[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55694-55696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24350]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-891; A-412-826]


Carbon and Alloy Steel Wire Rod From the Republic of Korea and 
the United Kingdom: Initiation and Expedited Preliminary Results of 
Antidumping Duty Changed Circumstances Review

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

SUMMARY: The Department of Commerce (Commerce) is initiating, and 
issuing expedited preliminary results of, a changed circumstances 
review (CCR) of the antidumping duty (AD) orders on carbon and alloy 
steel wire rod (wire rod) from the Republic of Korea (Korea) and the 
United Kingdom.

DATES: Applicable November 7, 2018.

FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Jacob Garten, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone 202-482-4682 or 202-482-
4633.

SUPPLEMENTARY INFORMATION:

Background

    On May 21, 2018, Commerce published the AD orders on wire rod from 
Korea and the United Kingdom.\1\ On September 17, 2018, six members of 
the domestic industry, including the petitioners from the underlying 
investigations (Nucor Corporation, Optimus Steel LLC (formerly, Gerdau 
Ameristeel US Inc), Keystone Consolidates Industries, Inc., and Charter 
Steel) requested that Commerce initiate a CCR to revoke, in part, the 
AD orders on wire rod from Korea and the United Kingdom as to grade 
1078 and higher tire cord wire rod effective May 21, 2018.\2\
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    \1\ See Carbon and Alloy Steel Wire Rod from Italy, the Republic 
of Korea, Spain, the Republic of Turkey, and the United Kingdom: 
Antidumping Duty Orders and Amended Final Affirmative Antidumping 
Duty Determinations for Spain and the Republic of Turkey, 83 FR 
23417 (May 21, 2018) (Orders).
    \2\ See letter from domestic industry re: ``Carbon and Alloy 
Steel Wire Rod from the Republic of Korea and the United Kingdom: 
Petitioners' Request for Changed Circumstances Review and Partial 
Revocation Request,'' dated September 17, 2018 (CCR Request).
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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 orders is dispositive.\3\
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    \3\ For a description of the domestic industry's proposed 
exclusion language, see Attachment 1.
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Initiation and Expedited Preliminary Results of Changed Circumstances 
Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.216(d), Commerce will conduct a CCR of an 
antidumping or countervailing duty order when it receives information 
which shows changed circumstances sufficient to warrant such a review. 
Section 782(h)(2) of the Act and 19 CFR 351.222(g)(1)(i) provide that 
Commerce may revoke an order (in whole or in part) if it determines 
that producers accounting for substantially all of the production of 
the domestic like product have no further interest in the order, in 
whole or in part. In addition, in the event Commerce determines that 
expedited action is warranted, 19 CFR 351.221(c)(3)(ii) permits 
Commerce to combine the notices of initiation and preliminary results.
    For the reasons discussed below and in the accompanying proprietary 
memorandum, we find that such sufficient information exists to warrant 
a CCR.\4\ Further, Commerce does not require any additional information 
to make a preliminary finding. For this reason, as permitted by 19 CFR 
351.221(c)(3)(ii), Commerce finds that expedited action is warranted 
and is conducting this review on an expedited basis by publishing 
preliminary results

[[Page 55695]]

in conjunction with a notice of initiation.
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    \4\ See Memorandum, ``Analysis of Industry Support for Changed 
Circumstances Review: Carbon and Alloy Steel Wire Rod from the 
Republic of Korea and the United Kingdom,'' dated concurrently with, 
and hereby adopted by, this notice.
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    The six domestic producers filing the request assert that they 
account for ``substantially all'' \5\ of the domestic production of 
carbon and alloy steel wire rod.\6\ Because there is no record 
information that contradicts this claim, in accordance with section 
751(b) of the Act and 19 CFR 351.222(g)(1)(i), we find that the six 
domestic producers comprise substantially all of the production of the 
domestic like product.
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    \5\ In its administrative practice, Commerce has interpreted 
``substantially all'' to mean at least 85 percent of the total 
production of the domestic like product covered by the order. See, 
e.g., Supercalendered Paper from Canada: Final Results of Changed 
Circumstances Review and Revocation of Countervailing Duty Order, 83 
FR 32268 (July 12, 2018).
    \6\ See CCR Request at 4-6.
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    Because this CCR request was filed less than 24 months after the 
date of publication of notice of the final determination in the 
investigations, pursuant to 19 CFR 351.216(c), Commerce must determine 
whether good cause exists. We find that the six domestic producers' 
affirmative statement of no interest in the orders with respect to 
grade 1078 and higher tire cord quality wire rod constitutes good cause 
for the conduct of this review.\7\ Based on the expression of no 
interest by the six domestic producers and in the absence of any 
objection by any other interested parties, we preliminarily determine 
that substantially all of the domestic producers of the like product 
have no interest in the continued application of the antidumping duty 
orders on wire rod from Korea and the United Kingdom. Accordingly, we 
are notifying the public of our intent to revoke, in part, the 
antidumping duty orders as they relate to imports of grade 1078 and 
higher tire cord wire rod. We intend to change the scope of the orders 
on wire rod from Korea and the United Kingdom by adding the exclusion 
language provided in Attachment 1 and requiring a certification as 
provided in Attachment 2.
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    \7\ See e.g., Certain Cold-Rolled Steel Flat Products from 
Japan: Initiation and Preliminary Results of Changed Circumstances 
Review, and Intent To Revoke Order in Part, 82 FR 821 (January 4, 
2017) (finding that ``Petitioners' affirmative statement of no 
interest in the order . . . constitutes good case for the conduct of 
this review.'')
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Public Comment

    Interested parties may submit case briefs not later than 14 days 
after the date of publication of this notice.\8\ Rebuttal briefs, which 
must be limited to issues raised in case briefs, may be filed not later 
than seven days after the due date for case briefs.\9\ All submissions 
must be filed electronically using Enforcement and Compliance's AD and 
CVD Centralized Electronic Service System (ACCESS). ACCESS is available 
to registered users at http://access.trade.gov and in the Central 
Records Unit, room B8024 of the main Department of Commerce building. 
An electronically filed document must be received successfully in its 
entirety by ACCESS, by 5:00 p.m. Eastern Time on the due dates set 
forth in this notice.
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    \8\ Commerce is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for filing of case briefs.
    \9\ Commerce is exercising its discretion under 19 CFR 
351.309(d)(1) to alter the time limit for filing of rebuttal briefs.
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    Any interested party may request a hearing within 14 days of 
publication of this notice. Hearing requests should contain the 
following information: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. Oral presentations at the hearing will be limited to 
issues raised in the briefs. If a request for a hearing is made, 
parties will be notified of the time and date for the hearing to be 
held at the U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230 in a room to be determined.\10\
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    \10\ See 19 CFR 351.310(d).
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    Unless extended, consistent with 19 CFR 351.216(e), we intend to 
issue the final results of this CCR no later than 270 days after the 
date on which this review was initiated or 45 days if all parties agree 
to the outcome of the review.
    This notice is published in accordance with sections 751(b)(1) and 
777(i)(1) of the Act and 19 CFR 351.216 and 351.221(c)(3).

    Dated: November 1, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

Attachment 1

Proposed Revision to the Scope of the Orders

    Excluded from the scope of the antidumping duty orders from 
Korea and the United Kingdom are grade 1078 and higher tire cord 
quality wire rod to be used in the production of tire cord wire. 
Grade 1078 and higher tire cord quality wire rod refers to wire rod 
with not less than 0.78 percent of carbon and includes but is not 
limited to other high carbon grades of wire rod such as Grade 1078, 
1080, 1085, 1086, 1090, and 1092.
    Grade 1078 and higher tire cord quality rod is defined as: (i) 
Grade 1078 and higher tire cord quality wire rod measuring 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; (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 0.405 mm or less, 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, (5) not more than 0.6 percent 
silicon; and (6) not more than 0.55 percent in the aggregate, of 
copper, nickel, and chromium. For purposes of the grade 1078 and 
higher tire cord 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.
    The designation of the products as ``tire cord quality'' 
indicates the acceptability of the product for use in the production 
of tire cord applications which require that the tire cord wire rod 
be drawn into wire with a diameter of 0.405 mm or less. These 
quality designations are presumed to indicate that these products 
are being used in tire cord applications, and such merchandise 
intended for the tire cord applications is not included in the 
scope. Importers of tire cord quality wire rod will attach, as a 
condition of entry, a certification of end use that certifies that 
the Grade 1078 and above tire cord quality wire rod will be used 
only in the production of tire cord wire.\11\
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    \11\ See Attachment II for proposed certification.
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Attachment 2

Proposed End Use Certification

    I hereby certify that:
     My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}  
and I am an official of {INSERT NAME OF IMPORTING COMPANY{time} ;
     I have direct personal knowledge of the facts regarding 
the importation of the {INSERT GRADE{time}  tire cord wire rod 
produced in {INSERT COUNTRY{time}  that entered under entry 
number(s) {INSERT ENTRY NUMBER(S){time}  and are covered by this 
certification;
     I have personal knowledge of the facts regarding the 
production of the imported products covered by this certification;
     I have personal knowledge of the facts regarding the 
end-use of the imported products covered by this certification 
because (initial one):

[[Page 55696]]

     ___my company is the end-user of the imported product 
covered by this certification,
    Or
     ___my company is not the end-user of the imported 
products covered by this certification, but I have contacted the 
end-user and advised them in writing of the end-use requirements for 
the imported product and an official of the end-user has signed a 
copy of this certification;
     This tire cord wire rod shall be used for tire cord 
applications, which require that the tire cord wire rod be drawn 
into wire with a diameter of 0.405 mm or less;
     This tire cord wire rod will not be drawn into wire 
with a diameter greater than 0.405 mm;
     I understand that {INSERT NAME OF IMPORTING 
COMPANY{time}  is required to maintain a copy of this certification 
(including a copy signed by an end-user that is not the importer) 
and sufficient documentation supporting this certification for the 
later of (1) a period of five years from the date of entry or (2) a 
period of three years after the conclusion of any litigation in the 
United States courts regarding such entries;
     I understand that {INSERT NAME OF IMPORTING 
COMPANY{time}  is required to provide this certification and 
supporting records, upon entry, to U.S. Customs and Border 
Protection (CBP);
     I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or the U.S. Department of Commerce (Commerce);
     I understand that failure to maintain the required 
certification and/or failure to substantiate the claims made herein 
will result in:
    [cir] suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met; and
    [cir] the requirement that the importer post applicable 
antidumping duty (AD) cash deposits equal to the rates as determined 
by Commerce;
     I understand that agents of the importer, such as 
brokers, are not permitted to make this certification;
     This certification was completed at the time of entry;
     I am aware that U.S. law (including, but not limited 
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who 
knowingly and willfully make material false statements to the U.S. 
government.

IMPORTER SIGNATURE-----------------------------------------------------
NAME OF COMPANY OFFICIAL-----------------------------------------------
TITLE------------------------------------------------------------------
DATE-------------------------------------------------------------------

END-USER SIGNATURE (if other than importer)----------------------------
NAME OF COMPANY OFFICIAL-----------------------------------------------
TITLE------------------------------------------------------------------
COMPANY NAME-----------------------------------------------------------
DATE-------------------------------------------------------------------

[FR Doc. 2018-24350 Filed 11-6-18; 8:45 am]
 BILLING CODE 3510-DS-P