Carbon and Certain Alloy Steel Wire Rod From Mexico: Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order, 33218-33219 [2011-14047]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Notices]
[Pages 33218-33219]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14047]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-830]


Carbon and Certain Alloy Steel Wire Rod From Mexico: Initiation 
of Anti-Circumvention Inquiry of Antidumping Duty Order

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

DATES: Effective Date: June 8, 2011.

FOR FURTHER INFORMATION CONTACT: Jolanta Lawska or Eric B. Greynolds, 
AD/CVD Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
8362 and (202) 482-6071, respectively.

SUPPLEMENTARY INFORMATION: In separate submissions filed on February 
11, 2011, ArcelorMittal USA LLC, Gerdau Ameristeel U.S. Inc., and Rocky 
Mountain Steel, a division of Evraz Inc. NA, (collectively 
ArcelorMittal USA, et al.) and Nucor Corporation and Cascade Steel 
Rolling Mills, Inc. (collectively, Nucor/Cascade) requested that the 
Department of Commerce (the Department) initiate a scope inquiry, under 
19 CFR 351.225(k)(2) to determine whether wire rod with an actual 
diameter between 4.75 and 5.00 millimeters (mm) is within the scope of 
the antidumping (AD) order on carbon and certain alloy steel wire rod 
from Mexico.\1\ See Notice of Antidumping Duty Orders: Carbon and 
Certain Alloy Steel Wire Rod from Brazil, Indonesia, Mexico, Moldova, 
Trinidad and Tobago, and Ukraine, 67 FR 65945 (October 29, 2002) (Wire 
Rod Order). Alternatively, petitioners argue that the Department should 
initiate an anti-circumvention inquiry with regard to two Mexican 
firms, Deacero S.A. de C.V. (Deacero) and Ternium Mexico S.A. de C.V. 
(Ternium), and find that wire rod with an actual diameter between 4.75 
and 5.00 mm produced by these firms constitutes a ``minor alteration'' 
or a ``later developed product'' thereby resulting in shipments of such 
wire rod from Deacero and Ternium falling within the scope of the Wire 
Rod Order. See 19 CFR 351.225(i) and (j); see also sections 781(c) and 
(d) of the Tariff Act of 1930, as amended (the Act).
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    \1\ The term petitioners refers collectively to ArcelorMittal 
USA, et. al. and Nucro/Cascade.
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    On March 14 and 23, 2011, Deacero filed comments rebutting 
petitioners' arguments. On March 24 and 25, 2011, petitioners responded 
to Deacero's comments. On March 25, 2011, Illinois Tool Works Inc. 
(ITW) filed comments objecting to petitioners' allegations. On March 
28, 2011, the Department extended until May 16, 2011, the deadline for 
determining whether to initiate an inquiry into petitioners' 
allegations. On April 18, 2011, petitioners responded to the comments 
of ITW. On May 3, 2011, Deacero responded to the comments made in 
petitioners' March 24, and 25, 2011, submissions.

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 Harmonized Tariff Schedule of 
the United States (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).
    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 inclusions greater than 20 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 inclusions greater than 20 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).
    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.

[[Page 33219]]

    The products within the scope of this order 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 Minor Alterations Anti-Circumvention Proceeding

    Section 781(c) of the Act provides that the Department may find 
circumvention of an AD order when products which are of the class or 
kind of merchandise subject to an AD order have been ``altered in form 
or appearance in minor respects * * * whether or not included in the 
same tariff classification.'' Based on the arguments and information 
contained in petitioners' allegation, we find that there is a 
sufficient basis to initiate an anti-circumvention inquiry pursuant to 
section 781(c) of the Act and 19 CFR 351.225(i) to determine whether 
wire rod with an actual diameter measuring between 4.75 mm and 5.00 mm 
results from a minor alteration, and thus, a change so insignificant as 
to render such wire rod subject to the Wire Rod Order. For a summary of 
the comments received from interested parties and further discussion of 
the Department's basis for initiating this minor alteration inquiry, 
see the accompanying Memorandum to Ronald K. Lorentzen, Deputy 
Assistant Secretary for Import Administration, ``Initiation of Minor 
Alteration Circumvention Inquiry on Wire Rod With an Actual Diameter 
Between 4.75 and 5.00 Millimeters,'' (Initiation Memorandum), of which 
the public version is on file in the Central Records Unit (CRU), Room 
7046 of the main Department of Commerce building.
    As explained in the Initiation Memorandum, the Department has 
declined to initiate on petitioners' allegation that the wire rod at 
issue constitutes a later-developed product as described under section 
781(d) and 19 CFR 351.225(j). We based our determination on information 
submitted by Deacero that indicates that a Japanese firm made small-
diameter wire rod (e.g., rod with diameters as narrow as 4.2 mm) 
commercially available prior to the filing of the petition.
    In addition, we have declined to initiate a scope inquiry under 19 
CFR 351.225(k)(2) as requested by petitioners. As explained in the 
Initiation Memorandum, we find that the petition from the underlying 
investigation as well as information from the International Trade 
Commission (ITC) referenced in the petition indicates that the 
diameters referenced in the scope of the Wire Rod Order pertain to 
actual diameters. Therefore, we find that wire rod with an actual 
diameter of less than 5.00 mm is not within the scope of the Wire Rod 
Order.
    Our finding under 19 CFR 351.225 (k)(1), that wire rod with an 
actual diameter that is less than 5.00 mm is not within the scope of 
the Wire Rod Order, is consistent with our decision under 19 CFR 
351.225(i) To initiate a minor alteration anti-circumvention inquiry 
concerning wire rod with an actual diameter between 4.75 mm and 5.00 
mm. In Nippon Steel the Court of Appeals for the Federal Circuit (CAFC) 
found that the Department may be precluded from conducting a minor 
alteration inquiry in instances in which the product is well-known 
prior to the order and was specifically excluded from the 
investigation. See Nippon Steel Corp. v. United States, 219 F.3d 1348, 
1356 (Fed. Cir. 2000) (Nippon Steel). The Wire Rod Order does not 
specifically exclude wire rod with an actual diameter between 4.75 mm 
and 5.00 mm and, thus, the conditions necessary to preclude a minor 
alteration inquiry are not present. The Department reached the same 
conclusion in this regard in the Wax Candles from the PRC Inquiry 
Prelim, which was upheld in the Wax Candles from the PRC Inquiry. See 
Later-Developed Merchandise Anticircumvention Inquiry of the 
Antidumping Duty Order on Petroleum Wax Candles from the People's 
Republic of China: Affirmative Preliminary Determination of 
Circumvention of the Antidumping Duty Order, 71 FR 32033, 32037 (June 
2, 2006) (Wax Candles from the PRC Inquiry Prelim), see also Later-
Developed Merchandise Anti-Circumvention Inquiry of the Antidumping 
Duty Order on Petroleum Wax Candles from the People's Republic of 
China: Affirmative Final Determination of Circumvention of the Anti-
Dumping Duty Order, 71 FR 59076-59076 (October 6, 2006) (Wax Candles 
from the PRC Inquiry), and accompanying Issues and Decision Memorandum 
(Wax Candles from the PRC Inquiry Decision Memorandum).
    We are initiating this minor alteration anti-circumvention inquiry 
on Deacero and Ternium, the Mexican firms identified by petitioners in 
their circumvention allegations. However, within 45 days of the 
issuance of the initiation of this inquiry, if the Department receives 
sufficient evidence that other Mexican manufacturers are involved in 
the production of wire rod with an actual diameter between 4.75 mm and 
5.00 mm, we will consider examining such additional manufacturers.
    In accordance with 19 CFR 351.225(l)(2), if the Department issues a 
preliminary affirmative determination, we will then instruct CBP to 
suspend liquidation and require a cash deposit of estimated duties on 
the merchandise from firms covered by the determination.
    The Department will, following consultation with interested 
parties, establish a schedule for questionnaires and comments on the 
issues. The Department intends to issue its final determination within 
300 days of the date of publication of this initiation.
    This notice is published in accordance with sections 781(c) and 
781(d) of the Act and 19 CFR 351.225(i).

    Dated: May 31, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-14047 Filed 6-7-11; 8:45 am]
BILLING CODE 3510-DS-P