Notice2022-00074
Agreement Suspending the Antidumping Duty Investigation on Sugar From Mexico; Preliminary Results of the 2019-2020 Administrative Review
Primary source
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Published
January 7, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that the respondents selected for individual examination, respectively, Impulsora Azucarera Del Tr[oacute]pico, S.A. de C.V. (Impulsora Del Tropico) and its affiliate and Ingenio Huixtla SA de C.V. (Ingenio Huixtla) and its affiliates are in compliance with the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico, as amended (AD Agreement). Commerce also preliminarily determines that the AD Agreement continues to meet its statutory requirements under sections 734(c) and (d) of the Tariff Act of 1930, as amended (the Act). However, Commerce intends to address certain issues identified in this review by further discussing these issues with the signatory Mexican producers/exporters and the Government of Mexico (GOM), as appropriate. We may request consultations pursuant to the AD Agreement, as necessary, to resolve these issues.
Full Text
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<title>Federal Register, Volume 87 Issue 5 (Friday, January 7, 2022)</title>
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[Federal Register Volume 87, Number 5 (Friday, January 7, 2022)]
[Notices]
[Pages 932-934]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00074]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-845]
Agreement Suspending the Antidumping Duty Investigation on Sugar
From Mexico; Preliminary Results of the 2019-2020 Administrative Review
AGENCY: Enforcement & Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that the respondents selected for individual examination, respectively,
Impulsora Azucarera Del Tr[oacute]pico, S.A. de C.V. (Impulsora Del
Tropico) and its affiliate and Ingenio Huixtla SA de C.V. (Ingenio
Huixtla) and its affiliates are in compliance with the Agreement
Suspending the Antidumping Duty Investigation on Sugar from Mexico, as
amended (AD Agreement). Commerce also preliminarily determines that the
AD Agreement continues to meet its statutory requirements under
sections 734(c) and (d) of the Tariff Act of 1930, as amended (the
Act). However, Commerce intends to address certain issues identified in
this review by further discussing these issues with the signatory
Mexican producers/exporters and the Government of Mexico (GOM), as
appropriate. We may request consultations pursuant to the AD Agreement,
as necessary, to resolve these issues.
DATES: Applicable January 7, 2022.
FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or Jesse Montoya,
Enforcement & Compliance, International Trade Administration, U.S.
Department of Commerce, 1401
[[Page 933]]
Constitution Avenue NW, Washington, DC 20230, telephone: (202) 482-0162
or (202) 482-8211, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 19, 2014, Commerce signed the AD Agreement with a
representative of Mexican producers/exporters accounting for
substantially all imports of sugar from Mexico, under section 734(c) of
the Act, which suspended the antidumping duty (AD) investigation on
sugar from Mexico.\1\ On January 15, 2020, the AD Agreement was
amended.\2\
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\1\ See Sugar from Mexico: Suspension of Antidumping
Investigation, 79 FR 78039 (December 29, 2014) (AD Agreement).
\2\ See Sugar from Mexico: Amendment to the Agreement Suspending
the Antidumping Duty Investigation, 85 FR 3620 (January 22, 2020)
(AD Amendment) (collectively, as integrated into the AD Agreement,
amended AD Agreement).
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On December 17, 2020, the American Sugar Coalition (ASC) and its
members (petitioners) \3\ filed a timely request for an administrative
review of the AD Agreement.\4\ On February 4, 2021, Commerce initiated
an administrative review for the period December 1, 2019, through
November 30, 2020.\5\
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\3\ The members of the American Sugar Coalition are as follows:
American Sugar Cane League; American Sugarbeet Growers Association;
American Sugar Refining, Inc.; Florida Sugar Cane League; Rio Grande
Valley Sugar Growers, Inc.; Sugar Cane Growers Cooperative of
Florida; and the United States Beet Sugar Association.
\4\ See Petitioners' Letter, ``Sugar from Mexico: Request for
Administrative Review,'' dated December 17, 2020.
\5\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 86 FR 8166 (February 4, 2021).
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On March 23, 2021, Commerce selected two companies as mandatory
respondents, listed in alphabetical order: Impulsora Del Tropico and
Ingenio Huixtla.\6\
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\6\ See Memorandum, ``2019-2020 Administrative Review of the
Agreement Suspending the Antidumping Duty Investigation on Sugar
from Mexico As Amended; Respondent Selection,'' dated March 23,
2021.
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Scope of the AD Agreement
The product covered by this AD Agreement is raw and refined sugar
of all polarimeter readings derived from sugar cane or sugar beets.
Merchandise covered by this AD Agreement is typically imported under
the following headings of the HTSUS: 1701.12.1000, 1701.12.5000,
1701.13.1000, 1701.13.5000, 1701.14.1020, 1701.14.1040, 1701.14.5000,
1701.91.1000, 1701.91.3000, 1701.99.1015, 1701.99.1017, 1701.99.1025,
1701.99.1050, 1701.99.5015, 1701.99.5017, 1701.99.5025, 1701.99.5050,
and 1702.90.4000.\7\ The tariff classification is provided for
convenience and customs purposes; however, the written description of
the scope of this AD Agreement is dispositive.\8\
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\7\ Prior to July 1, 2016, merchandise covered by the AD
Agreement was classified in the HTSUS under subheading 1701.99.1010.
Prior to January 1, 2020, merchandise covered by the AD Agreement
was classified in the HTSUS under subheadings 1701.14.1000 and
1701.99.5010.
\8\ For a complete description of the Scope of the AD Agreement,
see Memorandum, ``Issues and Decision Memorandum for the Preliminary
Results of the 2019-2020 Administrative Review of the Agreement
Suspending the Antidumping Duty Investigation on Sugar from Mexico,
as Amended,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Methodology and Preliminary Results
Commerce has conducted this review in accordance with section
751(a)(1)(C) of the Act, which specifies that Commerce shall ``review
the current status of, and compliance with, any agreement by reason of
which an investigation was suspended.'' In this case, Commerce and
Mexican producers/exporters accounting for substantially all imports of
sugar from Mexico, signed the AD Agreement, which suspended the
underlying antidumping duty investigation, on December 19, 2014, and
was subsequently amended on January 15, 2020. Pursuant to the AD
Agreement, each signatory producer/exporter individually agrees that it
will not sell subject merchandise at prices less than the reference
prices established in Appendix I to the AD Agreement.\9\ Each signatory
producer/exporter also individually agrees that for each entry the
amount by which the estimated normal value exceeds the export price (or
the constructed export price) will not exceed 15 percent of the
weighted average amount by which the estimated normal value exceeded
the export price (or constructed export price) for all less-than-fair-
value entries of the producer/exporter examined during the course of
the investigation.\10\ The signatory producers/exporters also
individually agree to provide documentation upon request from Commerce
\11\ and provide certifications each quarter \12\ to allow Commerce to
monitor the AD Agreement. In addition, the signatory producers/
exporters agree to incorporate into their sales contracts with
Intermediary Customers \13\ the obligation that such customers will
abide by the terms of the AD Agreement.\14\ Lastly, the signatory
producers/exporters agree to ensure that Other Sugar \15\ is tested for
polarity by a laboratory approved by CBP upon entry into the United
States and that the importers of record report the polarity test
results for each entry to Commerce within 30 days of entry.\16\
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\9\ See amended AD Agreement at Section VI and Appendix I.
\10\ Id. at Section VI.
\11\ Id. at Sections VII.B.1, VII.B.2, and VII.B.4.
\12\ Id. at Section VII.C.4.
\13\ ``Intermediary Customer'' is defined in Section II.N of the
AD Agreement.
\14\ See AD Amendment at Section VII.C.5.
\15\ ``Other Sugar'' is defined Section II.F of the AD
Amendment.
\16\ See AD Amendment at Section VII.C.6.
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After reviewing the information received to date from the
respondent companies in their questionnaire and supplemental
questionnaire responses, we preliminarily determine that the
respondents have adhered to the terms of the AD Agreement and that the
AD Agreement is functioning as intended. Further, we preliminarily
determine that the AD Agreement continues to meet the statutory
requirements under sections 734(c) and (d) of the Act. However,
Commerce is exploring additional measures to help prevent reporting and
recordkeeping issues with regard to certain transactions that may serve
to diminish the effective monitoring and enforcement of the AD
Agreement. Commerce intends to address certain issues identified in
this review by discussing these issues with the signatory Mexican
producers/exporters and the GOM, as appropriate. We may request
consultations pursuant to the AD Agreement, as necessary, to resolve
these issues.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum. The Preliminary
Decision Memorandum is a public document and 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>. Commerce
is also addressing proprietary issues concerning each of the
respondents in separate memoranda which we incorporate into the
Preliminary Decision Memorandum.\17\
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\17\ See Preliminary Decision Memorandum at 6 and footnote 47.
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Verification
As provided in section 782(i)(3)(a) of the Act, Commerce verified
the information relied upon in making its preliminary results.
Normally, Commerce verifies information using
[[Page 934]]
standard procedures, including an on-site examination of original
accounting, financial, and sales documentation. However, due to current
travel restrictions in response to the global COVID-19 pandemic,
Commerce is unable to conduct on-site verification in this review.
Accordingly, we chose to verify the information relied upon in making
the preliminary results through alternative means in lieu of an on-site
verification. Commerce issued a questionnaire in lieu of on-site
verification to each of the respondents in the review.\18\ Any issues
that arose are addressed in the Preliminary Decision Memorandum and in
the accompanying proprietary memorandum for each respondent.
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\18\ See Commerce's Letter, ``Administrative Review of the
Agreement Suspending the Antidumping Duty Investigation on Sugar
from Mexico: In Lieu of On-Site Verification Questionnaire,'' dated
November 23, 2021.
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Public Comment
Case briefs are due 30 days from the publication of these
preliminary results in the Federal Register. Rebuttal briefs, limited
to issues raised in case briefs, may be submitted no later than seven
days after the deadline date for case briefs.
Note that Commerce has temporarily modified certain of its
requirements for serving documents containing business proprietary
information, until further notice.\19\ Pursuant to 19 CFR 351.309(c)(2)
and (d)(2), parties who submit case briefs or rebuttal briefs in this
investigation are encouraged to submit with each argument: (1) A
statement of the issue; (2) a brief summary of the argument; and (3) a
table of authorities.\20\
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\19\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of
Effective Period, 85 FR 41363 (July 10, 2020).
\20\ See 19 CFR 351.309(c)(2) and (d)(2).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically via
Commerce's electric records system, ACCESS. An electronically filed
request must be received successfully in its entirety by 5:00 p.m.
Eastern Time within 30 days after the date of publication of this
notice.\21\ Requests should contain: (1) The party's name, address, and
telephone number; (2) the number of participants; and (3) a list of
issues to be discussed. If a request for a hearing is made, Commerce
intends to hold the hearing at a time and date to be determined.\22\
Parties should confirm by telephone the date, time, and location of the
hearing two days before the scheduled date.
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\21\ See 19 CFR 351.310(c).
\22\ See 19 CFR 351.310(d).
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Commerce intends to issue the final results of this administrative
review, including the results of its analysis of the issues raised in
any written briefs, not later than 120 days after the date of
publication of this notice, pursuant to section 751(a)(3)(A) of the
Act, unless extended.
Notification to Interested Parties
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: December 30, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2022-00074 Filed 1-6-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on January 7, 2022.
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