[Federal Register Volume 67, Number 204 (Tuesday, October 22, 2002)]
[Notices]
[Pages 64871-64873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26859]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-833 and C-122-841]


Notice of Countervailing Duty Orders: Carbon and Certain Alloy 
Steel Wire Rod From Brazil and Canada

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

[[Page 64872]]


ACTION: Notice of Countervailing Duty Orders: Carbon and Certain Alloy 
Steel Wire Rod from Brazil and Canada.

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EFFECTIVE DATE: October 22, 2002.

FOR FURTHER INFORMATION CONTACT: Melani Miller (Brazil) at (202) 482-
0116; and Craig Matney (Canada) at (202) 482-1778; Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act effective January 1, 1995 (``the 
Act''). In addition, unless otherwise indicated, all citations to the 
Department of Commerce's (``the Department'') regulations are to 19 CFR 
Part 351 (April 2002).

Scope of Orders

    The merchandise covered by these orders 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 (``subject merchandise'' or ``wire rod'').
    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. 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.
    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 covered by these orders 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 these orders 
is dispositive.

Countervailing Duty Orders

    On August 30, 2002, the Department published in the Federal 
Register its final determinations in the countervailing duty 
investigations of wire rod from Brazil (67 FR 55805) and Canada (67 FR 
55813). Subsequently, on September 27, 2002, the Department published 
in the Federal Register its amended final determination in the 
countervailing duty investigation of wire rod from Brazil (67 FR 
61071). On October 15, 2002, in accordance with section 705(d) of the 
Act, the U.S. International Trade Commission notified the Department 
that a U.S. industry is ``materially injured,'' within the meaning of 
section 705(b)(1)(A)(i) of the Act, by reason of imports of wire rod 
from Brazil and Canada.
    Therefore, in accordance with section 706(a)(3) of the Act, on or 
after the date of publication of this notice in the Federal Register, 
Customs Service officers must require, at the same time as importers 
would normally deposit estimated duties, cash deposits for the subject 
merchandise equal to the countervailing duty rates as noted below. The 
``All Others'' rates apply to all exporters of wire rod from Brazil and 
Canada not specifically listed below. The cash deposit rates are as 
follows:

Brazil

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           Producer/exporter                     Net subsidy rate
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Companhia Siderurgica Belgo-Mineira....  6.74 percent.
Gerdau S.A.............................  2.76 percent.
All Others.............................  5.64 percent.
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Canada:

------------------------------------------------------------------------
           Producer/exporter                     Net subsidy rate
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Ispat Sidbec, Inc......................  6.61 percent.
Stelco, Inc............................  Excluded.
Ivaco, Inc.............................  Excluded.
All Others.............................  6.61 percent.
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[[Page 64873]]

    Moreover, in accordance with section 706(a)(1) of the Act, the 
Department will direct the Customs Service to assess, upon further 
advice by the Department following the completion of a review requested 
under 19 CFR 351.213(b) or 19 CFR 351.214(b) (or if a review is not 
requested, in accordance with 19 CFR 351.212(c)), countervailing duties 
equal to the amount of the net countervailable subsidies determined to 
exist for entries of wire rod from Brazil and Canada (except for 
subject merchandise from Canada both produced and exported by Ivaco, 
Inc. (``Ivaco'') and Stelco, Inc. (``Stelco''), which both received a 
zero final rate).
    Pursuant to section 706(a)(1) of the Act, if appropriate, based on 
the above-noted further advice from the Department, for all producers 
and exporters of wire rod from Brazil, countervailing duties will be 
assessed on all unliquidated entries of wire rod entered, or withdrawn 
from warehouse, for consumption on or after August 30, 2002, the date 
of publication of the Department's final determination with respect to 
wire rod from Brazil in the Federal Register, and on all subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of this countervailing duty order for 
Brazil in the Federal Register.
    For all producers and exporters of wire rod from Canada (except for 
Ivaco and Stelco), countervailing duties will be assessed on all 
unliquidated entries of wire rod entered, or withdrawn from warehouse, 
for consumption on or after February 8, 2002, the date of publication 
of the Department's preliminary determination in this investigation in 
the Federal Register, and before June 8, 2002, the date the Department 
instructed Customs to discontinue the suspension of liquidation in 
accordance with section 703(d) of the Act (see also, The Statement of 
Administrative Action, H. Doc. No. 103-316, Vol. 1 at 874 (1994), 
reprinted in 1994 U.S.C.C.A.N. 3773, 4163), and on all subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of this countervailing duty order for 
Canada in the Federal Register.
    This notice constitutes the countervailing duty orders with respect 
to wire rod from Brazil and Canada, pursuant to section 706(a) of the 
Act. Interested parties may contact the Central Records Unit, Room B-
099 of the main Commerce Building, for copies of an updated list of 
countervailing duty orders currently in effect.
    These countervailing duty orders are published in accordance with 
sections 706(a) and 777(i) of the Act and 19 CFR 351.211.

    Dated: October 16, 2002.
Joe Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-26859 Filed 10-21-02; 8:45 am]
BILLING CODE 3510-DS-P