[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5881]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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DEPARTMENT OF COMMERCE
[A-423-807, A-428-818]
Initiation of Antidumping Duty Investigations: Steel Wire Rod
From Belgium and Germany
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: March 14, 1994.
FOR FURTHER INFORMATION CONTACT: Ellen Grebasch or Erik Warga, Office
of Antidumping Investigations, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3773 or (202) 482-0922, respectively.
Initiation of Investigations:
The Petitions
On February 14, 1994, we received petitions filed in proper form by
the Connecticut Steel Corp., Georgetown Steel Corp., Keystone Steel &
Wire Co., North Star Steel Texas, Inc., Co-Raritan River Steel Co., and
Northwestern Steel & Wire Co. (petitioners). At the request of the
Department of Commerce (the Department), petitioners filed a supplement
to the petitions to correct methodological errors and support the data
presented. In accordance with 19 CFR 353.12, petitioners allege that
imports of steel wire rod (SWR) from Belgium and Germany are being, or
are likely to be, sold in the United States at less than fair value
within the meaning of section 731 of the Tariff Act of 1930, as amended
(the Act), and that these imports are materially injuring, or threaten
material injury to, a U.S. industry.
Petitioners have stated that they have standing to file the
petitions because they are interested parties, as defined under section
771(9)(C) of the Act, and because the petitions are filed on behalf of
the U.S. industry producing the product subject to these
investigations. If any interested party, as described under paragraphs
(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register
support for, or opposition to, these petitions, it should file a
written notification with the Acting Assistant Secretary for Import
Administration.
Under the Department's regulations, any producer or reseller
seeking exclusion from a potential antidumping duty order must submit
its request for exclusion within 30 days of the date of the publication
of this notice. The procedures and requirements are contained in 19 CFR
353.14.
Scope of Investigations
The products covered by these investigations are hot-rolled carbon
steel and alloy steel wire rod, in coils, of approximately round cross
section, between 0.20 and 0.75 inches in solid cross-sectional
diameter. The following products are excluded from the scope of this
investigation:
Steel wire rod 5.5 mm or less in diameter, with tensile
strength greater than or equal to 1040 MPa, and the following chemical
content, by weight: carbon greater than or equal to 0.79%, aluminum
less than or equal to 0.005%, phosphorous plus sulfur less than or
equal to 0.040%, and nitrogen less than or equal to 0.006%;
Free-machining steel containing, by weight, 0.03% or more
of lead, 0.05% or more of bismuth, 0.08% or more of sulfur, more than
0.4% of phosphorus, more than 0.05% of selenium, and/or more than 0.01%
of tellurium;
Stainless steel rods, tool steel rods, ball bearing steel
rods, and deformed concrete reinforcing bars; and
Wire rod 7.9 to 18 mm in diameter, containing 0.48 to
0.73% carbon by weight, and having partial decarburization and seams no
more than 0.075 mm in depth.
The products under investigation are currently classifiable under
subheadings 7213.31.3000, 7213.31.6000, 7213.39.0030, 7213.39.0090,
7213.41.3000, 7213.41.6000, 7213.49.0030, 7213.49.0090, 7213.50.0020,
7213.50.0040, 7213.50.0080, 7227.20.0000, and 7227.90.6050 of the
Harmonized Tariff Schedule of the United States (HTSUS). Although the
HTSUS subheadings are provided for convenience and customs purposes,
our written description of the scope of this investigation is
dispositive.
United States Price and Foreign Market Value
Belgium
Petitioners based United States Price (USP) on competitive pricing
information obtained through their own business activity and supported
with affidavits. This information included delivered prices of SWR to
unrelated U.S. customers. Petitioners calculated USP by subtracting
movement charges (including U.S. customs duties), and adjusting for
Belgian taxes.
FMV was based on home market price quotes for identical
merchandise, exclusive of value-added tax (VAT). Petitioners calculated
FMV by subtracting movement charges, and converted the prices to U.S.
dollars using contemporaneous exchange rates found in the U.S. Customs
Bulletin. Petitioners made a circumstance of sale adjustment for
differences in credit expenses. Petitioners also calculated the amount
of VAT in accordance with the Department's methodology as discussed in
Stainless Steel Wire Rod from France (58 FR 68865, December 29, 1993)
(Final Determination) and added the resulting amount to both USP and
FMV.
Germany
Petitioners based USP on competitive pricing information obtained
through their own business activity and supported with affidavits. This
information included delivered prices of SWR to unrelated U.S.
customers. Petitioners calculated USP by subtracting movement charges
(including U.S. customs duties), and adjusting for German taxes.
FMV was based on home market price quotes for identical merchandise
or, if non-identical, merchandise which would presumably have a lower
cost of production (COP) than the U.S. merchandise, exclusive of value-
added tax (VAT). Petitioners calculated FMV by subtracting movement
charges, and converted the prices to U.S. dollars using contemporaneous
exchange rates found in the U.S. Customs Bulletin. Petitioners made a
circumstance of sale adjustment for differences in credit expenses.
Petitioners also calculated the amount of VAT in accordance with the
Department's methodology as discussed in Stainless Steel Wire Rod from
France (58 FR 68865, December 29, 1993)(Final Determination) and added
the resulting amount to both USP and FMV.
Allegations of Sales Below Cost of Production
Petitioners allege that Forges de Thy-Marcinelle, a potential
respondent in the Belgium investigation, is selling the subject
merchandise in the home market at prices below its COP. This allegation
is based on a comparison of company-specific home market prices with
the COP. COP was based on the costs of a comparable U.S. producer
adjusted for known differences in the country of production.
Based on the information presented, we have reasonable grounds to
believe or suspect that the home market sales of Forges de Thy-
Marcinelle are being made at less than COP. See Memorandum to Marie E.
Parker from C.M. Miller dated March 4, 1994, which is on file in the
Import Administration Central Records Unit. Accordingly, pursuant to
section 773(b) of the Act and 19 CFR 353.51, we will initiate a COP
investigation with respect to this company if it is named as a
respondent in the investigation.
Petitioners also allege that specific potential respondents in the
German investigation are selling the subject merchandise in the home
market at prices below their COP. These allegations are based on a
comparison of company-specific home market prices with the COP. COP was
based on the costs of a comparable U.S. producer adjusted for known
differences in the country of production, and/or company-specific
information, and on the company's financial statements, when
applicable.
Based on the information presented, we have reasonable grounds to
believe or suspect that the home market sales of the following German
producers are being made at less than COP: Stahl-und Walzwerk
Brandenburg GmbH, Saarstahl AG, and Thyssen Stahl AG. See Memorandum to
Marie E. Parker from C.M. Miller dated March 4, 1994, which is on file
in the Import Administration Central Records Unit. Accordingly,
pursuant to Section 773(b) of the Act and 19 CFR 353.51, we will
initiate COP investigations with respect to each of these companies if
they are named as a respondent in the investigation.
Alleged Dumping Margins
The range of positive dumping margins of SWR from Belgium based on
price-to-price and price-to-CV comparisons of USP to FMV alleged by
petitioners, corrected for minor errors, is 5.69% to 52.34%.
The range of positive dumping margins of SWR from Germany based on
price-to-price and price-to-CV comparisons of USP to FMV alleged by
petitioners, corrected for minor errors, is 2.77% to 72.09%.
Initiation of Investigations
We have examined the petitions for SWR from Belgium and Germany, as
amended, and have found that the petitions meet the requirements of
section 732(b) of the Act. Therefore, we are initiating antidumping
duty investigations to determine whether imports of SWR from Belgium
and Germany are being, or are likely to be, sold in the United States
at less than fair value. If these investigations proceed normally, we
will make our preliminary determinations by July 25, 1994.
ITC Notification
Section 732(d) of the Act requires us to notify the International
Trade Commission (ITC) of these actions and we have done so.
Preliminary Determinations by the ITC
The ITC will determine by March 31, 1994, whether there is a
reasonable indication that imports of SWR from Belgium and Germany are
materially injuring, or threaten material injury to, a U.S. industry. A
negative ITC determination in any of these investigations will result
in its termination; otherwise, the investigations will proceed
according to statutory and regulatory time limits.
This notice is published pursuant to section 732(c)(2) of the Act
and 19 CFR 353.13(b).
Dated: March 7, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-5881 Filed 3-11-94; 8:45 am]
BILLING CODE 3510-DS-P
