[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Notices]
[Pages 15829-15831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8550]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-122-826]
Notice of Amendment to Final Determination of Sales at Less Than
Fair Value: Steel Wire Rod From Canada
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Amendment to Final Determination of Sales at Less
Than Fair Value.
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EFFECTIVE DATE: April 1, 1998.
FOR FURTHER INFORMATION CONTACT: Abdelali Elouaradia at 202/482-2243,
or James C. Doyle at 202/482-0159, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC. 20230.
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the Tariff Act of 1930
(``the Act'') as amended, are references to the provisions effective
January 1, 1995, the effective date of the amendments made to the Act
by the Uruguay Round Agreements Act (``URAA''). In addition, unless
otherwise indicated, all citations to the Department's regulations are
references to the provisions codified at 19 CFR part 353 (April 1997).
Although the Department's new regulations, codified at 19 CFR part 351
(62 FR 27296 (May 19, 1997)) do not govern these proceedings, citations
to those regulations are provided, where appropriate, to explain
current departmental practice.
Scope of the Investigation
The products covered by this investigation 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
investigation:
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.''
Coiled products 11 mm to 12.5 mm in 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 0.72 percent; manganese
0.50-1.10 percent; phosphorus less than or equal to 0.030 percent;
sulfur less than or equal to 0.035 percent; and silicon 0.10-0.35
percent. This product is free of injurious piping and undue
segregation. The use
[[Page 15830]]
of this excluded product is to fulfill contracts for the sale of Class
III pipe wrap wire in conformity with ASTM specification A648-95 and
imports of this product must be accompanied by such a declaration on
the mill certificate and/or sales invoice. This excluded product is
commonly referred to as ``Semifinished Class III Pipe Wrapping Wire.''
The products under investigation 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,
our written description of the scope of this investigation is
dispositive.
Exclusion of Pipe Wrapping Wire
As stated in the Preliminary Determination, North American Wire
Products Corporation (``NAW''), an importer of the subject merchandise
from Germany, requested that the Department exclude SWR used to
manufacture Class III pipe wrapping wire from the scope of the
antidumping and countervailing duty investigations of SWR from Canada,
Germany, Trinidad and Tobago, and Venezuela. Because petitioners did
not agree to this scope exclusion, we did not exclude this merchandise
in the preliminary determination. On December 22, 1997, NAW submitted
to the Department a proposed exclusion definition. On December 30, 1997
and January 7, 1998, the petitioners submitted letters concurring with
the definition of the scope exclusion and requesting exclusion of this
product from the scope of the investigation. We have reviewed NAW's
request and petitioners' comments and have excluded SWR for
manufacturing Class III pipe wrapping wire from the scope of this
investigation. See Memorandum to Richard W. Moreland dated January 12,
1998. Accordingly, on February 3, 1998, we instructed the U.S. Customs
Service to terminate suspension of liquidation on all entries of Class
III pipe wrapping wire from Canada.
Amendment of Final Determination
On February 24, 1998, the Department of Commerce (the Department)
published the Notice of Final Determination of Sales at Less than Fair
Value: Steel Wire Rod From Canada (63 FR 9182) (``Final
Determination''). This notice covered Sidbec-Dosco (Ispat) Inc. (now
Ispat-Sidbec), Stelco, Inc. (``Stelco''), and Ivaco, Inc. (``Ivaco'').
The period of investigation (``POI'') for all respondents was January
1, 1996 through December 31, 1996.
On February 20, 1998, respondent Ivaco filed timely allegations of
ministerial errors with regard to the Final Determination. On February
27, 1998, counsel for petitioners in this investigation (Connecticut
Steel Group, Co-Steel Raritan, GS Industries, Inc., Keystone Steel &
Wire Co., North Star Steel Texas, Inc., and Northwestern Steel & Wire
Co.) filed timely allegations of ministerial errors and replies to
Ivaco's comments. On March 16, 1998, Ivaco filed timely replies to
petitioners' comments. We have reviewed the submissions of both
petitioners and respondents, and we are issuing an amended final
determination based on the corrections of ministerial errors as
detailed below.
First, Ivaco states that the Department made a calculation error in
the code which defines home market freight expense for Ivaco Rolling
Mill's (IRM) direct sales to unaffiliated customers and to a particular
affiliated customer. Ivaco alleges this error resulted in the
Department not calculating the freight expense incurred in transporting
the subject merchandise to these customers in the home market.
Petitioners agree with Ivaco that the Department made a calculation
error in the code which defines home market freight expense for IRM's
direct sales to unaffiliated customers. However, petitioners disagree
that the Department erred in calculating freight expenses for sales to
affiliated customers.
The Department agrees with both parties that a ministerial error
was made when calculating home market freight expense for IRM's direct
sales to unaffiliated customers, and has corrected the program
accordingly. However, the Department has not erred in calculating
freight expenses for IRM's direct sales to affiliated customers,
therefore, no changes were made to the program.
Second, Ivaco maintains that due to a programming error the margin
program fails to apply the level of trade (LOT) adjustment for Ivaco's
sales. According to Ivaco, the error occurs because the Department
relies on the CON2 data set, and that the variable in the home market
data set used to identify LOT is not recognized by the program code.
Consequently, in these instances, no level of trade adjustment is
applied.
Petitioners maintain that LOT adjustment is not warranted, but
agree that the margin program fails to apply it. Petitioners propose
new code lines to the program to correct the error.
The Department agrees with both parties that the margin program
fails to apply the LOT adjustment and accordingly has corrected it by
adding the appropriate code lines to the program.
Third, Ivaco states that the Department improperly applied the
yield adjustment factor to all Ivaco sales, instead of only to Ivaco
sales of processed rod, as the Department intended.
Petitioners state that using facts available in the record, and
given the total inability of Ivaco to provide the necessary
information, the Department, with its limited resources and time, was
more than justified in employing this calculation.
The Department agrees with Ivaco that it has erred in applying the
yield adjustment factor to all Ivaco sales. The Department intended to
apply yield adjustment factor to only Ivaco sales of processed rod. See
Cost Disclosure Memorandum at 2.
Fourth, Petitioners claim that the Department erred when
calculating the constructed export price, and that the variable INDEXUS
should be replaced by INDEXPU, which is inclusive of inventory carrying
costs and indirect selling expenses, as expressed in the Department's
calculation memorandum.
Ivaco agrees that the Department inadvertently erred when
calculating the constructed export price but disagrees that the
adjustment should also include domestic indirect selling expenses.
The Department agrees with Ivaco that when calculating the
constructed export price, the Department adjusts for expenses
associated with commercial activities in the United States in
accordance with section 772(d)(1). We have, therefore, replaced the
variable INDEXUS with the variable INDEXPU exclusive of domestic
indirect selling expenses.
Finally, Ivaco claims that the Constructed Value (CV) calculation
uses one weighted-average selling expense and one weighted-average
profit figure for both of Ivaco's LOTs, rather than calculating
separate CVs for each LOT by using weighted average values at each LOT,
as the Department intended.
Petitioners claim that the Department has already rejected Ivaco's
claim that CV should be calculated by LOT; therefore, this is not a
ministerial error and the language proposed by Ivaco is methodological
in nature.
Ivaco raised this issue in its comments on the preliminary
determination, and the Department disagreed that the program for the CV
calculation should be changed as Ivaco suggested. We therefore, agree
with petitioners that it is inappropriate to
[[Page 15831]]
correct the CV program as a ministerial error under 735(e) of the Act.
Amended Final Determination
The revised weighted average dumping margins are :
------------------------------------------------------------------------
Margin
Manufacturer/exporter Time period (percent)
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Ivaco Inc................................ 1/1/96-12/31/96 6.95
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This determination is published pursuant to section 735(d) of the
Act, 19 U.S.C. 1673d(d) and 19 CFR 353.28(c).
Dated: March 25, 1998.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 98-8550 Filed 3-31-98; 8:45 am]
BILLING CODE 3510-DS-P
