Notice2022-00077
Agreement Suspending the Countervailing Duty Investigation on Sugar From Mexico; Preliminary Results of the 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 signatory, the Government of Mexico (GOM), and the respondent companies selected for individual examination, respectively, Impulsora Azucarera Del Tropico, 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 Countervailing Duty Investigation on Sugar from Mexico, as amended (CVD Agreement), except for certain instances of inconsequential non- compliance. Commerce also preliminarily determines that the CVD Agreement continues to meet its statutory requirements under sections 704(c) and (d) of the Tariff Act of 1930, as amended (the Act), during the POR. However, Commerce intends to address certain issues identified in this review by discussing these issues with the GOM and Mexican producers/exporters, as appropriate. We may request consultations pursuant to the CVD 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 938-940]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00077]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-846]
Agreement Suspending the Countervailing Duty Investigation on
Sugar From Mexico; Preliminary Results of the 2020 Administrative
Review
AGENCY: Enforcement & Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that the signatory, the Government of Mexico (GOM), and the respondent
companies selected for individual examination, respectively, Impulsora
Azucarera Del Tropico, 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
Countervailing Duty Investigation on Sugar from Mexico, as amended (CVD
Agreement), except for certain instances of inconsequential non-
compliance. Commerce also preliminarily determines that the CVD
Agreement continues to meet its statutory requirements under sections
704(c) and (d) of the Tariff Act of 1930, as amended (the Act), during
the POR. However, Commerce intends to address certain issues identified
in this review by discussing these issues with the GOM and Mexican
producers/exporters, as appropriate. We may request consultations
pursuant to the CVD Agreement, as necessary, to resolve these issues.
DATES: Applicable January 7, 2022.
FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or David Cordell,
Enforcement & Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, telephone: (202) 482-0162 or (202) 482-0408, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 19, 2014, Commerce signed an agreement under section
704(c) of the Act, with the GOM, suspending the countervailing duty
(CVD) investigation on sugar from Mexico.\1\ On January 15, 2020, the
CVD Agreement was amended.\2\
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\1\ See Agreement Suspending the Countervailing Duty
Investigation of Sugar from Mexico, 79 FR 78044 (December 29, 2014)
(CVD Agreement).
\2\ See Sugar from Mexico: Amendment to the Agreement Suspending
the Countervailing Duty Investigation, 85 FR 3613 (January 22, 2020)
(CVD Amendment) (collectively, as integrated into the CVD Agreement,
amended CVD Agreement).
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[[Page 939]]
On December 17, 2020, the American Sugar Coalition (ASC) and its
members (petitioners) \3\ filed a timely request for an administrative
review of the CVD Agreement.\4\ On February 4, 2021, Commerce initiated
an administrative review for the period January 1, 2020, through
December 31, 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 alphabetic order: Impulsora Del Tropico and
Ingenio Huixtla SA de C.V.\6\ In addition, the review covered the GOM,
which is the signatory to the CVD Agreement.
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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 CVD Agreement
The product covered by this CVD 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 CVD 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 CVD
Agreement, see Memorandum, ``Issues and Decision Memorandum for the
Preliminary Results of the 2020 Administrative Review of the
Agreement Suspending the Countervailing 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.'' Pursuant to the CVD Agreement,
the GOM agrees that subject merchandise is subject to export limits.\9\
The GOM also agrees to other conditions including limits on exports of
Refined Sugar \10\ and restrictions on shipping patterns for
exports.\11\ The CVD Agreement also requires the GOM to issue contract-
specific export licenses,\12\ submit compliance monitoring reports to
Commerce,\13\ and institute penalties for non-compliance with certain
key terms of the CVD Agreement and the companion Agreement Suspending
the Antidumping Duty Investigation on Sugar from Mexico, as amended (AD
Agreement).\14\
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\9\ See amended CVD Agreement at Section V.
\10\ ``Refined Sugar'' is defined in Section II.L of the amended
CVD Agreement.
\11\ Id. at Section V.C.
\12\ Id. at Section VI and Appendix I.
\13\ Id. at Section VIII.B.1 and Appendix II.
\14\ Id. at Section VIII.B.4; see also See Sugar from Mexico:
Suspension of Antidumping Investigation, 79 FR 78039 (December 29,
2014); and Sugar from Mexico: Amendment to the Agreement Suspending
the Antidumping Duty Investigation, 85 FR 3620 (January 22, 2020).
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After reviewing the information received to date from the GOM and
respondent companies in their questionnaire and supplemental
questionnaire responses, we preliminarily determine that the GOM and
respondent companies have adhered to the terms of the CVD Agreement,
except for certain instances of inconsequential non-compliance by the
respondent companies, and that the CVD Agreement is functioning as
intended. Further, we preliminarily determine that the CVD Agreement
continues to meet the statutory requirements under sections 704(c) and
(d) of the Act. However, Commerce is exploring additional measures to
help prevent reporting and recordkeeping issues that may serve to
diminish the effective monitoring and enforcement of the CVD Agreement.
Commerce intends to address certain issues identified in this review by
discussing these issues with the GOM and Mexican producers/exporters,
as appropriate. We may request consultations pursuant to the CVD
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.\15\
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\15\ See Preliminary Decision Memorandum at 9, n. 78 and 12, n.
87.
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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 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
questionnaires in lieu of on-site verification to the GOM and each of
the respondents in the review.\16\ Any issues that arose are addressed
in the Preliminary Decision Memorandum and in the accompanying
proprietary memorandum for each respondent.
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\16\ See Commerce's Letters, ``2020 Administrative Review of the
Agreement Suspending the Countervailing Duty Investigation on Sugar
from Mexico: In Lieu of On-Site Verification Questionnaire,'' dated
November 12, 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.\17\ Pursuant to 19 CFR
[[Page 940]]
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.\18\
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\17\ 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).
\18\ 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.\19\ 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.\20\
Parties should confirm by telephone the date, time, and location of the
hearing two days before the scheduled date.
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\19\ See 19 CFR 351.310(c).
\20\ 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. 2022-00077 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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