Carbon Steel Wire Rod From Argentina: Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-007]

Carbon Steel Wire Rod From Argentina: Preliminary Results of

Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review.

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SUMMARY: In response to a request from petitioners, the Department of

Commerce (the Department) is conducting an administrative review of the

antidumping duty order on carbon steel wire rod from Argentina. The

review covers one manufacturer/exporter of the subject merchandise to

the United States, Acindar Industria Argentina de Aceros S.A.

(``Acindar'') and the period November 1, 1997 through October 31, 1998.

We have preliminarily determined that respondent has made sales

below normal value during the period of review. If these preliminary

results are adopted in our final results of review, we will instruct

the U.S. Customs Service to assess antidumping duties on entries

subject to this review.

EFFECTIVE DATE: November 19, 1999.

FOR FURTHER INFORMATION CONTACT: Helen M. Kramer or Linda Ludwig,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, NW,

Washington, DC 20230; telephone (202) 482-0405 or 482-3833,

respectively.

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the Trade and 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 of 1994 (URAA). In

addition, unless otherwise indicated, all references to the

Department's regulations are to 19 CFR Part 351 (1998).

SUPPLEMENTARY INFORMATION:

Background

On November 23, 1984, the Department published an antidumping duty

order on Carbon Steel Wire Rod from Argentina (49 FR 46180). The

Department published a notice of ``Opportunity To Request

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Administrative Review'' of the antidumping duty order for the 1997/1998

review period on November 12, 1998 (63 FR 63287). On November 30, 1998,

the petitioners, Birmingham Steel Corporation, Cascade Steel Rolling

Mills, Co-Steel Raritan, Connecticut Steel Corporation, GS Industries,

Inc., Keystone Steel & Wire Company, North Star Steel Company, and

Northwestern Steel & Wire Company, filed a request for review. We

published a notice of initiation of this review on December 23, 1998

(63 FR 71091).

Due to the complexity of model match issues involved in this case,

the Department extended the time limit for completion of the

preliminary results until November 30, 1999, in accordance with section

751(a)(3)(A) of the Act. See 64 FR 55234 (October 12, 1999). The

deadline for the final results of this review will continue to be 120

days after the date of publication of this notice. The Department is

conducting this review in accordance with section 751 of the Act.

Scope of the Review

The product covered by this review is carbon steel wire rod. This

merchandise is currently classifiable under HTS item numbers

7213.20.00, 7212.31.30, 72113.39.00, 721113.41.30, 7213.49.00, and

7213.50.00. These HTS subheadings are provided for convenience and U.S.

Customs purposes. The written description of the scope of the

proceeding is dispositive.

Verification

As provided in section 782(i)(3) of the Act, we verified sales

information provided by Acindar at its headquarters in Buenos Aires and

at its plant in Villa Constitucion, Argentina, August 23 through 27,

1999, using standard verification procedures, including inspection of

the manufacturing facilities, examination of relevant sales and

financial records, and selection of original documentation containing

relevant information. As a result of our findings at verification, we

adjusted imputed credit expenses in both the U.S. and home markets and

U.S. movement expenses. See ``Verification of Sales at Acindar

Industria Argentina de Aceros S.A., Buenos Aires and Villa

Constitucion, Argentina, August 23-27, 1999,'' dated October 21, 1999,

and ``Analysis of Sales by Acindar Industria Argentina de Aceros S.A.

for the Preliminary Results of the Administrative Review of Silicon

Metal from Argentina for the Period November 1, 1997 through October

31, 1998,'' dated November 30, 1999.

Fair Value Comparisons

To determine whether sales of the subject merchandise sold by

Acindar and exported to the United States were made at less than normal

value (``NV''), we compared export price (``EP'') to the NV, as

described in the ``Export Price'' and ``Normal Value'' sections of this

notice. Pursuant to section 777A(d)(2) of the Act, we compared the EPs

of individual U.S. transactions to monthly weighted-average NVs of the

foreign like product. All merchandise sold in the United States was

matched to similar merchandise sold in the home market.

Export Price

We based United States price on EP, as defined in section 772(a) of

the Act, because Acindar sold the merchandise to an unaffiliated

company prior to importation and constructed export price was not

otherwise indicated by the facts of record.

We calculated EP based on the packed, delivered, duty-unpaid price

to an unaffiliated trading company in the United States. We made

deductions pursuant to section 772(c)(2) of the Act for foreign inland

freight expenses not reimbursed by the importer, brokerage and

handling, and increased the United States price by the amount of

foreign inland freight paid by the importer, and duty drawback in

accordance with section 772(c)(1)(A) of the Act.

Normal Value (NV)

In order to determine whether sales of the foreign like product in

the home market are a viable basis for calculating NV, we compared the

volume of home market sales of the foreign like product to the volume

of subject merchandise sold in the United States, in accordance with

section 773(a)(1)(C) of the Act. Acindar's aggregate volume of home

market sales of the foreign like product was greater than five percent

of its respective aggregate volume of U.S. sales of the subject

merchandise. Therefore, we have based NV on home market sales.

Acindar made sales to affiliated customers in the home market

during the period of review and accordingly, we performed the arm's

length test. Sales to affiliated companies that failed the test were

disregarded, pursuant to section 351.403(c) of the Department's

regulations. Home market prices were based on the packed, delivered

prices to customers. We made adjustments to NV according to section

773(a)(6)(B) and (C) of the Act, where appropriate, for discounts and

rebates, billing adjustments, inland freight net of expenses billed to

the customer, credit expenses net of interest revenues, warranty

expenses, and packing. Pursuant to section 773(a)(6)(C)(iii) of the Act

and section 351.410 of the Department's regulations, we made a

circumstances of sale adjustment to NV for U.S. direct selling expenses

(credit, warranty and bank charge expenses).

Level of Trade

In accordance with section 773(a)(1)(B) of the Act, to the extent

practicable, we determine NV based on sales in the comparison market at

the same level of trade (``LOT'') as the EP or CEP transaction. In this

case, the record shows that sales in both markets were made at the same

LOT. Acindar made sales directly to its customers in the United States

and Argentina. There were no differences in the selling functions

performed for distributors, end-users or trading companies in either

market. Acindar provided only packing, warranties and shipping services

to customers in both markets.

Preliminary Results of Review

We preliminarily determine that the following margin exists for the

period November 1, 1997 through October 31, 1998:

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

Margin

Company (percent)

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Acindar Industria Argentina de Aceros S.A............... 2.63

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Pursuant to section 351.224 of the Department's regulations, we

will disclose the calculations performed to the parties to this

proceeding within five days of the date of publication of this notice.

An interested party may request a hearing within 30 days of

publication. Any hearing, if requested, will be held 44 days after the

date of publication, or the first business day thereafter. Issues

raised in the hearing will be limited to those raised in the respective

case briefs and rebuttal briefs. Interested parties may submit case

briefs and rebuttal briefs not later than 30 days and 37 days,

respectively, after the date of publication of these preliminary

results of review. See 19 CFR 351.309(c)(1)(ii) and (d)(1).

Parties who submit case briefs or rebuttal briefs in this

proceeding are requested to submit with each argument (1) a statement

of the issue and (2) a brief summary of the argument. Parties are also

encouraged to provide a summary of the arguments not to exceed five

pages and a table of statutes, regulations, and cases cited.

The Department will issue the final results of this administrative

review, including the results of its analysis of

[[Page 63285]]

issues raised in any such written briefs or at the hearing, if held,

not later than 120 days after the date of publication of this notice.

Interested parties who wish to request a hearing or to participate

if one is requested, must submit a written request to the Assistant

Secretary for Import Administration, Room B-099,within 30 days of the

date of publication of this notice. Requests should contain: (1) The

party's name, address and telephone number; (2) the number of

participants; and (3) a list of issues to be discussed. See 19 CFR

351.310(c).

Assessment Rates

The Department shall determine, and the Customs Service shall

assess, antidumping duties on all appropriate entries. The Department

will issue appropriate appraisement instructions directly to the

Customs Service upon completion of this review. The final results of

this review shall be the basis for the assessment of antidumping duties

on entries of merchandise covered by this review and for future

deposits of estimated duties. We will instruct the Customs Service to

assess antidumping duties on all appropriate entries covered by this

review if any assessment rate calculated in the final results of this

review is above de minimis (i.e, at or above 0.5 percent) pursuant to

section 351.106(c)(2) of the Department's regulations. For assessment

purposes, if applicable, we intend to calculate an importer-specific

assessment rate by aggregating the dumping margins calculated for all

U.S. sales and dividing this amount by the total quantity sold.

Cash Deposit Requirements

The following cash deposit requirements will be effective upon

completion of the final results of this administrative review for all

shipments of carbon steel wire rod from Argentina entered, or withdrawn

from warehouse, for consumption on or after the publication date of the

final results of this administrative review, as provided by section

751(a)(1) of the Act: (1) the cash deposit rate for Acindar will be the

rate established in the final results of administrative review, except

if the rate is less than 0.5 percent, and therefore, de minimis within

the meaning of 19 CFR 351.106, in which case the cash deposit rate will

be zero; (2) for merchandise exported by manufacturers or exporters not

covered in this review, but covered in the original less than fair

value (LTFV) investigation, the cash deposit rate will continue to be

the rate published in the final determination; or (3) if the exporter

is not a firm covered in this review or the LTFV investigation, but the

manufacturer is, the cash deposit rate will be the rate established for

the most recent period for the manufacturer of the merchandise; and (4)

the cash deposit rate for all other manufacturers or exporters will

continue to be 119.11 percent, the ``All Others'' rate made effective

by the LTFV determination. These requirements, when imposed, shall

remain in effect until publication of the final results of the next

administrative review.

This notice also serves as a preliminary reminder to importers of

their responsibility under 19 CFR 351.402(f) to file a certificate

regarding the reimbursement of antidumping duties prior to liquidation

of the relevant entries during these review periods. Failure to comply

with this requirement could result in the Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and notice are in accordance with

sections 751(a)(1) and 777(i)(1) of the Act.

Dated: November 10, 1999.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 99-30283 Filed 11-18-99; 8:45 am]

BILLING CODE 3510-DS-P