[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13228-13230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06143]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-891]


Carbon and Alloy Steel Wire Rod From the Republic of Korea: Final 
Affirmative Determination of Sales at Less Than Fair Value and Final 
Negative Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports 
of carbon and alloy steel wire rod (wire rod) from the Republic of 
Korea (Korea) are being, or are likely to be, sold in the United States 
at less than fair value (LTFV). In addition, we determine that critical 
circumstances do not exist with respect to imports of the subject 
merchandise. The period of investigation (POI) is January 1, 2016, 
through December 31, 2016.

DATES: Applicable March 28, 2018.

FOR FURTHER INFORMATION CONTACT: Lingjun Wang, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2316.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination of sales of wire 
rod from Korea at LTFV in the Federal Register on October 31, 2017.\1\ 
On November 7, 2017, Commerce postponed the final determination of this 
investigation.\2\ On November 28, 2017, Commerce amended the 
Preliminary Determination.\3\ Commerce exercised its discretion to toll 
deadlines affected by the closure of the Federal Government from 
January 20 through 22, 2018. If the new deadline falls on a non-
business day, in accordance with Commerce's

[[Page 13229]]

practice, the deadline will become the next business day. The revised 
deadline for the final determination of this investigation is now March 
19, 2018.\4\
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    \1\ See Carbon and Alloy Steel Wire Rod from the Republic of 
Korea: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, and Preliminary Negative Determination of Critical 
Circumstances, 82 FR 50386 (October 31, 2017) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Carbon and Alloy Steel Wire Rod from Italy, the Republic 
of Korea, Spain, Turkey, and the United Kingdom: Postponement of 
Final Determinations of Less-Than-Fair-Value Investigation and 
Extension of Provisional Measures, 82 FR 51613 (November 7, 2017).
    \3\ See Carbon and Alloy Steel Wire Rod from the Republic of 
Korea: Amended Preliminary Determination of Sales at Less Than Fair 
Value, 82 FR 56220 (November 28, 2017).
    \4\ See January 23, 2018 Memorandum re: Deadlines Affected by 
the Shutdown of the Federal Government (Tolling Memorandum). All 
deadlines in this segment of the proceeding have been extended by 3 
days.
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    A summary of the events that occurred since the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, may be found in the accompanying 
Issues and Decision Memorandum, which is adopted by this notice.\5\
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    \5\ See Memorandum re: Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Carbon and Alloy Steel Wire Rod from the Republic 
of Korea, dated concurrently with this determination and hereby 
adopted by this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is wire rod from Korea. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    During the course of this investigation, Commerce received scope 
comments from interested parties. Prior to the Preliminary 
Determination, Commerce issued a Preliminary Scope Decision Memorandum 
to address these comments.\6\ Since the Preliminary Determination, 
POSCO, British Steel, and the petitioners filed scope case and rebuttal 
briefs.\7\ On November 20, 2017, we issued the Final Scope Memorandum 
in which we did not change the scope of this investigation.\8\
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    \6\ See August 7, 2017 Memorandum re: Carbon and Alloy Steel 
Wire Rod from Belarus, Italy, the Republic of Korea, the Russian 
Federation, South Africa, Spain, the Republic of Turkey, Ukraine, 
the United Arab Emirates, and the United Kingdom: Scope Comments 
Decision Memorandum for the Preliminary Determinations (Preliminary 
Scope Memorandum).
    \7\ The petitioners are Gerdau Ameristeel US Inc., Nucor 
Corporation, Keystone Consolidated Industries, Inc., and Charter 
Steel (collectively, the petitioners). See POSCO's September 6, 2017 
Letter re: Scope Issues Case Brief, British Steel's September 6, 
2017 Letter re: Scope Case Brief, and the petitioners' September 13, 
2017 Letter re: Rebuttal Brief in Response to the Scope Case Briefs 
of British Steel and POSCO.
    \8\ For discussion of these comments, see November 20, 2017 
Memorandum re: Carbon and Alloy Steel Wire Rod from Belarus, Italy, 
the Republic of Korea, the Russian Federation, South Africa, Spain, 
the Republic of Turkey, Ukraine, the United Arab Emirates, and the 
United Kingdom: Final Scope Memorandum (Final Scope Memorandum).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of these issues is attached to this notice at Appendix II. The 
Issues and Decision Memorandum is a public document, and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at http://access.trade.gov, and 
to all parties in the Central Records Unit, room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov. The signed and electronic versions of the Issues 
and Decision Memorandum are identical in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in November 2017, we verified the sales and cost information 
reported by POSCO for use in our final determination. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by POSCO.\9\
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    \9\ For discussion of our verification findings, see January 12, 
2018 Memorandums, ``Verification of the Cost Response of POSCO in 
the Antidumping Duty Investigation of Carbon and Alloy Steel Wire 
Rod from Korea,'' ``Verification of the Sales Response of POSCO in 
the Antidumping Duty Investigation of Carbon and Alloy Steel Wire 
Rod from Korea'' and ``Verification of the CEP Sales Response of 
POSCO in the Antidumping Duty Investigation of Carbon and Alloy 
Steel Wire Rod from Korea.''
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Changes Since the Preliminary Determination

    Based on our analysis of comments received and our findings at 
verification, we made certain changes to the margin calculation for 
POSCO. For a discussion of these changes, see the ``Margin 
Calculation'' section of the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
shall be equal to the weighted average of the estimated weighted-
average dumping margins established for exporters and producers 
individually investigated excluding rates that are zero, de minimis 
margins or determined entirely under section 776 of the Act. POSCO is 
the only respondent for which Commerce calculated an estimated 
weighted-average dumping margin that is not zero, de minimis, or based 
entirely on facts otherwise available. Therefore, for purposes of 
determining the ``all-others'' rate and pursuant to section 
735(c)(5)(A) of the Act, we are using the estimated weighted-average 
dumping margin calculated for POSCO, as referenced in the ``Final 
Determination'' section below. This rate is 41.10 percent.

Final Negative Determination of Critical Circumstances

    For the Preliminary Determination, Commerce preliminarily found 
that critical circumstances do not exist with respect to imports of 
wire rod from POSCO and ``all other'' producers and exporters of 
subject merchandise.\10\ In this final determination, Commerce 
continues to find that, in accordance with 735(a)(3) of the Act, 
critical circumstances do not exist for POSCO and ``all other'' 
producers and exporters in this investigation. A discussion of the 
determination can be found in the ``Critical Circumstances'' section of 
the Issues and Decision Memorandum.
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    \10\ See Preliminary Determination at 50387.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
POSCO...................................................           41.10
All-Others..............................................           41.10
------------------------------------------------------------------------

Disclosure

    We intend to disclose the calculations performed within five days 
of the date of publication of this notice to parties in this proceeding 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to suspend liquidation of all entries of wire rod from Korea, as 
described in Appendix I to this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after October 31, 2017, 
the date of publication in the Federal Register of the affirmative 
Preliminary Determination.
    Furthermore, Commerce will instruct CBP to require a cash deposit 
for such entries of merchandise. Pursuant to section 735(c)(1)(B)(ii) 
of the Act, CBP shall require a cash deposit equal to the weighted-
average amount by which

[[Page 13230]]

normal value exceeds U.S. price, as follows: (1) For POSCO, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin which Commerce determined in this final determination; (2) if 
the exporter is not a firm identified in this investigation but the 
producer is, then the cash deposit rate will be equal to the estimated 
weighted-average dumping margin established for the producer of the 
subject merchandise; (3) the cash deposit rate for all other producers 
or exporters will be 41.10 percent, as discussed in the ``All-Others 
Rate'' section, above.
    The instructions suspending liquidation will remain in effect until 
further notice.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of our final determination of 
sales at LTFV and final negative determination of critical 
circumstances for Korea. Because Commerce's final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports, or sales (or the 
likelihood of sales) for importation of wire rod from Korea no later 
than 45 days after this final determination, in accordance with section 
735(b)(2) of the Act. If the ITC determines that such injury does not 
exist, the proceeding will be terminated and all cash deposits posted 
will be refunded or cancelled. If the ITC determines that such injury 
exists, Commerce will issue an antidumping duty order directing CBP to 
assess, upon further instruction by Commerce, antidumping duties on all 
imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
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 written 
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.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: March 19, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled products of carbon steel and alloy steel, in coils, of 
approximately round cross section, less than 19.00 mm in actual 
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; or (e) concrete reinforcing bars and 
rods. Also excluded are free cutting steel (also known as free 
machining steel) products (i.e., products that contain by weight one 
or more of the following elements: 0.1 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 phosphorous, more than 0.05 percent of 
selenium, or more than 0.01 percent of tellurium). 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 7213.91.3011, 7213.91.3015, 7213.91.3020, 
7213.91.3093, 7213.91.4500, 7213.91.6000, 7213.99.0030, 
7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020, 
7227.90.6030, and 7227.90.6035 of the HTSUS. Products entered under 
subheadings 7213.99.0090 and 7227.90.6090 of the HTSUS also may be 
included in this scope if they meet the physical description of 
subject merchandise above. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written 
description of the scope of this proceeding is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Critical Circumstance
IV. Scope of the Investigation
V. Scope Comments
VI. Final Determination of No Sales For STINKO
VII. Final Determination of Affiliation and Collapsing
VIII. Changes to the Margin Calculation
IX. Discussion of the Issues:
    Comment 1: Whether To Apply AFA to POSCO Because its Weighted-
Average CONNUM-Specific Cost Database Is Unreliable
    Comment 2: Whether To Apply AFA to POSCO Because It Failed To 
Report All of its U.S. Sales
    Comment 3: Whether Commerce Should Use Additional Product 
Characteristics for Model Match
    Comment 4: U.S. Credit Expense (CREDITU)
    Comment 5: Whether POSCO Reported the Appropriate Indirect 
Selling Expense Incurred in the United States (INDIRS1U)
    Comment 6: Indirect Selling Expense Incurred in the Home Market 
(DINDIRS2U)
    Comment 7: Whether POSCO Failed To Report That its Sale to 
Company B Was an Affiliated Sale
    Comment 8: Negative Credit Expenses of Home Market Sales
    Comment 9: SAS Syntax for Capping Home Market Freight Expenses
    Comment 10: Whether To Include Interest From Late Payment 
Interest in the Interest Expense (INTEX) Calculation
X. Recommendation

[FR Doc. 2018-06143 Filed 3-27-18; 8:45 am]
 BILLING CODE 3510-DS-P