[Federal Register Volume 72, Number 28 (Monday, February 12, 2007)]
[Notices]
[Pages 6528-6530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-2227]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-580-829


Stainless Steel Wire Rod from the Republic of Korea: Final 
Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On October 11, 2006, the Department of Commerce published the 
preliminary results of the administrative review of the antidumping 
duty order on stainless steel wire rod (SSWR) from the Republic of 
Korea. We gave interested parties an opportunity to comment on the 
preliminary results. Based on our analysis of the comments received and 
an examination of our calculations, we have made certain changes for 
the final results. The final weighted-average dumping margins for the 
respondents are listed below in the ``Final Results of the Review'' 
section of this notice.

EFFECTIVE DATE: February 12, 2007.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer at (202) 482-0410 or 
Richard Rimlinger at (202) 482-4477, AD/CVD Operations, Office 5, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14\th\ Street and Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On October 11, 2006, the Department of Commerce (the Department) 
published Stainless Steel Wire Rod from the Republic of Korea: 
Preliminary Results of Antidumping Duty Administrative Review, 71 FR 
59739 (October 11, 2006) (Preliminary Results), in the Federal 
Register. The period of review is September 1, 2004, through August 31, 
2005. We have conducted this review in accordance with section 751(a) 
of the Tariff Act of 1930, as amended (the Act).
    We invited parties to comment on the Preliminary Results. On 
November 13, 2006, Carpenter Technology Corporation, Dunkirk Specialty 
Steel, LLC (a subsidiary of Universal Stainless & Alloy Products), and 
North American Stainless (collectively, the petitioners), and 
respondents Changwon Specialty Steel Co., Ltd., and Dongbang Specialty 
Steel Co., Ltd. (collectively, the respondent),\1\ filed case briefs. 
On November 20, 2006, the petitioners and the respondent filed rebuttal 
briefs. Although the respondent requested a hearing on November 13, 
2006, it withdrew its request on November 17, 2006. Because no other 
interested party requested a hearing, we did not hold one.
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    \1\ We collapsed the two respondents into a single entity 
because we concluded they had a close supplier relationship. See 
Preliminary Results, 71 FR at 59739.
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Scope of Order

    For purposes of this order, the products covered are those SSWR 
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, are 
normally sold in

[[Page 6529]]

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 are excluded from the scope of the 
order. SF20T and K-M35FL are excluded. The chemical makeup for the 
excluded grades is 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
Silicon....................................................    0.70/1.00
Manganese..................................................     0.40 max
Phosphorous................................................     0.04 max
Sulfur.....................................................     0.03 max
Nickel.....................................................     0.30 max
Chromium...................................................  12.50/14.00
Lead.......................................................    0.10/0.30
Aluminum...................................................    0.20/0.35
------------------------------------------------------------------------

    The products subject to the order 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 the scope of the order 
is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the February 1, 2007, Issues and Decision 
Memorandum for the Antidumping Duty Administrative Review of Stainless 
Steel Wire Rod from the Republic of Korea for the period September 1, 
2004, through August 31, 2005 (Decision Memorandum), which is hereby 
adopted by this notice. Attached to this notice as an appendix is a 
list of the issues which parties have raised and to which we have 
responded in the Decision Memorandum. 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 
Department's Central Records Unit, Room B-099 of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Web at http://ia.ita.doc.gov/frn. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Changes Since the Preliminary Results

    We have made the following changes to the margin we calculated for 
the respondent in the Preliminary Results:
1) We corrected a ministerial error to match models by grade properly.
2) We included the respondent's loss on inventory obsolescence in the 
calculation of general and administrative expenses.

Results of the Cost Test

    Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20 
percent of sales of a given product were at prices less than the cost 
of production (COP), we did not disregard any below-cost sales of that 
product because we determined that the below-cost sales were not made 
in ``substantial quantities.'' Where 20 percent or more of a 
respondent's sales of a given product during the period of review were 
at prices less than the COP, we determined such sales to have been made 
in ``substantial quantities.'' See section 773(b)(2)(C) of the Act. The 
sales were made within an extended period of time in accordance with 
section 773(b)(2)(B) of the Act because we examined below-cost sales 
occurring during the entire period of review. In such cases, because we 
compared prices to average costs for the period of review, we also 
determined that such sales were not made at prices which would permit 
recovery of all costs within a reasonable period of time, in accordance 
with section 773(b)(2)(D) of the Act.
    We found that, for certain products, more than 20 percent of the 
comparison-market sales were at prices less than the COP and, thus, the 
below-cost sales were made within an extended period of time in 
substantial quantities by the respondent. In addition, these sales were 
made at prices that did not provide for the recovery of costs within a 
reasonable period of time. Therefore, we disregarded the below-cost 
sales and used the remaining sales, if any, as the basis for 
determining normal value, in accordance with section 773(b)(1) of the 
Act.

Final Results of the Review

    As a result of our review, we determine that the following 
percentage weighted-average dumping margin exists on SSWR from the 
Republic of Korea for the period September 1, 2004, through August 31, 
2005:

------------------------------------------------------------------------
                       Company                         Margin (percent)
------------------------------------------------------------------------
Changwon/Dongbang...................................                9.06
------------------------------------------------------------------------

Assessment Rates

    The Department will determine and U.S. Customs and Border 
Protection (CBP) shall assess antidumping duties on all appropriate 
entries. We intend to issue appropriate assessment instructions 
directly to CBP within 15 days of publication of these final results of 
review. In accordance with 19 CFR 351.212(b)(1), we have calculated an 
importer/customer-specific assessment rate or per-unit value for 
subject merchandise.
    The Department clarified its ``automatic assessment'' regulation, 
codified at 19 CFR 351.212(c), on May 6, 2003. See Notice of Policy 
Concerning Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment-Policy Notice). This clarification will apply to entries of 
subject merchandise during the period of review produced by the 
companies included in these final results of review for which the 
reviewed companies did not know that the merchandise it sold to the 
intermediary (e.g., a reseller, trading company, or exporter) was 
destined for the United States. In such instances, we will instruct CBP 
to liquidate unreviewed entries at the ``All Others'' rate if there is 
no rate for the intermediary involved in the transaction. See 
Assessment-Policy Notice for a full discussion of this clarification.

a. Export Price

    With respect to export-price sales, we divided the total dumping 
margins (calculated as the difference between normal value and the 
export price) for the respondent's importer or customer by the total 
number of units the respondent sold to that importer or customer. We 
will direct CBP to assess the resulting per-unit dollar amount against 
each unit of merchandise on each of that importer's or customer's 
entries during the review period.

b. Constructed Export Price

    For constructed export-price sales, we divided the total dumping 
margins for the reviewed sales by the total entered value of those 
reviewed sales for each importer. We will direct CBP to

[[Page 6530]]

assess the resulting percentage margin against the entered customs 
values for the subject merchandise on each of that importer's entries 
during the review period. See 19 CFR 351.212(b)(1).

Cash-Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, 
consistent with section 751(a)(1) of the Act: (1) the cash-deposit 
rates for the reviewed company will be the rate shown above; (2) for 
previously reviewed or investigated companies not listed above, the 
cash-deposit rate will continue to be the company-specific rate 
published for the most recent period; (3) if the exporter is not a firm 
covered in this review, a prior review, or the original less-than-fair-
value (LTFV) investigation but the manufacturer is, the cash-deposit 
rate will be the rate established for the most recent period for the 
manufacturer of the merchandise; (4) the cash-deposit rate for all 
other manufacturers or exporters will continue to be 5.19 percent, the 
``All Others'' rate from the amended final determination of the LTFV 
investigation published on September 15, 1998. See Notice of Amendment 
of Final Determination of Sales at Less Than Fair Value and Antidumping 
Duty Order: Stainless Steel Wire Rod From Korea, 63 FR 49331 (September 
15, 1998).
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.
    This notice serves as a 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 these review periods. Failure to comply with 
this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or 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 final results of review in 
accordance with sections 751(a)(1) and 777(i) of the Act.

    Dated: February 1, 2007.
David M. Spooner,
Assistant Secretaryfor Import Administration.

Appendix

Comments and Responses

1. Offsetting of Negative Margins
2. Model Match
3. Inland-Freight Expenses
4. Affiliated-Party Inputs
5. General and Administrative Expenses
[FR Doc. E7-2227 Filed 2-9-03; 8:45 am]
BILLING CODE 3510-DS-S