[Federal Register Volume 70, Number 94 (Tuesday, May 17, 2005)]
[Notices]
[Pages 28271-28273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2471]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-351-832)


Notice of Final Results of Antidumping Duty Administrative 
Review: Carbon and Certain Alloy Steel Wire Rod from Brazil

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On November 8, 2004, the Department of Commerce (the 
Department) published the preliminary results of its first 
administrative review of the antidumping duty order on carbon and 
certain alloy steel wire rod from Brazil. The review covers one 
producer of the subject merchandise. The period of review (POR) is 
April 15, 2002, through September 30, 2003. Based on our analysis of 
comments received, these final results do not differ from the 
preliminary results. The final results are listed below in the Final 
Results of Review section.

EFFECTIVE DATE: May 17, 2005.

FOR FURTHER INFORMATION CONTACT: Constance Handley or David Neubacher, 
at (202) 482-0631 or (202) 482-5823, respectively; AD/CVD Operations, 
Office 1, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street & Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On November 8, 2004, the Department published in the Federal 
Register the preliminary results of the first administrative review of 
the antidumping duty order on carbon and certain alloy steel wire rod 
from Brazil. See Notice of Preliminary Results of Antidumping Duty 
Administrative Review: Carbon and Certain Steel Alloy Steel Wire from 
Brazil, 69 FR 64716 (November 8, 2004) (Preliminary Results)
    We invited parties to comment on the Preliminary Results. On 
January 5, 2005, we received case briefs from the respondent, Companhia 
Sider[uacute]rgica Belgo Mineira, Belgo Mineira 
Particip[atilde][ccedil] o Ind[uacute]stria e Com[eacute]rcio S.A. and 
BMP Sider[uacute]rgica S.A. (collectively, Belgo), Belgo's 
affiliate,\1\ and the petitioners, Gerdau Ameristeel US Inc., 
Georgetown Steel Company, Keystone Consolidated Industries, Inc., and 
North Star Steel Texas, Inc.\2\ The respondent and petitioners 
submitted rebuttal briefs on January 12, 2005. A public hearing was 
requested, with parties agreeing to limit it to issues raised on the 
scope inquiry that was initiated in conjunction with this 
administrative review.
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    \1\ Bekaert Corporation (Bekaert U.S.) and N.V. Bekaert S.A. 
(N.V. Bakaert) (collectively, ``Bekaert``).
    \2\ Since the review was initiated, Georgetown Steel Company was 
purchased by International Steel Group and is now known as ISG 
Georgetown. As of November 1, 2004, Gerdau Ameristeel completed its 
purchase of the assets of North Star Steel, and that facility is now 
part of Gerdau Ameristeel.
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Scope Issues

    On October 27, 2004, the Department issued its preliminary ruling 
concerning the exclusion of grade 1080 tire cord quality wire rod and 
tire bead quality tire wire rod (1080 TCBQWR). See Memorandum from 
Jesse Cortes, Analyst to Jeffery May, Deputy Assistant Secretary, Re: 
Carbon and Certain Alloy Steel Wire Rod from Brazil: Preliminary Scope 
Ruling on Grade 1080 Tire Cord Quality Wire Rod and Tire Bead Quality 
Wire Rod (October 27, 2004). We received case briefs from Belgo and 
Bakaert, and the petitioners submitted rebuttal comments.
    As mentioned above, a public hearing was held on the scope inquiry 
on January 28, 2005. On May 9, 2005, the Department issued its final 
ruling on the scope inquiry. See Memorandum from David Neubacher, 
Analyst to Barbara E. Tillman, Acting Deputy Assistant Secretary, Re: 
Carbon and Certain Alloy Steel Wire Rod from Brazil: Final Scope Ruling 
on Grade 1080 Tire Cord Quality Wire Rod and Tire Bead Quality Wire Rod 
(Final Scope Ruling) (May 9, 2005), which is on file in the Central 
Records Unit in Room B-099 of the main Commerce building. For the final 
ruling, we have continued to hold that for entries prior to July 24, 
2003, 1080 TCBQWR with inclusions greater than 20 microns measured in 
any direction, is excluded from the order

Scope of the Order

    Effective July 24, 2003, in accordance with the Department's Notice 
of Final Result of Changed Circumstances Review of the Antidumping Duty 
and Countervailing Duty Orders, and Intent to Revoke Orders in Part, 68 
FR 64079 (November 12, 2003), the scope of this order was amended. 
Therefore, for purposes of this review, there were separate scopes in 
effect. These scopes are set forth below.

Scope of Order from April 15, 2002, through July 23, 2003

    The merchandise subject to 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.
    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-

[[Page 28272]]

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 review are currently classifiable under 
subheadings 7213.91.3010, 7213.91.3015, 7213.91.3090, 7213.91.3092, 
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 Order from July 24, 2003, through the POR

    The merchandise subject to 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.
    Specifically excluded are steel products possessing the above-noted 
physical characteristics and meeting the 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 non-deformable inclusions greater than 20 microns and no 
deformable inclusions greater than 35 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 non-deformable inclusions greater than 20 
microns and no deformable inclusions greater than 35 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).
    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. This 
measurement methodology applies only to inclusions on certain grade 
1080 tire cord quality wire rod and certain grade 1080 tire bead 
quality wire rod that are entered, or withdrawn from warehouse, for 
consumption on or after July 24, 2003.
    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

[[Page 28273]]

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 review are currently classifiable under 
subheadings 7213.91.3010, 7213.91.3015, 7213.91.3090, 7213.91.3092, 
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.\3\
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    \3\ Effective January 1, 2004, U.S. Customs and Border 
Protection (CBP) reclassified certain HTSUS numbers related to the 
subject merchandise. See http://hotdocs.usitc.gov/tariff_chapters_current/toc.html.
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Analysis of Comments Received

    The issues raised in the case briefs by parties to this 
administrative review are addressed in the Issues and Decision 
Memorandum to Joseph A. Spetrini, Acting Assistant Secretary for Import 
Administration, from Barbara E. Tillman, Acting Deputy Assistant 
Secretary (Decision Memorandum), and the Final Scope Ruling which is 
hereby adopted by this notice. A list of the issues addressed in the 
Decision Memorandum is appended to this notice. The Decision Memorandum 
is on file in the Central Records Unit in Room B-099 of the main 
Commerce building, and can also be accessed directly on the Web at 
www.ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    No changes have been made since the Preliminary Results. Our 
decisions regarding issues raised in the case briefs are discussed in 
detail in the Decision Memorandum and the Final Scope Ruling.

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average margin exists for the period of April 15, 2002, 
through September 30, 2003:

------------------------------------------------------------------------
                                                      Weighted-Average
                     Producer                       Margin (Percentage)
------------------------------------------------------------------------
Companhia Sider[uacute]rgica Belgo Mineira,......
  Belgo Mineira Particip[atilde][ccedil]o
   Ind[uacute]stria e Com[eacute]rcio S.A........
  and BMP Sider[uacute]rgica S.A.................                  98.69
------------------------------------------------------------------------

Assessment

    The Department will determine, and CBP shall assess, antidumping 
duties on all appropriate entries, pursuant to 19 CFR 351.212(b). The 
Department calculated importer-specific duty assessment rates on the 
basis of the ratio of the total amount of antidumping duties calculated 
for the examined sales to the total entered value of the examined sales 
for that importer. Where the assessment rate is above de minimis, we 
will instruct CBP to assess duties on all entries of subject 
merchandise by that importer. The Department will issue appropriate 
assessment instructions directly to CBP within 15 days of publication 
of these final results of review.

Cash Deposits

    Furthermore, the following deposit requirements will be effective 
upon publication of the final results of this administrative review for 
all shipments of carbon and certain alloy steel wire rod from Brazil 
entered, or withdrawn from warehouse, for consumption on or after the 
publication date of these final results, as provided by section 751(a) 
of the Tariff Act of 1930, as amended (the Act): (1) for companies 
covered by this review, the cash deposit rate will be the rate listed 
above; (2) for merchandise exported by producers or exporters not 
covered in this review but covered in the investigation, the cash 
deposit rate will continue to be the company-specific rate from the 
final determination; (3) if the exporter is not a firm covered in this 
review or the investigation, but the producer is, the cash deposit rate 
will be that established for the producer of the merchandise in these 
final results of review or in the final determination; and (4) if 
neither the exporter nor the producer is a firm covered in this review 
or the investigation, the cash deposit rate will be 74.35 percent,\4\ 
the ``All Others'' rate established in the less-than-fair-value 
investigation. These deposit requirements shall remain in effect until 
publication of the final results of the next administrative review.
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    \4\ Please note that the instructions sent to Customs and Border 
Protection will reduce the rate by the amount of the export subsidy.
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    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402 (f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred, and in the subsequent 
assessment of double antidumping duties.
    This notice also is the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the 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.
    We are issuing and publishing these results and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 9, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX

Comment 1: Normal Value Adjustment for ICMS taxes
Comment 2: U.S. Price Adjustment for Duty Drawback
Comment 3: Adjustment for Commissions
Comment 4: Affiliated Parties
Comment 5: Special Rule for Products Further Manufactured in the United 
States
Comment 6: Final Scope Ruling
[FR Doc. E5-2471 Filed 5-16-05; 8:45 am]
BILLING CODE 3510-DS-S