Notice2022-01992
Stainless Steel Wire Rod From the Republic of Korea: Initiation of Circumvention Inquiry of Antidumping Duty Order
Primary source
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Published
February 1, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to an allegation of circumvention from North American Stainless (NAS), the Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of stainless steel round wire (SS round wire) from the Socialist Republic of Vietnam (Vietnam) are circumventing the antidumping duty (AD) order on stainless steel wire rod (SSWR) from the Republic of Korea (Korea).
Full Text
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<title>Federal Register, Volume 87 Issue 21 (Tuesday, February 1, 2022)</title>
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[Federal Register Volume 87, Number 21 (Tuesday, February 1, 2022)]
[Notices]
[Pages 5468-5470]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01992]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-829]
Stainless Steel Wire Rod From the Republic of Korea: Initiation
of Circumvention Inquiry of Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to an allegation of circumvention from North
American Stainless (NAS), the Department of Commerce (Commerce) is
initiating a country-wide circumvention inquiry to determine whether
imports of stainless steel round wire (SS round wire) from the
Socialist Republic of Vietnam (Vietnam) are circumventing the
antidumping duty (AD) order on stainless steel wire rod (SSWR) from the
Republic of Korea (Korea).
DATES: Applicable February 1, 2022.
FOR FURTHER INFORMATION CONTACT: Hermes Pinilla, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration,
[[Page 5469]]
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-3477.
SUPPLEMENTARY INFORMATION:
Background
On May 18, 2021, NAS, a domestic producer of SSWR requested that
Commerce initiate a circumvention inquiry proceeding, pursuant to
section 781(c) of the Tariff Act of 1930, as amended (the Act) and 19
CFR 351.225(i), to determine whether SS round wire from Vietnam
involves a minor alteration to subject merchandise, such that it should
be subject to the order \1\ on SSWR from Korea.\2\ On July 12, 2021, we
issued a supplemental questionnaire.\3\ On July 26, 2021, NAS responded
to our supplemental questionnaire.\4\ On July 2, 2021, August 12, 2021,
and again on September 22, 2021, we extended the deadline by 45 days
respectively, to determine whether to initiate the circumvention
allegation.\5\ Because we granted NAS an extension of time to respond
to Commerce's second supplemental questionnaire response, on November
10, 2021, we determined that additional time was required to review and
assess NAS's request for Commerce to determine whether to initiate a
circumvention inquiry and, therefore, extended the deadline by 60 days,
until January 14, 2022. On November 19, 2021, NAS responded to our
second supplemental questionnaire.\6\ On January 4, 2022, we extended
the deadline by 14 days, until January 28, 2022.\7\
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\1\ See Notice of Amendment of Final Determination of Sales at
Less Than Fair Value and Antidumping Duty Order: Stainless Steel
Wire Rod from Korea, 63 FR 49331 (September 15, 1998) (Order).
\2\ See NAS's Letter, ``Stainless Steel Wire Rod from the
Republic of Korea--Request for Circumvention Ruling Pursuant to
Section 781(c),'' dated May 18, 2021 (Circumvention Allegation).
\3\ See Commerce's Letter, ``Request for Initiation of Anti-
Circumvention Inquiry of Antidumping Duty Order on Stainless Steel
Wire Rod from the Republic of Korea: Supplemental Questionnaire,''
dated July 12, 2021.
\4\ See NAS's Letter, ``Stainless Steel Wire Rod from Korea--
NAS's Response to the Department's Supplemental Questionnaire,''
dated July 26, 2021.
\5\ See Memoranda, ``Stainless Steel Wire Rod from the Republic
of Korea: Extension of Time to Determine Whether to Initiate Anti-
Circumvention Inquiry,'' dated July 2, 2021, August 12, 2021, and
September 22, 2021.
\6\ See NAS' Letter, ``Stainless Steel Wire Rod from Korea--NAS'
Response to the Department's 2nd Supplemental Questionnaire,'' dated
November 19, 2021.
\7\ See Memorandum, ``Stainless Steel Wire Rod from the Republic
of Korea: Extension of Time to Determine Whether to Initiate Anti-
Circumvention Inquiry,'' dated January 4, 2022.
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Scope of the Order
For a complete description of the scope of the Order, see Appendix
I.
Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers SSWR from Korea that has been
cold-drawn and further processed into SS round wire in Vietnam and
exported into the United States.
Legal Framework
Section 781(c) of the Act provides that Commerce may find
circumvention of an AD or countervailing duty (CVD) order when products
which are of the class or kind as merchandise subject to an AD or CVD
order have been ``altered in form or appearance in minor respects . . .
whether or not included in the same tariff classification.'' Section
781(c)(2) of the Act provides an exception that ``{p{time} aragraph 1
shall not apply with respect to altered merchandise if the
administering determines that it would be unnecessary to consider the
altered merchandise within the scope of the {order{time} .''
While the Act is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors that should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \8\ Concerning the allegation
of minor alteration under section 781(c) of the Act and 19 CFR
351.225(i), Commerce examines such factors as: (1) Overall physical
characteristics; (2) expectations of ultimate users; (3) use of
merchandise; (4) channels of marketing; and (5) cost of any
modification relative to the value of the imported products.\9\
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\8\ See Certain Vertical Shaft Engines Between 99c and Up To
225c, and Parts Thereof, from the People's Republic of China:
Initiation of Anti-Circumvention Inquiry of Antidumping and
Countervailing Duty Orders--600cc Up To 99cc Engines, 86 FR 51866
(September 17, 2021).
\9\ Id.; see also Deacero S.A. de C.V. v. United States, 817
F.3d 1332 (Fed. Cir. 2016).
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Analysis
After analyzing the record evidence and the petitioner's
allegation, we determine that there is sufficient information to at
minimum warrant the initiation of a minor alterations circumvention
inquiry, pursuant to section 781(c) of the Act and 19 CFR
351.225(i).\10\ For a full discussion of the basis for our decision to
initiate a minor alterations circumvention inquiry, see the Initiation
Decision Memorandum.\11\ The Initiation Decision Memorandum is a public
document, on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the Initiation
Decision Memorandum is available at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>. As explained in the Initiation Decision
Memorandum, the information provided by NAS warrants initiating this
circumvention inquiry on a country-wide basis. Commerce has taken this
approach in prior circumvention inquiries, where the facts warranted
initiation on a country-wide basis.\12\
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\10\ See Memorandum, ``Decision Memorandum for Initiation of -
Circumvention Inquiry,'' dated concurrently with, and hereby adopted
by, this notice (Initiation Decision Memorandum). The record
evidence necessary for initiating a circumvention inquiry differ
from a determination of circumvention. See also, e.g.,
Hydrofluorocarbon Blends from the People's Republic of China;
Initiation of the Anticircumvention Inquiry of Antidumping Duty
Order; Components, 84 FR 28273 (June 18, 2019).
\11\ Id.
\12\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from
the People's Republic of China: Initiation of Anti-Circumvention
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August
25, 2017) (stating at initiation that Commerce would evaluate the
extent to which a country-wide finding applicable to all exports
might be warranted); and Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at
initiation that Commerce would evaluate the extent to which a
country-wide finding applicable to all exports might be warranted).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to issue
questionnaires to solicit information from producers and exporters in
Vietnam concerning their shipments of SS round wire to the United
States made from SSWR produced in Korea. A company's failure to respond
completely to Commerce's requests for information may result in the
application of partial or total facts available, pursuant to section
776(a) of the Act, which may include adverse
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inferences, pursuant to section 776(b) of the Act.
Conclusion
Commerce will determine whether the merchandise subject to the
inquiry (as described in the ``Merchandise Subject to the Circumvention
Inquiry'' section above) is circumventing the Order such that it should
be included within the scope of the Order, pursuant to section 781(c)
of the Act and 19 CFR 351.225(i).
In accordance with 19 CFR 351.225(1)(2), if Commerce issues a
preliminary affirmative determination, we will then instruct U.S.
Customs and Border Protection to suspend liquidation and require a cash
deposit of estimated duties, at the applicable rate, for each
unliquidated entry of the merchandise at issue entered or withdrawn
from warehouse for consumption on or after the date of initiation of
the inquiry.
Commerce will establish a schedule for questionnaires and comments
on the issues related to the inquiry. In accordance with section 781(f)
of the Act, to the maximum extent practicable, Commerce intends to
issue its final determination within 300 days of the date of
publication of this initiation.
Notification to Interested Parties
This notice is published in accordance with sections 781(c) of the
Act and 19 CFR 351.225(i).
Dated: January 26, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Order
Stainless Steel Wire Rod, which comprises products that are hot-
rolled or hot-rolled annealed and/or pickled and/or descaled rounds,
squares, octagons, hexagons or other shapes, in coils, that may also
be coated with a lubricant containing copper, lime or oxalate. SSWR
is made of alloy steels containing, by weight, 1.2 percent or less
of carbon and 10.5 percent or more of chromium, with or without
other elements. These products are manufactured only by hot-rolling
or hot-rolling, annealing, and/or pickling and/or descaling, are
normally sold in coiled form, and are of solid cross-section. The
majority of SSWR sold in the United States is round in cross-
sectional shape, annealed and pickled, and later cold-finished into
stainless steel wire or small-diameter bar.
The most common size for such products is 5.5 millimeters or
0.217 inches in diameter, which represents the smallest size that
normally is produced on a rolling mill and is the size that most
wire-drawing machines are set up to draw. The range of SSWR sizes
normally sold in the United States is between 0.20 inches and 1.312
inches diameter. Two stainless steel grades, SF20T and K-M35FL, are
excluded from the scope of the investigation. The chemical makeup
for the excluded grades is as follows:
SF20T
Carbon--0.05 max
Manganese--2.00 max
Phosphorous--0.05 max
Sulfur--0.15 max
Silicon--1.00 max
Chromium--19.00/21.00
Molybdenum--1.50/2.50
Lead--added (0.10/0.30)
Tellurium--added (0.03 min)
K-M35FL
Carbon--0.015 max
Silicon--0.70/1.00
Manganese--0.40 max
Phosphorous--0.04 max
Sulfur--0.03 max
Nickel--0.30 max
Chromium--12.50/14.00
Lead--0.10/0.30
Aluminum--0.20/0.35
The products subject to this order are currently classifiable
under subheadings 7221.00.0005, 7221.00.0015, 7221.00.0030,
7221.00.0045, and 7221.00.0075 of the Harmonized Tariff Schedule of
the United States (HTSUS). Although the HTSUS subheadings are
provided for convenience and customs purposes, the written
description of the merchandise is dispositive.
Appendix II
I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Legal Framework
VI. Analysis
VII. Country-Wide Circumvention Inquiries
VIII. Recommendation
[FR Doc. 2022-01992 Filed 1-31-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on February 1, 2022.
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