Certain Steel Wire Rod

[Federal Register Volume 64, Number 137 (Monday, July 19, 1999)]
[Notices]
[Pages 38692-38693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18333]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. TA-201-69]


Certain Steel Wire Rod

Determination

    On the basis of the information in the investigation, the 
Commission--
    (1) Was equally divided on the question of whether certain steel 
wire rod 1 is being imported into the United States in such 
increased quantities as to be a substantial cause of serious injury or 
the threat of serious injury to the domestic industry producing an 
article like or directly competitive with the imported article pursuant 
to section 202(b) of the Trade Act of 1974; 2
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    \1\ The imported article covered by this investigation is 
defined as hot-rolled bars and rods, in irregularly wound coils, of 
circular or approximately circular solid cross section, having a 
diameter of 5 mm or more but less than 19 mm, of non-alloy or alloy 
steel, except such bars and rods of free-machining steel or of alloy 
steel containing by weight 24 percent or more of nickel. Free-
machining steel is any steel product containing by weight one or 
more of the following elements, in the specified proportions: 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, and/or more than 0.01 percent of 
tellurium. Certain steel wire rod is provided for in subheadings 
7213.91, 7213.99, 7227.20 and 7227.90.60 of the Harmonized Schedule 
of the United States (HTS). The scope of this investigation does not 
cover concrete reinforcing bars and rods, or bars and rods of 
stainless steel or tool steel, which are provided for in other HTS 
subheadings.
    \2\ Section 330(d)(1) of the Tariff Act of 1930 (19 U.S.C. 
1330(d)(1)) provides that when the Commission is equally divided on 
the question of injury under section 202(b) of the Trade Act of 
1974, ``then the determination agreed upon by either group of 
commissioners may be considered by the President as the 
determination of the Commission.''
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    (a) Chairman Lynn M. Bragg, Vice Chairman Marcia E. Miller, and 
Commissioner Stephen Koplan made an affirmative determination; 
3
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    \3\ Chairman Lynn M. Bragg made an affirmative determination of 
threat of serious injury. Vice Chairman Marcia E. Miller and 
Commissioner Stephen Koplan made an affirmative determination of 
serious injury. Commissioners Carol T. Crawford, Jennifer A. 
Hillman, and Thelma J. Askey made a negative determination.
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    (b) Commissioners Carol T. Crawford, Jennifer A. Hillman, and 
Thelma J. Askey made a negative determination. In light of their 
negative determination, Commisssioners Crawford, Hillman, and Askey do 
not believe any import relief is appropriate in this investigation;
    (2) Makes negative findings, 4 pursuant to section 
311(a) of the North American Free-Trade Agreement (NAFTA) 
Implementation Act (19 U.S.C. 3371(a)), with respect to imports of 
certain steel wire rod from Canada and Mexico.
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    \4\ Chairman Lynn M. Bragg dissenting with respect to Canada. 
Only Commissioners making an affirmative determination, i.e., 
Chairman Bragg, Vice Chairman Marcia E. Miller, and Commissioner 
Stephen Koplan, were required to make findings with respect to 
imports of certain steel wire rod from Canada and Mexico.
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Recommendations With Respect To Remedy

    Vice Chairman Marcia E. Miller and Commissioner Stephen Koplan 
recommend:

    (1) That the President impose an additional duty on imports of 
certain steel wire rod that are the subject of this investigation, 
as follows:

First year: 15.0 percent ad valorem;
Second year: 13.0 percent ad valorem;
Third year: 11.0 percent ad valorem; and
Fourth year: 9.0 percent ad valorem;

    (2) That the additional duty apply to imports of certain steel 
wire rod from beneficiary countries of the Caribbean Basin Economic 
Recovery Act;
    (3) That the additional duty not apply to certain specialty 
steel wire rod items, specifically, tire cord quality wire rod, pipe 
wrap quality wire rod, and valve spring quality wire rod;
    (4) Having made negative findings with respect to imports of 
certain steel wire rod from Canada and Mexico under section 311(a) 
of the NAFTA Implementation Act, that such imports be excluded from 
the additional duty; and
    (5) That the additional duty not apply to any imports of certain 
steel wire rod entered duty-free from beneficiary countries under 
the Andean Trade Preference Act, or to imports of certain steel wire 
rod from Israel.

    Chairman Lynn M. Bragg recommends:

    (1) That the President impose a duty, in addition to the current 
rate of duty, for a four-year period, on all imports of steel wire 
rod that are the subject of this investigation without exclusion 
except as provided below, as follows:

First year: 7 percent ad valorem;
Second year: 6.5 percent ad valorem;
Third year: 6.0 percent ad valorem; and
Fourth year: 5.5 percent ad valorem;

    (2) That the additional duty described above apply to imports of 
steel wire rod from Canada under section 311(a) of the NAFTA 
Implementation Act;
    (3) Having made a negative finding with respect to imports of 
steel wire rod from Mexico under section 311(a) of the NAFTA 
Implementation Act, that such imports be excluded from the increase 
in duty described above;
    (4) That the additional duty described above apply to imports of 
steel wire rod entered duty-free from beneficiary countries under 
the Caribbean Basin Economic Recovery Act, but that it not apply to 
imports of steel wire rod entered duty-free from beneficiary 
countries under the Andean Trade Preference Act or imports of steel 
wire rod from Israel.

Background

    Following receipt of a properly filed petition on January 12, 1999, 
by counsel on behalf of Atlantic Steel Industries, Inc., Atlanta, GA; 
Birmingham Steel Corp., Birmingham, AL; Connecticut Steel Corp., 
Wallingford, CT; Co-Steel Raritan, Perth Amboy, NJ; GS Industries, 
Inc., Georgetown, SC; Keystone Steel & Wire Co., Peoria, IL; North Star 
Steel Co., Minneapolis, MN; North Star Steel Texas Inc., Beaumont, TX; 
Northwestern Steel & Wire Co., Sterling, IL; the Independent Steel 
Workers Alliance, Bartonville, IL; and the United Steelworkers of 
America AFL-CIO, Pittsburgh, PA, the Commission instituted 
investigation No. TA-201-69, Certain Steel Wire Rod, under section 202 
of the Trade Act of 1974 to determine whether certain steel wire rod is 
being imported into the United States in such increased quantities as 
to be a substantial cause of serious injury, or the threat thereof, to 
the domestic industry producing an article like or directly competitive 
with the imported article.
    Notice of the institution of the Commission's investigation and of 
the scheduling of public hearings to be held in connection therewith 
was given by posting copies of the notice in the Office of the 
Secretary, U.S. International Trade Commission, Washington, DC, and by 
publishing the notice in the Federal Register of January 27, 1999 (64 
F.R. 4123). The hearing in connection with the injury phase of the 
investigation was held on April 15, 1999, and the hearing on the 
question of remedy was held on June 8, 1999. Both hearings were held in 
Washington, DC; all persons who requested the opportunity were 
permitted to appear in person or by counsel.

[[Page 38693]]

    The Commission transmitted its determination in this investigation 
to the President on July 12, 1999. The views of the Commission are 
contained in USITC Publication 3207 (July 1999), entitled Certain Steel 
Wire Rod: Investigation No. TA-201-69.

    By order of the Commission.

    Issued: July 13, 1999.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-18333 Filed 7-16-99; 8:45 am]
BILLING CODE 7020-02-P