[Federal Register Volume 68, Number 239 (Friday, December 12, 2003)]
[Notices]
[Pages 69384-69386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E3-00546]


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DEPARTMENT OF COMMERCE

International Trade Administration

C-122-841


Carbon and Certain Alloy Steel Wire Rod from Canada: Preliminary 
Results of Countervailing Duty Changed Circumstances Review and Intent 
to Revoke Order

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

ACTION:  Notice of Preliminary Results of Changed Circumstances Review 
of the Countervailing Duty Order and Intent To Revoke Order, in Whole.

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SUMMARY:  On November 3, 2003, in response to a request by domestic 
producers of the subject merchandise, the Department of Commerce (``the 
Department'') published a notice of initiation of a changed 
circumstances review of the countervailing duty order on carbon and 
certain alloy steel wire rod, as described below. See Carbon and 
Certain Alloy Steel Wire Rod from Canada: Initiation of Countervailing 
Duty Changed Circumstances Review, 68 FR 62282 (November 3, 2003) 
(``Initiation Notice'').

[[Page 69385]]

    In the Initiation Notice, we invited interested parties to comment 
on the Department's initiation and the proposed revocation of the 
countervailing duty order on carbon and certain alloy steel wire rod 
from Canada. We did not receive any comments. Absent any comments, we 
preliminarily conclude that producers accounting for substantially all 
of the production of the domestic like product to which this order 
pertains lack interest in the relief provided by the order. Unless the 
Department receives opposition from domestic producers whose production 
totals more than 15 percent of the domestic like product, the 
Department will revoke the order on carbon and certain alloy steel wire 
rod in the final results of this review. Therefore, we preliminarily 
revoke this order, in whole, with respect to products entered, or 
withdrawn from warehouse, for consumption on or after February 8, 2002, 
i.e., the publication date of the Department's preliminary 
determination (see Preliminary Affirmative Countervailing Duty 
Determination: Carbon and Certain Alloy Steel Wire Rod from Canada, 67 
FR 5984), because domestic parties have expressed no interest in the 
continuation of the order.

EFFECTIVE DATE:  December 12, 2003.

FOR FURTHER INFORMATION CONTACT:  S. Anthony Grasso, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone (202) 482-3853.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the countervailing duty (``CVD'') order on 
steel wire rod from Canada on October 22, 2002. See Notice of 
Countervailing Duty Orders: Carbon and Certain Alloy Steel Wire Rod 
from Brazil and Canada, 67 FR 64871 (October 22, 2002). On October 1, 
2003, the Department received a request from Georgetown Steel Company 
(formerly GS Industries), Gerdau Ameristeel US Inc. (formerly Co-Steel 
Raritan), Keystone Consolidated Industries, Inc., and North Star Steel 
Texeas, Inc., the petitioners in the original investigation, that the 
Department initiate a changed circumstances review for purposes of 
revoking the CVD order. The basis for the petitioners' request is that 
they are no longer interested in maintaining the countervailing duty 
order or in the imposition of CVD duties on the subject merchandise.
    On November 3, 2003, the Department published a notice of 
initiation of a changed circumstances review of the countervailing duty 
order on carbon and certain alloy steel wire rod products from Canada. 
See Initiation Notice, 68 FR 62282. In the Initiation Notice, we 
indicated interested parties could submit comments for consideration in 
the Department's preliminary results not later than 14 days after 
publication of the initiation of the review, and submit responses to 
those comments not later than 5 days following the submission of 
comments. No comments were received. On November 18, 2003, a respondent 
to the original proceeding, Ispat Sidbec, Inc. (``Ispat''), submitted a 
letter to the Department stating that ``all three parties wish to 
advise the Department that they agree to the outcome of the review and, 
further, request that, pursuant to 19 CFR Sec.  351.216(e), the 
Department render its final results of review within 45 days of 
initiation of the review or sooner.'' Ispat claimed its letter 
represented the position of the only parties to the proceeding, namely, 
Ispat, the Government of Quebec, and the U.S. producers that filed the 
original petition.

Scope of the Order

    The merchandise covered by this order 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.\1\
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    \1\ On November 12, 2003, the Department published the final 
results of a changed circumstances review modifying the scope to 
exclude certain grade 1080 tire cord quality wire rod and grade 1080 
tire bead quality wire rod. This modification is for all entries of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after July 24, 2003. We note that for the purposes 
of this changed circumstances review, the revocation of the order 
would be based on the original scope. See Carbon and Certain Alloy 
Steel Wire Rod from Brazil, Canada, Indonesia, Mexico, Moldova, 
Trinidad and Tobago, and Ukraine: Final Results of Changed 
Circumstances Review, 68 FR 64079 (November 12, 2003).
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    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

[[Page 69386]]

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.

Preliminary Results of Review and Intent to Revoke in Whole the 
Countervailing Duty Order

    Pursuant to section 751(d)(1) of the 1930 Tariff Act, as amended 
(``the Act''), and 19 CFR Sec.  351.222(g), 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 Act (i.e., a changed 
circumstances review). Section 751(b)(1) of the Act requires a changed 
circumstances review to be conducted upon receipt of a request which 
shows changed circumstances sufficient to warrant a review. Section 
782(h)(1) of the Act gives the Department the authority to revoke an 
order if producers accounting for substantially all of the production 
of the domestic like product have expressed a lack of interest in the 
continuation of the order. Section 351.222(g) of the Department's 
regulations provides that the Department will conduct a changed 
circumstances administrative review under 19 CFR Sec.  351.216, and may 
revoke an order (in whole or in part), if it concludes that (i) 
producers accounting for substantially all of the production of the 
domestic like product to which the order pertains have expressed a lack 
of interest in the relief provided by the order, in whole or in part, 
or (ii) if other changed circumstances sufficient to warrant revocation 
exist. The Department has interpreted ``substantially all'' production 
normally to mean at least 85 percent of domestic production of the like 
product. See Certain Tin Mill Products From Japan: Final Results of 
Changed Circumstances Review, 66 FR 52109 (October 12, 2001); see also, 
19 CFR Sec.  351.208(c).
    As noted above and in the Initiation Notice, the petitioners 
requested this changed circumstances review on the basis that they are 
no longer interested in maintaining the countervailing duty order or in 
the imposition of CVD duties on the subject merchandise. Because the 
Department did not receive any comments during the comment period 
opposing initiation of this changed circumstances review, we 
preliminarily conclude that producers accounting for substantially all 
of the production of the domestic like product to which this order 
pertains lack interest in the relief provided by the order. In 
accordance with 19 CFR Sec.  351.222(g), the Department preliminarily 
determines that there is a reasonable basis to believe that changed 
circumstances exist sufficient to warrant revocation of the order. 
Therefore, the Department is preliminarily revoking the order on carbon 
and certain alloy steel wire rod from Canada, in whole. Unless the 
Department receives opposition within the time limit set forth below 
from domestic producers whose production totals more than 15 percent of 
the domestic like product, the Department will revoke the order on 
carbon and certain alloy steel wire rod in its final results of review.
    If, as a result of this review, we revoke the order, we intend to 
instruct U.S. Customs and Border Protection (``CBP'') to liquidate 
without regard to applicable countervailing duties, and refund any 
estimated countervailing duties collected on, all unliquidated entries 
of the merchandise subject to the order, as described above under the 
``Scope of the Order'' section, entered, or withdrawn from warehouse, 
for consumption on or after February 8, 2002, i.e., the publication 
date of the Department's preliminary determination (see Preliminary 
Affirmative Countervailing Duty Determination: Carbon and Certain Alloy 
Steel Wire Rod from Canada, 67 FR 5984). We will also instruct CBP to 
pay interest on such refunds with respect to the subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after 
October 22, 2002, in accordance with section 778 of the Act. The 
current requirement for a cash deposit of estimated countervailing 
duties on the subject merchandise will continue unless, and until, we 
publish a final determination to revoke in whole.

Public Comment

    Interested parties may submit case briefs not later than 14 days 
after the date of publication of this notice. See 19 CFR Sec.  
351.309(c)(ii). Rebuttal briefs, which must be limited to issues raised 
in such case briefs, may be filed not later than 19 days after the date 
of publication of this notice. See 19 CFR Sec.  351.309(d). Parties who 
submit arguments are requested to submit with the argument (1) a 
statement of the issue, (2) a brief summary of the argument, and (3) a 
table of authorities. Any interested party may request a hearing within 
14 days of publication of this notice. See 19 CFR Sec.  351.310(c). Any 
hearing, if requested, may be held 22 days after the date of 
publication of this notice, or the first working day thereafter, as 
practicable.
    Consistent with section 351.216(e) of the Department's regulations, 
we will issue the final results of this changed circumstances review 
not later than 270 days after the date on which this review was 
initiated.
    This notice is published in accordance with section 751(b)(1) of 
the Act and sections 351.216 and 351.222 of the Department's 
regulations.

    Dated: December 5, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E3-00546 Filed 12-11-03; 8:45 am]
BILLING CODE 3510-DS-S