Notice2023-16089

Prestressed Concrete Steel Wire Strand From Mexico: Initiation of Circumvention Inquiry on the Antidumping Duty Order

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
July 31, 2023

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

In response to a request from Insteel Wire Products Company, Sumiden Wire Products Corporation, and Wire Mesh Corp. (collectively, the requestors), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of certain high carbon steel (HCS) wire from Mexico that are assembled or completed into prestressed concrete steel wire strand (PC strand) in the United States, are circumventing the antidumping duty order on PC strand from Mexico.

Full Text

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<title>Federal Register, Volume 88 Issue 145 (Monday, July 31, 2023)</title>
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[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Notices]
[Pages 49438-49440]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16089]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-831]


Prestressed Concrete Steel Wire Strand From Mexico: Initiation of 
Circumvention Inquiry on the Antidumping Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to a request from Insteel Wire Products Company, 
Sumiden Wire Products Corporation, and Wire Mesh Corp. (collectively, 
the requestors), the U.S. Department of Commerce (Commerce) is 
initiating a country-wide circumvention inquiry to determine whether 
imports of certain high carbon steel (HCS) wire from Mexico that are 
assembled or completed into prestressed concrete steel wire strand (PC 
strand) in the United States, are circumventing the antidumping duty 
order on PC strand from Mexico.

DATES: Applicable July 31, 2023.

[[Page 49439]]


FOR FURTHER INFORMATION CONTACT: Craig Matney or Jonathan Schueler, 
Office VIII, AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2429 
and (202) 482-9175, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On June 9, 2023, pursuant to section 781(a) of the Tariff Act of 
1930, as amended (the Act) and 19 CFR 351.226(c), the requestors filed 
a circumvention inquiry request alleging that imports of HCS wire 
manufactured in Mexico and completed into PC strand in the United 
States are circumventing the antidumping duty order on PC strand from 
Mexico \1\ and, accordingly, should be included within the scope of the 
Order.\2\
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    \1\ See Notice of Antidumping Duty Order: Prestressed Concrete 
Steel Wire Strand from Mexico, 69 FR 4112 (January 28, 2004) 
(Order).
    \2\ See Requestors' Letter, ``Prestressed Concrete Steel Wire 
Strand From Mexico--Petitioners' Request for Circumvention Ruling 
Pursuant to Section 781(a), as Amended,'' dated June 9, 2023 
(Circumvention Inquiry Request).
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Scope of the Order

    The merchandise covered by this Order is PC strand. Merchandise 
covered by the Order is currently classifiable under subheadings 
7312.10.3010 and 7312.10.3012 of the Harmonized Tariff Schedule of the 
United States (HTSUS). While the HTSUS subheading and are provided for 
convenience and for customs purposes, the written description of the 
subject merchandise is dispositive. For a complete description of the 
scope, see the attachment to the Initiation Checklist.\3\
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    \3\ See Checklist, ``Initiation of the Circumvention Inquiry on 
the Antidumping Duty Order,'' dated concurrently with, and hereby 
adopted by, this notice (Initiation Checklist), at Attachment.
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Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers HCS wire imported from Mexico. 
The HCS wire has a high carbon content (i.e., 0.78-0.85 percent), is 
not heat treated, and has a diameter less than 4.50 millimeters. The 
HCS wire is assembled or completed in the United States by stranding 
the HCS wire to produce PC strand of the type that would be subject to 
the Order.

Initiation of Circumvention Inquiry

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations requires that each request for 
a circumvention inquiry allege ``the elements necessary for a 
circumvention determination under section 781 of the Act exist'' and be 
``accompanied by information reasonably available to the interested 
party supporting these allegations.'' The requestors alleged 
circumvention pursuant to section 781(a) of the Act (merchandise 
completed or assembled in the United States).
    According to section 781(a)(1) of the Act, after taking into 
account any advice provided by the U.S. International Trade Commission 
(ITC) under section 781(e) of the Act, Commerce may find the imported 
parts or components referred to in subparagraph (B) that are used in 
the completion or assembly of the merchandise in the United States to 
be covered by the scope of an order if: (A) merchandise sold in the 
United States is of the same class or kind as any merchandise produced 
in a foreign country that is the subject of an antidumping duty order 
or finding or a countervailing duty order; (B) such merchandise sold in 
the United States is completed or assembled in the United States from 
parts or components produced in the foreign country with respect to 
which such order or finding applies; (C) the process of assembly or 
completion in the United States referred to in subparagraph (B) is 
minor or insignificant; and (D) the value of the parts or components 
referred to in subparagraph (B) is a significant portion of the total 
value of the merchandise.
    In determining whether the process of assembly or completion in the 
United States is minor or insignificant under section 781(a)(1)(C) of 
the Act, section 781(a)(2) of the Act directs Commerce to consider: (A) 
the level of investment in the United States; (B) the level of research 
and development in the United States; (C) the nature of the production 
process in the United States; (D) the extent of production facilities 
in the United States; and (E) whether the value of processing performed 
in the United States represents a small proportion of the value of the 
merchandise sold in the United States.
    In addition, section 781(a)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in the United States within the scope of an 
antidumping or countervailing duty order. Specifically, Commerce shall 
take into account such factors as: (A) the pattern of trade, including 
sourcing patterns; (B) whether the manufacturer or exporter of the 
parts or components is affiliated with the person who assembles or 
completes the merchandise sold in the United States from the parts or 
components produced in the foreign country to which the order applies; 
and (C) whether imports into the United States of the parts or 
components produced in such foreign country have increased after the 
initiation of the investigation which resulted in the issuance of such 
order or finding.
    Based on our analysis of the requestors' circumvention inquiry 
request, we determine that the requestors satisfied the criteria under 
19 CFR 351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(ii), we 
have accepted the request and are initiating the requested 
circumvention inquiry of the Order. For a full discussion of the basis 
for our decision to initiate the requested circumvention inquiry, see 
the Initiation Checklist. Moreover, as explained in the Initiation 
Checklist, we are initiating a country-wide circumvention inquiry. 
Commerce has taken this approach in prior circumvention inquiries where 
the facts warranted initiation on a country-wide basis.\4\
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    \4\ See, e.g., Certain Corrosion-Resistant Steel Products from 
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from 
the People's Republic of China: Initiation of Anti-Circumvention 
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 
25, 2017) (stating at initiation that Commerce would evaluate the 
extent to which a country-wide finding applicable to all exports 
might be warranted); and Certain Corrosion-Resistant Steel Products 
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing 
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at 
initiation that Commerce would evaluate the extent to which a 
country-wide finding applicable to all exports might be warranted).
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    Consistent with the approach taken in prior circumvention inquiries 
that Commerce initiated on a country-wide basis, we intend to solicit 
information from producers and exporters in Mexico concerning shipments 
of Mexican HCS wire to the United States to be stranded into PC strand 
in the United States. A company's failure to completely respond to 
Commerce's requests for information may result in the application of 
partial or total facts available, pursuant to section 776(a) of the 
Act, which may include adverse inferences, pursuant to section 776(b) 
of the Act.

[[Page 49440]]

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of its initiation of the requested 
circumvention inquiry and direct CBP to continue the suspension of 
liquidation of entries of products subject to the circumvention inquiry 
that were already subject to the suspension of liquidation and to apply 
the cash deposit rate that would be applicable if the products were 
determined to be covered by the scope of the Order. Should Commerce 
issue a preliminary or final circumvention determination, Commerce will 
follow the suspension of liquidation rules under 19 CFR 351.226(l)(2)-
(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(a) of the Act, 
Commerce has determined that the requestors' request for a 
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). 
Accordingly, Commerce is notifying all interested parties of the 
initiation of a circumvention inquiry to determine whether U.S. imports 
of HCS wire, which are imported from Mexico and produced into PC strand 
and sold in the United States, are circumventing the Order. A 
description of the products that are subject to the circumvention 
inquiry, and an explanation of the reasons for Commerce's decision to 
initiate this inquiry, are included in the accompanying Initiation 
Checklist. In accordance with 19 CFR 351.226(e)(1), Commerce intends to 
issue its preliminary determination in this circumvention inquiry no 
later than 150 days from the date of publication of this notice in the 
Federal Register.
    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: July 24, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-16089 Filed 7-28-23; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on July 31, 2023.

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