# Initiation of Countervailing Duty Investigation: Steel Wire Rod From Germany > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-5883 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** March 14, 1994 ## Text DEPARTMENT OF COMMERCE [C-428-819] Initiation of Countervailing Duty Investigation: Steel Wire Rod From Germany AGENCY: Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: March 14, 1994. FOR FURTHER INFORMATION CONTACT: Gary Bettger (202) 482-2239 or Jennifer Yeske (202) 482-0189, Office of Countervailing Investigations, Import Administration, room 3099, U.S. Department of Commerce, Washington, DC 20230. The Petition On February 14, 1994, we received a petition from by Connecticut Steel Corp., Georgetown Steel Corp., North Star Steel Texas, Inc., Co- Steel Raritan Co., Keystone Consolidated Industries and Northwestern Steel & Wire Co. (``Petitioners'') on behalf of the United States steel wire rod industry. In accordance with 19 CFR 355.12, petitioners allege that manufacturers, producers, or exporters of steel wire rod in Germany receive subsidies within the meaning of section 701 of the Tariff Act of 1930, as amended (the Act). Injury Test Because Germany is a ``country under the Agreement'' within the meaning of section 701(b) of the Act, title VII of the Act applies to this investigation. Accordingly, the U.S. International Trade Commission (ITC) must determine whether imports of the subject merchandise from Germany are materially injuring, or threatening material injury to, a U.S. industry. Standing Petitioners have stated that they are interested parties, as defined in section 771(9)(C) of the Act, and that they have filed the petition on behalf of the U.S. industry producing steel wire rod. 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, this petition, such party should file a written notification with the Assistant Secretary for Import Administration, in accordance with 19 CFR 355.31. Exclusion Requests Under the Department's regulations, any producer or reseller seeking exclusion from a potential countervailing duty order must submit its request for exclusion within 30 days of the date of publication of this notice. The procedures and requirements regarding the filing of such requests are contained in 19 CFR 355.14. Scope of Investigation The products covered by this investigation 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%, phosphorus 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 reinforcing bars; and Wire rod 7.9 to 18 mm in diameter, containing 0.48 to 0.73% carbon by weight, and having partial decarbonization and seams no more than 0.75 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 remains dispositive. Allegations of Subsidies Section 702(b) of the Act requires the Department to initiate a countervailing duty proceeding whenever an interested party files a petition, on behalf of an industry, that (1) alleges the elements necessary for the imposition of a duty under section 701(a), and (2) is accompanied by information reasonably available to the petitioner supporting the allegations. Initiation of Investigation The Department has examined the petition on steel wire rod from Germany and found that it complies with the requirements of section 702(b) of the Act. Therefore, in accordance with section 702 of the Act, we are initiating a countervailing duty investigation to determine whether manufacturers, producers or exporters of steel wire rod receive countervailable subsidies. The following programs are included in our investigation. 1. ``Ruckzahlungsverpflichten'' (RZVs) 2. Government Assumption of Debt 3. Debt Forgiveness by Private Banks 4. Worker Assistance under the European Coal and Steel Community's Article 56(2)(b). We are not including the following program which was alleged to be benefiting producers of the subject merchandise in Germany. The Government of Saarland's Capital Contribution to DHS of DM 145.1 Million Petitioners alleged that a DM 145.1 million payment by the Government of Saarland (GOS) constitutes a countervailable equity infusion. Petitioners base this allegation on their claim that the shares which the GOS received in exchange for this payment had a value of only DM 82.5 million, DM 62.5 million less than what the GOS paid. The question of whether this transaction constitutes a countervailable equity infusion was addressed in Certain Hot Rolled Lead and Bismuth Carbon Steel Products From Germany (58 FR 6233, January 27, 1993). The Department determined that the funds were provided on terms consistent with commercial considerations because at the same time that the GOS invested, two private investors also invested in DHS on the same terms. Petitioners have provided no new information in this petition indicating that this determination was incorrect. Therefore, the Department does not intend to re-investigate whether the investment was consistent with commercial considerations. ITC Notification Pursuant to section 702(d) of the Act, we have notified the ITC of this initiation. Preliminary Determinations By the ITC The ITC will determine by March 31, 1994, whether there is a reasonable indication that a United States industry is being materially injured, or threatened with material injury, by reason of steel wire rod imports from Germany. If the ITC makes a negative determination, we will terminate this proceeding; otherwise, the investigation will proceed according to statutory and regulatory time limits. This notice is published pursuant to 702(c)(2) of the Act and 19 CFR 355.13(b). Dated: March 4, 1994. Joseph A. Spetrini, Acting Assistant Secretary for Import Administration. [FR Doc. 94-5883 Filed 3-11-94; 8:45 am] BILLING CODE 3510-DS-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-5883. Public record. Not legal advice.