54966 Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices

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 Trinidad and Tobago

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 short tons.

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

Trinidad and Tobago producer/exporter.

13. Customer Affiliation: Indicate whether

the customer is affiliated or unaffiliated to

the Trinidad and Tobago 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 Trinidad and Tobago

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 A, the

Government of Trinidad and Tobago 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 Trinidad and Tobago.

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 Trinidad and

Tobago 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 in the United

States.

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

the transaction chain between the customer

and the final destination/end-user.

[FR Doc. 97–27987 Filed 10–21–97; 8:45 am]

BILLING CODE 3510–DS–P

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
Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices 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
54968 Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices

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 semiannual 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 repackaged 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 reexport. 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.
Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices 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 semiannual 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 reexported, 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
54970 Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices

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
Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices 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 publiclyavailable 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, Direccio ́n

General Sectorial de Comercio

Exterior, Av. Libertador—Centro

Comercial Los Cedros, Urbanizacio ́n

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.
54972 Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices

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 semiannual 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

DEPARTMENT OF COMMERCE

International Trade Administration

[C–122–827]

Final Affirmative Countervailing Duty

Determination: Steel Wire Rod From

Canada

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: October 22, 1997.

FOR FURTHER INFORMATION CONTACT:

Robert Bolling or Rick Johnson, Office of

Antidumping/Countervailing Duty

Enforcement, Group III, Office IX,

Import Administration, U.S. Department

of Commerce, Room 1874, 14th Street

and Constitution Avenue, N.W.,

Washington, D.C. 20230; telephone

(202) 482–3434, or 482–0165,

respectively.

Final Determination

The Department of Commerce (the

‘‘Department’’) determines that

countervailable subsidies were provided

to Sidbec-Dosco (Ispat) Inc., a producer

and exporter of steel wire rod from

Canada. For information on the

estimated countervailing duty rates,

please see the Suspension of

Liquidation section of this notice.

Case History

Since our preliminary determination

on July 28, 1997 (62 FR 41933–39,

August 4, 1997) (‘‘Preliminary

Determination’’), the following events

have occurred:

Verification: In accordance with

section 782(i) of the Act, we verified the

information used in making our final

determination. We followed standard

verification procedures, including

meeting with government and company

officials, and examination of relevant

accounting records and original source

documents. Our verification results are

outlined in detail in the public versions

of the verification reports, which are on

file in the Central Records Unit (Room

B–099 of the Main Commerce Building).

We conducted verification in Canada

of the questionnaire responses of the

Government of Canada (‘‘GOC’’), the

Government of Quebec (‘‘GOQ’’), the