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