[Federal Register Volume 84, Number 51 (Friday, March 15, 2019)]
[Notices]
[Pages 9491-9493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04884]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-891]


Carbon and Alloy Steel Wire Rod From the Republic of Korea: 
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) order on carbon and alloy steel wire 
rod (wire rod) from the Republic of Korea (Korea).

DATES: Applicable March 15, 2019.

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FOR FURTHER INFORMATION CONTACT: Thomas Dunne, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone 202-482-2328.

SUPPLEMENTARY INFORMATION: 

Background

    On May 21, 2018, Commerce published the AD order on wire rod from 
the Republic of Korea.\1\ On October 8, 2018, members of the domestic 
industry including Nucor Corporation, Optimus Steel LLC Keystone 
Consolidates Industries, Inc., and Charter Steel requested that 
Commerce initiate a CCR to revoke, in part, the AD order on wire rod 
from Korea as to value spring quality (VSQ) wire rod.\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).
    \2\ See letter from domestic industry re: ``Carbon and Alloy 
Steel Wire Rod from the Republic of Korea Domestic Industry's 
Request for Initiation of Changed Circumstances Review and Partial 
Revocation Request,'' dated October 8, 2018 (CCR Request).
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Scope of the Order

    The products covered by this order 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 this order 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 order is dispositive.\3\
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    \3\ For a description of the domestic industry's proposed 
exclusion language, see the Attachment to this Federal Register 
notice.
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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 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,'' 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; see also Oil Country Tubular Goods from 
Mexico; Preliminary Results of Changed Circumstances Antidumping 
Duty Administrative Review, 64 FR 14213 (March 24, 1999).
    \6\ See CCR Request at 4-5.
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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 
investigation, 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 order with respect to valve 
spring quality wire rod imported from Korea 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 order on 
wire rod from Korea with respect to valve spring quality wire rod. 
Accordingly, we are notifying the public of our intent to revoke, in 
part, the antidumping duty order as it relates to imports of valve 
spring quality wire rod from Korea. We intend to change the scope of 
the order on wire rod from Korea by adding the exclusion language 
provided in the Attachment to this Federal Register notice.
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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

[[Page 9493]]

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: March 12, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Attachment--Proposed Revision to the Scope of the Korea Order

    Also excluded are valve spring quality (VSQ) steel products, which 
is defined as wire rod
    (i) Measuring no more than 14 mm in cross-sectional diameter;
    (ii) Containing by weight the following elements in the proportions 
shown:
    (1) 0.51 percent to 0.68 percent, inclusive, of carbon,
    (2) Not more than 0.020 percent of phosphorus,
    (3) Not more than 0.020 percent of sulfur,
    (4) Not more than 0.05 percent of copper,
    (5) Not more than 70 ppm of nitrogen,
    (6) 0.5 percent to 0.8 percent, inclusive, of manganese,
    (7) Not more than 0.1 percent of nickel,
    (8) 1.3 percent to 1.6 percent, inclusive, of silicon,
    (9) Not more than 0.002 percent of titanium,
    (10) Not more than 0.15 percent of vanadium, and
    (11) Not more than 20ppm of oxygen of product; and
    (iii) Having non-metallic inclusions not greater than 15 microns 
and meeting all of the following specific inclusions requirements using 
the Max-T method:
    (1) No sulfide inclusions greater than 5 microns,
    (2) No alumina inclusions greater than 10 microns,
    (3) No silicate inclusions greater than 5 microns, and
    (4) No oxide inclusions greater than 10 microns.
    The size of an inclusion is its thickness perpendicular to the axis 
of rolling. Max-T method is used to measure the maximum thickness of 
all inclusions observed in a longitudinal cross-sectional sample with a 
minimum surface area of 60 mm2, taken at the bottom of each coil of 
every heat.

[FR Doc. 2019-04884 Filed 3-14-19; 8:45 am]
BILLING CODE 3510-DS-P