83_FR_5431 83 FR 5405 - Carbon and Certain Alloy Steel Wire Rod From Mexico: Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order

83 FR 5405 - Carbon and Certain Alloy Steel Wire Rod From Mexico: Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 26 (February 7, 2018)

Page Range5405-5407
FR Document2018-02445

In response to a request from Nucor Corporation (Nucor), the Department of Commerce (Commerce) is initiating an anti-circumvention inquiry to determine whether certain imports of carbon and certain alloy steel wire rod from Mexico with actual diameters that are less than 4.75 millimeters (mm) produced and/or exported to the United States by Deacero S.A.P.I. de C.V. (Deacero) is circumventing the antidumping duty (AD) order on carbon and certain alloy steel wire rod from Mexico.

Federal Register, Volume 83 Issue 26 (Wednesday, February 7, 2018)
[Federal Register Volume 83, Number 26 (Wednesday, February 7, 2018)]
[Notices]
[Pages 5405-5407]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02445]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-830]


Carbon and Certain Alloy Steel Wire Rod From Mexico: Initiation 
of Anti-Circumvention Inquiry of Antidumping Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to a request from Nucor Corporation (Nucor), the 
Department of Commerce (Commerce) is initiating an anti-circumvention 
inquiry to determine whether certain imports of carbon and certain 
alloy steel wire rod from Mexico with actual diameters that are less 
than 4.75 millimeters (mm) produced and/or exported to the United 
States by Deacero S.A.P.I. de C.V. (Deacero) is circumventing the 
antidumping duty (AD) order on carbon and certain alloy steel wire rod 
from Mexico.

DATES: Applicable February 7, 2018.

FOR FURTHER INFORMATION CONTACT: Jolanta Lawska or Eric B. Greynolds, 
AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-8362 
and (202) 482-6071, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On October 27, 2017, Nucor, a domestic interested party, requested 
that Commerce initiate an anti-circumvention inquiry with regard to 
carbon and certain alloy steel wire rod from Mexico with actual 
diameters that are less than 4.75 mm (hereinafter referred to as 
narrow-gauge wire rod) that are produced and/or exported to the United 
States by Deacero.\1\ Nucor alleges that such narrow-gauge wire rod 
constitutes merchandise altered in form or appearance in such minor 
respects that it should be included within the scope of the order on 
wire rod from Mexico pursuant to 781(c) of the Tariff Act of 1930, as 
amended, (the Act) and 19 CFR 351.225(i) and, thus, falls within the 
scope of the Order.\2\ In its November 30, 2017, submission, Deacero 
opposed Nucor's request for an initiation of an anti-circumvention 
proceeding.\3\ On December 6, 2017, Nucor submitted a surrebuttal to 
Deacero's Rebuttal Comments.\4\ On December 13, 2017, Commerce 
determined that it required additional time beyond the regulatory 45-
day time limit to initiate a circumvention inquiry and, therefore, 
Commerce extended the time-period for issuing the initiation decision 
until January 29, 2018.\5\ On December 15, 2017, Commerce officials 
discussed via telephone Nucor's request that the Department initiate a 
minor alteration anti-circumvention inquiry on wire rod produced and/or 
exported by Deacero regardless of minimum diameter. During the 
conversation, counsel indicated that Nucor would consider supplementing 
its allegation with a discussion of how wire rod with diameters that 
are less than 4.4 mm constitute circumvention via minor alteration.\6\ 
On January 23, 2018, Nucor submitted supplemental information regarding 
the Circumvention Allegation.\7\ Also, on January 23, 2018, Commerce 
uniformly tolled all Enforcement and Compliance deadlines to account 
for the three-day closure of the Federal Government that occurred from 
January 20 through January 22, 2018.\8\ As a result, the deadline for 
Commerce to determine whether to initiate on Nucor's circumvention 
allegation was extended to January 31, 2018. On January 30, 2018, 
Deacero objected to Nucor's request for Commerce to include wire rod 
produced and/or exported by Deacero with actual diameters less than 4.4 
mm in the parameters of its circumvention inquiry and requested that 
Commerce exercise its discretion to extend the deadline to determine 
whether to initiate a circumvention inquiry to afford interested 
parties sufficient time to file comments regarding Nucor's allegations 
of circumvention.\9\
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    \1\ See Nucor's Letter, ``Carbon and Certain Alloy Steel Wire 
Rod from Mexico: Request for Circumvention Ruling,'' dated October 
27, 2017 (Circumvention Allegation). The request was not filed in 
its entirety until after close of business on October 27, 2017. 
Thus, the date of acceptance of this request was October 30, 2017.
    \2\ See Notice of Antidumping Duty Orders: Carbon and Certain 
Alloy Steel Wire Rod from Brazil, Indonesia, Mexico, Moldova, 
Trinidad and Tobago, and Ukraine, 67 FR 65945 (October 29, 2002) 
(Order).
    \3\ See Deacero's Letter, ``Carbon and Certain Wire Rod from 
Mexico--Opposition to Circumvention Inquiry,'' dated November 30, 
2017 (Deacero's Rebuttal Comments).
    \4\ See Nucor's Letter, ``Carbon and Certain Alloy Steel Wire 
Rod from Mexico: Response to Deacero's Opposition to Circumvention 
Inquiry,'' dated December 6, 2017 (Nucor's Surrebuttal Comments).
    \5\ See Memorandum to the File, ``Extension of Time to Determine 
Whether to Initiate,'' dated December 13, 2017.
    \6\ See Memorandum to the File, ``Telephone Discussion with 
Counsel to Nucor Corporation (Nucor),'' dated December 18, 2017.
    \7\ See Nucor's Letter, ``Carbon and Certain Alloy Steel Wire 
Rod from Mexico: Supplemental Information for Anti-Circumvention 
Ruling Request,'' dated January 23, 2018 (Supplemental Circumvention 
Allegation).
    \8\ See Memorandum to the File, ``Deadlines Affected by the 
Shutdown of the Federal Government,'' dated January 23, 2018.
    \9\ See Deacero's Letter, ``Carbon and Certain Wire Rod from 
Mexico--Request Regarding Nucor's Request for Anti-Circumvention 
Inquiry,'' dated January 30, 2018.
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Scope of the Order

    The merchandise subject to this order is certain hot-rolled 
products of carbon steel and alloy steel, in coils, of approximately 
round cross section, 5.00 mm or more, but less than 19.00 mm, 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

[[Page 5406]]

nickel steel; (d) ball bearing steel; and (e) concrete reinforcing bars 
and rods. Also excluded are (f) free machining steel products (i.e., 
products that contain by weight one or more of the following elements: 
0.03 percent or more of lead, 0.05 percent or more of bismuth, 0.08 
percent or more of sulfur, more than 0.04 percent of phosphorus, more 
than 0.05 percent of selenium, or more than 0.01 percent of tellurium).
    Also excluded from the scope are 1080 grade tire cord quality wire 
rod and 1080 grade tire bead quality wire rod. This grade 1080 tire 
cord quality rod is defined as: (i) Grade 1080 tire cord quality wire 
rod measuring 5.0 mm or more but not more than 6.0 mm in cross-
sectional diameter; (ii) with an average partial decarburization of no 
more than 70 microns in depth (maximum individual 200 microns); (iii) 
having no inclusions greater than 20 microns; (iv) having a carbon 
segregation per heat average of 3.0 or better using European Method NFA 
04-114; (v) having a surface quality with no surface defects of a 
length greater than 0.15 mm; (vi) capable of being drawn to a diameter 
of 0.30 mm or less with 3 or fewer breaks per ton, and (vii) containing 
by weight the following elements in the proportions shown: (1) 0.78 
percent or more of carbon, (2) less than 0.01 percent of aluminum, (3) 
0.040 percent or less, in the aggregate, of phosphorus and sulfur, (4) 
0.006 percent or less of nitrogen, and (5) not more than 0.15 percent, 
in the aggregate, of copper, nickel and chromium.
    This grade 1080 tire bead quality rod is defined as: (i) Grade 1080 
tire bead quality wire rod measuring 5.5 mm or more but not more than 
7.0 mm in cross-sectional diameter; (ii) with an average partial 
decarburization of no more than 70 microns in depth (maximum individual 
200 microns); (iii) having no inclusions greater than 20 microns; (iv) 
having a carbon segregation per heat average of 3.0 or better using 
European Method NFA 04-114; (v) having a surface quality with no 
surface defects of a length greater than 0.2 mm; (vi) capable of being 
drawn to a diameter of 0.78 mm or larger with 0.5 or fewer breaks per 
ton; and (vii) containing by weight the following elements in the 
proportions shown: (1) 0.78 percent or more of carbon, (2) less than 
0.01 percent of soluble aluminum, (3) 0.040 percent or less, in the 
aggregate, of phosphorus and sulfur, (4) 0.008 percent or less of 
nitrogen, and (5) either not more than 0.15 percent, in the aggregate, 
of copper, nickel and chromium (if chromium is not specified), or not 
more than 0.10 percent in the aggregate of copper and nickel and a 
chromium content of 0.24 to 0.30 percent (if chromium is specified).
    The designation of the products as ``tire cord quality'' or ``tire 
bead quality'' indicates the acceptability of the product for use in 
the production of tire cord, tire bead, or wire for use in other rubber 
reinforcement applications such as hose wire. These quality 
designations are presumed to indicate that these products are being 
used in tire cord, tire bead, and other rubber reinforcement 
applications, and such merchandise intended for the tire cord, tire 
bead, or other rubber reinforcement applications is not included in the 
scope. However, should petitioners or other interested parties provide 
a reasonable basis to believe or suspect that there exists a pattern of 
importation of such products for other than those applications, end-use 
certification for the importation of such products may be required. 
Under such circumstances, only the importers of record would normally 
be required to certify the end use of the imported merchandise.
    All products meeting the physical description of subject 
merchandise that are not specifically excluded are included in this 
scope.
    The products within the scope of this order are currently 
classifiable under subheadings 7213.91.3010, 7213.91.3090, 
7213.91.4510, 7213.91.4590, 7213.91.6010, 7213.91.6090, 7213.99.0031, 
7213.99.0038, 7213.99.0090, 7227.20.0010, 7227.20.0020, 7227.20.0090, 
7227.20.0095, 7227.90.6051, 7227.90.6053, 7227.90.6058, and 
7227.90.6059 of the HTSUS. Although the HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of this proceeding is dispositive.

Prior Anti-Circumvention Determination

    On September 24, 2012, Commerce issued an affirmative final 
circumvention determination in which it determined that, pursuant to 
section 781(c) of the Act and 19 CFR 351.225(i), wire rod with an 
actual diameter of 4.75 mm to 5.0 mm produced and/or exported by 
Deacero constituted a circumventing minor alteration of the Order and, 
as such, was covered by the scope of the Order.\10\ Commerce's finding 
was subsequently affirmed by the Court of Appeals for the Federal 
Circuit.\11\
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    \10\ See Carbon and Certain Alloy Steel Wire Rod from Mexico: 
Affirmative Final Determination of Circumvention of the Antidumping 
Duty Order, 77 FR 59892 (October 1, 2012) (4.75 Wire Rod from 
Mexico) and accompanying Issues and Decision Memorandum (IDM) at 18.
    \11\ See Deacero S.A. de C.V. v. United States, 817 F.3d 1332 
(Fed. Cir. 2016) (Deacero).
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Initiation of Minor Alteration Anti-Circumvention Proceeding

    Section 781(c) of the Act provides that Commerce may find 
circumvention of an AD order when products which are of the class or 
kind of merchandise subject to an AD 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 authority determines that it 
would be unnecessary to consider the altered merchandise within the 
scope of the AD order.''
    While the statute 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 which 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.'' \12\ 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.\13\
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    \12\ See S. Rep. No. 71, 100th Cong., 1st Sess. 100 (1987) (``In 
applying this provision, the Commerce Department should apply 
practical measurements regarding minor alterations, so that 
circumvention can be dealt with effectively, even where such 
alterations to an article technically transform it into a 
differently designated article.'').
    \13\ See, e.g., Affirmative Preliminary Determination of 
Circumvention of the Antidumping Duty Order on Certain Cut-to-Length 
Steel Plate from the People's Republic of China, 74 FR 33991, 33992 
(July 14, 2009) (CTL Plate from China Preliminary Scope Ruling), 
unchanged in Affirmative Final Determination of Circumvention of the 
Antidumping Duty Order on Certain Cut-to-Length Carbon Steel Plate 
from the People's Republic of China, 74 FR 40565 (August 12, 2009) 
(CTL Plate from China Final Scope Ruling); see also 4.75 mm Wire Rod 
from Mexico IDM at Comment 1; see also Deacero, 817 F.3d at 1337.

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[[Page 5407]]

Analysis

    After analyzing the information in the Circumvention Allegation and 
Supplemental Circumvention Allegation, we determine that Nucor has 
satisfied the criteria listed above to warrant an initiation of a 
formal anti-circumvention inquiry, pursuant to section 781(c) of the 
Act and 19 CFR 351.225(i), to determine whether wire rod with actual 
diameters that are less than 4.75 mm produced and/or exported to the 
United States by Deacero constitutes merchandise altered in form or 
appearance in such minor respects that should be included within the 
scope of the Order. For a summary of the proprietary comments received 
from interested parties and further discussion of Commerce's basis for 
initiating this minor alteration inquiry, see the Initiation Decision 
Memorandum, dated concurrently with this notice and hereby adopted by 
this notice.\14\ The Initiation Decision Memorandum is a business 
proprietary document, of which a public version is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov and 
is available to all parties in the Central Records Unit, room B8024 of 
the main Department of Commerce building. The signed Initiation 
Decision Memorandum and the electronic version of the Initiation 
Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \14\ See Memorandum, ``Initiation of Minor Alteration 
Circumvention Inquiry on Wire Rod With Actual Diameters That Are 
Less Than 4.75 Millimeters,'' dated concurrently with this notice 
(Initiation Decision Memorandum).
---------------------------------------------------------------------------

Merchandise Subject to the Anti-Circumvention Inquiry

    This minor alternation anti-circumvention inquiry covers wire rod 
with actual diameters that are less than 4.75 mm produced and/or 
exported to the United States by Deacero.
    Commerce will not order the suspension of liquidation of entries of 
any additional merchandise at this time. However, in accordance with 19 
CFR 351.225(l)(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 
on the merchandise.
    Following consultation with interested parties, Commerce will 
establish a schedule for questionnaires and comments on the issues 
related to the Order. In accordance with section 781(f) of the Act, 
Commerce intends to issue its final determinations within 300 days of 
the date of publication of this initiation.
    This notice is published in accordance with sections 781(c) of the 
Act and 19 CFR 351.225(i).

    Dated: January 31, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-02445 Filed 2-6-18; 8:45 am]
 BILLING CODE 3510-DS-P



                                                                           Federal Register / Vol. 83, No. 26 / Wednesday, February 7, 2018 / Notices                                                        5405

                                                scaffolding, and finished conduit. Standard             States by Deacero S.A.P.I. de C.V.                       January 29, 2018.5 On December 15,
                                                pipe that is dual or triple certified/stenciled         (Deacero) is circumventing the                           2017, Commerce officials discussed via
                                                that enters the U.S. as line pipe of a kind or          antidumping duty (AD) order on carbon                    telephone Nucor’s request that the
                                                used for oil and gas pipelines is also not
                                                                                                        and certain alloy steel wire rod from                    Department initiate a minor alteration
                                                included in this investigation.
                                                   Imports of products covered by this order            Mexico.                                                  anti-circumvention inquiry on wire rod
                                                are currently classifiable under the following                                                                   produced and/or exported by Deacero
                                                Harmonized Tariff Schedule (HTS)
                                                                                                        DATES:   Applicable February 7, 2018.                    regardless of minimum diameter. During
                                                subheadings, 7306.30.10.00, 7306.30.50.25,              FOR FURTHER INFORMATION CONTACT:                         the conversation, counsel indicated that
                                                7306.30.50.32, 7306.30.50.40, 7306.30.50.55,            Jolanta Lawska or Eric B. Greynolds,                     Nucor would consider supplementing
                                                7306.30.50.85, 7306.30.50.90. Although the              AD/CVD Operations, Office III,                           its allegation with a discussion of how
                                                HTS subheadings are provided for                                                                                 wire rod with diameters that are less
                                                convenience and customs purposes, our
                                                                                                        Enforcement and Compliance,
                                                                                                        International Trade Administration,                      than 4.4 mm constitute circumvention
                                                written description of the scope of this order
                                                is dispositive.                                         U.S. Department of Commerce, 1401                        via minor alteration.6 On January 23,
                                                   Imports of the products covered by this              Constitution Avenue NW, Washington,                      2018, Nucor submitted supplemental
                                                order are currently classifiable under the              DC 20230; telephone: (202) 482–8362                      information regarding the
                                                following Harmonized Tariff Schedule (HTS)              and (202) 482–6071, respectively.                        Circumvention Allegation.7 Also, on
                                                subheadings, 7306.30.10.00, 7306.30.50.25,                                                                       January 23, 2018, Commerce uniformly
                                                7306.30.50.32, 7306.30.50.40, 7306.30.50.55,            SUPPLEMENTARY INFORMATION:                               tolled all Enforcement and Compliance
                                                7306.30.50.85, 7306.30.50.90. Although the                                                                       deadlines to account for the three-day
                                                                                                        Background
                                                HTS subheadings are provided for                                                                                 closure of the Federal Government that
                                                convenience and customs purposes, our                      On October 27, 2017, Nucor, a
                                                written description of the scope of this order
                                                                                                                                                                 occurred from January 20 through
                                                                                                        domestic interested party, requested                     January 22, 2018.8 As a result, the
                                                is dispositive.
                                                                                                        that Commerce initiate an anti-                          deadline for Commerce to determine
                                                Taiwan—Certain Circular Welded Carbon                   circumvention inquiry with regard to                     whether to initiate on Nucor’s
                                                Steel Pipes and Tubes (A–583–008)                       carbon and certain alloy steel wire rod                  circumvention allegation was extended
                                                  The merchandise covered by this order is              from Mexico with actual diameters that                   to January 31, 2018. On January 30,
                                                certain circular welded carbon steel pipes              are less than 4.75 mm (hereinafter                       2018, Deacero objected to Nucor’s
                                                and tubes from Taiwan, which are defined as:            referred to as narrow-gauge wire rod)                    request for Commerce to include wire
                                                Welded carbon steel pipes and tubes, of                 that are produced and/or exported to the                 rod produced and/or exported by
                                                circular cross section, with walls not thinner
                                                                                                        United States by Deacero.1 Nucor                         Deacero with actual diameters less than
                                                than 0.065 inch, and 0.375 inch or more but
                                                not over 4.5 inches in outside diameter,                alleges that such narrow-gauge wire rod                  4.4 mm in the parameters of its
                                                currently classified under Harmonized Tariff            constitutes merchandise altered in form                  circumvention inquiry and requested
                                                Schedule of the United States (HTSUS) item              or appearance in such minor respects                     that Commerce exercise its discretion to
                                                numbers 7306.30.5025, 7306.30.5032,                     that it should be included within the                    extend the deadline to determine
                                                7306.30.5040, and 7306.30.5055. Although                scope of the order on wire rod from                      whether to initiate a circumvention
                                                the HTSUS subheading is provided for                    Mexico pursuant to 781(c) of the Tariff                  inquiry to afford interested parties
                                                convenience and customs purposes, the                   Act of 1930, as amended, (the Act) and                   sufficient time to file comments
                                                written description of the merchandise under
                                                                                                        19 CFR 351.225(i) and, thus, falls within                regarding Nucor’s allegations of
                                                investigation is dispositive.11
                                                                                                        the scope of the Order.2 In its November                 circumvention.9
                                                [FR Doc. 2018–02316 Filed 2–6–18; 8:45 am]              30, 2017, submission, Deacero opposed
                                                                                                                                                                 Scope of the Order
                                                BILLING CODE 3510–DS–P                                  Nucor’s request for an initiation of an
                                                                                                        anti-circumvention proceeding.3 On                          The merchandise subject to this order
                                                                                                        December 6, 2017, Nucor submitted a                      is certain hot-rolled products of carbon
                                                DEPARTMENT OF COMMERCE                                  surrebuttal to Deacero’s Rebuttal                        steel and alloy steel, in coils, of
                                                                                                        Comments.4 On December 13, 2017,                         approximately round cross section, 5.00
                                                International Trade Administration                                                                               mm or more, but less than 19.00 mm, in
                                                                                                        Commerce determined that it required
                                                [A–201–830]                                             additional time beyond the regulatory                    solid cross-sectional diameter.
                                                                                                        45-day time limit to initiate a                             Specifically excluded are steel
                                                Carbon and Certain Alloy Steel Wire                     circumvention inquiry and, therefore,                    products possessing the above-noted
                                                Rod From Mexico: Initiation of Anti-                    Commerce extended the time-period for                    physical characteristics and meeting the
                                                Circumvention Inquiry of Antidumping                    issuing the initiation decision until                    Harmonized Tariff Schedule of the
                                                Duty Order                                                                                                       United States (HTSUS) definitions for
                                                                                                                                                                 (a) stainless steel; (b) tool steel; (c) high
                                                AGENCY:   Enforcement and Compliance,                      1 See Nucor’s Letter, ‘‘Carbon and Certain Alloy

                                                International Trade Administration,                     Steel Wire Rod from Mexico: Request for
                                                                                                                                                                   5 See Memorandum to the File, ‘‘Extension of
                                                                                                        Circumvention Ruling,’’ dated October 27, 2017
                                                Department of Commerce.                                 (Circumvention Allegation). The request was not          Time to Determine Whether to Initiate,’’ dated
                                                SUMMARY: In response to a request from                  filed in its entirety until after close of business on   December 13, 2017.
                                                Nucor Corporation (Nucor), the                          October 27, 2017. Thus, the date of acceptance of          6 See Memorandum to the File, ‘‘Telephone

                                                                                                        this request was October 30, 2017.                       Discussion with Counsel to Nucor Corporation
                                                Department of Commerce (Commerce) is                       2 See Notice of Antidumping Duty Orders: Carbon       (Nucor),’’ dated December 18, 2017.
                                                initiating an anti-circumvention inquiry                and Certain Alloy Steel Wire Rod from Brazil,              7 See Nucor’s Letter, ‘‘Carbon and Certain Alloy
                                                to determine whether certain imports of                 Indonesia, Mexico, Moldova, Trinidad and Tobago,         Steel Wire Rod from Mexico: Supplemental
                                                carbon and certain alloy steel wire rod                 and Ukraine, 67 FR 65945 (October 29, 2002)              Information for Anti-Circumvention Ruling
sradovich on DSK3GMQ082PROD with NOTICES




                                                from Mexico with actual diameters that                  (Order).                                                 Request,’’ dated January 23, 2018 (Supplemental
                                                                                                           3 See Deacero’s Letter, ‘‘Carbon and Certain Wire     Circumvention Allegation).
                                                are less than 4.75 millimeters (mm)                     Rod from Mexico—Opposition to Circumvention                8 See Memorandum to the File, ‘‘Deadlines
                                                produced and/or exported to the United                  Inquiry,’’ dated November 30, 2017 (Deacero’s            Affected by the Shutdown of the Federal
                                                                                                        Rebuttal Comments).                                      Government,’’ dated January 23, 2018.
                                                  11 The original order predated the HTSUS, and            4 See Nucor’s Letter, ‘‘Carbon and Certain Alloy        9 See Deacero’s Letter, ‘‘Carbon and Certain Wire

                                                was accompanied by the following TSUSA                  Steel Wire Rod from Mexico: Response to Deacero’s        Rod from Mexico—Request Regarding Nucor’s
                                                numbers: 610.3231, 610.3232, 610.3241, and              Opposition to Circumvention Inquiry,’’ dated             Request for Anti-Circumvention Inquiry,’’ dated
                                                610.3244.                                               December 6, 2017 (Nucor’s Surrebuttal Comments).         January 30, 2018.



                                           VerDate Sep<11>2014   18:17 Feb 06, 2018   Jkt 244001   PO 00000   Frm 00006   Fmt 4703   Sfmt 4703   E:\FR\FM\07FEN1.SGM     07FEN1


                                                5406                       Federal Register / Vol. 83, No. 26 / Wednesday, February 7, 2018 / Notices

                                                nickel steel; (d) ball bearing steel; and               and a chromium content of 0.24 to 0.30                the Court of Appeals for the Federal
                                                (e) concrete reinforcing bars and rods.                 percent (if chromium is specified).                   Circuit.11
                                                Also excluded are (f) free machining                       The designation of the products as
                                                steel products (i.e., products that                     ‘‘tire cord quality’’ or ‘‘tire bead quality’’        Initiation of Minor Alteration Anti-
                                                contain by weight one or more of the                    indicates the acceptability of the                    Circumvention Proceeding
                                                following elements: 0.03 percent or                     product for use in the production of tire                Section 781(c) of the Act provides that
                                                more of lead, 0.05 percent or more of                   cord, tire bead, or wire for use in other             Commerce may find circumvention of
                                                bismuth, 0.08 percent or more of sulfur,                rubber reinforcement applications such                an AD order when products which are
                                                more than 0.04 percent of phosphorus,                   as hose wire. These quality designations              of the class or kind of merchandise
                                                more than 0.05 percent of selenium, or                  are presumed to indicate that these                   subject to an AD order have been
                                                more than 0.01 percent of tellurium).                   products are being used in tire cord, tire
                                                   Also excluded from the scope are                                                                           ‘‘altered in form or appearance in minor
                                                                                                        bead, and other rubber reinforcement                  respects * * * whether or not included
                                                1080 grade tire cord quality wire rod                   applications, and such merchandise
                                                and 1080 grade tire bead quality wire                                                                         in the same tariff classification.’’ Section
                                                                                                        intended for the tire cord, tire bead, or             781(c)(2) of the Act provides an
                                                rod. This grade 1080 tire cord quality                  other rubber reinforcement applications
                                                rod is defined as: (i) Grade 1080 tire                                                                        exception that ‘‘{p}aragraph 1 shall not
                                                                                                        is not included in the scope. However,                apply with respect to altered
                                                cord quality wire rod measuring 5.0 mm                  should petitioners or other interested
                                                or more but not more than 6.0 mm in                                                                           merchandise if the administering
                                                                                                        parties provide a reasonable basis to                 authority determines that it would be
                                                cross-sectional diameter; (ii) with an                  believe or suspect that there exists a
                                                average partial decarburization of no                                                                         unnecessary to consider the altered
                                                                                                        pattern of importation of such products
                                                more than 70 microns in depth                                                                                 merchandise within the scope of the AD
                                                                                                        for other than those applications, end-
                                                (maximum individual 200 microns); (iii)                                                                       order.’’
                                                                                                        use certification for the importation of
                                                having no inclusions greater than 20                    such products may be required. Under                     While the statute is silent as to what
                                                microns; (iv) having a carbon                           such circumstances, only the importers                factors to consider in determining
                                                segregation per heat average of 3.0 or                  of record would normally be required to               whether alterations are properly
                                                better using European Method NFA 04–                    certify the end use of the imported                   considered ‘‘minor,’’ the legislative
                                                114; (v) having a surface quality with no               merchandise.                                          history of this provision indicates that
                                                surface defects of a length greater than                   All products meeting the physical                  there are certain factors which should
                                                0.15 mm; (vi) capable of being drawn to                 description of subject merchandise that               be considered before reaching a
                                                a diameter of 0.30 mm or less with 3 or                                                                       circumvention determination. In
                                                                                                        are not specifically excluded are
                                                fewer breaks per ton, and (vii)                                                                               conducting a circumvention inquiry
                                                                                                        included in this scope.
                                                containing by weight the following                                                                            under section 781(c) of the Act,
                                                                                                           The products within the scope of this
                                                elements in the proportions shown: (1)                                                                        Commerce has generally relied upon
                                                                                                        order are currently classifiable under
                                                0.78 percent or more of carbon, (2) less                                                                      ‘‘such criteria as the overall physical
                                                than 0.01 percent of aluminum, (3)                      subheadings 7213.91.3010,
                                                                                                        7213.91.3090, 7213.91.4510,                           characteristics of the merchandise, the
                                                0.040 percent or less, in the aggregate,                                                                      expectations of the ultimate users, the
                                                of phosphorus and sulfur, (4) 0.006                     7213.91.4590, 7213.91.6010,
                                                                                                        7213.91.6090, 7213.99.0031,                           use of the merchandise, the channels of
                                                percent or less of nitrogen, and (5) not                                                                      marketing and the cost of any
                                                more than 0.15 percent, in the aggregate,               7213.99.0038, 7213.99.0090,
                                                                                                        7227.20.0010, 7227.20.0020,                           modification relative to the total value
                                                of copper, nickel and chromium.
                                                                                                        7227.20.0090, 7227.20.0095,                           of the imported products.’’ 12
                                                   This grade 1080 tire bead quality rod
                                                is defined as: (i) Grade 1080 tire bead                 7227.90.6051, 7227.90.6053,                           Concerning the allegation of minor
                                                quality wire rod measuring 5.5 mm or                    7227.90.6058, and 7227.90.6059 of the                 alteration under section 781(c) of the
                                                more but not more than 7.0 mm in                        HTSUS. Although the HTSUS                             Act and 19 CFR 351.225(i), Commerce
                                                cross-sectional diameter; (ii) with an                  subheadings are provided for                          examines such factors as: (1) Overall
                                                average partial decarburization of no                   convenience and customs purposes, the                 physical characteristics; (2) expectations
                                                more than 70 microns in depth                           written description of the scope of this              of ultimate users; (3) use of
                                                (maximum individual 200 microns); (iii)                 proceeding is dispositive.                            merchandise; (4) channels of marketing;
                                                having no inclusions greater than 20                                                                          and (5) cost of any modification relative
                                                                                                        Prior Anti-Circumvention
                                                microns; (iv) having a carbon                                                                                 to the value of the imported products.13
                                                                                                        Determination
                                                segregation per heat average of 3.0 or
                                                better using European Method NFA 04–                       On September 24, 2012, Commerce                       11 See Deacero S.A. de C.V. v. United States, 817

                                                114; (v) having a surface quality with no               issued an affirmative final                           F.3d 1332 (Fed. Cir. 2016) (Deacero).
                                                                                                                                                                 12 See S. Rep. No. 71, 100th Cong., 1st Sess. 100
                                                surface defects of a length greater than                circumvention determination in which
                                                                                                                                                              (1987) (‘‘In applying this provision, the Commerce
                                                0.2 mm; (vi) capable of being drawn to                  it determined that, pursuant to section               Department should apply practical measurements
                                                a diameter of 0.78 mm or larger with 0.5                781(c) of the Act and 19 CFR 351.225(i),              regarding minor alterations, so that circumvention
                                                or fewer breaks per ton; and (vii)                      wire rod with an actual diameter of 4.75              can be dealt with effectively, even where such
                                                                                                        mm to 5.0 mm produced and/or                          alterations to an article technically transform it into
                                                containing by weight the following                                                                            a differently designated article.’’).
                                                elements in the proportions shown: (1)                  exported by Deacero constituted a                        13 See, e.g., Affirmative Preliminary
                                                0.78 percent or more of carbon, (2) less                circumventing minor alteration of the                 Determination of Circumvention of the
                                                than 0.01 percent of soluble aluminum,                  Order and, as such, was covered by the                Antidumping Duty Order on Certain Cut-to-Length
                                                                                                        scope of the Order.10 Commerce’s                      Steel Plate from the People’s Republic of China, 74
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                                                (3) 0.040 percent or less, in the
                                                                                                        finding was subsequently affirmed by                  FR 33991, 33992 (July 14, 2009) (CTL Plate from
                                                aggregate, of phosphorus and sulfur, (4)                                                                      China Preliminary Scope Ruling), unchanged in
                                                0.008 percent or less of nitrogen, and (5)                                                                    Affirmative Final Determination of Circumvention
                                                either not more than 0.15 percent, in the                  10 See Carbon and Certain Alloy Steel Wire Rod     of the Antidumping Duty Order on Certain Cut-to-
                                                aggregate, of copper, nickel and                        from Mexico: Affirmative Final Determination of       Length Carbon Steel Plate from the People’s
                                                                                                        Circumvention of the Antidumping Duty Order, 77       Republic of China, 74 FR 40565 (August 12, 2009)
                                                chromium (if chromium is not                            FR 59892 (October 1, 2012) (4.75 Wire Rod from        (CTL Plate from China Final Scope Ruling); see also
                                                specified), or not more than 0.10 percent               Mexico) and accompanying Issues and Decision          4.75 mm Wire Rod from Mexico IDM at Comment
                                                in the aggregate of copper and nickel                   Memorandum (IDM) at 18.                               1; see also Deacero, 817 F.3d at 1337.



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                                                                           Federal Register / Vol. 83, No. 26 / Wednesday, February 7, 2018 / Notices                                                  5407

                                                Analysis                                                781(f) of the Act, Commerce intends to                Shannon Gleason at (907) 271–2809 at
                                                   After analyzing the information in the               issue its final determinations within 300             least 7 working days prior to the
                                                Circumvention Allegation and                            days of the date of publication of this               meeting date.
                                                Supplemental Circumvention                              initiation.                                             Dated: February 1, 2018.
                                                Allegation, we determine that Nucor has                    This notice is published in                        Tracey L. Thompson,
                                                satisfied the criteria listed above to                  accordance with sections 781(c) of the
                                                                                                                                                              Acting Deputy Director, Office of Sustainable
                                                warrant an initiation of a formal anti-                 Act and 19 CFR 351.225(i).                            Fisheries, National Marine Fisheries Service.
                                                circumvention inquiry, pursuant to                        Dated: January 31, 2018.                            [FR Doc. 2018–02372 Filed 2–6–18; 8:45 am]
                                                section 781(c) of the Act and 19 CFR                    Christian Marsh,                                      BILLING CODE 3510–22–P
                                                351.225(i), to determine whether wire                   Deputy Assistant Secretary for Enforcement
                                                rod with actual diameters that are less                 and Compliance.
                                                than 4.75 mm produced and/or exported                   [FR Doc. 2018–02445 Filed 2–6–18; 8:45 am]            DEPARTMENT OF COMMERCE
                                                to the United States by Deacero                         BILLING CODE 3510–DS–P
                                                constitutes merchandise altered in form                                                                       National Oceanic and Atmospheric
                                                or appearance in such minor respects                                                                          Administration
                                                that should be included within the                      DEPARTMENT OF COMMERCE
                                                scope of the Order. For a summary of                                                                          RIN 0648–XG006
                                                the proprietary comments received from                  National Oceanic and Atmospheric
                                                interested parties and further discussion               Administration                                        North Pacific Fishery Management
                                                of Commerce’s basis for initiating this                                                                       Council; Public Meeting
                                                                                                        RIN 0648–XG005
                                                minor alteration inquiry, see the
                                                Initiation Decision Memorandum, dated                                                                         AGENCY:  National Marine Fisheries
                                                                                                        North Pacific Fishery Management                      Service (NMFS), National Oceanic and
                                                concurrently with this notice and                       Council; Public Meeting
                                                hereby adopted by this notice.14 The                                                                          Atmospheric Administration (NOAA),
                                                Initiation Decision Memorandum is a                     AGENCY:  National Marine Fisheries                    Commerce.
                                                business proprietary document, of                       Service (NMFS), National Oceanic and                  ACTION: Notice of public meeting.
                                                which a public version is on file                       Atmospheric Administration (NOAA),
                                                electronically via Enforcement and                      Commerce.                                             SUMMARY:   The North Pacific Fishery
                                                Compliance’s Antidumping and                            ACTION: Notice of telephonic meeting.                 Management Council (Council) Scallop
                                                Countervailing Duty Centralized                                                                               Plan Team will meet on February 21,
                                                Electronic Service System (ACCESS).                     SUMMARY:   The North Pacific Fishery                  2018, in Kodiak, AK.
                                                ACCESS is available to registered users                 Management Council’s Pacific
                                                                                                                                                              DATES: The meeting will be held on
                                                at https://access.trade.gov and is                      Northwest Crab Industry Advisory
                                                                                                                                                              Wednesday, February 21, 2018, from 9
                                                available to all parties in the Central                 Committee (PNCIAC) will meet in
                                                                                                                                                              a.m. to 5 p.m. Alaska Time.
                                                Records Unit, room B8024 of the main                    February, in Anchorage, AK.
                                                                                                                                                              ADDRESSES: The meeting will be held at
                                                Department of Commerce building. The                    DATES: The meeting will be held on
                                                signed Initiation Decision Memorandum                   Wednesday February 21, 2018, from 10                  the Alaska Department of Fish and
                                                and the electronic version of the                       a.m. to 5 p.m. PST.                                   Game Office, 351 Research Ct., Kodiak,
                                                Initiation Decision Memorandum are                                                                            AK 99615.
                                                                                                        ADDRESSES: The meeting will be held
                                                identical in content.                                                                                           Council address: North Pacific
                                                                                                        telephonically. Telephone number is 1–
                                                                                                                                                              Fishery Management Council, 605 W
                                                Merchandise Subject to the Anti-                        800–920–7487, passcode is 7941749#.
                                                                                                                                                              4th Ave., Suite 306, Anchorage, AK
                                                Circumvention Inquiry                                      Council address: North Pacific
                                                                                                                                                              99501–2252; telephone: (907) 271–2809.
                                                                                                        Fishery Management Council, 605 W.
                                                   This minor alternation anti-                         4th Ave., Suite 306, Anchorage, AK                    FOR FURTHER INFORMATION CONTACT: Jim
                                                circumvention inquiry covers wire rod                   99501–2252; telephone: (907) 271–2809.                Armstrong, Council staff; telephone:
                                                with actual diameters that are less than                                                                      (907) 271–2809.
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                                4.75 mm produced and/or exported to
                                                                                                        Sarah Marrinan, Council staff;                        SUPPLEMENTARY INFORMATION:
                                                the United States by Deacero.
                                                   Commerce will not order the                          telephone: (907) 271–2809, or Lance
                                                                                                                                                              Agenda
                                                suspension of liquidation of entries of                 Farr, Committee Chair; telephone: (206)
                                                any additional merchandise at this time.                669–7163.                                             Wednesday, February 21, 2018
                                                However, in accordance with 19 CFR                      SUPPLEMENTARY INFORMATION:                               The Council’s Scallop Plan Team will
                                                351.225(l)(2), if Commerce issues a                     Agenda                                                update the status of the Statewide
                                                preliminary affirmative determination,                                                                        Scallop Stocks and Stock Assessment
                                                we will then instruct U.S. Customs and                  Wednesday February 21, 2018                           and Fishery Evaluation (SAFE) report,
                                                Border Protection to suspend                               The Committee will discuss harvest                 including catch specification
                                                liquidation and require a cash deposit of               strategies for BSS of harvesting dark                 recommendations for the 2018 fishing
                                                estimated duties on the merchandise.                    shell crab, cost recovery of the observer             year. Additionally, there will be
                                                   Following consultation with                          program and Tanner Crab harvest                       discussion of a scallop age-structured
                                                interested parties, Commerce will                       strategy. The Agenda is subject to                    model, scallop fishery economics and
                                                establish a schedule for questionnaires                                                                       the federal license limitation program,
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                                                                                                        change, and the latest version will be
                                                and comments on the issues related to                   posted at http://www.npfmc.org/.                      the scallop assessment program, survey
                                                the Order. In accordance with section                                                                         plans for 2018, potential State
                                                                                                        Special Accommodations                                regulatory changes for the scallop
                                                  14 See  Memorandum, ‘‘Initiation of Minor               The meeting is physically accessible                fishery, and a review and update of
                                                Alteration Circumvention Inquiry on Wire Rod
                                                With Actual Diameters That Are Less Than 4.75
                                                                                                        to people with disabilities. Requests for             scallop research priorities. The agenda
                                                Millimeters,’’ dated concurrently with this notice      sign language interpretation or other                 is subject to change and will be posted
                                                (Initiation Decision Memorandum).                       auxiliary aids should be directed to                  at http://www.npfmc.org/.


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Document Created: 2018-10-26 13:55:10
Document Modified: 2018-10-26 13:55:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable February 7, 2018.
ContactJolanta Lawska or Eric B. Greynolds, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-8362 and (202) 482-6071, respectively.
FR Citation83 FR 5405 

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