[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Notices]
[Pages 55800-55802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22252]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-830]


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

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

EFFECTIVE DATE: August 30, 2002.

FOR FURTHER INFORMATION CONTACT: Marin Weaver or Charles Riggle at 
(202) 482-2336 or (202) 482-0650, 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 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 from 
Mexico 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: Carbon and Certain Alloy Steel Wire Rod from Mexico, 
67 FR 17397 (April 10, 2002) (Preliminary Determination). Since the 
publication of the preliminary determination, the following events have 
occurred:
    The final determination for this investigation was postponed on 
April 17, 2002. See Notice of Postponement of Final Antidumping Duty 
Determination and Extension of Provisional Measures: Carbon and Certain 
Alloy Steel Wire Rod from Mexico, 67 FR 20728 (April 26, 2002). In 
April and May 2002, the Department verified the responses submitted by 
the respondent in this investigation, Siderurgica Lazaro Cardenas Las 
Truchas, S.A. de C.V. (SICARTSA) and its affiliates CCC Steel GmbH and 
Coutinho Caro + Co. USA Inc. Verification reports were issued in June 
2002. On July 10, 2002, we received case briefs from the petitioners 
\1\ and the respondent. On July 17, 2002, we received rebuttal briefs 
from the petitioners and the respondent. A public hearing was not held.
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    \1\ The petitioners in this investigation are Co-Steel Raritan, 
Inc., GS Industries, Inc., Keystone Consolidated Industries, Inc., 
and North Star 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, the 
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

[[Page 55801]]

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 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 respondent. 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 in 
calculating the final dumping margin in this proceeding. In addition, 
we have made a final determination that critical circumstances do not 
exist with regard to this case. The adjustments to the dumping margin, 
as well as a detailed description of the critical circumstances 
analysis, 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 Mexico 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. The suspension of 
liquidation instructions will remain in effect until further notice.
    Furthermore, because the Department now determines that critical 
circumstances do not exist, the suspension of liquidation for all 
shipments that entered or were withdrawn from warehouse, for 
consumption prior to April 10, 2002, is terminated. We are directing 
the Customs Service to refund any cash deposits and release any bonds 
or other security relating to such shipments.
    We determine that the following weighted-average dumping margins 
exist for Mexico:

------------------------------------------------------------------------
                                                                Margin
                    Manufacturer/exporer                      (percent)
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SICARTSA...................................................        20.11
All Others.................................................        20.11
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[[Page 55802]]

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 
Mexico 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 determination 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

I. Issues Specific to Sales

Comment 1: Constructed Export Price
Comment 2: Post-Sale Discounts
Comment 3: Credit Expense/Interest Rate
Comment 4: Customs Duties Adjustment
Comment 5: Critical Circumstances

B. Issues Specific to Costs

Comment 6: Initiation of Cost Investigation
Comment 7: G&A and Financial Expense Calculation Period
Comment 8: Financial Expense Ratio
Comment 9: Gains and Losses on Monetary Position
Comment 10: Prior Period Expenses
Comment 11: Exchange Gains on Accounts Payable
Comment 12: Extraordinary Costs
Comment 13: Major Inputs
Comment 14: Useful Lives of Fixed Assets
Comment 15: Loss on Physical Inventory
Comment 16: Liquid Steel Adjustment

[FR Doc. 02-22252 Filed 8-29-02; 8:45 am]
BILLING CODE 3510-DS-P