[Federal Register Volume 84, Number 67 (Monday, April 8, 2019)]
[Notices]
[Pages 13888-13890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06857]


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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: Notice of Final Results of Antidumping Duty Changed 
Circumstances Review

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is revoking, in part, 
the antidumping duty (AD) orders on carbon and alloy steel wire rod 
(wire rod) from the Republic of Korea (Korea) and the United Kingdom as 
to grade 1078 and higher tire cord wire rod.

DATES: Applicable May 21, 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 changed circumstances review 
(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.
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    On November 7, 2018, Commerce initiated this CCR and published the 
notice of preliminary results, determining that the producers 
accounting for substantially all of the production of the domestic like 
product to which the Orders pertain lacked interest in the relief 
provided by the Orders with respect to grade 1078 and higher tire cord 
wire rod.\3\ On December 21, 2018, Commerce solicited interested party 
comments on the appropriateness of end-use certifications as a 
condition of entry and solicited input from U.S. Customs and Border 
Protection (CBP).\4\ The parties to these proceedings submitted 
comments on January 29, 2019, and February 19, 2019.\5\ Subsequently, 
on March 20, 2019, we placed CBP's input on the records of these 
proceedings.\6\ On March 25 and 27, 2019, the parties to these 
proceedings submitted timely comments regarding CBP's input on end-use 
certifications.\7\
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    \3\ See 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, 83 FR 
55694 (November 7, 2018) (Initiation and Preliminary Results).
    \4\ See Commerce Letter, ``Re: Antidumping Duty Changed 
Circumstances Reviews of Carbon and Alloy Steel Wire Rod from the 
Republic of Korea (Korea) and the United Kingdom,'' dated December 
21, 2018 (December 21, 2018, Solicitation of Comments Letter).
    \5\ See letter from Bekaert Corporation, Kiswire America Inc., 
Kiswire Inc., Kiswire Pine Bluff, and Tokusen U.S.A., Inc. re: 
``Carbon and Alloy Steel Wire Rod from the Republic of Korea and the 
United Kingdom, Changed Circumstances Reviews: Response to Request 
for Comments,'' dated January 29, 2019; and letter from Nucor 
Corporation, Optimus Steel LLC, Keystone Consolidates Industries, 
Inc., and Charter Steel re: ``Carbon and Alloy Steel Wire Rod from 
the Republic of Korea and the United Kingdom: Comments on End-Use 
Certifications,'' dated February 19, 2019.
    \6\ See Memorandum to the file from Wendy J. Frankel, Director, 
Customs Liaison Unit, entitled, ``Changed Circumstances Reviews of 
Carbon and Alloy Steel Wire Rod from the Republic of Korea and the 
United Kingdom: Discussion with U.S. Customs and Border 
Protection,'' dated March 20, 2019.
    \7\ See letter from Bekaert Corporation, Kiswire America Inc., 
Kiswire Inc., Kiswire Pine Bluff, and Tokusen U.S.A., Inc. re: 
``Carbon and Alloy Steel Wire Rod from the Republic of Korea and the 
United Kingdom, Changed Circumstances Reviews: Response to Request 
for Comments,'' dated March 25, 2019 (Interested Party Importer 
letter); letter from Nucor Corporation re: ``Carbon and Alloy Steel 
Wire Rod from the Republic of Korea and the United Kingdom: Comments 
CBP's Recommendations Concerning End-Use Certifications,'' dated 
March 27, 2019 (Nucor Letter); and letter from Optimus Steel LLC, 
Keystone Consolidates Industries, Inc., and Charter Steel re: 
``Carbon and Alloy Steel Wire Rod from the Republic of Korea and the 
United Kingdom: Comments on Input from CBP Regarding End-Use 
Certifications,'' dated March 27, 2019 (Domestic Interested Party 
Letter).

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[[Page 13889]]

    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019. If the new deadline 
falls on a non-business day, in accordance with Commerce's practice, 
the deadline will become the next business day. Accordingly, the 
revised deadline for the final results of this changed circumstances 
review is now September 9, 2019.

Final Results of Changed Circumstances Review

    For the reasons stated in the Initiation and Preliminary Results, 
and because we received no comments from interested parties to the 
contrary, Commerce continues to determine that producers accounting for 
substantially all of the production of the domestic like product have 
no further interest in the Orders with respect to grade 1078 and higher 
tire cord wire rod. As a result of this determination and pursuant to 
section 751(d)(1) of the Tariff Act of 1930, as amended (the Act) and 
19 CFR 351.222(g), we are revoking, in part, the Orders as they relate 
to imports of grade 1078 and higher tire cord wire rod.
    Regarding the requirement of end-use certifications as a condition 
of entry for the exclusion of tire cord wire rod of grade 1078 and 
higher from the AD order, we solicited comments from interested parties 
and input from CBP on the administrability of such certifications for 
consideration for the final results of these proceedings.\8\ In their 
comments, the parties, who account for all of the interested parties to 
these proceedings, agree that end-use certifications for tire cord wire 
rod need not be filed as ``a condition'' of entry but must be required 
at the time of filing the Entry Summary for tire cord wire rod to be 
exempt from AD duties.\9\
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    \8\ See December 21, 2018, Solicitation of Comments Letter.
    \9\ See Interested Party Importer letter; Nucor Letter; and 
Domestic Interested Party Letter.
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    Consequently, we are changing the scope of the orders on wire rod 
from Korea and the United Kingdom by adding exclusion language related 
to grade 1078 and higher tire cord quality wire rod and requiring that 
a certification of end-use be filed with CBP at the time of the filing 
of the Entry Summary with CBP as provided in the Attachment to this 
notice. Further, importers of record of tire cord wire rod are required 
to maintain a copy of the end-use certifications that were filed with 
the entry summaries to provide at the request of CBP or Commerce.

Amended 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.
    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 nondeformable 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 are required to file with CBP, at the time of the 
Entry Summary filing with CBP, 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. In instances where 
the importer of record is not the end-user, the importer must provide 
written notice of the end-use requirement and an official of the end 
user must also sign a copy of the certification filed with CBP at the 
time of Entry Summary. Importers of record of tire cord wire rod are 
required to maintain a copy of the end-use certifications that were 
filed with the entry summaries with the CBP and to provide them at the 
request of CBP or Commerce.
    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.

[[Page 13890]]

Instructions to CBP

    Because we determine that there are changed circumstances that 
warrant the revocation of the Orders, in part, we will instruct CBP to 
liquidate without regard to antidumping duties, all unliquidated 
entries of merchandise covered by this partial revocation that were 
entered, or withdrawn from warehouse, on or after May 21, 2018, for 
which an end-use certification was filed with CBP at the time of entry 
summary, and to refund all AD cash deposits on all such merchandise, 
with applicable interest.
    We are issuing and publishing these final results and revocation, 
in part, and notice in accordance with sections 751(b) and 777(i) of 
the Act and 19 CFR 351.216, 19 CFR 351.221(c)(3), and 19 CFR 351.222.

    Dated: April 3, 2019.
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.

Attachment

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;
     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):
     __ 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. 2019-06857 Filed 4-5-19; 8:45 am]
BILLING CODE 3510-DS-P