In response to a request from Nucor Corporation, the US Department of Commerce (DOC) announced today it 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 (narrow-gauge wire rod) produced and/or exported to the United States by Deacero is circumventing the antidumping duty order on carbon and certain alloy steel wire rod from Mexico.
On October 27, 2017, Nucor submitted a complaint alleging 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, and thus falls within the scope of the order.
In its November 30, 2017, submission, Deacero opposed Nucor's request for an initiation of an anti-circumvention proceeding. On December 6, 2017, Nucor submitted a surrebuttal to Deacero's rebuttal comments. On December 15, 2017, DOC 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.
On January 23, 2018, Nucor submitted supplemental information regarding the Circumvention Allegation. On January 30, 2018, Deacero objected to Nucor's request for the DOC 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 the department 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.
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.
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.
On September 24, 2012, the DOC issued an affirmative final circumvention determination in which it determined that 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. The DOC’s finding was subsequently affirmed by the Court of Appeals for the Federal Circuit.