51584 Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Notices

confirm by telephone the time, date, and

place of the hearing 48 hours before the

scheduled time.

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, U.S. Department

of Commerce, Room 1870, within ten

days of the 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 the issues to be discussed. Oral

presentations will be limited to issues

raised in the briefs. If this investigation

proceeds normally, we will make our

final determination by 135 days after the

publication of this notice in the Federal

Register.

This determination is published

pursuant to section 733(d) of the Act.

Dated: September 24, 1997.

Robert S. LaRussa,

Assistant Secretary for Import

Administration.

[FR Doc. 97–26042 Filed 9–30–97; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–307–813]

Notice of Preliminary Determination of

Sales at Less Than Fair Value and

Postponement of Final Determination:

Steel Wire Rod From Venezuela

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: October 1, 1997.

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.

Preliminary Determination

We preliminarily 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 733 of

the Act. The estimated margins are

shown in the ‘‘Suspension of

Liquidation’’ section of this notice.

Case History

Since the initiation of this

investigation on March 18, 1997 (see

Notice of Initiation of Antidumping

Duty Investigations: Steel Wire Rod from

Canada, Germany, Trinidad and

Tobago, and Venezuela, 62 FR 13854,

(March 24, 1997), (‘‘Notice of

Initiation’’), the following events have

occurred:

On April 14, 1997, the United States

International Trade Commission (‘‘ITC’’)

notified the Department of Commerce

(‘‘the Department’’) of its affirmative

preliminary injury determination in this

case.

On April 21, 1997, the Department

issued the antidumping duty

questionnaire to CVG Siderurgica Del

Orinoco C.A. (‘‘Sidor’’), the sole

exporter of the subject merchandise

from Venezuela. The questionnaire is

divided into four sections: Section A

requests general information concerning

Sidor’s company corporate structure

and business practices, the merchandise

under investigation that it sells, and the

sales of the merchandise in all of its

markets. Sections B and C request home

market sales listings and U.S. sales

listings, respectively. Section D requests

information on the cost of production

(‘‘COP’’) of the foreign like product and

the constructed value (‘‘CV’’) of the

subject merchandise.

During April and May 1997, the

Department received interested party

comments regarding modifications to

the product characteristic reporting

requirements. On May 22, 1997, the

Department issued revised product

characteristic reporting instructions.

Sidor submitted its questionnaire

responses in May and June, 1997. The

Department issued supplemental

requests for information in June, July,

and August, 1997, and received the

supplemental responses to these

requests in July, August, and September,

1997. Petitioners in this investigation

(Connecticut Steel Group, Co-Steel

Raritan, GS Industries, Inc., Keystone

Steel & Wire Co., North Star Steel Texas,

Inc., and Northwestern Steel & Wire Co.)

filed comments on Sidor’s questionnaire

responses in May, June, July, August,

and September, 1997.

On July 3, 1997, petitioners made a

timely request that the Department

postpone the preliminary determination

in this investigation and the companion

investigations of SWR from Canada,

Trinidad and Tobago, and Germany to

September 24, 1997. We did so on July

14, 1997, in accordance with section

733(c)(1) of the Act (see Notice of

Postponement of Preliminary

Determinations: Steel Wire Rod from

Canada, Germany, Trinidad and

Tobago, and Venezuela (62 FR 38257,

July 17, 1997 )).

Postponement of Final Determination

and Extension of Provisional Measures

Pursuant to section 735(a)(2)(A) of the

Act and section 353.20(b)(1) of the

Department’s interim regulations, on

September 10, 1997, Sidor requested

that, in the event of an affirmative

preliminary determination in this

investigation, the Department postpone

its final determination until not later

than 135 days after the publication of

this notice in the Federal Register. In

accordance with section 735(a)(2)(A) of

the Act, because our preliminary

determination is affirmative, the

respondent accounting for all of the

exports of the subject merchandise has

requested postponement, and no

compelling reasons for denial exist, we

are postponing the final determination.

Suspension of liquidation will be

extended accordingly (see Preliminary

Determination of Sales at Less than Fair

Value and Postponement of Final

Determinations: Open-End Spun Rayon

Singles Yarn From Austria, 62 FR

14399, 14400 (March 26, 1997); see also

Final Determination of Sales at Less

Than Fair Value: Certain Pasta from

Italy, 61 FR 30326 (June 14, 1996)).

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
Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Notices 51585

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.’’

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.

North American Wire Products

Corporation (NAW), an importer of the

subject merchandise from Germany, has

requested that the Department exclude

steel wire rod used to manufacture pipe

wrapping wire from the scope of the

antidumping and countervailing duty

investigations. Petitioners have not

agreed to this scope exclusion. For

purposes of the preliminary

determination, we have not excluded

steel wire rod for manufacturing pipe

wrapping wire from the scope.

However, we will consider this issue

further in our final determination.

Period of Investigation

The period of investigation (‘‘POI’’) is

January 1, 1996, through December 31,

1996.

Product Comparisons

In accordance with section 771(16) of

the Act, we considered all products

produced by Sidor, covered by the

description in the Scope of Investigation

section, above, and sold in the home

market during the POI, to be foreign-like

products for purposes of determining

appropriate product comparisons to

U.S. sales. Where there were no sales of

identical merchandise in the home

market to compare to U.S. sales, we

compared U.S. sales to the next most

similar foreign-like product on the basis

of the characteristics listed in the

antidumping duty questionnaire and the

May 22, 1997, reporting instructions.

Consistent with our practice (see, e.g.,

Final Results of Antidumping Duty

Administrative Review: Cold-rolled

Carbon Steel Flat Products from the

Netherlands, 61 FR 48465, (September

13, 1996)), we compared prime

merchandise sold in the United States to

prime merchandise sold in the home

market, and secondary merchandise to

secondary merchandise.

Fair Value Comparisons

To determine whether sales of steel

wire rod by Sidor to the United States

were made at less than fair value, we

compared the Export Price (‘‘EP) to the

normal value (‘‘NV’’), as described in

the ‘‘Export Price’’ and ‘‘Normal Value’’

sections of this notice below. In

accordance with section

777A(d)(1)(A)(i), we calculated

weighted-average EPs for comparison to

weighted-average NVs.

Venezuela experienced significant

inflation during the POI, as measured by

the consumer price index published by

the Central Bank of Venezuela.

Accordingly, to avoid the distortions

caused by the effects of inflation on

prices, we calculated EPs and NVs on a

monthly average basis, rather than on a

POI average basis.

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

constructed export price (‘‘CEP’’). The

NV LOT is that of the starting-price

sales in the comparison market or, when

NV is based on constructed value

(‘‘CV’’), that of the sales from which we

derive selling, general and

administrative (‘‘SG&A’’) expenses and

profit. For EP, the U.S. LOT is also the

level of the starting-price sale, which is

usually from exporter to importer. For

CEP, it is the level of the constructed

sale from the exporter to the importer.

To determine whether NV sales are at

a different LOT than EP (or CEP), we

examine stages in the marketing process

and selling functions along the chain of

distribution between the producer and

the unaffiliated customer. If the

comparison-market sales are at a

different LOT, and the difference affects

price comparability, as manifested in a

pattern of consistent price differences

between the sales on which NV is based

and comparison-market sales at the LOT

of the export transaction, we make an

LOT adjustment under section

773(a)(7)(A) of the Act. See Certain

Welded Carbon Steel Standard Pipes

and Tubes From India: Preliminary

Results of New Shipper Antidumping

Duty Administrative Review, 62 FR

23760, 23761 (May 1, 1997).

Sidor did not claim a LOT

adjustment. To evaluate whether such

an adjustment was necessary, we

examined Sidor’s distribution system,

including selling functions, classes of

customers, and selling expenses. Sidor

sold to only one class of customer in

each market. We found that selling

functions, which included sales

administration, billing, warranties, and

in some cases arranging freight services,

are sufficiently similar in the U.S. and

the home market to consider them as

constituting the same level of trade in

the two markets. Accordingly, all

comparisons are at the same level of

trade and an adjustment pursuant to

section 773(a)(7)(A) is not warranted.

Export Price

We based our starting price on EP, in

accordance with subsections 772(a) and

(c) of the Act, because the subject

merchandise was sold directly to the

first unaffiliated purchaser in the United

States prior to importation and CEP was

not otherwise warranted based on the

facts on the record.

We calculated EP based on packed,

FOB factory prices to the first

unaffiliated customer in the United

States. We made no deductions from the

gross unit price.

Normal Value

In order to determine whether there is

a sufficient volume of sales in the home

market to serve as a viable basis for

calculating NV (i.e., the aggregate

volume of home market sales of the

foreign like product is greater than five

percent of the aggregate volume of U.S.

sales), we compared Sidor’s volume of

home market sales of the foreign like

product to the volume of U.S. sales of

the subject merchandise, in accordance

with section 773(a)(1)(C) of the Act.

Since Sidor’s aggregate volume of home

market sales of the foreign like product

was greater than five percent of its

aggregate volume of U.S. sales for the

subject merchandise, we determined

that the home market was viable for

Sidor. Therefore, we have based NV on

home market sales provided they were

not disregarded pursuant to the cost test

under section 773(b) of the Act.
51586 Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Notices

Cost of Production Analysis

Pursuant to an allegation made by the

petitioners, we initiated a cost of

production investigation in our Notice

of Initiation (62 FR 13854 March 24,

1997). Before making any fair value

comparisons, we conducted the COP

analysis described below.

A. Calculation of COP

We calculated the COP based on the

sum of respondent’s cost of materials

and fabrication for the foreign like

product, plus amounts for home market

general expenses and packing costs in

accordance with section 773(b)(3) of the

Act. We recalculated Sidor’s interest

expense, as discussed in the September

16, 1997, Memorandum to Chris Marsh,

Director, Office of Accounting, from

Paul McEnrue. As noted above, we

determined that the Venezuelan

economy experienced significant

inflation during the POI. Therefore, in

order to avoid the distortive effect of

inflation on our comparison of costs and

prices, we requested that Sidor submit

monthly COP figures based on the

current production costs incurred

during each month of the POI. We

indexed Sidor’s monthly COP amounts,

adjusted as discussed above, in order to

compute an annual weighted-average

COP for the POI.

B. Test of Home Market Prices

We used Sidor’s submitted POI

weighted-average COPs, as adjusted (see

above). We compared the weightedaverage COP figures to home market

sales of the foreign like product as

required under section 773(b) of the Act.

In determining whether to disregard

home-market sales made at prices below

the COP, we examined whether (1)

within an extended period of time, such

sales were made in substantial

quantities, and (2) such sales were made

at prices which permitted the recovery

of all costs within a reasonable period

of time. On a product-specific basis, we

compared the inflation-adjusted COP to

the home market prices, less any

applicable movement charges, and

direct and indirect selling expenses.

C. Results of COP Test

Pursuant to section 773(b)(2)(C),

where less than 20 percent of Sidor’s

sales of a given product were at prices

less than the COP, we did not disregard

any below-cost sales of that product

because we determined that the belowcost sales were not made in ‘‘substantial

quantities.’’ Where 20 percent or more

of a respondent’s sales of a given

product during the POI were at prices

less than the COP, we determined such

sales to have been made in ‘‘substantial

quantities’’ within an extended period

of time in accordance with section

773(b)(2)(B) of the Act. Where we

determined that such sales were also not

made at prices which would permit

recovery of all costs within a reasonable

period of time and, in accordance with

section 773(b)(2)(D) of the Act, we

disregarded the below-cost sales. Where

all comparison sales of a specific

product were at prices below the COP,

we disregarded all such sales of that

product, and calculated NV based on

CV.

D. Calculation of CV

In accordance with section 773(e) of

the Act, we calculated CV based on the

sum of the respondent’s cost of

materials, fabrication, SG&A, U.S.

packing costs, interest expenses and

profit. As noted above, we recalculated

Sidor’s interest expenses. In accordance

with section 773(e)(2)(A) of the Act, we

based SG&A and profit on the amounts

incurred and realized by the respondent

in connection with the production and

sale of the foreign like product in the

ordinary course of trade, for

consumption in the foreign country. For

selling expenses, we used the actual

weighted-average home market direct

and indirect selling expenses (as

indexed for inflation).

Comparison of the U.S. Price to NV

We compared U.S. prices to home

market prices or to CV, as appropriate.

We made adjustments for inland freight,

interest revenue, and late payment fees.

In addition, we made circumstance-ofsale adjustments for credit, warranties,

and bank fees, where appropriate. We

re-allocated home market and U.S.

warranty expenses on a value basis

rather than the quantity basis Sidor

reported. Where we compared CV to

EPs, we deducted from CV the home

market direct selling expenses and

added the weighted-average U.S. direct

selling expenses.

We also made adjustments, where

appropriate, for physical differences in

the merchandise in accordance with

section 773(a)(6)(C)(ii) of the Act.

Currency Conversions

The Department’s normal source for

exchange rates—the Federal Reserve

Bank—does not provide certified

exchange rates for Venezuela. Therefore,

we converted Venezuelan bolivares into

U.S. dollars as follows: For the period

from January 1, 1996, through April 21,

1996, we used the official exchange rate

from the Central Bank of Venezuela

because the Dow Jones Business

Information Services rates (an alternate

source often relied upon by the

Department) reflected the implicit

(parallel) exchange rate in Venezuela for

Brady bonds (i.e., foreign currency—

denominated government bonds trading

on the secondary market). After April

21, 1996, Venezuela had a unified,

market exchange rate that applied to all

trade transactions. Therefore, for the

period after April 21, 1996, we used the

Dow Jones rates.

Verification

As provided in section 782(i) of the

Act, we will verify the information used

in making our final determination.

Suspension of Liquidation

In accordance with section 733(d) of

the Act, we are directing the Customs

Service to suspend liquidation of all

imports of subject merchandise that are

entered, or withdrawn from warehouse,

for consumption on or after the date of

publication of this notice in the Federal

Register. We will instruct the Customs

Service to require a cash deposit or the

posting of a bond equal to the weightedaverage amount by which the NV

exceeds the export price, as indicated in

the chart below. These suspension of

liquidation instructions will remain in

effect until further notice. The

weighted-average dumping margins are

as follows:

Exporter/manufacturer

Weighted-average margin

percentage

CVG Siderurgica Del Orinoco

C.A. (‘‘Sidor’’) .................... 51.21

All Others .............................. 51.21

ITC Notification

In accordance with section 733(f) of

the Act, we have notified the ITC of our

determination. If our final

determination is affirmative, the ITC

will determine before the later of 120

days after the date of this preliminary

determination or 45 days after our final

determination whether these imports

are materially injuring, or threaten

material injury to, the U.S. industry.

Public Comment

Case briefs or other written comments

in at least six copies must be submitted

to the Assistant Secretary for Import

Administration no later than January 5,

1998, and rebuttal briefs, no later than

January 12, 1998. A list of authorities

used and an executive summary of

issues should accompany any briefs

submitted to the Department. Such

summary should be limited to five pages

total, including footnotes. In accordance

with section 774 of the Act, we will

hold a public hearing, if requested, to
Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Notices 51587

afford interested parties an opportunity

to comment on arguments raised in case

or rebuttal briefs. Tentatively, the

hearing will be held on January 14, at

2:00 p.m. in Room 1412 at the U.S.

Department of Commerce, 14th Street

and Constitution Avenue, N.W.,

Washington, D.C. 20230. Parties should

confirm by telephone the time, date, and

place of the hearing 48 hours before the

scheduled time.

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, U.S. Department

of Commerce, Room 1870, within ten

days of the 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 the issues to be discussed. Oral

presentations will be limited to issues

raised in the briefs. If this investigation

proceeds normally, we will make our

final determination by 135 days after the

publication of this notice in the Federal

Register.

This determination is published

pursuant to sections 733(f) and 777(i) of

the Act.

Dated: September 24, 1997.

Robert S. LaRussa,

Assistant Secretary for Import

Administration.

[FR Doc. 97–26043 Filed 9–30–97; 8:45 am]

BILLING CODE 3510–DS–P