[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