[Federal Register Volume 73, Number 5 (Tuesday, January 8, 2008)]
[Notices]
[Pages 1323-1325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-115]


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DEPARTMENT OF COMMERCE

International Trade Administration

C-351-833


Carbon and Certain Alloy Steel Wire Rod from Brazil: Final 
Results of Expedited Five-Year Sunset Review of the Countervailing Duty 
Order

AGENCY: AGENCY: Import Administration, International Trade 
Administration, Department of Commerce.
SUMMARY: On September 4, 2007, the Department of Commerce (``the 
Department'') published in the Federal Register the notice of 
initiation of the five-year sunset review of the countervailing duty 
order on carbon and certain alloy steel wire rod (``wire rod'') from 
Brazil, pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act''). The Department has conducted an expedited sunset 
review of this order pursuant to section 751(c) of the Act and 19 CFR 
351.218(e)(1)(ii)(C)(2). As a result of this sunset review, the 
Department finds that revocation of the countervailing duty order is 
likely to lead to continuation or recurrence of a countervailable 
subsidy at the levels indicated in the ``Final Results of Review'' 
section of this notice.

EFFECTIVE DATE: January 8, 2008.

FOR FURTHER INFORMATION CONTACT: Devta Ohri or Brandon Farlander, AD/
CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Ave., N.W., Washington, D.C. 20230; telephone: (202) 482-
3853 or (202) 482-0182, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 4, 2007, the Department published the notice of 
initiation of the sunset review of the countervailing duty order on 
wire rod from Brazil, pursuant to section 751(c) of the Act. See 
Initiation of Five-Year (``Sunset'') Reviews, 72 FR 50659 (September 4, 
2007) (``Notice of Initiation''). The Department received a notice of 
intent to participate from the following domestic parties: Gerdau 
Ameristeel U.S. Inc.; ISG Georgetown, Inc.; Keystone Consolidated 
Industries, Inc.; and Rocky Mountain Steel Mills within the deadline 
specified in 19 CFR 351.218(d)(1)(i). The companies claimed interested 
party status under section 771(9)(C) of the Act, as manufacturers of a 
domestic like product in the United States. The Department received a 
separate notice of intent to participate from Nucor Corporation within 
the deadline specified in 19 CFR 351.218(d)(1)(i). Nucor Corporation 
claimed interested party status under section 771(9)(C) of the Act, as 
a manufacturer of a domestic like product in the United States.
    Gerdau Ameristeel U.S. Inc. reported that it is related to Gerdau 
S.A., a producer and exporter of subject merchandise in Brazil. ISG 
Georgetown, Inc. reported that it is related to Belgo Siderurgia S.A. 
in Brazil, a producer and exporter of subject merchandise. Pursuant to 
Section 771(4)(B) of the Act, a domestic interested party may be 
excluded from participating as part of the domestic industry if it is 
related to an exporter of subject merchandise. In this sunset review, 
even if we excluded the parties above from participating as part of the 
domestic industry in the sunset review of the order, there would

[[Page 1324]]

still be sufficient participation by other domestic interested parties 
to merit a sunset review of the order. Since there is sufficient 
industry support regardless of whether these two companies are 
included, we do not need to resolve the issue of whether to include or 
exclude Gerdau Ameristeel U.S. Inc. and ISG Georgetown, Inc. Therefore, 
collectively, Gerdau Ameristeel U.S. Inc., ISG Georgetown, Inc., 
Keystone Consolidated Industries, Inc.; Rocky Mountain Steel Mills; and 
Nucor Corporation will be known as the ``domestic interested parties.''
    The Department received a complete substantive response to the 
notice of initiation from the domestic interested parties within the 
30-day deadline specified in 19 CFR 351.218(d)(3)(i). We received no 
responses from respondent interested parties, nor was a hearing 
requested. Therefore, we conducted an expedited (120-day) sunset review 
of the CVD order on wire rod from Brazil, as provided for in section 
351.218 (e)(1)(ii)(C)(2) of the Department's regulations.

Scope of the Order

    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. 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.
    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 grade 1080 tire cord quality wire rod and 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 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, 7227.90.6010, 7227.90.6051, 7227.90.6053, 7227.90.6058, 
7227.90.6059, and 7227.90.6080 of the HTSUS. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this order is dispositive.

Analysis of Comments Received

    All issues raised in substantive responses by parties in this 
sunset review are addressed in the ``Issues and Decision Memorandum for 
the Expedited Sunset Review of the Countervailing Duty Order on Carbon 
and Certain Alloy Steel Wire Rod from Brazil; Final Results,'' 
(``Decision Memo''), from Stephen J. Claeys, Deputy Assistant Secretary 
for Import Administration, to David M. Spooner, Assistant Secretary for 
Import Administration, dated December 31, 2007, which is hereby adopted 
by this notice. The issues discussed in the Decision Memo include the 
likelihood of continuation or recurrence of a countervailable subsidy, 
the net countervailable subsidy rate likely to

[[Page 1325]]

prevail if the order were revoked, and the nature of the subsidies.
    Parties can find a complete discussion of all issues raised in this 
sunset review and the corresponding recommendation in this public 
memorandum which is on file in B-099, the Central Records Unit, of the 
main Commerce building. In addition, a complete version of the Decision 
Memo can be accessed directly on the Department's Web page at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memo are identical in content.

Final Results of Review

    For the reasons stated in the Decision Memo, the Department 
determines that revocation of the countervailing duty order on wire rod 
from Brazil is likely to lead to continuation or recurrence of 
countervailable subsidies at the following countervailing duty rates:

------------------------------------------------------------------------
                                                       Net Subsidy Rate
                Manufacturer/Exporter                      (percent)
------------------------------------------------------------------------
Belgo Mineira.......................................                6.74
Gerdau S.A..........................................                2.76
All-Others..........................................                5.64
------------------------------------------------------------------------

Notification Regarding Administrative Protective Orders

    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction 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 terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(c), 752(b), and 777(i) of the Act.

    Dated: December 31, 2007.
Susan H. Kuhbach,
Acting Assistant Secretaryfor Import Administration.
[FR Doc. E8-115 Filed 1-7-08; 8:45 am]
BILLING CODE 3510-DS-S