[Federal Register Volume 69, Number 43 (Thursday, March 4, 2004)]
[Notices]
[Pages 10205-10207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4864]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-821]


Stainless Steel Wire Rod from Italy; Preliminary Results of Full 
Sunset Review of Countervailing Duty Order

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

ACTION: Notice of Preliminary Results of Full Sunset Review: Stainless 
Steel Wire Rod from Italy.

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SUMMARY: On August 1, 2003, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
order on stainless steel wire rod (``SSWR'') from Italy pursuant to 
section 751(c) of the Tariff Act of 1930, as amended (``the Act''). See 
Initiation of Five-Year (Sunset) Reviews, 68 FR 45219, (August 1, 
2003). On the basis of substantive responses filed by domestic and 
respondent interested parties, the Department is conducting a full 
sunset review. As a result of this review, the Department preliminarily 
finds that revocation of the countervailing duty order would likely 
lead to continuation or recurrence of subsidies at the levels indicated 
in the Preliminary Results of Review section of this notice.

EFFECTIVE DATE: March 4, 2004.

FOR FURTHER INFORMATION CONTACT: Hilary Sadler, Esq. or Martha Douthit, 
Office of Policy for Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, D.C. 20230; telephone: (202) 482-
4340 or (202) 482-5050.

SUPPLEMENTARY INFORMATION:

Department's Regulations:

    The Department's procedures for the conduct of sunset reviews are 
set forth in 19 CFR 351.218. Guidance on methodological or analytical 
issues relevant to the Department's conduct of sunset reviews is set 
forth in the Department's Policy Bulletin 98.3 - Policies Regarding the 
Conduct of Five-year (``Sunset'') Reviews of Antidumping and 
Countervailing Duty Orders; Policy Bulletin, 63 FR 18871 (April 16, 
1998) (``Sunset Policy Bulletin'').

Background:

    On August 1, 2003, the Department initiated a sunset review of the 
countervailing duty order on SSWR from Italy, pursuant to section 
751(c) of

[[Page 10206]]

the Tariff Act of 1930, as amended, (``the Act''). See Initiation of 
Five-Year (Sunset) Reviews, 68 FR 45219, (August 1, 2003). The 
Department received a notice of intent to participate on behalf of 
Carpenter Technology Corporation (``Carpenter Technology''), a domestic 
interested party, within the applicable deadline specified in section 
351.218(d)(1)(I) of the Sunset Regulations. Carpenter Technology 
claimed interested-party status under section 771(9)(C) of the Act, as 
a U.S. producer of the subject merchandise. Carpenter Technology 
participated in the original investigation and has been involved in 
this proceeding since its inception.\1\
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    \1\ The original petitioners involved in this case include: AL 
Tech Specialty Corp. (``AL Tech''), Carpenter Technology 
Corporation, Republic Engineered Steels (``Republic''), and Talley 
Metals Technology, Inc. (``Talley''). Carpenter acquired Talley in 
1998.
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    On September 2, 2003, we received a response from Cogne Acciai 
Speciali S.r.l. (``CAS''), at that time, a respondent interested 
party\2\. See Response of CAS, September 2, 2003. CAS qualified as an 
interested party under section 771(9)(A) of the Act, as a foreign 
producer and exporter of the subject merchandise. On August 29, 2003, 
we received a response from the Government of Italy (``GOI'') 
expressing its willingness to participate in this review as the 
authority responsible for defending the interests of Italian companies 
involved in this review. See Response of the GOI, August 29, 2003. On 
August 28, 2003, the Delegation of the European Commission (``EC'') 
expressed its willingness to participate in this review as the 
authority responsible for defending the interest of the Member States 
of the European Union (``EU''). See Response of the EC, August 28, 
2003. The GOI and EC note that they have in the past participated in 
this proceeding.
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    \2\ CAS has since been excluded from the countervailing duty 
order, effective November 7, 2003, pursuant to a section 129 
Determination. As a result, CAS is no longer an interested party to 
this proceeding.
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    On September 2, 2003, the Department received a complete 
substantive response from domestic interested parties within the 30-day 
deadline specified in the Sunset Regulations under section 
351.218(d)(3)(I). See Response of Carpenter Technology, September 2, 
2003. On September 8, 2003, Carpenter Technology filed a rebuttal 
response to respondent interested parties' substantive response. No 
rebuttal response was filed by respondents.
    In a sunset review, the Department normally will conclude that 
there is adequate response to conduct a full sunset review where 
respondent interested parties account for more than 50 percent, by 
volume, of total exports of subject merchandise to the United States. 
See 19 CFR 351.218(e)(1)(ii)(A) (63 FR 13516 (March 20, 1998)). 
Although CAS, accounted for less than the 50 percent threshold that the 
Department normally considers to be an adequate response under 19 CFR 
section 351.218(e)(I)(ii)(A), on September 24, 2003, the Department 
determined that the responses by CAS, the only respondent company in 
this review, the GOI, and the EC provided an adequate basis for a full 
review. See Memorandum for Ronald K. Lorentzen, Acting Director, Office 
of Policy, Import Administration, from Hilary E. Sadler, Esq., Office 
of Policy, Re: Sunset Review of Stainless Steel Wire Rod from Italy; 
Adequacy of Respondent Interested Party Response to the Notice of 
Initiation, September 24, 2003. Therefore, the Department is conducting 
a full (240 day) sunset review in accordance with 19 CFR 
351.218(e)(2)(I).
    Originally, the Department's preliminary results of this review 
were scheduled for November 19, 2003. However, several issues have 
arisen regarding the recent revocation of the order with respect to CAS 
and its effect on this sunset review. See Notice of Implementation 
Under Section 129 of the Uruguay Round Agreements Act: Countervailing 
Measures Concerning Certain Steel Products From the European 
Communities, 68 FR 64858 (November 17, 2003).
    Because of the numerous, complex issues in this proceeding, the 
Department extended the deadlines for the preliminary and final 
determinations. See Section 751(c)(5)(B) of the Act. On February 19, 
2004, the Department extended the issuance date of the preliminary 
determination to February 27, 2004 as well as the issuance date of the 
final determination on or before June 28, 2004. See Notice of extension 
of time limit for preliminary and final results of full sunset review: 
Stainless Steel Wire Rod from Italy, 69 FR 8627 (February 25, 2004).

Scope of Review:

    For purposes of this review, certain stainless steel wire rod (SSWR 
or subject merchandise) comprises products that are hot-rolled or hot- 
rolled annealed and/or pickled and/or descaled rounds, squares, 
octagons, hexagons or other shapes, in coils, that may also be coated 
with a lubricant containing copper, lime or oxalate. SSWR is made of 
alloy steels containing, by weight, 1.2 percent or less of carbon and 
10.5 percent or more of chromium, with or without other elements. These 
products are manufactured only by hot- rolling or hot-rolling, 
annealing, and/or pickling and/or descaling, and are normally sold in 
coiled form, and are of solid cross-section. The majority of SSWR sold 
in the United States is round in cross-sectional shape, annealed and 
pickled, and later cold-finished into stainless steel wire or small-
diameter bar. The most common size for such products is 5.5 millimeters 
or 0.217 inches in diameter, which represents the smallest size that 
normally is produced on a rolling mill and is the size that most wire 
drawing machines are set up to draw. The range of SSWR sizes normally 
sold in the United States is between 0.20 inches and 1.312 inches in 
diameter. Two stainless steel grades SF20T and K-M35FL are excluded 
from the scope of the order. The percentages of chemical makeup for the 
excluded grades are as follows:

SF20T:

Carbon ....... 0.05 max
Manganese .... 2.00 max
Phosphorous .. 0.05 max
Sulfur ....... 0.15 max
Silicon ...... 1.00 max
Chromium ..... 19.00/21.00
Molybdenum ... 1.50/2.50
Lead ......... added (0.10/0.30)
Tellurium .... added (0.03 min)

K-M35FL:

Carbon ....... 0.015 max
Manganese .... 0.40 max
Phosphorous .. 0.04 max
Sulfur ....... 0.03 max
Silicon ...... 0.70/1.00
Chromium ..... 12.50/14.00
Nickel ....... 0.30 max
Lead ......... added (0.10/0.30)
Aluminum ..... 0.20/0.35
    The products covered by this review are currently classifiable 
under subheadings 7221.00.0005, 7221.00.0015, 7221.00.0030, 
7221.00.0045, and 7221.00.0075 of the Harmonized Tariff Schedule of the 
United States (``HTSUS''). Although the HTSUS subheadings are provided 
for convenience and Customs purposes, the written description of 
thescope of this review is dispositive.

Analysis of Comments Received:

    All issues raised in the substantive responses and rebuttals by 
parties to this sunset review are addressed in the ``Issues and 
Decision Memorandum'' (``Decision Memo'') from Ronald K. Lorentzen, 
Acting Director, Office of

[[Page 10207]]

Policy, Import Administration, to James J. Jochum, Assistant Secretary 
for Import Administration, dated February 27, 2004, which is hereby 
adopted by this notice. The issues discussed in the accompanying 
Decision Memo include the likelihood of continuation or recurrence of 
countervailable subsidies and the net subsidy likely to prevail were 
the order revoked. Parties can find a complete discussion of all issues 
raised in this review and the corresponding recommendations in this 
public memorandum which is on file in the Central Records Unit, room B-
099, of the main Commerce building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at www.ia.ita.doc.gov/frn, under the 
heading ``Italy.'' The paper copy and electronic version of the 
Decision Memo are identical in content.

Preliminary Results of Review:

    We preliminarily determine that revocation of the countervailing 
duty order on SSWR from Italy would be likely to lead to continuation 
or recurrence of countervailable subsidies at the rate listed below:

------------------------------------------------------------------------
                                                              Net
                 Producers/Exporters                    Countervailable
                                                       Subsidy (percent)
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Valbruna.............................................               0.82
All Others...........................................               0.82
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    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(d)(i). Any 
hearing, if requested, will be held on April 28, 2004. Interested 
parties may submit case briefs no later than April 19, 2004, in 
accordance with 19 CFR 351.309(c)(1)(i). Rebuttal briefs, which must be 
limited to issues raised in the case briefs, may be filed not later 
than April 26, 2004, in accordance with 19 CFR 351.309(d)(I). The 
Department will issue a notice of final results of this sunset review, 
which will include the results of its analysis of issues raised in any 
such briefs, not later than June 28, 2004.\3\
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    \3\ On November 25, 2003, the Department published the extension 
of time limit for the preliminary results due to complex issues in 
this proceeding. See Extension of Time Limit for Preliminary Results 
of Five-Year Sunset Review, 68 FR 66073 (November 25, 2003). 
Therefore, final results of this sunset review are due not later 
than June 28, 2004.
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    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(I)(1) of the Act.

    Dated: February 27, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-4864 Filed 3-3-04; 8:45 am]
BILLING CODE 3510-DS-S