MESSAGE NO: 2301203 DATE: 10 28 2002
CATEGORY: CVD TYPE: ORD
REFERENCE: REFERENCE DATE:
CASES: C - 351 - 833 C - 122 - 841
- - - -
- - - -

PERIOD COVERED: 10 22 2002 TO

LIQ SUSPENSION DATE:

TO: DIRECTORS OF FIELD OPERATIONS
PORT DIRECTORS

FROM: DIRECTOR, SPECIAL ENFORCEMENT

RE: COUNTERVAILING DUTY ORDERS ON WIRE ROD FROM BRAZIL
(C-351-833) AND CANADA (C-122-841)



1. ON OCTOBER 22, 2002, THE DEPARTMENT OF COMMERCE PUBLISHED IN
THE FEDERAL REGISTER ITS COUNTERVAILING DUTY ORDERS IN THE
INVESTIGATIONS OF CARBON AND CERTAIN ALLOY STEEL WIRE ROD
FROM BRAZIL AND CANADA (67 FR 64871).

2. THE MERCHANDISE COVERED BY THESE ORDERS 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").

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 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.

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 COVERED BY THESE ORDERS 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 THESE ORDERS IS DISPOSITIVE.

3. FOR FURTHER REPORTING PURPOSES, THESE CASES HAVE BEEN
ASSIGNED THE FOLLOWING INVESTIGATION NUMBERS:

BRAZIL C-351-833
CANADA C-122-841

4. FOR IMPORTS OF CARBON AND CERTAIN ALLOY STEEL WIRE ROD FROM
BRAZIL, THE CUSTOMS SERVICE SHALL CONTINUE TO SUSPEND
LIQUIDATION OF SUCH SHIPMENTS ENTERED OR WITHDRAWN FROM
WAREHOUSE, FOR CONSUMPTION ON OR AFTER AUGUST 30, 2002.
EFFECTIVE OCTOBER 22, 2002 CUSTOMS SHALL REQUIRE A CASH
DEPOSIT EQUAL TO THE SUBSIDY RATES SHOWN BELOW:

BRAZIL
MFR/PRODUCER/ CUSTOMS ID NUMBER: AD VALOREM
EXPORTER: SUBSIDY RATE:
COMPHANIA SIDERURGICA
BELGO-MINEIRA C-351-833-001 6.74
GERDAU, S.A. C-351-833-002 2.76
ALL OTHERS C-351-833-000 5.64

5. FOR IMPORTS OF CARBON AND CERTAIN ALLOY STEEL WIRE ROD FROM
CANADA (EXCEPT FOR SUBJECT MERCHANDISE BOTH PRODUCED AND
EXPORTED BY IVACO, INC. AND STELCO, INC., WHICH BOTH
RECEIVED A ZERO FINAL RATE AND ARE EXCLUDED FROM THE ORDER),
THE CUSTOMS SERVICE SHALL CONTINUE TO SUSPEND LIQUIDATION ON
ALL SHIPMENTS ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR
CONSUMPTION MADE DURING THE PERIOD, FEBRUARY 8, 2002 THROUGH
JUNE 7, 2002. THE CUSTOMS SERVICE SHALL ALSO SUSPEND
LIQUIDATION OF SUCH SHIPMENTS ENTERED OR WITHDRAWN FROM
WAREHOUSE, FOR CONSUMPTION ON OR AFTER OCTOBER 22, 2002.
EFFECTIVE OCTOBER 22, 2002 CUSTOMS SHALL REQUIRE A CASH
DEPOSIT EQUAL TO THE SUBSIDY RATES SHOWN BELOW:


CANADA
MFR/PRODUCER/ CUSTOMS ID NUMBER: AD VALOREM
EXPORTER: SUBSIDY RATE:
ISPAT SIDBEC, INC. C-122-841-003 6.61
IVACO, INC. C-122-841-002 EXCLUDED
STELCO, INC. C-122-841-001 EXCLUDED
ALL OTHERS C-122-841-000 6.61

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 AT 202-482-
0116 (BRAZIL) AND CRAIG MATNEY AT 482-1778 (CANADA), OFFICE
OF AD/CVD ENFORCEMENT, IMPORT ADMINISTRATION, INTERNATIONAL
TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE.

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

CATHY SAUCEDA