[Federal Register: October 7, 2002 (Volume 67, Number 194)]
[Page 62442-62443]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-428-833]
Notice of Amended Final Affirmative Countervailing Duty
Determination: Carbon and Certain Alloy Steel Wire Rod from Germany
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of amended final affirmative countervailing duty
determination.
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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 Germany, 67 FR 55808
(August 30, 2002). On September 4, 2002 we received a ministerial error
allegation from Saarstahl AG. On September 9, 2002, the petitioners
filed a response to the allegation. Based on our review of the comments
received from the parties, we are not revising the estimated
countervailing duty rate for Saarstahl AG.
Subsequent to issuing the final determination, the Department noted
an error in the calculation of the ``all others'' rate. We have revised
the estimated countervailing duty ``all others'' rate accordingly. The
revision to the ``all others'' rate is listed below in the ``Amended
Final Determination'' section.
EFFECTIVE DATE: October 7, 2002.
FOR FURTHER INFORMATION CONTACT: Melanie Brown, Import Administration,
International Trade Administration, U.S. Department of Commerce,
Washington, DC 20230; telephone: (202) 482-4987.
SUPPLEMENTARY INFORMATION:
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 2001).
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 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
[[Page 62443]]
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 Germany, 67 FR 55808. On September 4, 2002, we received a
ministerial error allegation, timely filed pursuant to 19 CFR
351.224(c)(2), from Saarstahl AG, (``Saarstahl''). Saarstahl alleged
that the Department made a ministerial error in the final determination
in failing to use an 11-year average useful life (``AUL'') in
Saarstahl's calculations. 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
Saarstahl's allegation. The petitioners argued that Saarstahl's
allegation does not constitute a ministerial error as defined by the
Department's regulations and should be rejected by the Department.
After analyzing the submissions, we have determined that
Saarstahl's allegation does not constitute a ministerial error as
defined by section 351.224(f) of the Department's regulations. For a
detailed discussion of the ministerial error allegation and the
Department's analysis, see September 30, 2002, ``Ministerial Errors''
memorandum from the Team to Richard W. Moreland, Deputy Assistant
Secretary (``Ministerial Errors Memo''), which is on file in the
Department's Central Records Unit in Room B-099 of the main Department
building.
After releasing the final determination, the Department found an
error in the calculation of the ``all others'' rate. The error resulted
from the use of the originally reported sales values for Ispat
Walzdraht Hochfeld GmbH (``IWHG'') and Ispat Hamburger Stahlwerke GmbH
(``IHSW'') in the calculation, rather than the revised sales values
obtained at verification. Using the correct U.S. sales values for IHSW
and IWHG, the revised ``all others'' rate is 10.97 percent ad valorem.
For a discussion of this issue and the revised ``all others'' margin
calculation, see Ministerial Errors Memo.
Accordingly, we are amending the final determination for the
countervailing duty investigation of carbon and certain alloy steel
wire rod from Germany to correct the ``all others'' rate. The estimated
net subsidy rates are as follows:
------------------------------------------------------------------------
Producer/Exporter Net Subsidy Rate
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Saarstahl, A.G....................................... 18.46
Ispat (IHSW, IWHG, ISRG)............................. 1.12
All Others........................................... 10.97
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Suspension of Liquidation
In accordance with section 705(c)(1)(B)(ii) of the Act, we are
directing the Customs Service (``Customs'') to continue suspending
liquidation on all imports of subject merchandise from Germany 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), 705(e)
and 777(i) of the Act.
Dated: October 1, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-25450 Filed 10-4-02; 8:45 am]
BILLING CODE 3510-DS-S