MESSAGE NO: 2253207 DATE: 09 10 2002
CATEGORY: CVD TYPE: FIN
REFERENCE: REFERENCE DATE:
CASES: C - 351 - 833 - -
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PERIOD COVERED: 08 30 2002 TO

LIQ SUSPENSION DATE:

TO: DIRECTORS OF FIELD OPERATIONS
PORT DIRECTORS

FROM: DIRECTOR, SPECIAL ENFORCEMENT

RE: FINAL DETERMINATION IN THE CVD INVESTIGATION OF CARBON
AND CERTAIN ALLOY STEEL WIRE ROD FROM BRAZIL
(C-351-833)

1. ON AUGUST 30, 2002, THE DEPARTMENT OF COMMERCE PUBLISHED IN
THE FEDERAL REGISTER ITS FINAL AFFIRMATIVE DETERMINATION IN THE
COUNTERVAILING DUTY DETERMINATION OF CARBON AND CERTAIN ALLOY
STEEL WIRE ROD FROM BRAZIL.

2. THE MERCHANDISE COVERED BY THIS INVESTIGATION 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 ("SUBJECT
MERCHANDISE" OR "WIRE ROD").

3. 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; 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. 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 NFA04-114;
(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) 0.04 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.

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 UNDER INVESTIGATION 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.

4. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN
ASSIGNED INVESTIGATION NUMBER C-351-833.

5. FOR IMPORTS OF CARBON AND CERTAIN ALLOY STEEL WIRE ROD
FROM BRAZIL, THE CUSTOMS SERVICE SHALL SUSPEND LIQUIDATIONS OF
SUCH SHIPMENTS ENTERED OR WITHDRAWN FROM WAREHOUSE, FOR
CONSUMPTION ON OR AFTER AUGUST 30, 2002. EFFECTIVE AUGUST 30,
2002 CUSTOMS SHALL REQUIRE FOR ENTRIES A CASH DEPOSIT OR THE
POSTING OF A BOND EQUAL TO THE SUBSIDY RATES SHOWN BELOW:

PRODUCER/EXPORTER: AD VALOREM RATE

COMPHANIA SIDERURGICA
BELGO-MINEIRA C-351-833-001 6.74

GERDAU, S.A. C-351-833-002 4.44

ALL OTHERS C-351-833-000 6.11


6. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS
OFFICERS, PLEASE CONTACT VIA E-MAIL, THROUGH THE APPROPRIATE
SUPERVISORY CHANNELS, OTHER GOVERNMENT AGENCY LIAISON, USING THE
ATTRIBUTE "HQ OAB." THE IMPORTING PUBLIC AND OTHER INTERESTED
PARTIES SHOULD CONTACT MELANI MILLER, OFFICE OF AD/CVD
ENFORCEMENT, IMPORT ADMINISTRATION, INTERNATIONAL TRADE
ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-0116.

7. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.

CATHY SAUCEDA