Stainless Steel Wire Rod From the Republic of Korea: Initiation of Circumvention Inquiry of Antidumping Duty Order, 5468-5470 [2022-01992]
Download as PDF
<![CDATA[
5468
Federal Register / Vol. 87, No. 21 / Tuesday, February 1, 2022 / Notices
following AD and CVD order(s) and
suspended investigation(s):
DOC case No.
A–570–049
A–570–038
A–580–899
A–570–036
A–533–869
C–570–050
C–570–039
C–570–037
C–533–870
........
........
........
........
........
........
........
........
........
ITC case No.
Country
Product
Commerce contact
731–TA–1329
731–TA–1310
731–TA–1091
731–TA–1309
731–TA–1308
701–TA–562
701–TA–555
701–TA–554
701–TA–552
China ................
China ................
China ................
China ................
India ..................
China ................
China ................
China ................
India ..................
Ammonium Sulfate (1st Review) .............................
Amorphous Silica Fabric (1st Review) ....................
Artist Canvas (3rd Review) .....................................
Biaxial Integral Geogrid Products (1st Review) ......
Off-The-Road Tires (1st Review) ............................
Ammonium Sulfate (1st Review) .............................
Amorphous Silica Fabric (1st Review) ....................
Biaxial Integral Geogrid Products (1st Review) ......
Off-The-Road Tires (1st Review) ............................
Thomas Martin, (202) 482–3936.
Jacky Arrowsmith, (202) 482–5255.
Mary Kolberg, (202) 482–1785.
Thomas Martin, (202) 482–3936.
Thomas Martin, (202) 482–3936.
Thomas Martin, (202) 482–3936.
Jacky Arrowsmith, (202) 482–5255.
Thomas Martin, (202) 482–3936.
Jacky Arrowsmith, (202) 482–5255.
tkelley on DSK125TN23PROD with NOTICE
Filing Information
As a courtesy, we are making
information related to sunset
proceedings, including copies of the
pertinent statute and Commerce’s
regulations, Commerce’s schedule for
Sunset Reviews, a listing of past
revocations and continuations, and
current service lists, available to the
public on Commerce’s website at the
following address: https://enforcement.
trade.gov/sunset/. All submissions in
these Sunset Reviews must be filed in
accordance with Commerce’s
regulations regarding format,
translation, and service of documents.
These rules, including electronic filing
requirements via Enforcement and
Compliance’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (ACCESS),
can be found at 19 CFR 351.303.
In accordance with section 782(b) of
the Act, any party submitting factual
information in an AD/CVD proceeding
must certify to the accuracy and
completeness of that information.
Parties must use the certification
formats provided in 19 CFR 351.303(g).
Commerce intends to reject factual
submissions if the submitting party does
not comply with applicable revised
certification requirements.
Letters of Appearance and
Administrative Protective Orders
Pursuant to 19 CFR 351.103(d),
Commerce will maintain and make
available a public service list for these
proceedings. Parties wishing to
participate in any of these five-year
reviews must file letters of appearance
as discussed at 19 CFR 351.103(d). To
facilitate the timely preparation of the
public service list, it is requested that
those seeking recognition as interested
parties to a proceeding submit an entry
of appearance within 10 days of the
publication of the Notice of Initiation.
Because deadlines in Sunset Reviews
can be very short, we urge interested
parties who want access to proprietary
information under administrative
VerDate Sep<11>2014
17:19 Jan 31, 2022
Jkt 256001
protective order (APO) to file an APO
application immediately following
publication in the Federal Register of
this notice of initiation. Commerce’s
regulations on submission of proprietary
information and eligibility to receive
access to business proprietary
information under APO can be found at
19 CFR 351.304–306. Note that
Commerce has temporarily modified
certain of its requirements for serving
documents containing business
proprietary information, until further
notice.1
Information Required From Interested
Parties
Domestic interested parties, as
defined in section 771(9)(C), (D), (E), (F),
and (G) of the Act and 19 CFR
351.102(b), wishing to participate in a
Sunset Review must respond not later
than 15 days after the date of
publication in the Federal Register of
this notice of initiation by filing a notice
of intent to participate. The required
contents of the notice of intent to
participate are set forth at 19 CFR
351.218(d)(1)(ii). In accordance with
Commerce’s regulations, if we do not
receive a notice of intent to participate
from at least one domestic interested
party by the 15-day deadline, Commerce
will automatically revoke the order
without further review.2
If we receive an order-specific notice
of intent to participate from a domestic
interested party, Commerce’s
regulations provide that all parties
wishing to participate in a Sunset
Review must file complete substantive
responses not later than 30 days after
the date of publication in the Federal
Register of this notice of initiation. The
required contents of a substantive
response, on an order-specific basis, are
set forth at 19 CFR 351.218(d)(3). Note
that certain information requirements
differ for respondent and domestic
1 See Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID–19, 85 FR 41363 (July
10, 2020).
2 See 19 CFR 351.218(d)(1)(iii).
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
parties. Also, note that Commerce’s
information requirements are distinct
from the ITC ’s information
requirements. Consult Commerce’s
regulations for information regarding
Commerce’s conduct of Sunset Reviews.
Consult Commerce’s regulations at 19
CFR part 351 for definitions of terms
and for other general information
concerning antidumping and
countervailing duty proceedings at
Commerce.
This notice of initiation is being
published in accordance with section
751(c) of the Act and 19 CFR 351.218(c).
Dated: January 18, 2022.
James Maeder,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations.
[FR Doc. 2022–02026 Filed 1–31–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–829]
Stainless Steel Wire Rod From the
Republic of Korea: Initiation of
Circumvention Inquiry of Antidumping
Duty Order
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to an allegation of
circumvention from North American
Stainless (NAS), the Department of
Commerce (Commerce) is initiating a
country-wide circumvention inquiry to
determine whether imports of stainless
steel round wire (SS round wire) from
the Socialist Republic of Vietnam
(Vietnam) are circumventing the
antidumping duty (AD) order on
stainless steel wire rod (SSWR) from the
Republic of Korea (Korea).
DATES: Applicable February 1, 2022.
FOR FURTHER INFORMATION CONTACT:
Hermes Pinilla, AD/CVD Operations,
Office I, Enforcement and Compliance,
International Trade Administration,
AGENCY:
E:\FR\FM\01FEN1.SGM
01FEN1
Federal Register / Vol. 87, No. 21 / Tuesday, February 1, 2022 / Notices
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–3477.
Scope of the Order
For a complete description of the
scope of the Order, see Appendix I.
SUPPLEMENTARY INFORMATION:
Merchandise Subject to the
Circumvention Inquiry
This circumvention inquiry covers
SSWR from Korea that has been colddrawn and further processed into SS
round wire in Vietnam and exported
into the United States.
Background
tkelley on DSK125TN23PROD with NOTICE
On May 18, 2021, NAS, a domestic
producer of SSWR requested that
Commerce initiate a circumvention
inquiry proceeding, pursuant to section
781(c) of the Tariff Act of 1930, as
amended (the Act) and 19 CFR
351.225(i), to determine whether SS
round wire from Vietnam involves a
minor alteration to subject merchandise,
such that it should be subject to the
order 1 on SSWR from Korea.2 On July
12, 2021, we issued a supplemental
questionnaire.3 On July 26, 2021, NAS
responded to our supplemental
questionnaire.4 On July 2, 2021, August
12, 2021, and again on September 22,
2021, we extended the deadline by 45
days respectively, to determine whether
to initiate the circumvention allegation.5
Because we granted NAS an extension
of time to respond to Commerce’s
second supplemental questionnaire
response, on November 10, 2021, we
determined that additional time was
required to review and assess NAS’s
request for Commerce to determine
whether to initiate a circumvention
inquiry and, therefore, extended the
deadline by 60 days, until January 14,
2022. On November 19, 2021, NAS
responded to our second supplemental
questionnaire.6 On January 4, 2022, we
extended the deadline by 14 days, until
January 28, 2022.7
1 See Notice of Amendment of Final
Determination of Sales at Less Than Fair Value and
Antidumping Duty Order: Stainless Steel Wire Rod
from Korea, 63 FR 49331 (September 15, 1998)
(Order).
2 See NAS’s Letter, ‘‘Stainless Steel Wire Rod
from the Republic of Korea—Request for
Circumvention Ruling Pursuant to Section 781(c),’’
dated May 18, 2021 (Circumvention Allegation).
3 See Commerce’s Letter, ‘‘Request for Initiation
of Anti-Circumvention Inquiry of Antidumping
Duty Order on Stainless Steel Wire Rod from the
Republic of Korea: Supplemental Questionnaire,’’
dated July 12, 2021.
4 See NAS’s Letter, ‘‘Stainless Steel Wire Rod
from Korea—NAS’s Response to the Department’s
Supplemental Questionnaire,’’ dated July 26, 2021.
5 See Memoranda, ‘‘Stainless Steel Wire Rod from
the Republic of Korea: Extension of Time to
Determine Whether to Initiate Anti-Circumvention
Inquiry,’’ dated July 2, 2021, August 12, 2021, and
September 22, 2021.
6 See NAS’ Letter, ‘‘Stainless Steel Wire Rod from
Korea—NAS’ Response to the Department’s 2nd
Supplemental Questionnaire,’’ dated November 19,
2021.
7 See Memorandum, ‘‘Stainless Steel Wire Rod
from the Republic of Korea: Extension of Time to
Determine Whether to Initiate Anti-Circumvention
Inquiry,’’ dated January 4, 2022.
VerDate Sep<11>2014
17:19 Jan 31, 2022
Jkt 256001
Legal Framework
Section 781(c) of the Act provides that
Commerce may find circumvention of
an AD or countervailing duty (CVD)
order when products which are of the
class or kind as merchandise subject to
an AD or CVD order have been ‘‘altered
in form or appearance in minor respects
. . . whether or not included in the
same tariff classification.’’ Section
781(c)(2) of the Act provides an
exception that ‘‘{p}aragraph 1 shall not
apply with respect to altered
merchandise if the administering
determines that it would be unnecessary
to consider the altered merchandise
within the scope of the {order}.’’
While the Act is silent as to what
factors to consider in determining
whether alterations are properly
considered ‘‘minor,’’ the legislative
history of this provision indicates that
there are certain factors that should be
considered before reaching a
circumvention determination. In
conducting a circumvention inquiry
under section 781(c) of the Act,
Commerce has generally relied upon
‘‘such criteria as the overall physical
characteristics of the merchandise, the
expectations of the ultimate users, the
use of the merchandise, the channels of
marketing and the cost of any
modification relative to the total value
of the imported products.’’ 8 Concerning
the allegation of minor alteration under
section 781(c) of the Act and 19 CFR
351.225(i), Commerce examines such
factors as: (1) Overall physical
characteristics; (2) expectations of
ultimate users; (3) use of merchandise;
(4) channels of marketing; and (5) cost
of any modification relative to the value
of the imported products.9
Analysis
After analyzing the record evidence
and the petitioner’s allegation, we
determine that there is sufficient
8 See Certain Vertical Shaft Engines Between 99c
and Up To 225c, and Parts Thereof, from the
People’s Republic of China: Initiation of AntiCircumvention Inquiry of Antidumping and
Countervailing Duty Orders—600cc Up To 99cc
Engines, 86 FR 51866 (September 17, 2021).
9 Id.; see also Deacero S.A. de C.V. v. United
States, 817 F.3d 1332 (Fed. Cir. 2016).
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
5469
information to at minimum warrant the
initiation of a minor alterations
circumvention inquiry, pursuant to
section 781(c) of the Act and 19 CFR
351.225(i).10 For a full discussion of the
basis for our decision to initiate a minor
alterations circumvention inquiry, see
the Initiation Decision Memorandum.11
The Initiation Decision Memorandum is
a public document, on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://access.
trade.gov. In addition, a complete
version of the Initiation Decision
Memorandum is available at https://
access.trade.gov/public/FRNotices
ListLayout.aspx. As explained in the
Initiation Decision Memorandum, the
information provided by NAS warrants
initiating this circumvention inquiry on
a country-wide basis. Commerce has
taken this approach in prior
circumvention inquiries, where the facts
warranted initiation on a country-wide
basis.12
Consistent with the approach in the
prior circumvention inquiries that were
initiated on a country-wide basis,
Commerce intends to issue
questionnaires to solicit information
from producers and exporters in
Vietnam concerning their shipments of
SS round wire to the United States
made from SSWR produced in Korea. A
company’s failure to respond
completely to Commerce’s requests for
information may result in the
application of partial or total facts
available, pursuant to section 776(a) of
the Act, which may include adverse
10 See Memorandum, ‘‘Decision Memorandum for
Initiation of -Circumvention Inquiry,’’ dated
concurrently with, and hereby adopted by, this
notice (Initiation Decision Memorandum). The
record evidence necessary for initiating a
circumvention inquiry differ from a determination
of circumvention. See also, e.g., Hydrofluorocarbon
Blends from the People’s Republic of China;
Initiation of the Anticircumvention Inquiry of
Antidumping Duty Order; Components, 84 FR
28273 (June 18, 2019).
11 Id.
12 See, e.g., Certain Corrosion-Resistant Steel
Products from the Republic of Korea and Taiwan:
Initiation of Anti-Circumvention Inquiries on the
Antidumping Duty and Countervailing Duty Orders,
83 FR 37785 (August 2, 2018); Carbon Steel ButtWeld Pipe Fittings from the People’s Republic of
China: Initiation of Anti-Circumvention Inquiry on
the Antidumping Duty Order, 82 FR 40556, 40560
(August 25, 2017) (stating at initiation that
Commerce would evaluate the extent to which a
country-wide finding applicable to all exports
might be warranted); and Certain CorrosionResistant Steel Products from the People’s Republic
of China: Initiation of Anti-Circumvention Inquiries
on the Antidumping Duty and Countervailing Duty
Orders, 81 FR 79454, 79458 (November 14, 2016)
(stating at initiation that Commerce would evaluate
the extent to which a country-wide finding
applicable to all exports might be warranted).
E:\FR\FM\01FEN1.SGM
01FEN1
5470
Federal Register / Vol. 87, No. 21 / Tuesday, February 1, 2022 / Notices
inferences, pursuant to section 776(b) of
the Act.
Conclusion
Commerce will determine whether
the merchandise subject to the inquiry
(as described in the ‘‘Merchandise
Subject to the Circumvention Inquiry’’
section above) is circumventing the
Order such that it should be included
within the scope of the Order, pursuant
to section 781(c) of the Act and 19 CFR
351.225(i).
In accordance with 19 CFR
351.225(1)(2), if Commerce issues a
preliminary affirmative determination,
we will then instruct U.S. Customs and
Border Protection to suspend
liquidation and require a cash deposit of
estimated duties, at the applicable rate,
for each unliquidated entry of the
merchandise at issue entered or
withdrawn from warehouse for
consumption on or after the date of
initiation of the inquiry.
Commerce will establish a schedule
for questionnaires and comments on the
issues related to the inquiry. In
accordance with section 781(f) of the
Act, to the maximum extent practicable,
Commerce intends to issue its final
determination within 300 days of the
date of publication of this initiation.
Notification to Interested Parties
This notice is published in
accordance with sections 781(c) of the
Act and 19 CFR 351.225(i).
Dated: January 26, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and
Compliance.
tkelley on DSK125TN23PROD with NOTICE
Jkt 256001
K–M35FL
Carbon—0.015 max
Silicon—0.70/1.00
Manganese—0.40 max
Phosphorous—0.04 max
Sulfur—0.03 max
Nickel—0.30 max
Chromium—12.50/14.00
Lead—0.10/0.30
Aluminum—0.20/0.35
The products subject to this order are
currently classifiable under subheadings
7221.00.0005, 7221.00.0015, 7221.00.0030,
7221.00.0045, and 7221.00.0075 of the
Harmonized Tariff Schedule of the United
States (HTSUS). Although the HTSUS
subheadings are provided for convenience
and customs purposes, the written
description of the merchandise is dispositive.
Appendix II
I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the
Circumvention Inquiry
V. Legal Framework
VI. Analysis
VII. Country-Wide Circumvention Inquiries
VIII. Recommendation
BILLING CODE 3510–DS–P
Stainless Steel Wire Rod, which comprises
products that are hot-rolled or hot-rolled
annealed and/or pickled and/or descaled
rounds, squares, octagons, hexagons or other
shapes, in coils, that may also be coated with
a lubricant containing copper, lime or
oxalate. SSWR is made of alloy steels
containing, by weight, 1.2 percent or less of
carbon and 10.5 percent or more of
chromium, with or without other elements.
These products are manufactured only by
hot-rolling or hot-rolling, annealing, and/or
pickling and/or descaling, are normally sold
in coiled form, and are of solid cross-section.
The majority of SSWR sold in the United
States is round in cross-sectional shape,
annealed and pickled, and later cold-finished
into stainless steel wire or small-diameter
bar.
The most common size for such products
is 5.5 millimeters or 0.217 inches in
diameter, which represents the smallest size
that normally is produced on a rolling mill
and is the size that most wire-drawing
machines are set up to draw. The range of
SSWR sizes normally sold in the United
States is between 0.20 inches and 1.312
17:19 Jan 31, 2022
SF20T
Carbon—0.05 max
Manganese—2.00 max
Phosphorous—0.05 max
Sulfur—0.15 max
Silicon—1.00 max
Chromium—19.00/21.00
Molybdenum—1.50/2.50
Lead—added (0.10/0.30)
Tellurium—added (0.03 min)
[FR Doc. 2022–01992 Filed 1–31–22; 8:45 am]
Appendix I—Scope of the Order
VerDate Sep<11>2014
inches diameter. Two stainless steel grades,
SF20T and K–M35FL, are excluded from the
scope of the investigation. The chemical
makeup for the excluded grades is as follows:
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XB730]
Advisory Committee Open Session on
Management Strategy Evaluation for
Atlantic Bluefin Tuna
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of meeting.
AGENCY:
NMFS is holding a public
meeting via webinar for the Advisory
Committee to the U.S. Section to the
International Commission for the
Conservation of Atlantic Tunas (ICCAT)
and all interested stakeholders to
receive an update and provide input on
SUMMARY:
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
the development of the management
strategy evaluation for Atlantic bluefin
tuna.
DATES: A virtual meeting that is open to
the public will be held on February 25,
2022, from 1:30 p.m. to 3 p.m. EST.
ADDRESSES: Please register to attend the
meeting at: https://forms.gle/
f8L6jxsmstXRC2b47. Registration will
close on February 24, 2022, at 5 p.m.
EST. Instructions for accessing the
virtual meeting will be emailed to
registered participants.
FOR FURTHER INFORMATION CONTACT:
Bryan Keller, Office of International
Affairs and Seafood Inspection, (301)
427–7725 or at Bryan.Keller@noaa.gov.
SUPPLEMENTARY INFORMATION:
Management strategy evaluation (MSE)
is a process that allows fishery managers
and stakeholders (e.g., industry,
scientists, and non-governmental
organizations) to assess how well
different strategies achieve specified
management objectives for a fishery.
After several years of work, ICCAT
expects to finalize its bluefin tuna MSE
in 2022 and anticipates adopting a
management procedure in November
2022 to set Total Allowable Catch
(TACs) for 2023 and future years for
both the western Atlantic and eastern
Atlantic and Mediterranean stocks of
bluefin tuna. NMFS and the United
States more broadly participate in this
MSE development process and have
been engaging stakeholders and
considering their input throughout the
process through various means,
including consultation with the
Advisory Committee to the U.S. Section
to ICCAT. The United States also
participates in the development of the
bluefin tuna MSE through active
engagement by U.S. scientists in
ICCAT’s Standing Committee on
Research and Statistics (SCRS).
The February 25 meeting is intended
to update stakeholders and solicit their
input on the MSE approach being
developed by ICCAT. This includes
SCRS progress in developing initial
candidate management procedures
(CMPs) illustrating potential
management tradeoffs and the related
process by ICCAT to refine management
objectives to assist the SCRS in further
refining and narrowing those CMPs.
This open session Advisory Committee
meeting is primarily informational in
nature and intended to increase the
opportunity for stakeholder awareness
and input on the bluefin tuna MSE
process. Discussions at the meeting will
help to inform U.S. scientists who are
participating in work of the SCRS. In
addition, while no binding decisions or
formal, consensus-based
E:\FR\FM\01FEN1.SGM
01FEN1
]]>Agencies
[Federal Register Volume 87, Number 21 (Tuesday, February 1, 2022)]
[Notices]
[Pages 5468-5470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01992]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-829]
Stainless Steel Wire Rod From the Republic of Korea: Initiation
of Circumvention Inquiry of Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to an allegation of circumvention from North
American Stainless (NAS), the Department of Commerce (Commerce) is
initiating a country-wide circumvention inquiry to determine whether
imports of stainless steel round wire (SS round wire) from the
Socialist Republic of Vietnam (Vietnam) are circumventing the
antidumping duty (AD) order on stainless steel wire rod (SSWR) from the
Republic of Korea (Korea).
DATES: Applicable February 1, 2022.
FOR FURTHER INFORMATION CONTACT: Hermes Pinilla, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration,
[[Page 5469]]
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-3477.
SUPPLEMENTARY INFORMATION:
Background
On May 18, 2021, NAS, a domestic producer of SSWR requested that
Commerce initiate a circumvention inquiry proceeding, pursuant to
section 781(c) of the Tariff Act of 1930, as amended (the Act) and 19
CFR 351.225(i), to determine whether SS round wire from Vietnam
involves a minor alteration to subject merchandise, such that it should
be subject to the order \1\ on SSWR from Korea.\2\ On July 12, 2021, we
issued a supplemental questionnaire.\3\ On July 26, 2021, NAS responded
to our supplemental questionnaire.\4\ On July 2, 2021, August 12, 2021,
and again on September 22, 2021, we extended the deadline by 45 days
respectively, to determine whether to initiate the circumvention
allegation.\5\ Because we granted NAS an extension of time to respond
to Commerce's second supplemental questionnaire response, on November
10, 2021, we determined that additional time was required to review and
assess NAS's request for Commerce to determine whether to initiate a
circumvention inquiry and, therefore, extended the deadline by 60 days,
until January 14, 2022. On November 19, 2021, NAS responded to our
second supplemental questionnaire.\6\ On January 4, 2022, we extended
the deadline by 14 days, until January 28, 2022.\7\
---------------------------------------------------------------------------
\1\ See Notice of Amendment of Final Determination of Sales at
Less Than Fair Value and Antidumping Duty Order: Stainless Steel
Wire Rod from Korea, 63 FR 49331 (September 15, 1998) (Order).
\2\ See NAS's Letter, ``Stainless Steel Wire Rod from the
Republic of Korea--Request for Circumvention Ruling Pursuant to
Section 781(c),'' dated May 18, 2021 (Circumvention Allegation).
\3\ See Commerce's Letter, ``Request for Initiation of Anti-
Circumvention Inquiry of Antidumping Duty Order on Stainless Steel
Wire Rod from the Republic of Korea: Supplemental Questionnaire,''
dated July 12, 2021.
\4\ See NAS's Letter, ``Stainless Steel Wire Rod from Korea--
NAS's Response to the Department's Supplemental Questionnaire,''
dated July 26, 2021.
\5\ See Memoranda, ``Stainless Steel Wire Rod from the Republic
of Korea: Extension of Time to Determine Whether to Initiate Anti-
Circumvention Inquiry,'' dated July 2, 2021, August 12, 2021, and
September 22, 2021.
\6\ See NAS' Letter, ``Stainless Steel Wire Rod from Korea--NAS'
Response to the Department's 2nd Supplemental Questionnaire,'' dated
November 19, 2021.
\7\ See Memorandum, ``Stainless Steel Wire Rod from the Republic
of Korea: Extension of Time to Determine Whether to Initiate Anti-
Circumvention Inquiry,'' dated January 4, 2022.
---------------------------------------------------------------------------
Scope of the Order
For a complete description of the scope of the Order, see Appendix
I.
Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers SSWR from Korea that has been
cold-drawn and further processed into SS round wire in Vietnam and
exported into the United States.
Legal Framework
Section 781(c) of the Act provides that Commerce may find
circumvention of an AD or countervailing duty (CVD) order when products
which are of the class or kind as merchandise subject to an AD or CVD
order have been ``altered in form or appearance in minor respects . . .
whether or not included in the same tariff classification.'' Section
781(c)(2) of the Act provides an exception that ``{p{time} aragraph 1
shall not apply with respect to altered merchandise if the
administering determines that it would be unnecessary to consider the
altered merchandise within the scope of the {order{time} .''
While the Act is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors that should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \8\ Concerning the allegation
of minor alteration under section 781(c) of the Act and 19 CFR
351.225(i), Commerce examines such factors as: (1) Overall physical
characteristics; (2) expectations of ultimate users; (3) use of
merchandise; (4) channels of marketing; and (5) cost of any
modification relative to the value of the imported products.\9\
---------------------------------------------------------------------------
\8\ See Certain Vertical Shaft Engines Between 99c and Up To
225c, and Parts Thereof, from the People's Republic of China:
Initiation of Anti-Circumvention Inquiry of Antidumping and
Countervailing Duty Orders--600cc Up To 99cc Engines, 86 FR 51866
(September 17, 2021).
\9\ Id.; see also Deacero S.A. de C.V. v. United States, 817
F.3d 1332 (Fed. Cir. 2016).
---------------------------------------------------------------------------
Analysis
After analyzing the record evidence and the petitioner's
allegation, we determine that there is sufficient information to at
minimum warrant the initiation of a minor alterations circumvention
inquiry, pursuant to section 781(c) of the Act and 19 CFR
351.225(i).\10\ For a full discussion of the basis for our decision to
initiate a minor alterations circumvention inquiry, see the Initiation
Decision Memorandum.\11\ The Initiation Decision Memorandum is a public
document, on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Initiation
Decision Memorandum is available at https://access.trade.gov/public/FRNoticesListLayout.aspx. As explained in the Initiation Decision
Memorandum, the information provided by NAS warrants initiating this
circumvention inquiry on a country-wide basis. Commerce has taken this
approach in prior circumvention inquiries, where the facts warranted
initiation on a country-wide basis.\12\
---------------------------------------------------------------------------
\10\ See Memorandum, ``Decision Memorandum for Initiation of -
Circumvention Inquiry,'' dated concurrently with, and hereby adopted
by, this notice (Initiation Decision Memorandum). The record
evidence necessary for initiating a circumvention inquiry differ
from a determination of circumvention. See also, e.g.,
Hydrofluorocarbon Blends from the People's Republic of China;
Initiation of the Anticircumvention Inquiry of Antidumping Duty
Order; Components, 84 FR 28273 (June 18, 2019).
\11\ Id.
\12\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from
the People's Republic of China: Initiation of Anti-Circumvention
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August
25, 2017) (stating at initiation that Commerce would evaluate the
extent to which a country-wide finding applicable to all exports
might be warranted); and Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at
initiation that Commerce would evaluate the extent to which a
country-wide finding applicable to all exports might be warranted).
---------------------------------------------------------------------------
Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to issue
questionnaires to solicit information from producers and exporters in
Vietnam concerning their shipments of SS round wire to the United
States made from SSWR produced in Korea. A company's failure to respond
completely to Commerce's requests for information may result in the
application of partial or total facts available, pursuant to section
776(a) of the Act, which may include adverse
[[Page 5470]]
inferences, pursuant to section 776(b) of the Act.
Conclusion
Commerce will determine whether the merchandise subject to the
inquiry (as described in the ``Merchandise Subject to the Circumvention
Inquiry'' section above) is circumventing the Order such that it should
be included within the scope of the Order, pursuant to section 781(c)
of the Act and 19 CFR 351.225(i).
In accordance with 19 CFR 351.225(1)(2), if Commerce issues a
preliminary affirmative determination, we will then instruct U.S.
Customs and Border Protection to suspend liquidation and require a cash
deposit of estimated duties, at the applicable rate, for each
unliquidated entry of the merchandise at issue entered or withdrawn
from warehouse for consumption on or after the date of initiation of
the inquiry.
Commerce will establish a schedule for questionnaires and comments
on the issues related to the inquiry. In accordance with section 781(f)
of the Act, to the maximum extent practicable, Commerce intends to
issue its final determination within 300 days of the date of
publication of this initiation.
Notification to Interested Parties
This notice is published in accordance with sections 781(c) of the
Act and 19 CFR 351.225(i).
Dated: January 26, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Order
Stainless Steel Wire Rod, which comprises products that are hot-
rolled or hot-rolled annealed and/or pickled and/or descaled rounds,
squares, octagons, hexagons or other shapes, in coils, that may also
be coated with a lubricant containing copper, lime or oxalate. SSWR
is made of alloy steels containing, by weight, 1.2 percent or less
of carbon and 10.5 percent or more of chromium, with or without
other elements. These products are manufactured only by hot-rolling
or hot-rolling, annealing, and/or pickling and/or descaling, are
normally sold in coiled form, and are of solid cross-section. The
majority of SSWR sold in the United States is round in cross-
sectional shape, annealed and pickled, and later cold-finished into
stainless steel wire or small-diameter bar.
The most common size for such products is 5.5 millimeters or
0.217 inches in diameter, which represents the smallest size that
normally is produced on a rolling mill and is the size that most
wire-drawing machines are set up to draw. The range of SSWR sizes
normally sold in the United States is between 0.20 inches and 1.312
inches diameter. Two stainless steel grades, SF20T and K-M35FL, are
excluded from the scope of the investigation. The chemical makeup
for the excluded grades is as follows:
SF20T
Carbon--0.05 max
Manganese--2.00 max
Phosphorous--0.05 max
Sulfur--0.15 max
Silicon--1.00 max
Chromium--19.00/21.00
Molybdenum--1.50/2.50
Lead--added (0.10/0.30)
Tellurium--added (0.03 min)
K-M35FL
Carbon--0.015 max
Silicon--0.70/1.00
Manganese--0.40 max
Phosphorous--0.04 max
Sulfur--0.03 max
Nickel--0.30 max
Chromium--12.50/14.00
Lead--0.10/0.30
Aluminum--0.20/0.35
The products subject to this order are currently classifiable
under subheadings 7221.00.0005, 7221.00.0015, 7221.00.0030,
7221.00.0045, and 7221.00.0075 of the Harmonized Tariff Schedule of
the United States (HTSUS). Although the HTSUS subheadings are
provided for convenience and customs purposes, the written
description of the merchandise is dispositive.
Appendix II
I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Legal Framework
VI. Analysis
VII. Country-Wide Circumvention Inquiries
VIII. Recommendation
[FR Doc. 2022-01992 Filed 1-31-22; 8:45 am]
BILLING CODE 3510-DS-P
