Initiation of Changed Circumstances Antidumping Duty Administrative Review: Carbon and Certain Alloy Steel Wire Rod From Canada, 11612-11614 [E5-996]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 70, Number 45 (Wednesday, March 9, 2005)]
[Notices]
[Pages 11612-11614]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-996]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-840]


Initiation of Changed Circumstances Antidumping Duty 
Administrative Review: Carbon and Certain Alloy Steel Wire Rod From 
Canada

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) is initiating a 
changed circumstances administrative review of the antidumping duty 
order of carbon and certain alloy steel wire rod (steel wire rod) from 
Canada \1\ in response to a request from Mittal Canada Inc. (Mittal), a 
Canadian exporter of steel wire rod from Canada to the United States. 
Mittal has requested that the Department conduct a changed 
circumstances review to determine that it is the successor-in-interest 
to Ispat Sidbec Inc. (Ispat), and as a result to find that steel wire 
rod manufactured and exported by Mittal should be accorded the same 
treatment previously accorded to Ispat in regards to the antidumping 
order on steel wire rod from Canada.
---------------------------------------------------------------------------

    \1\ See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Order: Carbon and Certain Alloy 
Steel Wire Rod from Canada, 67 FR 65944 (October 29, 2002) 
(Antidumping Order).

---------------------------------------------------------------------------
EFFECTIVE DATE: March 9, 2005.

FOR FURTHER INFORMATION CONTACT: Daniel O'Brien or David Neubacher, at 
(202) 482-1376 or (202) 482-5823, respectively; AD/CVD Operations, 
Office 1, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street & Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On October 29, 2002, the Department published in the Federal 
Register an antidumping duty order on steel wire rod from Canada. See 
Antidumping Order. One of the companies subject to the investigation 
was Ispat. On January 14, 2005, Mittal requested that the Department 
determine that it had become the successor-in-interest of Ispat. See 
Letter from Ispat to Assistant Secretary for Import administration, Re: 
Expedited Changed Circumstances Review to Determine that Mittal Canada 
Inc is the successor-in-interest to Ispat Sidbec Inc./Administrative 
Review of Antidumping Duty Order Regarding Carbon and Certain Alloy 
Steel Wire Rod from Canada (January 14, 2005).

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 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).

[[Page 11613]]

    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 non-deformable inclusions greater than 20 microns and no 
deformable inclusions greater than 35 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 non-deformable inclusions greater than 20 
microns and no deformable inclusions greater than 35 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).
    For purposes of the grade 1080 tire cord quality wire rod and the 
grade 1080 tire bead quality wire rod, an inclusion will be considered 
to be deformable if its ratio of length (measured along the axis--that 
is, the direction of rolling--of the rod) over thickness (measured on 
the same inclusion in a direction perpendicular to the axis of the rod) 
is equal to or greater than three. The size of an inclusion for 
purposes of the 20 microns and 35 microns limitations is the 
measurement of the largest dimension observed on a longitudinal section 
measured in a direction perpendicular to the axis of the rod. This 
measurement methodology applies only to inclusions on certain grade 
1080 tire cord quality wire rod and certain grade 1080 tire bead 
quality wire rod that are entered, or withdrawn from warehouse, for 
consumption on or after July 24, 2003.
    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.
    The products under review 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 Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), the Department will conduct a changed circumstances review 
upon request from an interested party or receipt of information 
concerning an antidumping duty order, when either of these shows 
changed circumstances sufficient to warrant a review of the order. In 
this case, the Department finds that the information submitted by 
Mittal provides sufficient evidence of changed circumstances to warrant 
a review to determine whether Mittal is the successor-in-interest to 
Ispat. Thus, in accordance with section 751(b) of the Act, the 
Department is initiating a changed circumstances review to determine 
whether Mittal is the successor-in-interest to Ispat for purposes of 
determining antidumping duty liability with respect to imports of steel 
wire rod from Canada produced and exported by Ispat and whether the 
order as applied to Ispat should apply to subject merchandise 
manufactured and exported by Mittal.
    In making a successor-in-interest determination, the Department 
examines several factors including, but not limited to, changes in: (1) 
Management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See, e.g., Notice of Final Results of Changed 
Circumstances Antidumping Duty Administrative Review: Polychloroprene 
Rubber From Japan, 67 FR 58 (Jan. 2, 2002); Brass Sheet and Strip from 
Canada: Final Results of Antidumping Duty Administrative Review, 57 FR 
20460, 20462 (May 13, 1992). While no single factor or combination of 
these factors will necessarily provide a dispositive indication of a 
successor-in-interest relationship, the Department will generally 
consider the new company to be the successor to the previous company if 
the new company's resulting operation is not materially dissimilar to 
that of its predecessor. See, e.g., Fresh and Chilled Atlantic Salmon 
from Norway; Final Results of Changed Circumstances Antidumping Duty 
Administrative Review, 64 FR 9979 (March 1, 1999); Industrial 
Phosphoric Acid from Israel; Final Results of Changed Circumstances 
Review, 59 FR 6944 (February 14, 1994). Thus, if the evidence 
demonstrates that, with respect to the production and sale of the 
subject merchandise, the new company operates as the same business 
entity as the former company, the Department will accord the new 
company the same antidumping treatment as its predecessor.
    With regard to Ispat, Mittal claims that the production facilities 
and contractual relationships with suppliers and customers remained 
unchanged after Mittal assumed control of the company. According to 
Mittal, its assets

[[Page 11614]]

have remained essentially the same as those of Ispat.
    Mittal has requested that the Department initiate an expedited 
review pursuant to section 751(b) of the Act and 19 CFR 
351.221(c)(3)(iii). However, because it is the Department's practice to 
examine changes in management and customer base as part of its analysis 
in such a determination, and Mittal has not addressed these factors, we 
are denying its request to conduct the changed circumstances review on 
an expedited basis.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances review, in accordance with 
19 CFR 351.221(c)(3)(i) (2004), which will set forth the factual and 
legal conclusions upon which our preliminary results are based, and a 
description of any action proposed based on those results. Interested 
parties may submit comments for consideration in the Department's 
preliminary results not later than 60 days after publication of this 
notice. Responses to those comments may be submitted not later than 10 
days following submission of the comments. All written comments must be 
submitted in accordance with 19 CFR 351.303 (2004), and must be served 
on all interested parties on the Department's service list in 
accordance with 19 CFR 351.303(f) (2004). The Department will issue its 
final results of review within 270 days after the date on which the 
changed circumstances review is initiated, in accordance with 19 CFR 
351.216(e) (2004), and will publish these results in the Federal 
Register.
    The current requirement for a cash deposit of estimated antidumping 
duties on all subject merchandise will continue unless and until it is 
modified pursuant to the final results of this changed circumstances 
review.
    This notice is in accordance with sections 751(b)(1) of the Act and 
19 CFR 351.216 and 351.222 of the Department's regulations.

    Dated: March 3, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-996 Filed 3-8-05; 8:45 am]
BILLING CODE 3510-DS-P