[Federal Register Volume 68, Number 162 (Thursday, August 21, 2003)]
[Notices]
[Pages 50513-50515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21445]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-832, A-122-840, A-560-815, A-201-830, A-841-805, A-274-804, 
A823-812, C-351-833, and C-122-841]


Carbon and Certain Alloy Steel Wire Rod from Brazil, Canada, 
Indonesia, Mexico, Moldova, Trinidad and Tobago, and Ukraine: 
Initiation of Changed Circumstances Antidumping Duty Administrative 
Review and Countervailing Duty Administrative Reviews, and Intent To 
Revoke Orders in Part

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

ACTION: Notice of Initiation of Changed Circumstances Review of the 
Antidumping Duty and Countervailing Duty Orders, and Intent To Revoke 
Orders in Part.

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SUMMARY:  On July 24, 2003, in accordance with 19 CFR 351.216(b), 
petitioners\1\ in the antidumping duty and countervailing duty 
proceedings on carbon and certain alloy steel wire rod (wire rod) filed 
a request for a changed circumstances antidumping administrative review 
on the antidumping duty orders on steel wire rod from Brazil, Canada, 
Indonesia, Mexico, Moldova, Trinidad and Tobago, and Ukraine and 
countervailing duty orders on steel wire rod from Brazil and Canada. 
This changed circumstances review concerns certain grade 1080 tire cord 
quality wire rod and certain grade 1080 tire bead quality wire rod. 
These products were excluded from the original scope of these 
antidumping and countervailing duty orders; however, petitioners are 
requesting a further clarification of the technical description of 
these products. See the ``Scope of the Changed Circumstances Review,'' 
below.
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    \1\ Petitioners are Georgetown Steel Company (formerly GS 
Industries), North Star Steel Texas, Gerdau Ameristeel (formerly Co-
Steel Raritan), and Keystone Consolidated Industries.
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    In response to petitioners' request, the Department of Commerce 
(the Department) is initiating a changed circumstances review with 
respect to the specific grade 1080 tire cord quality wire rod and tire 
bead quality wire rod products specified in this notice. Interested 
parties are invited to comment on this notice of initiation.

EFFECTIVE DATE: August 21, 2003.

FOR FURTHER INFORMATION CONTACT:  Brian J. Sheba, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230; telephone: (202) 482-0145.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the antidumping duty orders on steel wire 
rod from Brazil, Canada, Indonesia, Mexico, Moldova, Trinidad and 
Tobago, and Ukraine on October 29, 2002. See Notice of Antidumping Duty 
Orders: Carbon and Certain Alloy Steel Wire Rod From Brazil, Indonesia, 
Mexico, Moldova, Trinidad and Tobago, and Ukraine, 67 Fed. Reg. 65,945, 
and Notice of Amended Final Determination of Sales at Less Than Fair 
Value and Antidumping Duty Order: Carbon and Alloy Steel Wire Rod From 
Canada, 67 Fed. Reg. 65,944. The Department published the 
countervailing duty orders on steel wire rod from Brazil, and Canada on 
October 22, 2002. See Notice of Countervailing Duty Orders: Carbon and 
Certain Alloy Steel Wire Rod From Brazil and Canada, 67 Fed. Reg. 
64,871. On July 24, 2003, petitioners requested that the Department 
change the technical description of certain grade 1080 tire cord 
quality wire rod and grade 1080 tire bead quality wire rod (hereafter, 
tire cord wire rod). This request arises, petitioners aver, because the 
original definition of the excluded tire cord wire rod was drawn too 
narrowly and, thus, captures within the scope certain products 
petitioners no longer wish to have subject to the orders. Acceding to 
petitioners' request would, petitioners maintain, ``exclude a larger 
quantity of grade 1080 tire cord and grade 1080 tire bead wire rod from 
the scope of the antidumping and countervailing duty orders.'' Letter 
from Collier, Shannon, Scott, dated July 24, 2003, at 2. According to 
petitioners, good cause to initiate this review, as required by 19 CFR 
351.216(c), ``exists in this case because the petitioners no longer 
wish products subject to the proposed scope language'' to be covered by 
the orders.\2\
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    \2\ Petitioners suggest any final affirmative changed 
circumstances determination, excluding the additional tire cord wire 
rod products, be effective retroactively to the date of their 
request, or July 24, 2003.
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    Petitioners believe that they continue to represent more than 50 
percent of total production of the domestic like product in the United 
States, but do not allege they represent more than 85 percent of the 
production of the domestic like product and therefore do not represent 
``substantially all'' of the production of the domestic like product. 
See 19 C.F.R. 351.222(g)(1)(i). Letter from Collier, Shannon, Scott, 
dated August 6, 2003 , at 2. Petitioners, however, also believe they 
represent substantially all domestic production of grade 1080 tire cord 
and tire bead quality wire rod that is the subject of this request for 
review. Petitioners claim Georgetown Steel and North Star Steel Texas 
are the only known domestic producers of such steel and have no reason 
to believe that any domestic producer of wire rod will have reason to 
object to its request. Id. at 2.
    At present, the Department has no information on the record that 
the other known domestic producers of wire rod have no interest in 
maintaining the antidumping duty order with respect to the domestic 
like product or the certain specific grade of 1080 tire cord and tire 
bead quality described below. In particular, the Department does not 
have information on the record of this changed circumstances review 
that the petitioners do indeed account for substantially all, or at 
least 85 percent, of the production of the domestic like product. 
Accordingly, we are not combining this initiation with a preliminary 
determination, pursuant to 351.221(c)(3)(ii). This notice of initiation 
will accord all interested parties an opportunity to address this 
proposed exclusion.

[[Page 50514]]

Scope of the Order

    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.
    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.

Scope of Changed Circumstances Review

    The products subject to this changed circumstances antidumping duty 
and countervailing duty administrative review are certain grade 1080 
tire cord steel wire rod and grade 1080 tire bead steel wire rod. Point 
(iii) of the existing definition of these products reads: ``having no 
inclusions greater than 20 microns.'' Petitioners suggest amending this 
to read ``having no non-deformable inclusions greater than 20 microns 
and no deformable inclusions greater than 35 microns.'' Petitioners' 
Request at 5 (emphases in original).
    Petitioners would then insert an explanatory paragraph after the 
existing definition of tire cord wire rod reading:
    For purposes of the grade 1080 tire cord quality wire rod and the 
grade 1080 tire bead quality wire rod, an inclusion will be considered 
to be deformable if its ratio of length (measured along the axis - that 
is, the direction of rolling - of the rod) over thickness (measured on 
the same inclusion in a direction perpendicular to the axis of the rod) 
is equal to or greater than three. The size of an inclusion for 
purposes of the 20 microns and 35 microns limitations is the 
measurement of the largest dimension observed on a longitudinal section 
measured in a direction perpendicular to the axis of the rod.
    Letter from Collier, Shannon, Scott, dated August 6, 2003 , at 6; 
original emphasis deleted.

Initiation of Changed Circumstances Antidumping Duty Administrative 
Review

    Pursuant to sections 751(d) and 782(h)(2) of the Tariff Act, the 
Department may revoke an antidumping or countervailing duty order, in 
whole or in part, based on a review under section 751(b) of the Tariff 
Act (i.e., a changed circumstances review) where the Department 
determines that producers accounting for substantially all of the 
production of that domestic like product have expressed a lack of 
interest in continuance of an order. Section 751(b)(1) of the Tariff 
Act requires a changed circumstances review to be conducted upon 
receipt of a request which shows changed circumstances sufficient to 
warrant a review. See, e.g., Certain Corrosion-Resistant Carbon Steel 
Flat Products From Japan: Notice of Final Results of Changed 
Circumstances Review, and Revocation in Part of Antidumping Duty Order, 
68 Fed. Reg. 19,970 (April 23, 2003).
    In accordance with sections 751(d)(1) and 782(h)(2) of the Tariff 
Act, and 19 CFR 351.216 and 351.222(g) of the Department's regulations, 
domestic producers of the like product, Georgetown Steel Company, North 
Star Steel Texas, Gerdau Ameristeel , and Keystone Consolidated 
Industries, claim changed circumstances exist and have made affirmative 
statements that no

[[Page 50515]]

further interest exists in continuing the order with respect to the 
specific grade 1080 tire cord and tire bead quality steel wire rod 
described above. Petitioners further allege they represent more than 50 
percent of the total production of the domestic like product and 
greater than 85 percent of the specific type of merchandise subject to 
this changed circumstances review. Based upon the statements of no 
interest by the petitioners, we are initiating this changed 
circumstances administrative review.
    If, as a result of this review, we revoke the order, in part, we 
intend to instruct the Bureau of Customs and Border Protection 
(Customs) to liquidate without regard to antidumping duties, as 
applicable, and to refund any estimated antidumping duties collected 
for all unliquidated entries of the tire cord wire rod products meeting 
the specifications indicated above, as of July 24, 2003, the date this 
changed circumstances review request was filed by Petitioners, in 
accordance with 19 CFR 351.222(g)(4). We will also instruct Customs to 
pay interest on such refunds in accordance with section 778 of the 
Tariff Act. The current requirement for a cash deposit of estimated 
antidumping duties on certain tire cord wire rod products meeting the 
specifications set forth above will continue unless and until we 
publish a final determination to revoke in part.

Public Comment

    Interested parties are invited to comment on the initiation of this 
changed circumstances review. Parties who submit argument in this 
proceeding are requested to submit with the argument (i) a statement of 
the issue, and (ii) a brief summary of the argument. All written 
comments may be submitted by interested parties not later than 14 days 
after the date of publication of this notice in accordance with 19 CFR 
351.303, with the exception that only three (3) copies need be served 
on the Department, and shall be served on all interested parties on the 
Department's service list in accordance with 19 CFR 351.303.
    The Department will publish in the Federal Register a notice of 
preliminary result of changed circumstances review, in accordance with 
19 CFR 351.221(c), which will set forth the factual and legal 
conclusions upon which our preliminary results are based, and a 
description of any action proposed based on those results. Interested 
parties may submit comments for consideration in the Department's 
preliminary results not later than 14 days after publication of this 
notice. Responses to those comments may be submitted not later than 
five days following submission of the comments. All written comments 
must be submitted in accordance with 19 CFR 351.303, with the exception 
that only three (3) copies need be served on the Department, and must 
be served on all interested parties on the Department's service list in 
accordance with 19 CFR 351.303.
    The Department intends to publish in the Federal Register the final 
results of this changed circumstances review, including the results of 
its analysis of issues raised in any written comments, no later than 
270 days after the date of publication of this notice, or within 45 
days if all parties to the proceeding agree to the outcome of this 
review. See 19 CFR 351.216(e).
    This notice is published in accordance with section 751(b)(1) of 
the Tariff Act and 19 CFR 351.216 and 351.222.

    Dated: August 14, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 03-21445 Filed 8-20-03; 8:45 am]
BILLING CODE 3510-DS-S