[C-557-701]

Administrative Reviews

Thursday, August 22, 1991

---page 41649---

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

ACTION: Notice of Final Results of Countervailing Duty Administrative Reviews.

SUMMARY: On April 12, 1991, the Department of Commerce published the preliminary results of its administrative reviews of the countervailing duty order on carbon steel wire rod from Malaysia for the periods of April 22, 1988--December 31, 1988 and January 1, 1989--December 31, 1989. These reviews cover two manufacturers/exporters of this merchandise to the United States, Amalgamated Steel Mills, Bhd. (ASM) and Southern Iron and Steel Works Sdn. Bhd. (SISW). We have now completed these reviews and determine the total bounty or grant to be 0.03 percent ad valorem for the period April 22, 1988-- December 31, 1988 and 0.41 percent ad valorem for the period January 1, 1989-- December 31, 1989. In accordance with 19 CFR 355.7, any rate less than 0.50 percent ad valorem is de minimis.

EFFECTIVE DATE: August 22, 1991.

FOR FURTHER INFORMATION CONTACT:Beth Chalecki or Maria MacKay, Office of Countervailing Compliance, International Trade Administration, U.S. Department of Commerce, Washington, DC 20230; telephone: (202) 377-2786.

SUPPLEMENTARY INFORMATION:

Background

On April 12, 1991, the Department of Commerce (the Department) published in the Federal Register the preliminary results of its administrative reviews of the countervailing duty order on carbon steel wire rod from Malaysia (56 FR 14927). We have now completed these administrative reviews in accordance with section 751 of the Tariff Act of 1930, as amended (the Tariff Act).

---page 41650---

Scope of Review

Imports covered by this review are shipments from Malaysia of carbon steel wire rod, a coiled, semi-finished, hot rolled carbon steel product of approximately round solid cross-section, not under 0.20 inch in diameter, not over 0.74 inch in diameter, tempered or not tempered, treated or not treated, not manufactured or partly manufactured. Through 1988, such merchandise was classifiable under Tariff Schedules of the United States Annotated (TSUSA) item numbers 607.1400, 607.1710, 607.1720, 607.1730, 607.2200, and 607.2300.

These products are currently classifiable under item numbers 7213.20.00, 7213.31.30, 7213.31.60, 7213.39.00, 7213.41.30, 7213.41.60, 7213.49.00, and 7213.50.00 of the Harmonized Tariff Schedule (HTS). The TSUSA and HTS item numbers are provided for convenience and Customs purposes. The written description remains dispositive.

These reviews cover two manufacturers/exporters to the United States of the subject merchandise and the periods April 22, 1988--December 31, 1988 and January 1, 1989--December 31, 1989.

Analysis of Comments Received

We gave interested parties an opportunity to comment on the preliminary results. We received one written comment from the respondents (the Government of Malaysia, ASM, and SISW).

Comment: Respondents argue that the Department overstated the effective BA (Bankers' Acceptance) rate used as a benchmark in the ECR program. Since the BA rate applies to a 90-day financing instrument, respondents claim that interest is prepaid quarterly. Therefore, the assumption of an annual prepayment of interest made in the Department's calculations is inappropriate. Accordingly, in the final results, the Department should adopt an adjustment methodology that reflects the actual term of the benchmark financing.

Department's Position: We agree with respondents and have adjusted our calculations accordingly. In addition, in our final calculations, we have also corrected the 1988 exchange rate from 2.6188 to 2.555 Malaysian ringgit/U.S. dollar, to reflect the exchange rate actually used by ASM at the time of the relevant sales (see Verification Report p. 13). We also amended the value of the 1988 ASM exports of wire rod to the United States to include only exports falling within the review period.

As a result of these changes, the total bounty or grant for the 1988 review remains unchanged. The total bounty or grant for the 1989 review changes from 0.46 to 0.41 percent ad valorem.

Final Results of Review

As a result of our reviews, we determine the total bounty or grant to be 0.03 percent ad valorem during the period April 22, 1988 through December 31, 1988 and 0.41 percent ad valorem during the period January 1, 1989 through December 31, 1989. In accordance with 19 CFR 355.7, any benefit less than 0.50 percent ad valorem is de minimis.

The Department will instruct the Customs Service to liquidate, without regard to countervailing duties, all shipments of this merchandise entered, or withdrawn from warehouse, for consumption on or after April 22, 1988 and exported on or before December 31, 1989.

The Department will also instruct the Customs Service to waive cash deposits of estimated countervailing duties, as provided by section 751(a)(1) of the Tariff Act, on all shipments of this merchandise which are entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice. This waiver of deposit requirement shall remain in effect until publication of the final results of the next administrative review.

This administrative review and notice are in accordance with sections 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 355.22.

Dated: August 15, 1991.

Eric A. Garfinkel,

Assistant Secretary for Import Administration.