[Federal Register Volume 62, Number 204 (Wednesday, October 22, 1997)]
[Notices]
[Pages 54960-54966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27987]
[[Page 54959]]
_______________________________________________________________________
Part IV
Department of Commerce
_______________________________________________________________________
International Trade Administration
_______________________________________________________________________
Countervailing Duty Determinations; Trinidad and Tobago, et al.;
Notices
Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 /
Notices
[[Page 54960]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-274-803]
Suspension of Countervailing Duty Investigation: Steel Wire Rod
From Trinidad and Tobago
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
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SUMMARY: The Department of Commerce (the Department) has suspended the
countervailing duty investigation involving steel wire rod from
Trinidad and Tobago. The basis for the suspension is an agreement
between the Department and the Government of Trinidad and Tobago (GOTT)
wherein the GOTT has agreed not to provide any new or additional export
or import substitution subsidies on the subject merchandise and has
agreed to restrict the volume of direct or indirect exports to the
United States of steel wire rod products from all Trinidad and Tobago
producers/exporters in order to eliminate completely the injurious
effects of exports of this merchandise to the United States.
EFFECTIVE DATE: October 22, 1997.
FOR FURTHER INFORMATION CONTACT: Jean Kemp or Donna Kinsella, Office of
Antidumping/Countervailing Duty Enforcement, Group III, Import
Administration, U.S. Department of Commerce, Room 1874, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
1131 or 4093.
SUPPLEMENTARY INFORMATION:
Background
On March 24, 1997, the Department initiated a countervailing duty
investigation under section 702 of the Tariff Act of 1930, (the Act),
as amended, to determine whether manufacturers, producers, or exporters
of steel wire rod from Trinidad and Tobago receive subsidies (62 FR
13866). On April 30, 1997, the United States International Trade
Commission (ITC) notified the Department of its affirmative preliminary
injury determination. On May 2, 1997, we postponed the preliminary
determination until no later than July 28, 1997 (62 FR 25172, May 8,
1997).
On July 28, 1997, the Department preliminarily determined that
countervailable subsidies are being provided to Caribbean Ispat Limited
(CIL) (62 FR 41927, August 4, 1997). Between August 18 and 26, 1997,
the Department verified the questionnaire responses of the GOTT and CIL
in Trinidad and Tobago.
The Department and the GOTT initialed a proposed agreement
suspending this investigation on September 16, 1997. Interested parties
were informed that the Department intended to finalize the agreement on
October 14, 1997, and were invited to provide written comments on the
agreement. No comments were filed by interested parties.
The Department and the GOTT signed the final suspension agreement
on October 14, 1997.
Scope of Suspension Agreement
The products covered by this suspension of investigation are set
forth in section II of Appendix 1 to this notice.
Suspension of Investigation
The Department consulted with the parties to the proceeding and has
considered their positions with respect to the proposed suspension
agreement. In accordance with section 704(c) of the Act, we have
determined that extraordinary circumstances are present in this case,
as defined by section 704(c)(4) of the Act. (See October 14, 1997,
Extraordinary Circumstances Memorandum to Robert S. LaRussa.)
The suspension agreement provides that: (1) The GOTT will not
provide any new or additional export or import substitution subsidies
on the subject merchandise; and (2) the GOTT will restrict the volume
of direct or indirect exports to the United States of subject
merchandise from all Trinidad and Tobago producers/exporters.
We have also determined that the suspension agreement can be
monitored effectively and is in the public interest, pursuant to
section 704(d) of the Act. (See October 14, 1997, Public Interest
Memorandum to Robert S. LaRussa.) We find, therefore, that the criteria
for suspension of the investigation pursuant to section 704(c) of the
Act have been met. The terms and conditions of the suspension
agreement, signed October 14, 1997, are set forth in Appendix I to this
notice.
The suspension of liquidation ordered in the final affirmative
determination in this case shall continue in effect, subject to section
704(h)(3) of the Act. Section 704(f)(2)(B) of the Act provides that the
Department may adjust the security required to reflect the effect of
the Agreement. Pursuant to this provision, the Department has found
that the Agreement eliminates completely the injurious effects of these
imports and, thus, the Department is adjusting the security required
from producers and/or exporters to zero.
On October 14, 1997, we received a request from petitioners
requesting that we continue the investigation. Pursuant to this
request, we are continuing the investigation in accordance with section
704(g) of the Act. We will notify the International Trade Commission
(ITC) of our determination. If the ITC's injury determination is
negative, the agreement will have no force or effect, and the
investigation will be terminated (see section 704(f)(3)(A) of the Act).
If the ITC's determination is affirmative, the Department will not
issue a countervailing duty order as long as the suspension agreement
remains in force (see section 704(f)(3)(B) of the Act).
This notice is published pursuant to section 704(f)(1)(A) of the
Act.
Dated: October 14, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
Agreement Suspending the Countervailing Duty Investigation on Steel
Wire Rod From Trinidad and Tobago
For the purpose of encouraging free and fair trade in steel wire
rod, establishing more normal market relations, and eliminating injury
to the domestic industry, the United States Department of Commerce
(``the Department'') and the Government of Trinidad and Tobago enter
into this suspension agreement (``the Agreement'').
Pursuant to this Agreement, the Government of Trinidad and Tobago
agrees not to provide any new or additional export subsidies on the
subject merchandise. The Government of Trinidad and Tobago also will
restrict the volume of direct or indirect exports to the United States
of subject merchandise from all Trinidad and Tobago producers/
exporters, subject to the terms and provisions set forth below.
On the basis of this Agreement, pursuant to the provisions of
Sections 704 (b) and (c) of the Tariff Act of 1930, as amended (the
``Act'') (19 U.S.C. 1671c (b) and (c)), the Department shall suspend
its countervailing duty investigation with respect to steel wire rod
produced in Trinidad and Tobago, subject to the terms and provisions
set forth below.
I. Definitions
For purposes of this Agreement, the following definitions apply:
A. ``Date of Export'' for imports of subject merchandise into the
United
[[Page 54961]]
States shall be considered the date the Export License was issued.
B. ``Party to the Proceeding'' means any interested party, within
the meaning of Section 355.2(l) of the Department's Regulations, which
actively participates through written submissions of factual
information or written argument.
C. ``Indirect Exports'' means arrangements as defined in Section
IV.E of this Agreement and exports from Trinidad and Tobago through one
or more third countries, whether or not such exports are further
processed, whether or not such exports are sold in one or more third
countries prior to importation into the United States and whether or
not the Trinidad and Tobago producer knew the product was destined to
enter the United States.
D. For purposes of this Agreement, ``United States'' shall comprise
the customs territory of the United States of America (the 50 States,
the District of Columbia and Puerto Rico) and foreign trade zones
located in the territory of the United States of America.
E. ``Export License'' is the document which serves as both an
export license and a certificate of origin. An Export License must
accompany all shipments of subject merchandise from Trinidad and Tobago
to the United States, and must contain all of the information
enumerated in the Appendix (U.S. sales), except Date of Entry
information and Final Destination.
F. ``Relevant Period'' for the export limit of this Agreement means
the period October 1 through September 30.
G. ``For Consumption'' means all subject merchandise sold to
customers, such as, trading companies, distributors, resellers, end-
users, or service centers.
H. ``End-User'' means an entity, such as a steel service center,
reseller, trading company, end-user, etc., which consumes the subject
merchandise as defined in Section I.G.
II. Product Coverage
The products covered by this Agreement (``subject merchandise'')
are certain hot-rolled carbon steel and alloy steel products, in coils,
of approximately round cross section, between 5.00 mm (0.20 inch) and
19.0 mm (0.75 inch), inclusive, 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; (e) free
machining steel that contains by weight 0.03 percent or more of lead,
0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more
than 0.4 percent of phosphorus, more than 0.05 percent of selenium,
and/or more than 0.01 percent of tellurium; or (f) concrete reinforcing
bars and rods.
The following products are also excluded from the scope of this
Agreement:
Coiled products 5.50 mm or less in true diameter with an average
partial decarburization per coil of no more than 70 microns in depth,
no inclusions greater than 20 microns, containing by weight the
following: carbon greater than or equal to 0.68 percent; aluminum less
than or equal to 0.005 percent; phosphorous plus sulfur less than or
equal to 0.040 percent; maximum combined copper, nickel and chromium
content of 0.13 percent; and nitrogen less than or equal to 0.006
percent. This product is commonly referred to as ``Tire Cord Wire
Rod.''
Coiled products 7.9 to 18 mm in diameter, with a partial
decarburization of 75 microns or less in depth and seams no more than
75 microns in depth; containing 0.48 to 0.73 percent carbon by weight.
This product is commonly referred to as ``Valve Spring Quality Wire
Rod.''
The products subject to this Agreement are currently classifiable
under subheadings 7213.91.3000, 7213.91.4500, 7213.91.6000,
7213.99.0030, 7213.99.0090, 7227.20.0000, and 7227.90.6050 of the
HTSUS. Although the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of this
Agreement is dispositive.
III. Non-Provision of Export Subsidies
A. The Government of Trinidad and Tobago certifies that all exports
of the subject merchandise to the United States made on or after the
effective date of this Agreement will not receive or benefit from any
export or import substitution subsidies, other than export allowances
under Act No. 14 of 1976, as codified in Section 8(1) of the
Corporation Tax Act, whereby companies in Trinidad and Tobago with
export sales may deduct an export allowance in calculating their
corporate income tax.
B. The Government of Trinidad and Tobago recognizes that the
provision of any export or import substitution subsidies on the
production or shipment of the subject merchandise exported directly or
indirectly from Trinidad and Tobago to the United States, other than
that export subsidy specifically provided for in Section III.A., may
result in termination of this Agreement and resumption of the
investigation pursuant to the provisions of section 704(i) of the Act.
Export or import substitution subsidies include those that have been
determined to be export or import substitution subsidies in the
preliminary determination in the countervailing duty investigation
underlying this Agreement (unless the investigation is continued and a
contrary decision is reached in the final determination), in any final
U.S. countervailing duty investigation of a Trinidad and Tobago
product, or in any final review of a Trinidad and Tobago product under
section 751 of the Act, and include subsidies which may apply to other
products or exports to other destinations to the extent that such
subsidies cannot be segregated as applying solely to such other
products or exports. For purposes of this Agreement, relief from
corporation tax pursuant to the Fiscal Incentives Act, Chapter 85:01,
shall not be considered an export or import substitution subsidy, so
long as: (1) Such relief is in lieu of the tax benefit currently
conferred by the export allowance under Act No. 14 of 1976, as codified
in Section 8(1) of the Corporation Tax Act, as of August 1, 1997; (2)
such relief does not exceed the amount of benefit that would have been
received for the same year under the export allowance program provided
for in Act No. 14 of 1976, as codified in Section 8(1) of the
Corporation Tax Act, as of August 1, 1997; and (3) there is no
determination by the World Trade Organization that either the Fiscal
Incentives Act or, as appropriate, the Corporation Tax Act is
inconsistent with the development needs of Trinidad and Tobago pursuant
to Article 27 of the Agreement on Subsidies and Countervailing Measures
(``the SCM'').
C. The Government of Trinidad and Tobago shall notify the
Department in writing of any new benefit which is, or which the
Government of Trinidad and Tobago has reason to know would be, an
export or import substitution subsidy on shipments of the subject
merchandise exported, directly or indirectly, from Trinidad and Tobago
to the United States, including subsidies which may apply to both the
subject merchandise and other products or exports to other
destinations, to the extent such benefits cannot be segregated as
applying solely to such other products or exports.
D. At such time as Trinidad and Tobago reaches export
competitiveness with respect to products covered by this Agreement, as
defined by Article 27.6 of the SCM, the export subsidy specifically
provided for in Section III.A shall be
[[Page 54962]]
eliminated in accordance with Article 27.5 of the SCM.
IV. Export Limit
A. The export limit for subject merchandise in each Relevant Period
shall be 148,000 short tons. The export limit for each Relevant Period
shall be allocated in semi-annual quota allocation periods (October-
March, April-September). No more than 60% of the export limit for any
Relevant Period can be allocated in any given semi-annual quota
allocation period. Deductions from the export limit shall be made based
on the ``Date of Export,'' as defined in Section I.
B. On or after the effective date of this Agreement, the Government
of Trinidad and Tobago will restrict the volume of direct or indirect
exports of subject merchandise to the United States, and the transfer
or withdrawal from inventory of subject merchandise (consistent with
the provisions of Section IV.D), in accordance with the export limit
then in effect.
C. An export shipment to the United States may not be made for more
than the entire amount of quota allocated for that semi-annual quota
allocation period. Any amount exported to the United States during a
semi-annual quota allocation period shall not, however, when cumulated
with all prior exports to the United States within the same Relevant
Period, exceed the annual quota for that Relevant Period.
D. Any inventories of subject merchandise currently held in the
United States by a Trinidad and Tobago entity and imported into the
United States between May 6, 1997, and the effective date of this
Agreement will be subject to the following conditions:
1. Such inventories will not be transferred or withdrawn from
inventory for consumption in the United States without an Export
License issued by the Government of Trinidad and Tobago. Any such
transfers or withdrawals from inventory shall be deducted from the
export limit in effect at the time the Export License is issued.
2. A request for an Export License under this provision shall be
accompanied by a report specifying the original date of export, the
date of entry into the United States, the identity of the original
exporter and importer, the customer, a complete description of the
product (including lot numbers and other available identifying
documentation), and the quantity expressed in short tons.
3. In the event that there is a surge of sales of subject
merchandise from such inventory, the Department will decrease the
export limit to take into account such sales.
E. Any arrangement involving the exchange, sale, or delivery of
steel wire rod products, as described in Section II, from Trinidad and
Tobago, to the degree it results in the sale or delivery in the United
States of steel wire rod products, as described in Section II, from a
country other than Trinidad and Tobago, is subject to the requirements
of Section V and will be counted toward the available quota. Any such
transaction that does not comply with the requirements of Section V
will be deducted from the available quota pursuant to Section VII.
F. Where subject merchandise is imported into the United States and
is subsequently re-exported, or re-packaged and re-exported, the
available quota shall be increased by the number of short tons re-
exported. Such increase will be applicable to the Relevant Period
corresponding to the time of such re-export. Such increase will be
applied only after the Department receives, and has the opportunity to
verify, evidence demonstrating original importation, any re-packaging,
and subsequent exportation. The re-exported material must be identical
to the imported material.
G. Export Licenses for a given Relevant Period may not be issued
after September 30, except that Export Licenses not so issued may be
issued during the first three months of the following Relevant Period,
up to a maximum of 15 percent of the export limit for that following
Relevant Period. Such ``carried-over'' quota shall be counted against
the export limit applicable to the previous Relevant Period.
Export Licenses for up to 15 percent of the export limit for a
subsequent Relevant Period may be issued as early as August 1 of the
preceding Relevant Period. Such ``carried-back'' quota shall be counted
against the export limit applicable to the following Relevant Period.
H. For the first 90 days after the effective date of this
Agreement, subject merchandise shall be admitted into the United States
with an ``Export License/Certificate of Origin (Temporary Papers).''
The volume of any such imports will be deducted from the export
limit applicable to the first Relevant Period. A full reporting of any
such imports, which must correspond to the United States sales
information detailed in the Appendix, must be submitted to the
Department no later than 30 days after the conclusion of the 90 day
period. This data must be sorted on the basis of date of export.
V. Export License
A. The Government of Trinidad and Tobago will restrict the volume
of direct or indirect exports of subject merchandise to the United
States by means of semi-annual quota allocations and Export Licenses.
Export Licenses shall be issued by the Government of Trinidad and
Tobago for all direct or indirect exports of subject merchandise to the
United States in accordance with the export limit in Section IV.
B. Thirty days following the semi-annual allocation of quota rights
for any Relevant Period, the Government of Trinidad and Tobago shall
provide to the Department a report identifying each quota recipient and
the volume of quota which each recipient has been accorded (``report of
quota allocation results'').
C. Before it issues an Export License, the Government of Trinidad
and Tobago will ensure that neither the annual quota for the Relevant
Period nor the semi-annual quota allocation is exceeded.
D. The Government of Trinidad and Tobago shall take action,
including the imposition of penalties, as may be necessary to make
effective the obligations resulting from the export limit and Export
Licenses. The Government of Trinidad and Tobago will inform the
Department of any violations concerning the export limit and/or Export
Licenses which come to its attention and the action taken with respect
thereto.
The Department will inform the Government of Trinidad and Tobago of
violations concerning the export limit and/or Export Licenses which
come to its attention and the action taken with respect thereto.
E. Export Licenses will be issued sequentially, will be endorsed
against the export limit for the Relevant Periods, and will reference
the report of quota allocation results for the appropriate Relevant
Period.
F. Export Licenses must be issued no earlier than one month before
the day, month, and year on which the merchandise is accepted by a
transportation company, as indicated in the bill-of-lading or a
comparable transportation document, for export.
G. On or after the effective date of this Agreement, the United
States shall require presentation of an Export License as a condition
for entry of subject merchandise into the United States. The United
States will prohibit the entry of any subject merchandise not
accompanied by an Export License.
[[Page 54963]]
VI. Implementation
A. Export Subsidies
The Government of Trinidad and Tobago shall certify to the
Department within 15 days after the first day of each three-month
period, beginning on January 15, 1998, whether it continues to be in
compliance with the agreement by providing that all exports of the
subject merchandise to the United States will not receive or benefit
from any export or import substitution subsidies, except that export
subsidy which is specifically provided for in Section III.A. Failure to
supply such information or certification in a timely fashion may result
in the immediate resumption of the investigation or issuance of a
countervailing duty order.
B. Export Limit
In order to effectively restrict the volume of exports of subject
merchandise to the United States, the Government of Trinidad and Tobago
agrees to implement the following procedures:
1. Establish an Export License program for all exports of subject
merchandise to, or destined directly or indirectly for consumption in,
the United States, no later than 90 days after the effective date of
this Agreement.
2. Ensure compliance by any official Trinidad and Tobago
institution, chamber, or other entities authorized by the Government of
Trinidad and Tobago, all producers, exporters, brokers, and traders of
the subject merchandise, and their affiliated parties, with all
procedures established in order to effectuate this Agreement.
3. Collect information from all Trinidad and Tobago producers,
exporters, brokers, and traders of the subject merchandise, and their
affiliated parties, on the sale of the subject merchandise, and report
such information pursuant to Section VIII of this Agreement.
4. Prohibit, by resolution, decree, legislation or equivalent
Government action, direct and indirect exports to the United States of
subject merchandise except with an Export License issued pursuant to
Section V.A. and impose strict sanctions, such as penalties or
prohibition from participation in the export limit allowed by the
Agreement, in the event that any Trinidad and Tobago or Trinidad and
Tobago-affiliated party does not comply in full with all the terms of
the Agreement.
VII. Anticircumvention
A. The Government of Trinidad and Tobago will take all appropriate
measures under Trinidad and Tobago law to prevent circumvention of this
Agreement. It shall promptly conduct an inquiry into any and all
allegations of circumvention, including allegations raised by the
Department, and shall complete such inquiries in a timely manner
(normally within 45 days). The Government of Trinidad and Tobago shall
notify the Department of the results of its inquiries within ten days
of the conclusion of such inquiries. Within 15 days of a request from
the Department, the Government of Trinidad and Tobago shall share with
the Department all facts known to the Government of Trinidad and Tobago
regarding its inquiries, its analysis of such facts and the results of
such inquiries. The Government of Trinidad and Tobago will require all
Trinidad and Tobago exporters of steel wire rod products, as described
in Section II, to include a provision in their contracts for sales to
countries other than the United States that the steel wire rod sold
through such contracts cannot be re-exported, transhipped or swapped to
the United States, or otherwise used to circumvent the export limit of
this Agreement. The Government of Trinidad and Tobago will also
establish appropriate mechanisms to enforce this requirement.
B. If, in an inquiry pursuant to paragraph A, the Government of
Trinidad and Tobago determines that a Trinidad and Tobago company has
participated in a transaction that resulted in circumvention of the
export limit of this Agreement, then the Government of Trinidad and
Tobago shall impose penalties on such company including, but not
limited to, denial of access to the steel wire rod quota. Additionally,
the Government of Trinidad and Tobago shall deduct an amount of steel
wire rod equivalent to the amount involved in such circumvention from
the available quota and shall immediately notify the Department of the
amount deducted. If sufficient quota is not available in the current
Relevant Period, then the remaining amount necessary shall be deducted
from the subsequent Relevant Period.
C. If the Government of Trinidad and Tobago determines that a
company from a third country has circumvented the Agreement and the
signatories agree that no Trinidad and Tobago entity participated in or
had knowledge of such activities, then the signatories shall hold
consultations for the purpose of sharing evidence regarding such
circumvention and reaching mutual agreement on the appropriate steps to
be taken to eliminate such circumvention, such as the Government of
Trinidad and Tobago prohibiting sales of Trinidad and Tobago steel wire
rod to the company responsible or reducing steel wire rod exports to
the country in question. If the signatories are unable to reach mutual
agreement within 45 days, then the Department may take appropriate
action, such as deducting the amount of steel wire rod involved in such
circumvention from the available quota, taking into account all
relevant factors. Before taking such action, the Department will notify
the Government of Trinidad and Tobago of the facts and reasons
constituting the basis for the Department's intended action and will
afford the Government of Trinidad and Tobago ten days in which to
comment.
D. If the Department determines that a Trinidad and Tobago entity
participated in circumvention, the signatories shall hold consultations
for the purpose of sharing evidence regarding such circumvention and
reaching mutual agreement on an appropriate resolution of the problem.
If the signatories are unable to reach mutual agreement within 45 days,
the Department may take appropriate action, such as deducting the
amount of steel wire rod involved in such circumvention from the
available quota or instructing the U.S. Customs Service to deny entry
to any subject merchandise sold by the entity found to be circumventing
the Agreement. Before taking such action, the Department will notify
the Government of Trinidad and Tobago of the facts and reasons
constituting the basis for the Department's intended action and will
afford the Government of Trinidad and Tobago ten days in which to
comment.
E. The Department shall direct the U.S. Customs Service to require
all importers of steel wire rod, as described in Section II, into the
United States, regardless of stated country of origin, to submit at the
time of entry a written statement certifying that the steel wire rod
being imported was not obtained under any arrangement, swap, or other
exchange which would result in the circumvention of the export limit
established by this Agreement. Where the Department has reason to
believe that such a certification has been made falsely, the Department
will refer the matter to the U.S. Customs Service or the Department of
Justice for further action.
F. The Department will take the following factors into account in
distinguishing normal steel wire rod market arrangements, swaps, or
other exchanges from arrangements which would result in the
circumvention of the export limit established by this Agreement:
[[Page 54964]]
1. Existence of any verbal or written arrangements which would
result in the circumvention of the export limit established by this
Agreement;
2. Existence of any arrangement as defined in Section IV.E that was
not reported to the Department pursuant to Section VIII.A;
3. Existence and function of any subsidiaries or affiliates of the
parties involved;
4. Existence and function of any historical and/or traditional
trading patterns among the parties involved;
5. Deviations (and reasons for deviation) from the above patterns,
including physical conditions of relevant steel wire rod facilities;
6. Existence of any payments unaccounted for by previous or
subsequent deliveries, or any payments to one party for merchandise
delivered or swapped by another party;
7. Sequence and timing of the arrangements; and
8. Any other information relevant to the transaction or
circumstances.
G. ``Swaps'' include, but are not limited to:
Ownership swaps-involve the exchange of ownership of any type of
steel wire rod product(s), without physical transfer. These may include
exchange of ownership of steel wire rod products in different
countries, so that the parties obtain ownership of products located in
different countries; or exchange of ownership of steel wire rod
products produced in different countries, so that the parties obtain
ownership of products of different national origin.
Flag swaps-involve the exchange of indicia of national origin of
steel wire rod products, without any exchange of ownership.
Displacement swaps-involve the sale or delivery of any type of
steel wire rod product(s) from Trinidad and Tobago to an intermediary
country (or countries) which can be shown to have resulted in the
ultimate delivery or sale into the United States of displaced steel
wire rod products of any type, regardless of the sequence of the
transaction.
H. The Department will enter its determinations regarding
circumvention into the record of the Agreement.
VIII. Monitoring
The Government of Trinidad and Tobago will provide to the
Department such information as is necessary and appropriate to monitor
the implementation of and compliance with the terms of this Agreement.
The Department of Commerce shall provide semi-annual reports to the
Government of Trinidad and Tobago indicating the volume of imports of
the subject merchandise to the United States, together with such
additional information as is necessary and appropriate to monitor the
implementation of this Agreement.
A. The Government of Trinidad and Tobago shall immediately provide
copies of any resolution, decree, legislation, or equivalent Government
action governing any changes in the export allowance provisions of Act
No. 14 of 1976, as codified in Section 8(1) of the Corporation Tax Act
as soon as such changes occur. The Government of Trinidad and Tobago
also shall immediately notify and provide copies to the Department of
any resolution, decree, legislation or equivalent Government action
governing any other export or import substitution subsidy which is
issued, altered or amended in any way as to be applicable or available
to producers/exporters of the subject merchandise to the United States.
B. The Government of Trinidad and Tobago shall notify the
Department if any exporters of the subject merchandise transship the
subject merchandise through third countries to the United States. The
Government of Trinidad and Tobago also shall notify the Department if
any exporter applies for or receives, directly or indirectly, the
benefits of any export or import substitution subsidy program, other
than that which is specifically excepted in Section III.A., regarding
the export of the subject merchandise.
C. Beginning on the effective date of this Agreement, the
Government of Trinidad and Tobago shall collect and provide to the
Department the information set forth, in the agreed format, in the
Appendix. All such information will be provided to the Department by
May 1 of each year for exports during the period from October 1 of the
previous year through March 31. In addition, such information will be
provided to the Department by November 1 for exports from April 1
through September 30, or within 90 days of a request made by the
Department. Such information will be subject to the verification
provision identified in Section VIII.G of this Agreement. The
Government of Trinidad and Tobago agrees to allow sales of subject
merchandise only by those producers and through those brokers and
trading companies which permit full reporting and verification of data.
The Department may disregard any information submitted after the
deadlines set forth in this Section or any information which it is
unable to verify to its satisfaction.
Aggregate quantity and value of sales by HTS category to each third
country will be provided to the Department by May 1 of each year for
exports during the period from October 1 of the previous year through
March 31. In addition, such quantity and value information will be
provided to the Department by November 1 for exports from April 1
through September 30.
Transaction specific data for all third country sales will also be
reported on the schedule provided above in the format provided in the
Appendix. However, if the Department concludes that the transaction
specific data is not necessary for a given period, it will notify the
Government of Trinidad and Tobago at least 90 days before the reporting
deadline that transaction specific sales data need not be reported. If
the Department determines that such data is relevant in connection with
Section VII and requests information on transactions for one or more
third countries during a period for which the Department waived
complete reporting, the Government of Trinidad and Tobago will provide
the data listed in the Appendix for those specific transactions within
90 days of the request.
D. Both governments recognize that the effective monitoring of this
Agreement may require that Trinidad and Tobago provide information
additional to that which is identified above. Accordingly, the
Department may establish additional reporting requirements, as
appropriate, during the course of this Agreement.
E. The Department shall provide notice to the Government of
Trinidad and Tobago of any additional reporting requirements no later
than 45 days prior to the period covered by such reporting requirements
unless a shorter notice period is mutually agreed.
F. Other sources for monitoring. The Department will review
publicly-available data as well as Customs Form 7501 entry summaries
and other official import data from the Bureau of the Census, on a
monthly basis, to determine whether there have been imports that are
inconsistent with the provisions of this Agreement.
The Department will monitor Bureau of the Census IM-115
computerized records, which include the quantity and value of each
entry. Because these records do not provide other specific entry
information, such as the identity of the producer/exporter which may be
responsible for such sales, the Department may request the U.S. Customs
Service to provide such information. The Department may request other
additional documentation from the U.S. Customs Service.
[[Page 54965]]
The Department may also request the U.S. Customs Service to direct
ports of entry to forward a Countervailing Duty Report of Importations
for entries of the subject merchandise during the period this Agreement
is in effect.
G. Verification. The Government of Trinidad and Tobago will permit
full verification of all information related to the administration of
this Agreement, including verification of Trinidad and Tobago producer
and any brokers/trading companies utilized in making sales/shipments to
the United States, on an annual basis or more frequently, as the
Department deems necessary to ensure that Trinidad and Tobago is in
full compliance with the terms of the Agreement. Such verifications may
take place in association with scheduled consultations whenever
possible.
IX. Disclosure and Comment
A. The Department shall make available to representatives of each
party to the proceeding, under appropriately-drawn administrative
protective orders consistent with the Department's Regulations,
business proprietary information submitted to the Department semi-
annually or upon request, and in any administrative review of this
Agreement.
B. Not later than 30 days after the date of disclosure under
Section VIII.A, the parties to the proceeding may submit written
comments to the Department, not to exceed 30 pages.
C. During the anniversary month of this Agreement, each party to
the proceeding may request a hearing on issues raised during the
preceding Relevant Period. If such a hearing is requested, it will be
conducted in accordance with Section 751 of the Act (19 U.S.C. 1675)
and applicable regulations.
X. Consultations
The Government of Trinidad and Tobago and the Department shall hold
consultations regarding matters concerning the implementation,
operation and/or enforcement of this Agreement. Such consultations will
be held each year during the anniversary month of this Agreement.
Additional consultations may be held at any other time upon request of
either the Government of Trinidad and Tobago or the Department.
XI. Violations of the Agreement
A. Violation
``Violation'' means noncompliance with the terms of this Agreement
caused by an act or omission in accordance with Section 355.19 of the
Department's Regulations.
The Government of Trinidad and Tobago and the Department will
inform the other party of any violations of the Agreement which come to
their attention and the action taken with respect thereto.
Imports in excess of the export limit set out in this Agreement
shall not be considered a violation of this Agreement or an indication
the Agreement no longer meets the requirements of Section 704 (b) or
(c) of the Act where such imports are minimal in volume, are the result
of technical shipping circumstances, and are applied against the export
limit of the following year.
Prior to making a determination of an alleged violation, the
Department will engage in emergency consultations. Such consultations
shall begin no later than 14 days from the day of request and shall
provide for full review, but in no event will exceed 30 days. After
consultations, the Department will provide the Government of Trinidad
and Tobago 20 days within which to provide comments. The Department
will make a determination within 30 days.
B. Appropriate Action
If the Department determines that this Agreement is being or has
been violated, the Department will take such action as it determines is
appropriate under Section 704(i) of the Act and Section 355.19 of the
Department's Regulations.
XII. Duration
Absent affirmative determinations under the five-year review
provisions of sections 751 and 752 of the Act, the Department expects
to terminate this Agreement and the underlying investigation no later
than October 14, 2002.
The Government of Trinidad and Tobago may terminate this Agreement
at any time upon notice to the Department. Termination shall be
effective 60 days after such notice is given to the Department. Upon
termination at the request of the Government of Trinidad and Tobago,
the provisions of Section 704(i) of the Act shall apply.
XIII. Other Provisions
A. The Department finds that this Agreement is in the public
interest; that effective monitoring of this Agreement by the United
States is practicable; and that this Agreement will completely
eliminate injury to the domestic industry producing the like product by
imports of the merchandise subject to this Agreement.
B. In entering into this Agreement, the Government of Trinidad and
Tobago does not admit that any programs alleged or investigated
constitute countervailable benefits under the Act, or that sales of the
subject merchandise have materially injured, or threatened material
injury to, an industry or industries in the United States.
C. For all purposes hereunder, the Department and the signatory
Government shall be represented by, and all communications and notices
shall be given and addressed to:
Department of Commerce, U.S. Department of Commerce, Assistant
Secretary for Import Administration, International Trade
Administration, Washington, D.C. 20230
Government of Trinidad and Tobago, Ministry of Trade and Industry,
Level 15, Riverside Plaza, No. 2 Besson Street, Port-of-Spain, Trinidad
and Tobago, West Indies.
XIV. Effective Date
The effective date of this Agreement is the date of its publication
in the Federal Register.
Dated: October 14, 1997.
For Government of Trinidad and Tobago.
Mervyn Assam,
Minister of Trade and Industry.
For U.S. Department of Commerce.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
Appendix
In accordance with the established format, the Government of
Trinidad and Tobago shall collect and provide to the Department all
information necessary to ensure compliance with this Agreement. This
information will be provided to the Department on a semi-annual
basis, or upon request.
The Government of Trinidad and Tobago will collect and maintain
sales data to the United States, in the home market, and to
countries other than the United States, on a continuous basis and
provide the prescribed information to the Department.
The Government of Trinidad and Tobago will provide a narrative
explanation to substantiate all data collected in accordance with
the following formats.
Report of Inventories
Report, by location, the inventories held by Trinidad and Tobago
producers/exporters in the United States and imported into the
United States between the period beginning May 6, 1997, through the
effective date of the Agreement.
1. Quantity: Indicate original units of measure and in short
tons.
2. Location: Identify where the inventory is currently being
held. Provide the name and address for the location.
3. Titled Party: Name and address of party who legally has title
to the merchandise.
4. Export License Number: Indicate the number(s) relating to
each entry now being held in inventory.
5. Certificate of Origin Number(s): Indicate the number(s)
relating to each sale or entry.
[[Page 54966]]
6. Date of Original Export: Date the Export License/certificate
of origin is issued.
7. Date of Entry: Date the merchandise entered the United States
or the date book transfer took place.
8. Original Importer: Name and address.
9. Original Exporter: Name and address.
10. Complete Description of Merchandise: Include heat numbers,
HTS number, physical description, ASTM specification, and other
available information.
United States Sales
The Government of Trinidad and Tobago will provide all Export
Licenses, which shall contain the following information with the
exception of item #9, date of entry, and item #16, final
destination.
1. Export License/Certificate of Origin Number(s): Indicate the
number(s) relating to each sale and/or entry.
2. Complete Description of Merchandise: Include heat numbers,
HTS number, physical description, ASTM specification, and other
available information.
3. Quantity: Indicate in original units of measure and in short
tons.
4. F.O.B. Sales Value: Indicate currency used.
5. Unit Price: Indicate currency used/per original unit of
measure.
6. Date of Sale: The date all terms of order are confirmed.
7. Sales Order Number(s): Indicate the specification number/
order number relating to each sale and/or shipment.
8. Date of Export: Date the Export License is issued.
9. Date of Entry: Date the merchandise entered the United States
or the date book transfer took place.
10. Importer of Record: Name and address.
11. Trading Company/Broker: Name and address of any trading
company involved in the sale.
12. Customer: Name and address of the first unaffiliated party
purchasing from the Trinidad and Tobago producer/exporter.
13. Customer Affiliation: Indicate whether the customer is
affiliated or unaffiliated to the Trinidad and Tobago exporter.
14. Quota Allocated to Exporter: Indicate the total amount of
quota allocated to the individual exporter during the Relevant
Period.
15. Quota Remaining: Indicate the remaining quota available to
the individual exporter during the Relevant Period.
16. Final Destination: Name and address of the end-user for
consumption in the United States.
17. Other: The identity of any party(ies) in the transaction
chain between the customer and the final destination/end-user.
Mill Certification
The Government of Trinidad and Tobago shall ensure that all
shipments of subject merchandise exported to the United States
pursuant to this Agreement shall be accompanied by a copy of the
original mill certification.
Sales Other Than United States
Pursuant to Section VIII, paragraph A, the Government of
Trinidad and Tobago will provide country-specific sales volume and
value information for all sales of steel wire rod products, as
described in Section II, in the home market and to third countries.
1. Quantity: Indicate in original units of measure sold and/or
entered and in metric tons.
2. F.O.B. Sales Value: Indicate currency used.
3. Date of Sale: The date all terms of order are confirmed.
4. Complete Description of Merchandise: Include heat numbers,
HTS number, physical description, specification/grade under which
sold, and other available information.
5. Sales Order Number(s): Indicate the specification number/
order number relating to each sale and/or shipment.
6. Date of Export (if third country): Date of shipment from
Trinidad and Tobago.
7. Date of Entry (if third country): Date the merchandise
entered the third country or the date a book transfer took place.
8. Importer of Record (if third country): Name and address.
9. Customer: Name and address of the first party purchasing from
the Trinidad and Tobago producer/exporter.
10. Customer Affiliation: Indicate whether the customer is
affiliated or unaffiliated.
11. Final Destination: Name and address of the end-user for
consumption in the United States.
12. Other: The identity of any party(ies) in the transaction
chain between the customer and the final destination/end-user.
[FR Doc. 97-27987 Filed 10-21-97; 8:45 am]
BILLING CODE 3510-DS-P
