[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)]
[Notices]
[Pages 23420-23422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10880]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-837; C-489-832]


Carbon and Alloy Steel Wire Rod From Italy and the Republic of 
Turkey: Amended Final Affirmative Countervailing Duty Determination for 
the Republic of Turkey and Countervailing Duty Orders for Italy and the 
Republic of Turkey

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing the countervailing duty (CVD) orders on carbon and 
alloy steel wire rod (wire rod) from Italy and the Republic of Turkey 
(Turkey). Also, as explained in this notice, Commerce is amending its 
final affirmative determination with respect to Turkey to correct the 
rates assigned to Habas Sinai Ve Tibbi Gazlar Istih (Habas) and All-
Others.

DATES: Applicable May 21, 2018.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas at (202) 482-3813 
(Italy), Justin Neuman at (202) 482-0486 (Turkey), or Omar Qureshi at 
(202) 482-5307 (Turkey), AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with sections 705(a), 705(d), and 777(i) of the 
Tariff Act of 1930, as amended (Act), and 19 CFR 351.210(c), on March 
28, 2018, Commerce published its affirmative final determinations that 
countervailable subsidies are being provided to producers and exporters 
of wire rod from Italy and Turkey.\1\
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    \1\ See Countervailing Duty Investigation of Carbon and Alloy 
Steel Wire Rod from Italy: Final Affirmative Determination, 83 FR 
13242 (March 28, 2018) (Wire Rod from Italy Final Determination) and 
the accompanying Issues and Decision Memorandum; Carbon and Alloy 
Steel Wire Rod from the Republic of Turkey: Final Affirmative 
Countervailing Duty Determination, and Final Affirmative Critical 
Circumstances Determination, in Part, 83 FR 13239 (March 28, 2018) 
(Wire Rod from Turkey Final Determination) and the accompanying 
Issues and Decision Memorandum.
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    On March 27, 2018, Ferriere Nord S.p.A. alleged that Commerce made 
ministerial errors in the Wire Rod from Italy Final Determination with 
regard to Commerce's calculation of the final ad valorem subsidy rate 
pertaining to Ferriere Nord S.p.A.\2\ One of the petitioners, Nucor 
Corporation (Nucor), filed rebuttal comments regarding Ferriere Nord 
S.p.A.'s allegation on April 2, 2018.\3\
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    \2\ See Letter from Ferriere Nord, S.p.A., ``Countervailing Duty 
Investigation of Carbon and Alloy Steel Wire Rod from Italy: 
Ferriere Nord Request to Correct Ministerial Errors in the Final 
Determination,'' dated March 27, 2018.
    \3\ See Letter from Nucor, ``Carbon and Alloy Steel Wire Rod 
from the Republic of Italy: Rebuttal Ministerial Error Comments,'' 
dated April 2, 2018.
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    Also on March 27, 2018, Nucor alleged that Commerce made a 
ministerial error in the Wire Rod from Turkey Final Determination.\4\ 
In addition, on that same date, the Government of Turkey (GOT) alleged 
that Commerce made a ministerial error in the Wire Rod from Turkey 
Final Determination.\5\ Nucor filed rebuttal comments regarding the 
GOT's allegation on April 2, 2018.\6\
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    \4\ See Letter from Nucor, ``Carbon and Alloy Steel Wire Rod 
from the Republic of Turkey: Ministerial Error Allegation,'' dated 
March 27, 2018 (Nucor Ministerial Error Allegation).
    \5\ See Letter from the GOT, ``Request of Government of Turkey 
for Correction of Ministerial Error on Final Determination in CVD 
Proceeding on Carbon and Alloy Steel Wire Rod from the Republic of 
Turkey,'' dated March 27, 2018 (GOT Ministerial Error Allegation).
    \6\ See Letter from Nucor, ``Carbon and Alloy Steel Wire Rod 
from the Republic of Turkey: Rebuttal Ministerial Error Comments,'' 
dated April 2, 2018 (Nucor Rebuttal Comments).
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    We reviewed the allegations and determined that we did not make 
ministerial errors, within the meaning of section 705(e) of the Act and 
19 CFR 351.224(f), with respect to the Wire Rod from Italy Final 
Determination; however, we did make a ministerial error in the Wire Rod 
from Turkey Final Determination. See ``Amendment to the Final 
Determination'' section below for further discussion.
    On May 11, 2018, the ITC notified Commerce of its affirmative 
determination that an industry in the United States is materially 
injured within the meaning of section 705(b)(1)(A)(i) and 705(d) of the 
Act, by reason of subsidized imports of subject merchandise from Italy 
and Turkey, and its determination that critical circumstances do not 
exist with respect to imports of wire rod from Turkey that are subject 
to Commerce's affirmative critical circumstances finding.\7\
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    \7\ See Letters to Gary Taverman, Acting Assistant Secretary of 
Commerce for Enforcement and Compliance, from Rhonda K. Schmidtlein, 
Chairman of the U.S. International Trade Commission, regarding 
carbon and alloy steel wire rod from Italy and the Republic of 
Turkey (May 11, 2018) (ITC Letter).

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[[Page 23421]]

Scope of the Orders

    The scope of these orders covers wire rod from Italy and Turkey. 
For a complete description of the scope, see the Appendix to this 
notice.

Amendment to the Final Determination

    With respect to the Wire Rod from Italy Final Determination, we 
analyzed Ferriere Nord S.p.A.'s submission and disagree that Commerce 
made ministerial errors regarding the benefit calculation of the Energy 
Interruptibility Contracts program.\8\
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    \8\ See Memorandum, ``Countervailing Duty Investigation of 
Carbon and Alloy Steel Wire Rod from Italy: Allegations of 
Ministerial Errors in the Final Determination with Regards to 
Ferriere Nord S.p.A.,'' dated May 7, 2018.
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    With respect to the Wire Rod from Turkey Final Determination, we 
analyzed Nucor's submission and agree that Commerce made a ministerial 
error regarding the deduction of expenses from loans received by 
respondent Habas Sinai ve Tibbi Galzlar Istihsal Endustrisi A.S. 
(Habas). However, we do not agree that the error alleged by the GOT 
constitutes a ministerial error. Pursuant to 19 CFR 351.224(e), 
Commerce is amending the Wire Rod from Turkey Final Determination to 
reflect the correction of the ministerial error described above. The 
correction of this ministerial error increased Habas' subsidy rate from 
3.86 percent ad valorem to 3.88 percent ad valorem.\9\ Because the 
``all-others'' rate is based, in part, on Habas' ad valorem subsidy 
rate, the correction noted above also increases the ``all-others'' rate 
determined in the Wire Rod from Turkey Final Determination from 3.84 
percent ad valorem to 3.85 percent ad valorem.\10\
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    \9\ See Memorandum, ``Carbon and Alloy Steel Wire Rod from the 
Republic of Turkey: Amended Final Determination of Countervailing 
Duty Investigation Pursuant to Ministerial Error Allegation,'' dated 
May 3, 2018.
    \10\ Id.
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Countervailing Duty Orders

    On May 11, 2018, in accordance with sections 705(b)(1)(A)(i) and 
705(d) of the Act, the ITC notified Commerce of its final 
determinations in these investigations, in which it found that an 
industry in the United States is materially injured by reason of 
imports of wire rod from Italy and Turkey.\11\ Therefore, in accordance 
with section 705(c)(2) of the Act, Commerce is issuing these 
countervailing duty orders. Because the ITC determined that imports of 
wire rod from Italy and Turkey are materially injuring a U.S. industry, 
unliquidated entries of such merchandise from Italy and Turkey, entered 
or withdrawn from warehouse for consumption, are subject to the 
assessment of countervailing duties.
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    \11\ See ITC Letter.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of wire rod from Italy and Turkey. Countervailing duties will 
be assessed on unliquidated entries of wire rod from Italy and Turkey 
entered, or withdrawn from warehouse, for consumption on or after 
September 5, 2017, the date of publication of the Preliminary 
Determinations,\12\ but will not include entries occurring after the 
expiration of the provisional measures period and before publication of 
the ITC's final injury determination as further described below.
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    \12\ See Carbon and Alloy Steel Wire Rod from Italy: Preliminary 
Affirmative Countervailing Duty Determination, 82 FR 41931 
(September 5, 2017) (Italy Wire Rod Preliminary Determination) and 
the accompanying Preliminary Decision Memorandum; see also Carbon 
and Alloy Steel Wire Rod from the Republic of Turkey: Preliminary 
Affirmative Countervailing Duty Determination and Preliminary 
Affirmative Critical Circumstances Determination, in Part., 82 FR 
41929 (September 5, 2017) (Turkey Wire Rod Preliminary 
Determination) and the accompanying Preliminary Decision Memorandum 
(collectively, Preliminary Determinations).
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Amended Cash Deposits and Suspension of Liquidation

    In accordance with section 706 of the Act, we will instruct CBP to 
suspend liquidation on all relevant entries of wire rod from Italy and 
Turkey, as further described below. These instructions suspending 
liquidation will remain in effect until further notice. Commerce will 
also instruct CBP to require cash deposits equal to the amounts as 
indicated below. Accordingly, effective on the date of publication of 
the ITC's final affirmative injury determinations, CBP will require, at 
the same time as importers would normally deposit estimated duties on 
this subject merchandise, a cash deposit equal to the subsidy rates 
listed below.\13\ The all-others rate applies to all producers or 
exporters not specifically listed, as appropriate.
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    \13\ See section 706(a)(3) of the Act.

                           Wire Rod From Italy
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                                                                Subsidy
                           Company                             rate  (%)
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Ferriere Nord S.p.A \14\.....................................       4.16
Ferriera Valsider S.p.A......................................      44.18
All-Others...................................................       4.16
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    \14\ Commerce has found the following companies to be cross-
owned with Ferriere Nord S.p.A: FIN FER S.p.A., Acciaierie di Verona 
S.p.A., and SIAT S.p.A. See Wire Rod From Italy Final Determination 
(unchanged from Italy Wire Rod Preliminary Determination and the 
accompanying Preliminary Decision Memorandum at 6).

                          Wire Rod From Turkey
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                                                                Subsidy
                           Company                             rate  (%)
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Habas Sinai Ve Tibbi Gazlar Istih (Habas)....................       3.88
Icdas Celik Eberji Tersane Ve Ulasim San (Icdas).............       3.81
All-Others...................................................       3.85
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Provisional Measures

    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigations, Commerce 
published the Preliminary Determinations on September 5, 2017. As such, 
the four-month period beginning on the date of the publication of the 
Preliminary Determinations ended on January 3, 2018. Furthermore, 
section 707(b) of the Act states that definitive duties are to begin on 
the date of publication of the ITC's final injury determination. 
Therefore, in accordance with section 703(d) of the Act and our 
practice, we instructed CBP to terminate the suspension of liquidation 
and to liquidate, without regard to countervailing duties, unliquidated 
entries of wire rod from Italy and Turkey entered, or withdrawn from 
warehouse, for consumption, on or after January 3, 2018, the date the 
provisional measures expired, until and through the day preceding the 
date of publication of the ITC's final injury determination in the 
Federal Register. Suspension of liquidation will resume on the date of 
publication of the ITC's final determination in the Federal Register.

Critical Circumstances

    The ITC notified Commerce of its determination that critical 
circumstances do not exist with respect to imports of wire rod from 
Turkey subject to Commerce's critical circumstances finding.\15\ With 
regard to the ITC's negative critical circumstances determination on 
imports of wire rod steel from Turkey, we will instruct CBP to lift 
suspension and to refund any cash deposits made to secure the payment 
of estimated countervailing duties with respect to entries of the

[[Page 23422]]

subject merchandise entered, or withdrawn from warehouse for 
consumption on or after June 7, 2017 (i.e., 90 days prior to the date 
of the publication of the Turkey Wire Rod Preliminary Determination), 
but before September 5, 2017 (i.e., the date of publication of the 
Turkey Wire Rod Preliminary Determination).
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    \15\ See ITC Letter.
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Notifications to Interested Parties

    This notice constitutes the countervailing duty orders with respect 
to wire rod from Italy and Turkey pursuant to section 706(a) of the 
Act. Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    These orders are issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: May 16, 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

Scope of the Orders

    The products covered by these orders 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 these orders 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 these proceedings is dispositive.

[FR Doc. 2018-10880 Filed 5-18-18; 8:45 am]
 BILLING CODE 3510-DS-P