Suspension of Countervailing Duty Investigation: Steel Wire Rod From Venezuela

DEPARTMENT OF COMMERCE

International Trade Administration

[C-307-814]

Suspension of Countervailing Duty Investigation: Steel Wire Rod

From Venezuela

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

SUMMARY: The Department of Commerce (the Department) has suspended the

countervailing duty investigation involving steel wire rod from

Venezuela. The basis for the suspension is an agreement between the

Department and the Government of Venezuela (GOV) wherein the GOV has

agreed not to provide any export subsidies or import substitution

subsidies on the subject merchandise and has agreed to restrict the

volume of direct or indirect exports to the United States of subject

merchandise from all Venezuelan producers/exporters in order to

eliminate completely the injurious effects of exports of this

merchandise to the United States.

EFFECTIVE DATE: October 22, 1997.

FOR FURTHER INFORMATION CONTACT: Jean Kemp or Donna Kinsella, Office of

Antidumping/Countervailing Duty Enforcement, Group III, Import

Administration, U.S. Department of Commerce, Room 1874, 14th Street and

Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-

2104.

SUPPLEMENTARY INFORMATION:

Background

On March 24, 1997, the Department initiated a countervailing duty

investigation under section 702 of the Tariff Act of 1930, (the Act),

as amended, to determine whether manufacturers, producers, or exporters

of steel wire rod from Venezuela receive subsidies (62 FR 13866). On

April 30, 1997, the United States International Trade Commission (ITC)

notified the Department of its affirmative preliminary injury

determination. On May 2, 1997, we postponed the preliminary

determination until no later than July 28, 1997 (62 FR 25172, May 8,

1997).

On July 28, 1997, the Department preliminarily determined that

countervailable subsidies are being provided to CVG-Siderurgica del

Orinoco (62 FR 41927, August 4, 1997). From August 27 through September

8, 1997, the Department verified the questionnaire responses of the GOV

and SIDOR in Venezuela.

The Department and the GOV initialed a proposed agreement

suspending this investigation on September 12, 1997. Interested parties

were informed that the Department intended to finalize the agreement on

October 14, 1997, and were invited to provide written comments on the

agreement. Comments were timely filed by the GOV on October 3, 1997.

The Department and the GOV signed the final suspension agreement on

October 14, 1997.

Scope of Suspension Agreement

The products covered by this suspension of investigation are set

forth in section II of the Appendix to this notice.

Suspension of Investigation

The Department consulted with the parties to the proceeding and has

considered the comments submitted with respect to the proposed

suspension agreement. (See October 14, 1997, Memorandum to the File Re:

Analysis of Comments Submitted by Interested Parties, which is a public

document on file in the Central Records Unit in room B-099 of the main

Commerce building.) In accordance with section 704(c) of the Act, we

have determined that extraordinary circumstances are present

[[Page 54967]]

in this case, as defined by section 704(c)(4) of the Act. (See October

14, 1997, Extraordinary Circumstances Memorandum to Robert S. LaRussa,

which is a public document on file in the Central Records Unit in room

B-099 of the main Commerce building.)

The suspension agreement provides that: (1) The GOV will restrict

the volume of direct or indirect exports to the United States of

subject merchandise from all Venezuelan producers/exporters; and (2)

the GOV will not provide any export subsidies or import substitution

subsidies on the subject merchandise.

We have also determined that the suspension agreement can be

monitored effectively and is in the public interest, pursuant to

section 704(d) of the Act. (See October 14, 1997, Public Interest

Memorandum to Robert S. LaRussa, which is a public document on file in

the Central Records Unit in room B-099 of the main Commerce building.)

We find, therefore, that the criteria for suspension of the

investigation pursuant to section 704(c) of the Act have been met. The

terms and conditions of the suspension agreement, signed October 14,

1997, are set forth in the Appendix to this notice.

The suspension of liquidation ordered in the final affirmative

determination in this case shall continue in effect, subject to section

704(h)(3) of the Act. Section 704(f)(2)(B) of the Act provides that the

Department may adjust the security required to reflect the effect of

the Agreement. Pursuant to this provision, the Department has found

that the Agreement eliminates completely the injurious effects of

imports and, thus, the Department is adjusting the security required

from producers and/or exporters to zero.

On October 14, 1997, we received a request from petitioners

requesting that we continue the investigation. Pursuant to this

request, we are continuing the investigation in accordance with section

704(g) of the Act. We will notify the International Trade Commission

(ITC) of our determination. If the ITC's injury determination is

negative, the agreement will have no force or effect, and the

investigation will be terminated (see section 704(f)(3)(A) of the Act).

If the ITC's determination is affirmative, the Department will not

issue a countervailing duty order as long as the suspension agreement

remains in force (see section 704(f)(3)(B) of the Act).

This notice is published pursuant to section 704(f)(1)(A) of the

Act.

Dated: October 14, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

Agreement Suspending the Countervailing Duty Investigation on Steel

Wire Rod From Venezuela

For the purpose of encouraging free and fair trade in steel wire

rod, establishing more normal market relations, and eliminating injury

to the domestic industry, the United States Department of Commerce

(``the Department'') and the Government of Venezuela enter into this

suspension agreement (``the Agreement'').

Pursuant to this Agreement, the Government of Venezuela agrees not

to provide any export subsidies on the subject merchandise. The

Government of Venezuela also will restrict the volume of direct or

indirect exports to the United States of subject merchandise from all

Venezuela producers/exporters, subject to the terms and provisions set

forth below.

On the basis of this Agreement, pursuant to the provisions of

Sections 704 (b) and (c) of the Tariff Act of 1930, as amended (the

``Act'') (19 U.S.C. 1671c (b) and (c)), the Department shall suspend

its countervailing duty investigation with respect to steel wire rod

produced in Venezuela, subject to the terms and provisions set forth

below.

I. Definitions

For purposes of this Agreement, the following definitions apply:

A. ``Date of Export'' for imports of subject merchandise into the

United States shall be considered the date the Export License was

issued.

B. ``Party to the Proceeding'' means any interested party, within

the meaning of Section 355.2(l) of the Department's Regulations, which

actively participates through written submissions of factual

information or written argument.

C. ``Indirect Exports'' means arrangements as defined in Section

IV.E of this Agreement and exports from Venezuela through one or more

third countries, whether or not such exports are further processed

whether or not such exports are sold in one or more third countries

prior to importation into the United States and whether or not the

Venezuela producer knew the product was destined to enter the United

States.

D. For purposes of this Agreement, ``United States'' shall comprise

the customs territory of the United States of America (the 50 States,

the District of Columbia and Puerto Rico) and foreign trade zones

located in the territory of the United States of America.

E. ``Export License'' is the document which serves as both an

export license and a certificate of origin. An Export License must

accompany all shipments of subject merchandise from Venezuela to the

United States, and must contain all of the information enumerated in

the Appendix (U.S. sales), except Date of Entry information and Final

Destination.

F. ``Relevant Period'' for the export limit of this Agreement means

the period October 1 through September 30.

``For Consumption'' means all subject merchandise sold to

customers, such as, trading companies, distributors, resellers, end-

users, or service centers.

``End-User'' means an entity, such as a steel service center,

reseller, trading company, end-user, etc., which consumes the subject

merchandise as defined in I (G).

II. Product Coverage

The products covered by this Agreement (``subject merchandise'')

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

Agreement:

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

[[Page 54968]]

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.''

The products subject to this Agreement 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, the written description of the scope of this

Agreement is dispositive.

III. Non-Provision of Export Subsidies

A. The Government of Venezuela certifies that all exports of the

subject merchandise to the United States made on or after the effective

date of this Agreement are not and will not be eligible for any export

or import substitution subsidies.

B. The Government of Venezuela recognizes that the provision of

export or import substitution subsidies on the production or shipment

of the subject merchandise exported directly or indirectly from

Venezuela to the United States may result in termination of this

Agreement and resumption of the investigation pursuant to the

provisions of section 704(i) of the Act. Export and import substitution

subsidies include those subsidies that have been determined to be

export or import substitution subsidies in the preliminary

determination in the countervailing duty investigation underlying this

agreement (unless the investigation is continued and a contrary

decision is reached in the final determination), in any final U.S.

countervailing duty investigation of a Venezuela product, or in any

final review of a Venezuela product under section 751 of the Act, and

include subsidies which may apply to other products or exports to other

destinations to the extent that such subsidies cannot be segregated as

applying solely to such other products or exports.

C. The Government of Venezuela shall notify the Department in

writing of any new benefit which is, or which Venezuela has reason to

know would be, an export or import substitution subsidy on shipments of

the subject merchandise exported, directly or indirectly, from

Venezuela to the United States, including subsidies which may apply to

both the subject merchandise and other products or exports to other

destinations, to the extent such benefits cannot be segregated as

applying solely to such other products or exports.

IV. Export Limit

A. The export limit for subject merchandise in each Relevant Period

shall be 60,000 short tons. The export limit for each Relevant Period

shall be allocated in semi-annual quota allocation periods (October-

March, April-September). No more than 60% of the export limit for any

Relevant Period can be allocated in any given semi-annual quota

allocation period. Deductions from the export limit shall be made based

on the ``Date of Export,'' as defined in Section I.

B. On or after the effective date of this Agreement, the Government

of Venezuela will restrict the volume of direct or indirect exports of

subject merchandise to the United States, and the transfer or

withdrawal from inventory of subject merchandise (consistent with the

provisions of Section IV.D), in accordance with the export limit then

in effect.

C. An export shipment to the United States may not be made for more

than the entire amount of quota allocated for that semi-annual quota

allocation period. Any amount exported to the United States during a

semi-annual quota allocation period shall not, however, when cumulated

with all prior exports to the United States within the same Relevant

Period, exceed the annual quota for that Relevant Period.

D. Any inventories of subject merchandise produced by a Venezuela

entity, currently held in the United States by a Venezuela entity, and

imported into the United States between May 6, 1997 and the effective

date of this Agreement will be subject to the following conditions:

1. Such inventories will not be transferred or withdrawn from

inventory for consumption in the United States without an Export

License issued by the Government of Venezuela. Any such transfers or

withdrawals from inventory shall be deducted from the export limit in

effect at the time the Export License is issued.

2. A request for an Export License under this provision shall be

accompanied by a report specifying the original date of export, the

date of entry into the United States, the identity of the original

exporter and importer, the customer, a complete description of the

product (including lot numbers and other available identifying

documentation), and the quantity expressed in pounds.

3. In the event that there is a surge of sales of subject

merchandise from such inventory, the Department will decrease the

export limit to take into account such sales.

E. Any arrangement involving the exchange, sale, or delivery of

steel wire rod products, as described in Section II, from Venezuela, to

the degree it results in the sale or delivery in the United States of

steel wire rod products, as described in Section II, from a country

other than Venezuela, is subject to the requirements of Section V and

will be counted toward the available quota. Any such transaction that

does not comply with the requirements of Section V will be deducted

from the available quota pursuant to Section VII.

F. Where subject merchandise is imported into the United States and

is subsequently re-exported, or re-packaged and re-exported, the

available quota shall be increased by the amount of pounds re-exported.

Such increase will be applicable to the Relevant Period corresponding

to the time of such re-export. Such increase will be applied only after

the Department receives, and has the opportunity to verify, evidence

demonstrating original importation, any re-packaging, and subsequent

exportation. The re-exported material must be identical to the imported

material.

G. Export Licenses for a given Relevant Period may not be issued

after September 30, except that Export Licenses not so issued may be

issued during the first three months of the following Relevant Period,

up to a maximum of 15 percent of the export limit for that following

Relevant Period. Such ``carried-over'' quota shall be counted against

the export limit applicable to the previous Relevant Period.

Export Licenses for up to 15 percent of the export limit for a

subsequent Relevant Period may be issued as early as August 1 of the

preceding Relevant Period. Such ``carried-back'' quota shall be counted

against the export limit applicable to the following Relevant Period.

H. For the first 90 days after the effective date of this

Agreement, subject merchandise shall be admitted into the United States

with an ``Export License/Certificate of Origin (Temporary Papers).''

The volume of any such imports will be deducted from the export

limit applicable to the first Relevant Period. A full reporting of any

such imports, which must correspond to the United States sales

information detailed in the Appendix, must be submitted to the

Department no later than 30 days after the conclusion of the 90 day

period. This data must be sorted on the basis of date of export.

[[Page 54969]]

V. Export License

A. The Government of Venezuela will restrict the volume of direct

or indirect exports of subject merchandise to the United States by

means of semi-annual quota allocations and Export Licenses. Export

Licenses shall be issued by the Government of Venezuela for all direct

or indirect exports of subject merchandise to the United States in

accordance with the export limit in Section IV.

B. Thirty days following the semi-annual allocation of quota rights

for any Relevant Period, the Government of Venezuela shall provide to

the Department a report identifying each quota recipient and the volume

of quota which each recipient has been accorded (``report of quota

allocation results'').

C. Before it issues an Export License, the Government of Venezuela

will ensure that neither the annual quota for the Relevant Period nor

the semi-annual quota allocation is exceeded.

D. The Government of Venezuela shall take action, including the

imposition of penalties, as may be necessary to make effective the

obligations resulting from the export limit and Export Licenses. The

Government of Venezuela will inform the Department of any violations

concerning the export limit and/or Export Licenses which come to its

attention and the action taken with respect thereto.

The Department will inform the Government of Venezuela of

violations concerning the export limit and/or Export Licenses which

come to its attention and the action taken with respect thereto.

E. Export Licenses will be issued sequentially, will be endorsed

against the export limit for the Relevant Periods, and will reference

the report of quota allocation results for the appropriate Relevant

Period.

F. Export Licenses must be issued no earlier than one month before

the day, month, and year on which the merchandise is accepted by a

transportation company, as indicated in the bill-of-lading or a

comparable transportation document, for export. Export Licenses must

contain an English language translation.

G. On or after the effective date of this Agreement, the United

States shall require presentation of an Export License as a condition

for entry of subject merchandise into the United States. The United

States will prohibit the entry of any subject merchandise not

accompanied by an Export License.

VI. Implementation

A. Export Subsidies

The Government of Venezuela shall certify to the Department, in

accordance with the reporting schedule in Section VIII.C., whether it

continues to be in compliance with the Agreement by providing that all

exports of the subject merchandise to the United States are not and

will not be eligible for any export subsidies, as provided in Section

III.A. Failure to supply such information or certification in a timely

fashion may result in the immediate resumption of the investigation or

issuance of a countervailing duty order.

B. Export Limit

In order to effectively restrict the volume of exports of subject

merchandise to the United States, the Government of Venezuela agrees to

implement the following procedures:

1. Establish an Export License program for all exports of subject

merchandise to, or destined directly or indirectly for consumption in,

the United States, no later than 90 days after the effective date of

this Agreement.

2. Ensure compliance by any official Venezuela institution,

chamber, or other entities authorized by the Government of Venezuela,

all producers, exporters, brokers, and traders of the subject

merchandise, and their affiliated parties, with all procedures

established in order to effectuate this Agreement.

3. Collect information from all Venezuela producers, exporters,

brokers, and traders of the subject merchandise, and their affiliated

parties, on the sale of the subject merchandise, and report such

information pursuant to Section VIII of this Agreement.

4. Prohibit, by resolution, decree, legislation or equivalent

Government action, direct and indirect exports to the United States of

subject merchandise except with an Export License issued pursuant to

Section V.A. and impose strict sanctions, such as penalties or

prohibition from participation in the export limit allowed by the

Agreement, in the event that any Venezuela or Venezuela-affiliated

party does not comply in full with all the terms of the Agreement.

VII. Anticircumvention

A. The Government of Venezuela will take all appropriate measures

under Venezuela law to prevent circumvention of this Agreement. It

shall promptly conduct an inquiry into any and all allegations of

circumvention, including allegations raised by the Department, and

shall complete such inquiries in a timely manner (normally within 45

days). The Government of Venezuela shall notify the Department of the

results of its inquiries within ten days of the conclusion of such

inquiries. Within 15 days of a request from the Department, the

Government of Venezuela shall share with the Department all facts known

to the Government of Venezuela regarding its inquiries, its analysis of

such facts and the results of such inquiries. The Government of

Venezuela will require all Venezuela exporters of steel wire rod

products, as described in Section II, to include a provision in their

contracts for sales to countries other than the United States that the

steel wire rod sold through such contracts cannot be re-exported,

transhipped or swapped to the United States, or otherwise used to

circumvent the export limit of this Agreement. The Government of

Venezuela will also establish appropriate mechanisms to enforce this

requirement.

B. If, in an inquiry pursuant to paragraph A, the Government of

Venezuela determines that a Venezuela company has participated in a

transaction that resulted in circumvention of the export limit of this

Agreement, then the Government of Venezuela shall impose penalties on

such company including, but not limited to, denial of access to the

steel wire rod quota. Additionally, the Government of Venezuela shall

deduct an amount of steel wire rod equivalent to the amount involved in

such circumvention from the available quota and shall immediately

notify the Department of the amount deducted. If sufficient quota is

not available in the current Relevant Period, then the remaining amount

necessary shall be deducted from the subsequent Relevant Period.

C. If the Government of Venezuela determines that a company from a

third country has circumvented the Agreement and the signatories agree

that no Venezuela entity participated in or had knowledge of such

activities, then the signatories shall hold consultations for the

purpose of sharing evidence regarding such circumvention and reaching

mutual agreement on the appropriate steps to be taken to eliminate such

circumvention, such as the Government of Venezuela prohibiting sales of

Venezuela steel wire rod to the company responsible or reducing steel

wire rod exports to the country in question. If the signatories are

unable to reach mutual agreement within 45 days, then the Department

may take appropriate action, such as deducting the amount of steel wire

rod involved in such circumvention from

[[Page 54970]]

the available quota, taking into account all relevant factors. Before

taking such action, the Department will notify the Government of

Venezuela of the facts and reasons constituting the basis for the

Department's intended action and will afford the Government of

Venezuela ten days in which to comment.

D. If the Department determines that a Venezuela entity

participated in circumvention, the signatories shall hold consultations

for the purpose of sharing evidence regarding such circumvention and

reaching mutual agreement on an appropriate resolution of the problem.

If the signatories are unable to reach mutual agreement within 45 days,

the Department may take appropriate action, such as deducting the

amount of steel wire rod involved in such circumvention from the

available quota or instructing the U.S. Customs Service to deny entry

to any subject merchandise sold by the entity found to be circumventing

the Agreement. Before taking such action, the Department will notify

the Government of Venezuela of the facts and reasons constituting the

basis for the Department's intended action and will afford the

Government of Venezuela ten days in which to comment.

E. The Department shall direct the U.S. Customs Service to require

all importers of steel wire rod, as described in Section II, into the

United States, regardless of stated country of origin, to submit at the

time of entry a written statement certifying that the steel wire rod

being imported was not obtained under any arrangement, swap, or other

exchange which would result in the circumvention of the export limit

established by this Agreement. Where the Department has reason to

believe that such a certification has been made falsely, the Department

will refer the matter to the U.S. Customs Service or the Department of

Justice for further action.

F. Given the fungibility of the world steel wire rod market, the

Department will take the following factors into account in

distinguishing normal steel wire rod market arrangements, swaps, or

other exchanges from arrangements which would result in the

circumvention of the export limit established by this Agreement:

1. Existence of any verbal or written arrangements which would

result in the circumvention of the export limit established by this

Agreement;

2. Existence of any arrangement as defined in Section IV.E that was

not reported to the Department pursuant to Section VIII.A;

3. Existence and function of any subsidiaries or affiliates of the

parties involved;

4. Existence and function of any historical and/or traditional

trading patterns among the parties involved;

5. Deviations (and reasons for deviation) from the above patterns,

including physical conditions of relevant steel wire rod facilities;

6. Existence of any payments unaccounted for by previous or

subsequent deliveries, or any payments to one party for merchandise

delivered or swapped by another party;

7. Sequence and timing of the arrangements; and

8. Any other information relevant to the transaction or

circumstances.

G. ``Swaps'' include, but are not limited to:

Ownership swaps--involve the exchange of ownership of any type of

steel wire rod product(s) without physical transfer. These may include

exchange of ownership of steel wire rod products in different

countries, so that the parties obtain ownership of products located in

different countries; or exchange of ownership of steel wire rod

products produced in different countries, so that the parties obtain

ownership of products of different national origin.

Flag swaps--involve the exchange of indicia of national origin of

steel wire rod products without any exchange of ownership.

Displacement swaps--involve the sale or delivery of any type of

steel wire rod product(s) from Venezuela to an intermediary country (or

countries) which can be shown to have resulted in the ultimate delivery

or sale into the United States of displaced steel wire rod products of

any type, regardless of the sequence of the transaction.

H. The Department will enter its determinations regarding

circumvention into the record of the Agreement.

VIII. Monitoring

The Government of Venezuela will provide to the Department such

information as is necessary and appropriate to monitor the

implementation of and compliance with the terms of this Agreement. The

Department of Commerce shall provide semi-annual reports to the

Government of Venezuela indicating the volume of imports of the subject

merchandise to the United States, together with such additional

information as is necessary and appropriate to monitor the

implementation of this Agreement.

A. The Government of Venezuela shall immediately notify and provide

copies to the Department of any resolution, decree, legislation or

equivalent Government action governing any export or import

substitution subsidy which is issued, altered or amended in any way as

to be applicable or available to producers/exporters of the subject

merchandise to the United States.

B. The Government of Venezuela shall notify the Department if any

exporters of the subject merchandise transship the subject merchandise

through third countries. The Government of Venezuela also shall notify

the Department if any exporter applies for or receives, directly or

indirectly, the benefits of any export or import substitution subsidy.

C. Beginning on the effective date of this Agreement, the

Government of Venezuela shall collect and provide to the Department the

information set forth, in the agreed format, in the Appendix. All such

information will be provided to the Department by May 1 of each year

for exports during the period from October 1 of the previous year

through March 31. In addition, such information will be provided to the

Department by November 1 for exports from April 1 through September 30,

or within 90 days of a request made by the Department. Such information

will be subject to the verification provision identified in Section

VIII.G of this Agreement. The Government of Venezuela agrees to allow

sales of subject merchandise only by those producers and through those

brokers and trading companies which permit full reporting and

verification of data. The Department may disregard any information

submitted after the deadlines set forth in this Section or any

information which it is unable to verify to its satisfaction.

Aggregate quantity and value of sales by HTS category to each third

country will be provided to the Department by May 1 of each year for

exports during the period from October 1 of the previous year through

March 31. In addition, such quantity and value information will be

provided to the Department by November 1 for exports from April 1

through September 30.

Transaction specific data for all third country sales will also be

reported on the schedule provided above in the format provided in the

Appendix. However, if the Department concludes that the transaction

specific data is not necessary for a given period, it will notify the

Government of Venezuela at least 90 days before the reporting deadline

that transaction specific sales data need not be reported. If the

Department determines that such data is relevant in connection with

Section VII

[[Page 54971]]

and requests information on transactions for one or more third

countries during a period for which the Department waived complete

reporting, the Government of Venezuela will provide the data listed in

the Appendix for those specific transactions within 90 days of the

request.

D. Both governments recognize that the effective monitoring of this

Agreement may require that Venezuela provide information additional to

that which is identified above. Accordingly, the Department may

establish additional reporting requirements, as appropriate, during the

course of this Agreement.

E. The Department shall provide notice to the Government of

Venezuela of any additional reporting requirements no later than 45

days prior to the period covered by such reporting requirements unless

a shorter notice period is mutually agreed.

F. Other sources for monitoring. The Department will review

publicly-available data as well as Customs Form 7501 entry summaries

and other official import data from the Bureau of the Census, on a

monthly basis, to determine whether there have been imports that are

inconsistent with the provisions of this Agreement.

The Department will monitor Bureau of the Census IM-115

computerized records, which include the quantity and value of each

entry. Because these records do not provide other specific entry

information, such as the identity of the producer/exporter which may be

responsible for such sales, the Department may request the U.S. Customs

Service to provide such information. The Department may request other

additional documentation from the U.S. Customs Service.

The Department may also request the U.S. Customs Service to direct

ports of entry to forward a Countervailing Duty Report of Importations

for entries of the subject merchandise during the period this Agreement

is in effect.

G. Verification. The Government of Venezuela will permit full

verification of all information related to the administration of this

Agreement, including verification of the Venezuela producer and any

brokers/trading companies utilized in making sales/shipments to the

United States, on an annual basis or more frequently, as the Department

deems necessary to ensure that Venezuela is in full compliance with the

terms of the Agreement. Such verifications may take place in

association with scheduled consultations whenever possible.

IX. Disclosure and Comment

A. The Department shall make available to representatives of each

party to the proceeding, under appropriately-drawn administrative

protective orders consistent with the Department's Regulations,

business proprietary information submitted to the Department semi-

annually or upon request, and in any administrative review of this

Agreement.

B. Not later than 30 days after the date of disclosure under

Section VIII.A, the parties to the proceeding may submit written

comments to the Department, not to exceed 30 pages.

C. During the anniversary month of this Agreement, each party to

the proceeding may request a hearing on issues raised during the

preceding Relevant Period. If such a hearing is requested, it will be

conducted in accordance with Section 751 of the Act (19 U.S.C. 1675)

and applicable regulations.

X. Consultations

The Government of Venezuela and the Department shall hold

consultations regarding matters concerning the implementation,

operation and/or enforcement of this Agreement. Such consultations will

be held each year during the anniversary month of this Agreement.

Additional consultations may be held at any other time upon request of

either the Government of Venezuela or the Department.

XI. Violations of the Agreement

A. Violation

``Violation'' means noncompliance with the terms of this Agreement

caused by an act or omission in accordance with Section 355.19 of the

Department's Regulations.

The Government of Venezuela and the Department will inform the

other party of any violations of the Agreement which come to their

attention and the action taken with respect thereto.

Imports in excess of the export limit set out in this Agreement

shall not be considered a violation of this Agreement or an indication

the Agreement no longer meets the requirements of Section 704 (b) or

(c) of the Act where such imports are minimal in volume, are the result

of technical shipping circumstances, and are applied against the export

limit of the following year.

Prior to making a determination of an alleged violation, the

Department will engage in emergency consultations. Such consultations

shall begin no later than 14 days from the day of request and shall

provide for full review, but in no event will exceed 30 days. After

consultations, the Department will provide the Government of Venezuela

20 days within which to provide comments. The Department will make a

determination within 30 days.

B. Appropriate Action

If the Department determines that this Agreement is being or has

been violated, the Department will take such action as it determines is

appropriate under Section 704(i) of the Act and Section 355.19 of the

Department's Regulations.

XII. Duration

Absent affirmative determinations under the five-year review

provisions of sections 751 and 752 of the Act, the Department expects

to terminate this Agreement and the underlying investigation no later

than October 14, 2002.

The Government of Venezuela may terminate this Agreement at any

time upon notice to the Department. Termination shall be effective 60

days after such notice is given to the Department. Upon termination at

the request of the Government of Venezuela, the provisions of Section

704(i) of the Act shall apply.

XIII. Other Provisions

A. The Department finds that this Agreement is in the public

interest; that effective monitoring of this Agreement by the United

States is practicable; and that this Agreement will completely

eliminate injury to the domestic industry producing the like product by

imports of the merchandise subject to this Agreement.

B. The English language version of this Agreement shall be

controlling.

C. For all purposes hereunder, the Department and the signatory

Government shall be represented by, and all communications and notices

shall be given and addressed to:

Department of Commerce, U.S. Department of Commerce, Assistant

Secretary for Import Administration, International Trade

Administration, Washington, D.C. 20230

Government of Venezuela, Ministerio de Industria y Comerio, Direccion

General Sectorial de Comercio Exterior, Av. Libertador--Centro

Comercial Los Cedros, Urbanizacion La Florida, Caracas, Venezuela

XIV. Effective Date

The effective date of this Agreement is the date of its publication

in the Federal Register.

For Government of Venezuela.

[[Page 54972]]

Dated: October 14, 1997.

Alejandro J. Perera,

DCM & Charge D'Affairs of Venezuelan Embassy.

For U.S. Department of Commerce.

Dated: October 14, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

Appendix

In accordance with the established format, the Government of

Venezuela shall collect and provide to the Department all

information necessary to ensure compliance with this Agreement. This

information will be provided to the Department on a semi-annual

basis, or upon request.

The Government of Venezuela will collect and maintain sales data

to the United States, in the home market, and to countries other

than the United States, on a continuous basis and provide the

prescribed information to the Department.

The Government of Venezuela will provide a narrative explanation

to substantiate all data collected in accordance with the following

formats.

Report of Inventories

Report, by location, the inventories held by Venezuela

producers/exporters in the United States and imported into the

United States between the period beginning May 6, 1997, through the

effective date of the Agreement.

1. Quantity: Indicate original units of measure and in pounds.

2. Location: Identify where the inventory is currently being

held. Provide the name and address for the location.

3. Titled Party: Name and address of party who legally has title

to the merchandise.

4. Export License Number: Indicate the number(s) relating to

each entry now being held in inventory.

5. Certificate of Origin Number(s): Indicate the number(s)

relating to each sale or entry.

6. Date of Original Export: Date the Export License/certificate

of origin is issued.

7. Date of Entry: Date the merchandise entered the United States

or the date book transfer took place.

8. Original Importer: Name and address.

9. Original Exporter: Name and address.

10. Complete Description of Merchandise: Include heat numbers,

HTS number, physical description, ASTM specification, and other

available information.

United States Sales

The Government of Venezuela will provide all Export Licenses,

which shall contain the following information with the exception of

item #9, date of entry, and item #16, final destination.

1. Export License/Certificate of Origin Number(s): Indicate the

number(s) relating to each sale and/or entry.

2. Complete Description of Merchandise: Include heat numbers,

HTS number, physical description, ASTM specification, and other

available information.

3. Quantity: Indicate in original units of measure and in

pounds.

4. F.O.B. Sales Value: Indicate currency used.

5. Unit Price: Indicate currency used/per original unit of

measure.

6. Date of Sale: The date all terms of order are confirmed.

7. Sales Order Number(s): Indicate the specification number/

order number relating to each sale and/or shipment.

8. Date of Export: Date the Export License is issued.

9. Date of Entry: Date the merchandise entered the United States

or the date book transfer took place.

10. Importer of Record: Name and address.

11. Trading Company/Broker: Name and address of any trading

company involved in the sale.

12. Customer: Name and address of the first unaffiliated party

purchasing from the Venezuela producer/exporter.

13. Customer Affiliation: Indicate whether the customer is

affiliated or unaffiliated to the Venezuela exporter.

14. Quota Allocated to Exporter: Indicate the total amount of

quota allocated to the individual exporter during the Relevant

Period.

15. Quota Remaining: Indicate the remaining quota available to

the individual exporter during the Relevant Period.

16. Final Destination: Name and address of the end-user for

consumption in the United States.

17. Other: The identity of any party(ies) in the transaction

chain between the customer and the final destination/end-user.

Mill Certification

The Government of Venezuela shall ensure that all shipments of

subject merchandise exported to the United States pursuant to this

Agreement shall be accompanied by a copy of the original mill

certification.

Sales Other Than United States

Pursuant to Section VIII, paragraph C, the Government of Venezuela

will provide country-specific sales volume and value information for

all sales of steel wire rod products, as described in Section II, in

the home market and to third countries.

1. Quantity: Indicate in original units of measure sold and/or

entered and in metric tons.

2. F.O.B. Sales Value: Indicate currency used.

3. Date of Sale: The date all terms of order are confirmed.

4. Complete Description of Merchandise: Include heat numbers,

HTS number, physical description, specification/grade under which

sold, and other available information.

5. Sales Order Number(s): Indicate the specification number/

order number relating to each sale and/or shipment.

6. Date of Export (if third country): Date of shipment from

Venezuela.

7. Date of Entry (if third country): Date the merchandise

entered the third country or the date a book transfer took place.

8. Importer of Record (if third country): Name and address.

9. Customer: Name and address of the first party purchasing from

the Venezuela producer/exporter.

10. Customer Affiliation: Indicate whether the customer is

affiliated or unaffiliated.

11. Final Destination: Name and address of the end-user for

consumption.

12. Other: The identity of any party(ies) in the transaction

chain between the customer and the final destination/end-user.

[FR Doc. 97-27988 Filed 10-21-97; 8:45 am]

BILLING CODE 3510-DS-P