal briefs from Ispat Indo and petitioners.

Period of Investigation

    The POI is July 1, 2000, through June 30, 2001. This period 
corresponds to the four most recent fiscal quarters prior to the filing 
of the petition (i.e., August 2001), and is in accordance with section 
351.204(b)(1) of the Department's regulations.

[[Page 55799]]

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.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memo) from Joseph A. Spetrini, Deputy Assistant 
Secretary, Import Administration, to Faryar Shirzad, Assistant 
Secretary for Import Administration, dated August 23, 2002, which is 
hereby adopted by this notice. A list of the issues which parties have 
raised and to which we have responded, all of which are in the Decision 
Memo, is attached to this notice as an Appendix. Parties can find a 
complete discussion of all issues raised in this review and the 
corresponding recommendations in this public memorandum, on file in B-
099.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the World Wide Web at http://www.ia.ita.doc.gov/frn. The paper copy and electronic version of the Decision Memo are 
identical in content.

Changes Since the Preliminary Determination

    Based on our analysis of comments received and findings at 
verification, we have made certain changes in the margin calculation. 
These changes are noted in various sections of the Decision Memo, 
accessible in B-099 and on the World Wide Web at http://www.ia.ita.doc.gov/frn.

Use of Facts Available

    In accordance with section 776 of the Act, we have determined that 
the use of facts available is appropriate for certain portions of the 
our analysis of Ispat Indo. For a discussion of our determination with 
respect to these matters, see the Decision Memo.

Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we are instructing 
Customs to suspend liquidation of all entries of carbon and certain 
alloy steel wire rod from Indonesia that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
Final Determination. We determine that the following weighted-average 
dumping margin exists for the period July 1, 2000, through June 30, 
2001:

------------------------------------------------------------------------
                                                                Margin
                   Exporter/manufacturer                      (percent)
------------------------------------------------------------------------
P.T. Ispat Indo............................................        4.06%
All Others.................................................        4.06%
------------------------------------------------------------------------

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 threat of 
material injury, to an

[[Page 55800]]

industry in the United States. If the ITC determines that material 
injury or threat of injury does not exist, the proceeding will be 
terminated. 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 on the subject merchandise 
entered, or withdrawn from warehouse for consumption on or after the 
date of publication in the Federal Register of the Final Determination. 
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 1.--Issues in Decision Memorandum

    1. Bank Charges for U.S. Sales.
    2. Payment Date for Home Market Sales and Interest Revenue.
    3. Foreign Inland Freight for Certain U.S. Sales Sold Through 
IWP.
    4. Date of Sale.
    5. Exchange Losses Related to Loan to Affiliate.
    6. Electricity Discounts.
    7. Cost Allocation Associated with Special Surface Quality 
Product.

[FR Doc. 02-22251 Filed 8-29-02; 8:45 am]
BILLING CODE 3510-DS-P