[Federal Register: August 30, 2002 (Volume 67, Number 169)]
[Page 55810-55813]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-274-805]
Final Negative Countervailing Duty Determination: Carbon and
Certain Alloy Steel Wire Rod from Trinidad and Tobago
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
[[Page 55811]]
ACTION: Notice of final negative countervailing duty determination.
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SUMMARY: The Department of Commerce has made a final determination that
countervailable subsidies are not being provided to producers and
exporters of carbon and certain alloy steel wire rod from Trinidad and
Tobago.
EFFECTIVE DATE: August 30, 2002.
FOR FURTHER INFORMATION CONTACT: Melani Miller, S. Anthony Grasso, or
Daniel J. Alexy, Office of Antidumping/Countervailing Duty Enforcement,
Group 1, Import Administration, U.S. Department of Commerce, room 3099,
14th Street and Constitution Avenue, NW, Washington, DC 20230;
telephone: (202) 482-0116, (202) 482-3853, and (202) 482-1540,
respectively.
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 other wise indicated, all citations to the
Department of Commerce's (``the Department'') regulations are to 19 CFR
Part 351 (April 2001).
Petitioners
The petitioners in this investigation are Co-Steel Raritan, Inc.,
GS Industries, Keystone Consolidated Industries, Inc., and North Star
Steel Texas, Inc. (collectively, ``petitioners'').
Case History
The following events have occurred since the publication of the
preliminary determination in the Federal Register. See Preliminary
Affirmative Countervailing Duty Determination and Preliminary Negatigve
Critical Circumstances Determination: Carbon and Certain Alloy Steel
Wire Rod from Trinidad and Tobago, 67 FR 6001 (February 8, 2002)
(``Preliminary Determination'').
On March 19, 2002, we published a Federal Register notice aligning
the final determination in this proceeding with the earliest final
determination in the companion antidumping duty investigations. See
Countervailing Duty Investigations of Carbon and Certain Alloy Steel
Wire Rod from Brazil, Canada, Germany, Trinidad and Tobago, and Turkey:
Notice of Alignment With Final Antidumping Duty Determinations, 67 FR
12524 (March 19, 2002).
On April 15, 2002, the Government of Trinidad and Tobago (``GOTT'')
and Caribbean Ispat Limited (``CIL''), the sole respondent company in
this investigation, submitted supplemental factual information.
From April 22, 2002 to April 25, 2002, we conducted a verification
of the questionnaire responses submitted by the GOTT and CIL.
On July 19, 2002 we received a combined case brief from GOTT and
CIL, and a case brief from the petitioners. On July 24, 2002, we
received a combined rebuttal brief from the GOTT and CIL, as well as a
rebuttal brief from the petitioners.
Period of Investigation
The period for which we are measuring subsidies, or the period of
investigation (``POI''), is calendar year 2000.
Scope of Investigation
The merchandise covered by these investigations 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 of 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 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
[[Page 55812]]
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.
Scope Comments
On April 2, 2002, in conjunction with the preliminary
determinations in the companion antidumping duty proceedings, the scope
in both the companion countervailing duty and antidumping duty
proceedings was revised. See Memorandum to Faryar Shirzad, dated April
2, 2002, ``Carbon and Certain Alloy Steel Wire Rod: Requests for
exclusion of various tire cord quality wire rod and tire bead quality
wire rod products from the scope of Antidumping Duty (Brazil, Canada,
Egypt, Germany, Indonesia, Mexico, Moldova, South Africa, Trinidad and
Tobago, Ukraine, and Venezuela) and Countervailing Duty (Brazil,
Canada, Germany, Trinidad and Tobago, and Turkey) Investigations,''
which is on file in the Department's Central Records Unit in Room B-099
of the main Department building (``CRU'').
Since April 2, 2002, a number of parties have filed requests asking
the Department to exclude various products from the scope of the
concurrent antidumping duty (Brazil, Canada, Germany, Indonesia,
Mexico, Moldova, Trinidad and Tobago and Ukraine) and countervailing
duty (Brazil, Canada, Germany, Trinidad and Tobago, and Turkey)
investigations. On May 6, 2002, Ispat Hamburger Stahlwerke GmbH and
Ispat Walzdraht Hochfeld GmbH (collectively, ``Ispat Germany'')
requested on exclusion for ``super clean valve spring wire.'' Two
parties filed additional exclusion requests on June 14, 2002: Bluff
City Steel asked that the Department exclude ``clean-steel precision
bar,'' and Lincoln Electric Company sought the exclusion of its EW 2512
grade of metal inert gas welding wire. On June 28, 2002, the
petitioners filed objections to a range of scope exclusion requests
including: (i) Bluff City Steel's request for clean precision bar; (ii)
Lincoln Electric Company's request for EW 2512 grade wire rod; (iii)
Ispat Germany's request for ``super clean valve spring wire;'' (iv)
Tokusen USA's January 22, 2002 request for 1070 grade tire cord and
tire bead quality wire rod (tire cord wire rod); and (v) various
parties' request for 1090 grade tire cord wire rod.
In addition, Moldova Steel Works requested the exclusion of various
grades of tire cord wire rod on July 17, 2002. The Rubber Manufacturers
Association (``RMA''), Ispat Germany, Lincoln Electric and Bluff City
filed rebuttals to petitioners' June 28 submission on July 8, 11, 17,
and 29, 2002, respectively. The RMA field additional comments on July
30, 2002.\1\
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\1\ On August 9, 2002, Bekaert Corporation requested an
exclusion for certain high chrome/high silicon steel wire rod from
the scope of these investigations. This request was field too late
to be considered for the final determinations in these
investigations.
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The Department has analyzed these requests and the petitioners'
objections and we find no modifications to the scope are warranted. See
Memorandum from Richard Weible to Faryar Shirzad, ``Carbon and Certain
Alloy Steel Wire Rod; Antidumping Duty (Brazil, Canada, Germany,
Indonesia, Mexico, Moldova, Trinidad and Tobago, and Ukraine) and
Countervailing Duty (Brazil, Canada, Germany, Trinidad and Tobago, and
Turkey) Investigations: Requests for Scope Exclusion'' dated August 23,
2002, which is on file in the CRU.
Critical Circumstances
The petitioners have alleged that critical circumstances within the
meaning of section 703(e) of the Act exist with respect to the subject
merchandise. In the Preliminary Determination, we found that critical
circumstances did not exist with respect to subject merchandise from
Trinidad and Tobago because no subsidies inconsistent with the World
Trade Organization Agreement on Subsidies and Countervailing Measures
existed in Trinidad and Tobago.
Because our final determination in this case is negative, we need
not further address the issue of whether critical circumstances exist
with respect to imports of subject merchandise from Trinidad and
Tobago.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the ``Issues and Decision
Memorandum'' from Richard W. Moreland, Deputy Assistant Secretary,
Import Administration to Faryar Shirzad, Assistant Secretary, Import
Administration, dated August 23, 2002 (``Decision Memorandum''), which
is hereby adopted by this notice. Attached to this notice as Appendix I
is a list of the issues which parties have raised and to which we have
responded in the ``Decision Memorandum''. Parties can find a complete
discussion of all issues raised in this investigation and the
corresponding recommendations in this public memorandum which is on
file in the CRU. In addition, a complete version of the Decision
Memorandum can be accessed directly on the Internet at http://
enforcement.trade.gov/frn/ under the heading ``Trinidad and Tobago.'' The
paper copy and electronic version of the Decision Memorandum are
identical in content.
Suspension of Liquidation
In accordance with our Preliminary Determination, we instructed the
Customs Service (``Customs'') to suspend liquidation of all entries of
wire rod from Trinidad and Tobago, which were entered or withdrawn from
warehouse, for consumption on or after February 8, 2002, the date of
the publication of the Preliminary Determination in the Federal
Register. In accordance with section 703(d) of the Act, we instructed
Customs to discontinue the suspension of liquidation for merchandise
for countervailing duty purposes entered on or after June 8, 2002, but
to continue the suspension of liquidation of entries made from February
8, 2002 through June 7, 2002.
Because we have made a final determination that countervailable
subsidies are not being provided to producers and exporters of wire rod
from Trinidad and Tobago, we are instructing Customs to terminate the
suspension of liquidation for all shipments wire rod from Trinidad and
Tobago entered, or withdrawn from warehouse, for consumption on or
after February 8, 2002, but before June 8, 2002, and to release any
bond or other security and refund any cash deposit.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
International Trade Commission of our determination.
Return or Destruction of Proprietary Information
This notice serves as the only reminder to parties subject to
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.
[[Page 55813]]
Dated: August 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I
List of Comments and Issues in the Decision Memorandum
Comment 1: Change-in-Ownership Methodology
Comment 2: Change-in-Ownership Same Person Analysis
Comment 3: Sale of Iron and Steel Company of Trinidad and Tobago's
(``ISCOTT'') Assets at Fair Market Value in an Arm's-Length Transaction
Comment 4: ISCOTT Debt Forgiveness
Comment 5: Equity Infusions into ISCOTT
Comment 6: Provision of Electricity
Comment 7: Petitioners' New Subsidy Allegation
[FR Doc. 02-22243 Filed 8-29-02; 8:45 am]
BILLING CODE 3510-DS-M