Notice of Final Determination of Sales at Less Than Fair Value: Steel Wire Rod from Venezuela

DEPARTMENT OF COMMERCE

International Trade Administration

[A-307-813]

Notice of Final Determination of Sales at Less Than Fair Value:

Steel Wire Rod from Venezuela

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Final determination of sales at less than fair value.

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SUMMARY: The Department has made a final affirmative determination in

this antidumping duty investigation. Because the respondent, C.V.G.

Siderurgica del Orinoco, C.A., did not permit verification of its

questionnaire responses, the margin in this determination is based on

the facts available, in accordance with section 776(a)(2) of the Tariff

Act of 1930, as amended. As facts available, we have applied the

highest margin derived from the petition.

EFFECTIVE DATE: February 23, 1998.

FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Daniel Manzoni,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, N.W.,

Washington, D.C. 20230; telephone: (202) 482-4136 or (202) 482-1121,

respectively.

The Applicable Statute

Unless otherwise indicated, all citations to the Tariff Act of

1930, as amended (``the Act''), are references to the provisions

effective January 1, 1995, the effective date of the amendments made to

the Act by the Uruguay Round Agreements Act (``URAA''). In addition,

unless otherwise indicated, all citations to the Department's

regulations are references to the provisions codified at 19 CFR Part

353 (April 1997). Although the Department's new regulations, codified

at 19 CFR 351 (62 FR 27296: May 19, 1997), do not govern this

investigation, citations to those regulations are provided, where

appropriate, to explain current Departmental practice.

Final Determination

We determine that steel wire rod (``SWR'') from Venezuela is being,

or is likely to be, sold in the United States at less than fair value

(``LTFV''), as provided in section 735(b) of the Act. The estimated

margin is shown in the ``Suspension of Liquidation'' section of this

notice.

[[Page 8947]]

Case History

Since the preliminary determination in this investigation

(Preliminary Determination and Postponement of Final Determination:

Steel Wire Rod from Venezuela, 62 FR 51584, October 1, 1997),

(Preliminary Determination) the following events have occurred:

On October 2, 1997, we issued a supplemental questionnaire

regarding the cost of production questionnaire response to the

respondent, C.V.G. Siderurgica del Orinoco, C.A. (``Sidor'').

On October 28, 1997, Sidor advised the Department that it would not

respond to the Department's October 2, 1997, supplemental questionnaire

and it would not participate in verification of its questionnaire

responses.

On January 5, 1998, the petitioners submitted a case brief and on

January 12, 1998, Sidor submitted a rebuttal brief.

Scope of Investigation

The products covered by this investigation 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

investigation:

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 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.''

Coiled products 11 mm to 12.5 mm in 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 0.72 percent; manganese

0.50-1.10 percent; phosphorus less than or equal to 0.030 percent;

sulfur less than or equal to 0.035 percent; and silicon 0.10-0.35

percent. This product is free of injurious piping and undue

segregation. The use of this excluded product is to fulfill contracts

for the sale of Class III pipe wrap wire in conformity with ASTM

specification A648-95 and imports of this product must be accompanied

by such a declaration on the mill certificate and/or sales invoice.

This excluded product is commonly referred to as ``Semifinished Class

III Pipe Wrap Wire.''

The products under investigation 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,

our written description of the scope of this investigation is

dispositive.

Exclusion of Pipe Wrap Wire

As stated in the Preliminary Determination, North American Wire

Products Corporation (``NAW''), an importer of the subject merchandise

from Germany, requested that the Department exclude steel wire rod used

to manufacture Class III pipe wrapping wire from the scope of the

investigations of steel wire rod from Canada, Germany, Trinidad and

Tobago, and Venezuela. On December 22, 1997, NAW submitted to the

Department a proposed exclusion definition. On December 30, 1997, and

January 7, 1998, the petitioners submitted letters concurring with the

definition of the scope exclusion and requesting exclusion of this

product from the scope of the investigation. We have reviewed NAW's

request and petitioners' comments and have excluded steel wire rod for

manufacturing Class III pipe wrapping wire from the scope of this

investigation (see Memorandum to Richard W. Moreland dated January 9,

1998, and instructions to Customs dated January 13, 1998).

Period of Investigation

The period of investigation (``POI'') is January 1, 1996, through

December 31, 1996.

Facts Available

Section 776(a)(2) of the Act provides that if an interested party

(1) withholds information that has been requested by the Department,

(2) fails to provide such information in a timely manner or in the form

or manner requested, (3) significantly impedes an antidumping

investigation, or (4) provides such information but the information

cannot be verified, the Department is required to use facts otherwise

available to make its determination (subject to subsections 782(c) (1)

and (e)).

In addition, section 776 (b) of the Act provides that, in selecting

from among the facts available, the Department may employ adverse

inferences against an interested party if that party failed to

cooperate by not acting to the best of its ability to comply with

requests for information. See also ``Statement of Administrative

Action'' accompanying the URAA, H.R. Rep. No. 316, 103rd Cong., 2d

Sess. 870 (``SAA''). The statute also provides that such an adverse

inference may be based on secondary information, including information

drawn from the petition.

Sidor's decision not to respond to the Department's October 2,

1997, supplemental cost of production questionnaire and refusal to

permit the Department to verify the information it submitted for the

record in this investigation demonstrates that it failed to act to the

best of its ability in this investigation. Therefore, the Department

has determined that, in selecting from among the facts available, an

adverse inference is appropriate. Consistent with Department practice

in cases where a respondent withdraws its participation in an

investigation, as adverse facts available, we have applied a margin

based on information in the petition (see, e.g., Final Determination of

Sales at Less Than Fair Value: Vector Supercomputers From Japan, 62 FR

45623, August 28, 1997, (``Vector Supercomputers'')). See also Comment

1.

Section 776(c) of the Act provides that, when the Department relies

on secondary information (such as information contained in the

petition) as facts available, it must, to the extent practicable,

corroborate that information from independent sources that are

reasonably at its disposal. Corroborate means determine that the

secondary information to be used has probative value. See SAA at 870.

[[Page 8948]]

The petitioners calculated the highest margin in the petition,

66.75 percent, based on a comparison of the petitioners' estimate of

ex-factory export price to the petitioners' estimate of the constructed

value (``CV''), as shown at Exhibit D of the petitioners' March 11,

1997, submission. The petitioners derived export price based on price

quotations to U.S. purchasers. Because Sidor's questionnaire response

data is unverified, we did not rely on this data for purposes of

corroboration. Therefore, we have compared the petitioners' export

price estimate to IM-145 Import Statistics. Our comparison of these

prices showed them to be reasonably consistent (see Memorandum to the

file dated February 6, 1998). Accordingly, we determine that this

export price calculation set forth in the petition has probative value.

To calculate CV, the petitioners used manufacturing costs based on

one petitioner's own production experience and publicly available

industry data. When analyzing the petition, the Department reviewed all

of the data the petitioners relied upon in calculating the estimated

CV, and adjusted those calculations where necessary. For purposes of

corroboration, we re-examined the data submitted by the petitioners and

found it to be reasonable and of probative value. In addition, we note

that no party has presented to the Department any information to

support a challenge to the appropriateness of the information contained

in the petition as the basis for a facts available margin for Sidor.

See Vector Supercomputers, where the Department applied facts available

margin in closely similar circumstances. In accordance with section

776(c) of the Act, we have corroborated the highest margin in the

petition, which is secondary information upon which we have relied as

facts available.

Interested Party Comment

Comment: Facts Available Rate for Sidor

The petitioners contend that, because Sidor refused to allow the

Department to verify its questionnaire responses and refused to respond

to the Department's October 2, 1997, supplemental questionnaire, the

Department must assign Sidor a margin based on adverse facts available.

Accordingly, the petitioners claim that the Department should assign

the higher of the highest non-aberrational dumping margin calculated

from Sidor's questionnaire responses, or the highest estimated dumping

margin listed in the petition.

Sidor contends that the Department should apply the rate of 51.21

percent calculated for the preliminary determination as the appropriate

facts available rate for this proceeding. However, Sidor has provided

no support for its position.

DOC Position

We agree with the petitioners that the highest rate alleged in the

petition, and as corroborated by the Department, is the appropriate

facts available rate in this determination. Under section 782(i)(1) of

the Act, the Department must rely on verified information for making a

final determination in an antidumping duty investigation. Sidor's

refusal to permit verification of its questionnaire responses prevents

the Department from using Sidor's information for our final

determination. Therefore, we did not use the margin calculated in the

preliminary determination because it is based on unverified

questionnaire response information. Using Sidor's unverified

information as the basis for the final margin could possibly reward the

respondent by assigning a margin lower than what would have been

calculated using verified information. As noted above, in cases such as

this one, the Department relies on the facts otherwise available,

normally data from the petition, for making its determination. We have

no basis in this instance to depart from this practice. Normally, the

all-others rate is to be amount equal to the weighted average of the

estimated weighted average dumping margins for exporters and producers

individually investigated, excluding margins based entirely on facts

available. Section 735(c)(5)(A). However, if all of the estimated

dumping margins are based entirely on facts available, the statute

permits the Department to use any reasonable method to establish the

all others rate. Section 735(c)(5)(B). As discussed above, Sidor was

the only respondent in this investigation and its margin was based

entirely on facts available. The margin calculated for Sidor for

purposes of the preliminary results of this investigation cannot serve

as a reasonable all others rate because, as discussed above, it has not

been verified. Further, there is no other information on which to base

an all others rate. Accordingly, we have based the all others rate on

Sidor's rate.

Suspension of Liquidation

On February 13, 1998, pursuant to section 734(b) the Act, the

Department signed a suspension agreement, with SIDOR. Pursuant to

section 734(f)(2)(A) of the Act, we are instructing Customs to

terminate the suspension of liquidation of all entries of steel wire

rod from Venezuela. Any cash deposits of entries of steel wire rod from

Venezuela shall be refunded and any bonds released.

On February 13, 1998, we received a request from Sidor requesting

that we continue the investigation. As a result of this request, we

have continued and completed the investigation in accordance with

section 734(g) of the Act. We have found the following margins of

dumping:

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

Margin

Exporter/manufacturer percentage

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CVG Siderurgica Del Orinoco C.A. (``Sidor'')............... 66.75

All Others................................................. 66.75

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ITC Notification

In Accordance with section 734(d) of the Act, we have notified the

ITC of our determination. If our determination is affirmative, the ITC

will determine, within 45 days, whether these imports are causing

material injury, or threat of material injury, to an industry in the

United States. If the ITC's injury determination is negative, the

agreement will have no force or effect. See section 734(f)(3)(A) of the

Act. If the ITC's injury determination is affirmative, the Department

will not issue an antidumping duty order as long as the suspension

agreement remains in force, the agreement continues to meet the

requirements of subsections (b) and (d) of section 734 of the Act, and

the parties to the agreement carry out their obligations under the

agreement in accordance with its terms. See section 734(f)(3)(B) of the

Act.

This determination is published pursuant to section 735(d) of the

Act.

Dated: February 13, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 98-4538 Filed 2-20-98; 8:45 am]

BILLING CODE 3510-DS-P