[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Notices]
[Pages 33218-33219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14047]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-830]
Carbon and Certain Alloy Steel Wire Rod From Mexico: Initiation
of Anti-Circumvention Inquiry of Antidumping Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: June 8, 2011.
FOR FURTHER INFORMATION CONTACT: Jolanta Lawska or Eric B. Greynolds,
AD/CVD Operations, Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
8362 and (202) 482-6071, respectively.
SUPPLEMENTARY INFORMATION: In separate submissions filed on February
11, 2011, ArcelorMittal USA LLC, Gerdau Ameristeel U.S. Inc., and Rocky
Mountain Steel, a division of Evraz Inc. NA, (collectively
ArcelorMittal USA, et al.) and Nucor Corporation and Cascade Steel
Rolling Mills, Inc. (collectively, Nucor/Cascade) requested that the
Department of Commerce (the Department) initiate a scope inquiry, under
19 CFR 351.225(k)(2) to determine whether wire rod with an actual
diameter between 4.75 and 5.00 millimeters (mm) is within the scope of
the antidumping (AD) order on carbon and certain alloy steel wire rod
from Mexico.\1\ See Notice of Antidumping Duty Orders: Carbon and
Certain Alloy Steel Wire Rod from Brazil, Indonesia, Mexico, Moldova,
Trinidad and Tobago, and Ukraine, 67 FR 65945 (October 29, 2002) (Wire
Rod Order). Alternatively, petitioners argue that the Department should
initiate an anti-circumvention inquiry with regard to two Mexican
firms, Deacero S.A. de C.V. (Deacero) and Ternium Mexico S.A. de C.V.
(Ternium), and find that wire rod with an actual diameter between 4.75
and 5.00 mm produced by these firms constitutes a ``minor alteration''
or a ``later developed product'' thereby resulting in shipments of such
wire rod from Deacero and Ternium falling within the scope of the Wire
Rod Order. See 19 CFR 351.225(i) and (j); see also sections 781(c) and
(d) of the Tariff Act of 1930, as amended (the Act).
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\1\ The term petitioners refers collectively to ArcelorMittal
USA, et. al. and Nucro/Cascade.
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On March 14 and 23, 2011, Deacero filed comments rebutting
petitioners' arguments. On March 24 and 25, 2011, petitioners responded
to Deacero's comments. On March 25, 2011, Illinois Tool Works Inc.
(ITW) filed comments objecting to petitioners' allegations. On March
28, 2011, the Department extended until May 16, 2011, the deadline for
determining whether to initiate an inquiry into petitioners'
allegations. On April 18, 2011, petitioners responded to the comments
of ITW. On May 3, 2011, Deacero responded to the comments made in
petitioners' March 24, and 25, 2011, submissions.
Scope of the Order
The merchandise subject to this order 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.
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. This 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.
This 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.
[[Page 33219]]
The products within the scope of this order 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.
Initiation of Minor Alterations Anti-Circumvention Proceeding
Section 781(c) of the Act provides that the Department may find
circumvention of an AD order when products which are of the class or
kind of merchandise subject to an AD order have been ``altered in form
or appearance in minor respects * * * whether or not included in the
same tariff classification.'' Based on the arguments and information
contained in petitioners' allegation, we find that there is a
sufficient basis to initiate an anti-circumvention inquiry pursuant to
section 781(c) of the Act and 19 CFR 351.225(i) to determine whether
wire rod with an actual diameter measuring between 4.75 mm and 5.00 mm
results from a minor alteration, and thus, a change so insignificant as
to render such wire rod subject to the Wire Rod Order. For a summary of
the comments received from interested parties and further discussion of
the Department's basis for initiating this minor alteration inquiry,
see the accompanying Memorandum to Ronald K. Lorentzen, Deputy
Assistant Secretary for Import Administration, ``Initiation of Minor
Alteration Circumvention Inquiry on Wire Rod With an Actual Diameter
Between 4.75 and 5.00 Millimeters,'' (Initiation Memorandum), of which
the public version is on file in the Central Records Unit (CRU), Room
7046 of the main Department of Commerce building.
As explained in the Initiation Memorandum, the Department has
declined to initiate on petitioners' allegation that the wire rod at
issue constitutes a later-developed product as described under section
781(d) and 19 CFR 351.225(j). We based our determination on information
submitted by Deacero that indicates that a Japanese firm made small-
diameter wire rod (e.g., rod with diameters as narrow as 4.2 mm)
commercially available prior to the filing of the petition.
In addition, we have declined to initiate a scope inquiry under 19
CFR 351.225(k)(2) as requested by petitioners. As explained in the
Initiation Memorandum, we find that the petition from the underlying
investigation as well as information from the International Trade
Commission (ITC) referenced in the petition indicates that the
diameters referenced in the scope of the Wire Rod Order pertain to
actual diameters. Therefore, we find that wire rod with an actual
diameter of less than 5.00 mm is not within the scope of the Wire Rod
Order.
Our finding under 19 CFR 351.225 (k)(1), that wire rod with an
actual diameter that is less than 5.00 mm is not within the scope of
the Wire Rod Order, is consistent with our decision under 19 CFR
351.225(i) To initiate a minor alteration anti-circumvention inquiry
concerning wire rod with an actual diameter between 4.75 mm and 5.00
mm. In Nippon Steel the Court of Appeals for the Federal Circuit (CAFC)
found that the Department may be precluded from conducting a minor
alteration inquiry in instances in which the product is well-known
prior to the order and was specifically excluded from the
investigation. See Nippon Steel Corp. v. United States, 219 F.3d 1348,
1356 (Fed. Cir. 2000) (Nippon Steel). The Wire Rod Order does not
specifically exclude wire rod with an actual diameter between 4.75 mm
and 5.00 mm and, thus, the conditions necessary to preclude a minor
alteration inquiry are not present. The Department reached the same
conclusion in this regard in the Wax Candles from the PRC Inquiry
Prelim, which was upheld in the Wax Candles from the PRC Inquiry. See
Later-Developed Merchandise Anticircumvention Inquiry of the
Antidumping Duty Order on Petroleum Wax Candles from the People's
Republic of China: Affirmative Preliminary Determination of
Circumvention of the Antidumping Duty Order, 71 FR 32033, 32037 (June
2, 2006) (Wax Candles from the PRC Inquiry Prelim), see also Later-
Developed Merchandise Anti-Circumvention Inquiry of the Antidumping
Duty Order on Petroleum Wax Candles from the People's Republic of
China: Affirmative Final Determination of Circumvention of the Anti-
Dumping Duty Order, 71 FR 59076-59076 (October 6, 2006) (Wax Candles
from the PRC Inquiry), and accompanying Issues and Decision Memorandum
(Wax Candles from the PRC Inquiry Decision Memorandum).
We are initiating this minor alteration anti-circumvention inquiry
on Deacero and Ternium, the Mexican firms identified by petitioners in
their circumvention allegations. However, within 45 days of the
issuance of the initiation of this inquiry, if the Department receives
sufficient evidence that other Mexican manufacturers are involved in
the production of wire rod with an actual diameter between 4.75 mm and
5.00 mm, we will consider examining such additional manufacturers.
In accordance with 19 CFR 351.225(l)(2), if the Department issues a
preliminary affirmative determination, we will then instruct CBP to
suspend liquidation and require a cash deposit of estimated duties on
the merchandise from firms covered by the determination.
The Department will, following consultation with interested
parties, establish a schedule for questionnaires and comments on the
issues. The Department intends to issue its final determination within
300 days of the date of publication of this initiation.
This notice is published in accordance with sections 781(c) and
781(d) of the Act and 19 CFR 351.225(i).
Dated: May 31, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-14047 Filed 6-7-11; 8:45 am]
BILLING CODE 3510-DS-P