[Federal Register Volume 85, Number 167 (Thursday, August 27, 2020)]
[Notices]
[Pages 52953-52955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18900]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-832, C-351-833, A-560-815, A-201-830, A-841-805, A-274-804]


Carbon and Certain Alloy Steel Wire Rod from Brazil, Indonesia, 
Mexico, Moldova, and Trinidad and Tobago: Continuation of Antidumping 
Duty Orders and Countervailing Duty Order

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

SUMMARY: As a result of the determinations by the Department of 
Commerce (Commerce) and the U.S. International Trade Commission (ITC) 
that revocation of the antidumping duty (AD) orders on carbon and 
certain alloy steel wire rod (wire rod) from Brazil, Indonesia, Mexico, 
Moldova, and Trinidad and Tobago and revocation of the countervailing 
duty (CVD) order on wire rod from Brazil would likely lead to 
continuation or recurrence of dumping, countervailable subsidies, and 
material injury to an industry in the United States, Commerce is 
publishing a notice of continuation of these AD orders and the CVD 
order.

DATES: Applicable August 27, 2020.

FOR FURTHER INFORMATION CONTACT: Benjamin Smith (AD) and Ian Hamilton 
(CVD), AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2181 
and (202) 482-4798, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 22, 2002, Commerce published the CVD order on wire rod 
from Brazil.\1\ On October 29, 2002, Commerce published the AD orders 
on wire rod from Brazil, Indonesia, Mexico, Moldova, and Trinidad and 
Tobago.\2\ On June 3, 2019, the ITC instituted its reviews of the AD 
and CVD orders.\3\ On June 4, 2019, Commerce published the notice of 
initiation of the sunset reviews of the AD orders on wire rod from 
Brazil, Indonesia, Mexico, Moldova, and Trinidad and Tobago and the CVD 
order on wire rod from Brazil, pursuant to section 751(c) of the Tariff 
Act of 1930, as amended (the Act).\4\ As a result of its reviews, 
Commerce determined, pursuant to sections 751(c)(1) and 752(c) of the 
Act, that revocation of the AD orders on wire rod from Brazil, 
Indonesia, Mexico, Moldova, and Trinidad and Tobago would be likely to 
lead to continuation or recurrence of dumping and notified the ITC of 
the magnitude of the margins of dumping likely to prevail should the 
orders be

[[Page 52954]]

revoked.\5\ Commerce also determined, pursuant to sections 751(c)(1) 
and 752(b) of the Act, that revocation of the CVD order on wire rod 
from Brazil would be likely to lead to continuation or recurrence of 
countervailable subsidies and notified the ITC of the magnitude of the 
subsidy rates likely to prevail should the order be revoked.\6\
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    \1\ See Notice of Countervailing Duty Orders: Carbon and Certain 
Alloy Steel Wire Rod from Brazil and Canada, 67 FR 64871 (October 
22, 2002). The CVD order on wire rod from Canada was revoked on 
January 23, 2004, pursuant to a changed circumstances review. See 
Carbon and Certain Alloy Steel Wire Rod from Canada: Final Results 
of Countervailing Duty Changed Circumstances Review and Revocation 
of Countervailing Duty Order, in Whole, 69 FR 3330 (January 23, 
2004).
    \2\ See Notice of Antidumping Duty Orders: Carbon and Certain 
Alloy Steel Wire Rod from Brazil, Indonesia, Mexico, Moldova, 
Trinidad and Tobago, and Ukraine, 67 FR 65945 (October 29, 2002). 
The AD order on wire rod from Ukraine was revoked, effective July 
30, 2013, as a result of the ITC's determination that revocation of 
the order would not be likely to lead to continuation or recurrence 
of material injury to an industry in the United States. See Carbon 
and Certain Alloy Steel Wire Rod from Ukraine: Revocation of 
Antidumping Duty Order, 79 FR 38009 (July 3, 2014). Subsequently, on 
March 14, 2018, Commerce issued the existing AD order on carbon and 
alloy steel wire rod from Ukraine, which is not covered in these 
sunset reviews. See Carbon and Alloy Steel Wire Rod from the 
Republic of South Africa and Ukraine: Antidumping Duty Orders, 83 FR 
11175 (March 14, 2018).
    \3\ See Carbon and Certain Alloy Steel Wire Rod from Brazil, 
Indonesia, Mexico, Moldova, and Trinidad and Tobago; Institution of 
Five-Year Reviews, 84 FR 25564 (June 3, 2019).
    \4\ See Initiation of Five-Year (``Sunset'') Reviews, 84 FR 
25741 (June 4, 2019).
    \5\ See Carbon and Certain Alloy Steel Wire Rod from Brazil, 
Indonesia, Mexico, Moldova, and Trinidad and Tobago: Final Results 
of the Expedited Third Sunset Reviews of the Antidumping Duty 
Orders, 84 FR 53673 (October 8, 2019).
    \6\ See Carbon and Certain Alloy Steel Wire Rod from Brazil: 
Final Results of the Expedited Third Sunset Review of the 
Countervailing Duty Order, 84 FR 53675 (October 8, 2019).
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    On August 21, 2020, the ITC published its determination, pursuant 
to sections 751(c) and 752(a) of the Act, that revocation of the AD 
orders on wire rod from Brazil, Indonesia, Mexico, Moldova, and 
Trinidad and Tobago and the CVD order on wire rod from Brazil would be 
likely to lead to continuation or recurrence of material injury to an 
industry in the United States within a reasonably foreseeable time.\7\
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    \7\ See Carbon and Certain Alloy Steel Wire Rod from Brazil, 
Indonesia, Mexico, Moldova, and Trinidad and Tobago, 85 FR 51756 
(August 21, 2020).
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Scope of the Orders

    The merchandise subject to these orders is certain hot-rolled 
products of carbon steel and alloy steel, in coils, of approximately 
round cross section, 5.00 mm or more, but less than 19.00 mm, in 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; and (e) concrete 
reinforcing bars and rods. Also excluded are (f) free machining steel 
products (i.e., products that contain by weight one or more of the 
following elements: 0.03 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 
phosphorus, more than 0.05 percent of selenium, or more than 0.01 
percent of tellurium).
    Also excluded from the scope are 1080 grade tire cord quality wire 
rod and 1080 grade tire bead quality wire rod. Grade 1080 tire cord 
quality rod is defined as: (i) Grade 1080 tire cord quality wire rod 
measuring 5.0 mm or more but 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 using European Method NFA 04-114; (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 0.30 mm or 
less with 3 or fewer breaks per ton, 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, and (5) not more than 0.15 percent, in the aggregate, 
of copper, nickel and chromium.
    Grade 1080 tire bead quality rod is defined as: (i) Grade 1080 tire 
bead quality wire rod measuring 5.5 mm or more but not more than 7.0 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 using 
European Method NFA 04-114; (v) having a surface quality with no 
surface defects of a length greater than 0.2 mm; (vi) capable of being 
drawn to a diameter of 0.78 mm or larger with 0.5 or fewer breaks per 
ton; 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 soluble aluminum, (3) 0.040 percent or less, in the 
aggregate, of phosphorus and sulfur, (4) 0.008 percent or less of 
nitrogen, and (5) either not more than 0.15 percent, in the aggregate, 
of copper, nickel and chromium (if chromium is not specified), or not 
more than 0.10 percent in the aggregate of copper and nickel and a 
chromium content of 0.24 to 0.30 percent (if chromium is specified).
    For purposes of grade 1080 tire cord quality wire rod and grade 
1080 tire bead 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. This measurement 
methodology applies only to inclusions on certain grade 1080 tire cord 
quality wire rod and certain grade 1080 tire bead quality wire rod that 
are entered, or withdrawn from warehouse, for consumption on or after 
July 24, 2003.
    The designation of the products as ``tire cord quality'' or ``tire 
bead quality'' indicates the acceptability of the product for use in 
the production of tire cord, tire bead, or wire for use in other rubber 
reinforcement applications such as hose wire. These quality 
designations are presumed to indicate that these products are being 
used in tire cord, tire bead, and other rubber reinforcement 
applications, and such merchandise intended for the tire cord, tire 
bead, or other rubber reinforcement applications is not included in the 
scope. However, should petitioners or other interested parties provide 
a reasonable basis to believe or suspect that there exists a pattern of 
importation of such products for other than those applications, end-use 
certification for the importation of such products may be required. 
Under such circumstances, only the importers of record would normally 
be required to certify the end use of the imported merchandise.
    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 7213.91.3000, 7213.91.3010, 7213.91.3011, 7213.91.3015, 
7213.91.3020, 7213.91.3090, 7213.91.3091, 7213.91.3092, 7213.91.3093, 
7213.91.4500, 7213.91.4510, 7213.91.4590, 7213.91.6000, 7213.91.6010, 
7213.91.6090, 7213.99.0030, 7213.99.0031, 7213.99.0038, 7213.99.0090, 
7227.20.0000, 7227.20.0010, 7227.20.0020, 7227.20.0030, 7227.20.0080, 
7227.20.0090, 7227.20.0095, 7227.90.6010, 7227.90.6020, 7227.90.6050, 
7227.90.6051, 7227.90.6053, 7227.90.6058, 7227.90.6059, 7227.90.6080, 
and 7227.90.6085 of the HTSUS. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written description 
of the scope of this order is dispositive.
    On October 1, 2012, Commerce determined that wire rod with an 
actual diameter of 4.75 mm to 5.00 mm produced in Mexico and exported 
to the United States by Deacero S.A.P.I. de C.V. and Deacero USA, Inc. 
(collectively, Deacero) was circumventing the AD order on wire rod

[[Page 52955]]

from Mexico.\8\ Specifically, Commerce determined that Deacero's 
shipments to the United States of such wire rod constitute merchandise 
altered in form or appearance in such minor respects that it should be 
included within the scope of the AD order on wire rod from Mexico, 
effective as of December 20, 2011.\9\ Commerce's affirmative finding in 
the Final Circumvention Determination I applied solely to Deacero. The 
U.S. Court of Appeals for the Federal Circuit (Federal Circuit) upheld 
Commerce's finding in the Final Circumvention Determination I that wire 
rod with an actual diameter of 4.75 mm to 5.00 mm produced in Mexico 
and exported to the United States by Deacero was circumventing the AD 
order on wire rod from Mexico.\10\
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    \8\ See Carbon and Certain Alloy Steel Wire Rod from Mexico: 
Affirmative Final Determination of Circumvention of the Antidumping 
Order, 77 FR 59892 (October 1, 2012) (Final Circumvention 
Determination I), and accompanying Issues and Decision Memorandum 
(IDM).
    \9\ Id., 77 FR at 59893.
    \10\ See Deacero S.A. de C.V. v. United States, 817 F. 3d 1332, 
1339 (Fed. Cir. 2016).
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    On March 13, 2019, Commerce determined that wire rod with an actual 
diameter less than 4.75 mm produced in Mexico and exported to the 
United States by Deacero was circumventing the AD order on wire rod 
from Mexico.\11\ Specifically, Commerce determined that Deacero's 
shipments to the United States of such wire rod constitute merchandise 
altered in form or appearance in such minor respects that it should be 
included within the scope of the AD order on wire rod from Mexico, 
effective as of February 7, 2018.\12\ Commerce's affirmative finding in 
the Final Circumvention Determination II applied solely to Deacero.
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    \11\ See Carbon and Certain Alloy Steel Wire Rod from Mexico: 
Final Affirmative Determination of Circumvention of the Antidumping 
Duty Order, 84 FR 9089 (March 13, 2019) (Final Circumvention 
Determination II), and accompanying IDM.
    \12\ Id., 84 FR at 9090.
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Continuation of the Orders

    As a result of the determinations by Commerce and the ITC that 
revocation of the AD and CVD orders would likely lead to continuation 
or recurrence of dumping, countervailable subsidies, and material 
injury to an industry in the United States, pursuant to section 
751(d)(2) of the Act and 19 CFR 351.218(a), Commerce hereby orders the 
continuation of the AD orders on wire rod from Brazil, Indonesia, 
Mexico, Moldova, and Trinidad and Tobago and the CVD order on wire rod 
from Brazil.
    U.S. Customs and Border Protection will continue to collect AD and 
CVD cash deposits at the rates in effect at the time of entry for all 
imports of subject merchandise. The effective date of continuation of 
these orders will be the date of publication in the Federal Register of 
this notice of continuation. Pursuant to section 751(c)(2) of the Act, 
Commerce intends to initiate the next five-year reviews of the orders 
not later than 30 days prior to the fifth anniversary of the effective 
date of continuation.

Notification to Interested Parties

    These five-year sunset reviews and this notice are in accordance 
with section 751(c) and (d)(2) of the Act and published pursuant to 
section 777(i)(1) of the Act and 19 CFR 351.218(f)(4).

    Dated: August 21, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2020-18900 Filed 8-26-20; 8:45 am]
BILLING CODE 3510-DS-P