[Federal Register Volume 60, Number 39 (Tuesday, February 28, 1995)]
[Notices]
[Pages 10831-10832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4900]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-806]
Steel Wire Rope From Mexico; Affirmative Final Determination of
Circumvention of Antidumping Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of affirmative final determination of circumvention of
antidumping duty order.
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SUMMARY: On June 3, 1994, the Department of Commerce (the Department)
preliminarily determined that imports into the United States of steel
wire strand from Mexico, which are assembled in the United States into
steel wire rope for sale in the United States, were circumventing the
antidumping duty order on steel wire rope from Mexico. The inquiry into
the possible circumvention of this order covers one Mexican
manufacturer/exporter of the subject merchandise, and a related party
in the United States. This inquiry covers the period October 1, 1992,
through September 30, 1993. Interested parties were invited to comment
on the preliminary affirmative determination of circumvention. We
received comments from only one party, supporting the Department's
preliminary affirmative determination of circumvention. The findings of
the preliminary determination remain unchanged; as a result, we have
determined that the respondent, Grupo Camesa S.A. de C.V. and its
United States affiliate, Camesa Inc. (collectively, Camesa), are
circumventing the order and that steel wire strand produced in Mexico
by Camesa and imported into the United States for use in the production
of steel wire rope falls within the scope of the antidumping duty order
on steel wire rope from Mexico.
EFFECTIVE DATE: February 28, 1995.
FOR FURTHER INFORMATION CONTACT:
Wendy Frankel, Office of Antidumping Compliance, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, N.W., Washington, D.C. 20230,
telephone: (202) 482-5253.
SUPPLEMENTARY INFORMATION:
Background
On June 3, 1994, the Department published in the Federal Register
(59 FR 29176) a preliminary affirmative determination that imports into
the United States of steel wire strand from Mexico were circumventing
the order on steel wire rope within the meaning of section 781(a) of
the Tariff Act of 1930, as amended (the Tariff Act), and 19 CFR
353.29(e), and a subsequent finding that the imported product subject
to the inquiry, steel wire strand manufactured in Mexico, fell within
the order. Pursuant to this determination, the Department instructed
the U.S. Customs Service (Customs) to suspend liquidation of, and
require cash deposits on entries of, the imported product, steel wire
strand, manufactured in Mexico. Interested parties were invited to
comment on this preliminary determination. We received comments from
the petitioner, the Committee on Domestic Steel Wire Rope and Specialty
Cable Manufacturers (the Committee), on July 5, 1994, supporting the
Department's preliminary affirmative determination of circumvention. No
other party submitted comments.
In accordance with section 781(e) of the Tariff Act, the Department
also notified the International Trade Commission (ITC) of its
preliminary determination that the imported product fell within the
scope of the order. In response, the ITC notified the Department that
consultations between the Department and the ITC regarding the
Department's preliminary determination were unnecessary.
The Department has now completed this inquiry in accordance with
section 781(a) of the Tariff Act.
Scope of Antidumping Duty Order
The product covered by the order is steel wire rope, which is
defined in the Department's antidumping duty order on steel wire rope
from Mexico as: ``ropes, cables, and cordage of iron or carbon steel,
other than stranded wire, not fitted with fittings or made up into
articles, and not made up of plated wire.''
During the period of this inquiry (POI), such merchandise was
classifiable under subheadings 7312.10.9030, 7312.10.9060, and
7312.10.9090 of the Harmonized Tariff Schedule (HTS). HTS subheadings
are provided for convenience and for Customs purposes. The Department's
written description of the scope of the order remains dispositive.
Scope of the Circumvention Inquiry
Products subject to this circumvention inquiry are entries of
strand, which are defined as stranded wire having a lay or twist of not
more than one revolution for a length equal to the strand diameter
multiplied by 8.5. During the inquiry, such merchandise was
classifiable under subheading 7312.10.3020 of the HTS. The HTS
subheading is provided for convenience and for Customs purposes. The
Department's written description of the scope of the inquiry remains
dispositive.
Nature of the Circumvention Inquiry
As set forth in our preliminary determination, we examined whether
(A) steel wire rope sold in the United States is of the same class or
kind as merchandise that is subject to the order; (B) such steel wire
rope sold in the United States is completed or assembled in the United
States from parts or components (i.e., steel wire strand) produced in
Mexico, the foreign country with respect to which such order applies;
and (C) the difference between the value of such steel wire strand
reffered to in (B) above, is small. Section 781(a)(2) of the Tariff Act
further provides that, in determining whether to includes parts or
components in an antidumping duty order, the Department shall take into
account such factors as (A) pattern of trade; (B) whether the
manufacturer or exporter of the parts or components is related to the
[[Page 10832]] person who assembles or completes the merchandise sold
in the United States from the parts or components produced in the
foreign country with respect to which the order applies; and (C)
whether imports into the United States of the parts or components
produced in such foreign country have increased after issuance of such
order.
I. Statutory Criteria
Class or Kind, U.S. Assembly From Components Produced in the Foreign
Country, and Difference In Value
Neither the Committee nor Camesa challenged our preliminary
determination that the steel wire rope sold in the United States was of
the same class or kind of merchandise as that subject to the order and
that the subject steel wire rope was processed in the United States
from steel wire strand produced in Mexico, the country to which the
antidumping duty order applies. In addition, neither the Committee nor
Camesa challenged our preliminary determination, based on the best
information available (BIA), that the difference between the value of
the wire strand produced in Mexico and the value of the steel wire rope
sold in the United States is small within the meaning of section 781(a)
of the Tariff Act. Therefore, we affirm our preliminary determination
regarding these three criteria.
II. Factors
Subsequent to our preliminary determination, we did not request
additional information regarding the pattern of trade, the relationship
between the parties, and the volume of imports of steel wire strand.
Neither party challenged our preliminary determination regarding these
factors. Based on our analysis of these factors, we affirm our
preliminary determinations that (A) the data on the pattern of trade
indicate a shift from sales in the United States of steel wire rope
produced in Mexico toward sales of steel wire rope processed in the
United States from steel wire strand produced in Mexico; (B)
respondents are related parties; and (C) imports of steel wire strand
into the United States increased subsequent to the issuance of the
antidumping duty order.
Final Affirmative Determination of Circumvention
Based on the foregoing analysis, we determine that the respondent,
Camesa, is circumventing the antidumping duty order on steel wire rope
from Mexico. The merchandise produced in the United States, steel wire
rope, is of the same class or kind of merchandise as that subject to
the order, and is completed from an intermediate product produced in
Mexico, the country to which the order applies. Further, based on BIA,
we determine that the difference in value between the imported and
finished products is small. We also determine that the pattern of
trade, increase in imports of the intermediate product, and
relationship between Grupo Camesa and Camesa Inc., are consistent with
an affirmative determination of circumvention. We note that our
analysis of the difference in value and resulting determination of
``small'' in this case are not necessarily synonymous with such
determinations that the Department will formulate in future
circumvention inquiries since Congress has directed us to make
determinations regarding the difference in value on a case-by-case
basis.
Based on this final affirmative determination of circumvention, we
have determined that steel wire strand, when manufactured in Mexico by
Camesa and imported into the United States for use in the production of
steel wire rope, falls within the scope of the antidumping duty order
on steel wire rope from Mexico. We will inform Customs of this
decision, and will instruct it to continue to suspend liquidation of,
and require cash deposits, at the applicable rate, on entries of steel
wire strand manufactured in Mexico by Camesa.
No suspension of liquidation or collection of cash deposits is
required for steel wire strand produced by other manufacturers in
Mexico. In addition, no suspension of liquidation or collection of cash
deposits is required for steel wire strand produced by Camesa in Mexico
that enters with an end-use certificate certifying that the steel wire
strand will not be used for processing into steel wire rope. However,
if this documentation is not presented at the time of entry, the
merchandise produced by Camesa should be subject to the applicable cash
deposit requirement.
Interested parties should be advised that data and statements
supporting the exclusion of steel wire strand from this antidumping
duty order are subject to verification by the United States Government.
Interested parties may request disclosure within five days of the
date of publication of this notice.
This notice serves as the only reminder to parties subject to
administrative protective order (APO) of their responsibilities
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 353.34(d). Failure to
comply is a violation of the APO.
This final affirmative determination of circumvention is in
accordance with section 781(a) of the Tariff Act (19 U.S.C. 1677j(a))
and 19 CFR 353.29(e).
Dated: February 17, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-4900 Filed 2-27-95; 8:45 am]
BILLING CODE 3510-DS-M
