[Federal Register: September 27, 2002 (Volume 67, Number 188)]
               
[Page 61071-61072]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-833]

 
Notice of Amended Final Affirmative Countervailing Duty 
Determination: Carbon and Certain Alloy Steel Wire Rod From Brazil

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of amended final affirmative countervailing duty 
determination.

-----------------------------------------------------------------------

SUMMARY: On August 30, 2002, the Department of Commerce published in 
the Federal Register the Final Affirmative Countervailing Duty 
Determination and Final Negative Critical Circumstances Determination: 
Carbon and Certain Alloy Steel Wire Rod from Brazil, 67 FR 55805. On 
September 3, 2002, the Government of Brazil, Companhia Siderurgica 
Belgo-Mineira, and Gerdau S.A. filed allegations of ministerial errors; 
on September 9, 2002, the petitioners filed a response to the 
allegations. Based on our review of the comments received from all 
parties regarding potential ministerial errors, we have revised the 
estimated countervailing duty rate for Gerdau S.A., as well as the 
``All Others'' rate. The revisions to the estimated countervailing duty 
rates are listed below in the ``Amended Final Determination'' section.

EFFECTIVE DATE: September 27, 2002.

FOR FURTHER INFORMATION CONTACT: Melani Miller, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 
Washington, DC 20230; telephone: (202) 482-0116.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act effective January 1, 1995 (``the 
Act''). In addition, unless otherwise indicated, all citations to the 
Department of Commerce's (``the Department'') regulations are to 19 CFR 
part 351 (April 2002).

Scope of Investigation

    The merchandise covered by this investigation 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 (``subject merchandise'' or ``wire rod'').
    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 
inclusions greater than 20 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 inclusions greater than 20

[[Page 61072]]

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).
    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 investigation are currently classifiable under 
subheadings 7213.91.3010, 7213.91.3090, 7213.91.4510, 7213.91.4590, 
7213.91.6010, 7213.91.6090, 7213.99.0031, 7213.99.0038, 7213.99.0090, 
7227.20.0010, 7227.20.0020, 7227.20.0090, 7227.20.0095, 7227.90.6051, 
7227.90.6053, 7227.90.6058, and 7227.90.6059 of the HTSUS. Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this proceeding is dispositive.

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is calendar year 2000.

Amended Final Determination

    In accordance with section 705(d) of the Act, on August 30, 2002, 
the Department published in the Federal Register the Final Affirmative 
Countervailing Duty Determination and Final Negative Critical 
Circumstances Determination: Carbon and Certain Alloy Steel Wire Rod 
from Brazil, 67 FR 55805. Subsequently, on September 3, 2002, the 
Government of Brazil, Gerdau S.A. (``Gerdau''), and Companhia 
Siderurgica Belgo-Mineira (collectively, ``respondents'') submitted 
timely ministerial error allegations pursuant to 19 CFR 351.224(c)(2). 
On September 9, 2002, the petitioners (Co-Steel Raritan, Inc., GS 
Industries, Keystone Consolidated Industries, Inc., and North Star 
Steel Texas, Inc.) submitted a rebuttal to the respondents' 
allegations.
    After analyzing the submissions, we have determined in accordance 
with section 705(e) of the Act and 19 CFR 351.224 that we made a 
ministerial error in the margin calculations for Gerdau. Specifically, 
we inadvertently utilized a U.S. dollar denominator for Gerdau's 
Program of Social Integration and Social Contributions of Billings 
calculation instead of a Brazilian Reais denominator as was 
appropriate.
    For a detailed discussion of the ministerial error allegations and 
the Department's analysis, see September 23, 2002 memorandum from Team 
to Richard W. Moreland, Deputy Assistant Secretary entitled Ministerial 
Error Allegations, which is on file in the Department's Central Records 
Unit in Room B-099 of the main Department building.
    Therefore, we are amending the final determination for the 
countervailing duty investigation of carbon and certain alloy steel 
wire rod from Brazil to reflect the correction of the above-noted 
ministerial error. The revised total estimated net subsidy rate for 
each company is as follows:

------------------------------------------------------------------------
                                                             Net subsidy
                     Producer/exporter                           rate
------------------------------------------------------------------------
Companhia Siderurgica Belgo-Mineira........................         6.74
Gerdau S.A.................................................         2.76
All Others.................................................         5.64
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 705(c)(1)(C) of the Act, we are 
directing the Customs Service (``Customs'') to continue suspending 
liquidation on all imports of subject merchandise from Brazil that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of this notice in the Federal Register. Customs 
shall require a cash deposit or the posting of a bond equal to the 
margin/subsidy rates indicated in the chart above. These suspension of 
liquidation instructions will remain in effect until further notice.
    We will issue a countervailing duty order if the International 
Trade Commission (``ITC'') issues a final affirmative injury 
determination. If the ITC determines that material injury, or threat of 
material injury, does not exist, this proceeding will be terminated and 
all estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our amended final determination.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the final reminder to parties 
subject to an Administrative Protective Order (``APO'') of their 
responsibility concerning the destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Failure to 
comply is a violation of the APO.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: September 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-24624 Filed 9-26-02; 8:45 am]
BILLING CODE 3510-DS-P