Notice2024-06946
Antidumping Duty Order on Prestressed Concrete Steel Wire Strand From Mexico: Preliminary Affirmative Determination of Circumvention
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
April 2, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that imports of certain high carbon steel (HCS) wire that are produced in Mexico and assembled or completed into prestressed concrete steel wire strand (PC strand) in the United States are circumventing the antidumping duty (AD) order on PC strand from Mexico. As a result, all imports of certain HCS wire from Mexico will be subject to suspension of liquidation on or after July 31, 2023. Commerce is also imposing a certification requirement. We invite interested parties to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 64 (Tuesday, April 2, 2024)</title>
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[Federal Register Volume 89, Number 64 (Tuesday, April 2, 2024)]
[Notices]
[Pages 22668-22671]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06946]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-831]
Antidumping Duty Order on Prestressed Concrete Steel Wire Strand
From Mexico: Preliminary Affirmative Determination of Circumvention
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that imports of certain high carbon steel (HCS) wire that
are produced in Mexico and assembled or completed into prestressed
concrete steel wire strand (PC strand) in the United States are
circumventing the antidumping duty (AD) order on PC strand from Mexico.
As a result, all imports of certain HCS wire from Mexico will be
subject to suspension of liquidation on or after July 31, 2023.
Commerce is also imposing a certification requirement. We invite
interested parties to comment on this preliminary determination.
DATES: Applicable April 2, 2024.
FOR FURTHER INFORMATION CONTACT: Craig Matney or Jonathan Schueler,
Office VIII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2429 or (202) 482-9175,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On January 28, 2004, Commerce published in the Federal Register the
AD order on U.S. imports of PC strand from Mexico.\1\ On July 31, 2023,
pursuant to section 781(a) of the Tariff Act of 1930, as amended (the
Act), and 19 CFR 351.226(d)(1), Commerce initiated a country-wide
circumvention inquiry to determine whether imports of HCS wire from
Mexico that are assembled or completed into PC strand in the United
States are circumventing the Order and, accordingly, should be covered
by the scope of the Order.\2\ On
[[Page 22669]]
September 25, 2023, Commerce selected Deacero S.A.P.I. de CV (Deacero)
and Aceros Camesa S.A. de C.V. (Camesa), Mexican producers of HCS wire,
as the mandatory respondents in this circumvention inquiry.\3\
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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 Prestressed Concrete Steel Wire Strand from Mexico:
Initiation of Circumvention Inquiry on the Antidumping Duty Order,
88 FR 49438 (July 31, 2023) (Initiation Notice). We note that in the
Initiation Notice, we stated that we are initiating this
circumvention inquiry pursuant to 19 CFR 351.226(d)(1)(ii). However,
this section was amended after the Initiation Notice was published,
therefore we reference the latest version of the regulation. See
Administrative Protective Order, Service, and Other Procedures in
Antidumping and Countervailing Duty Proceedings, 88 FR 67069, 67078
(September 29, 2023).
\3\ See Memorandum, ``Respondent Selection,'' dated September
25, 2023.
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On December 14, 2023, Commerce extended the deadline for issuing
the preliminary determination in this circumvention inquiry until March
27, 2023.\4\ For a complete description of the events that followed the
initiation of this circumvention inquiry, see the Preliminary Decision
Memorandum.\5\ The topics included in the Preliminary Decision
Memorandum are identified in Appendix I to this notice. 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>.
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\4\ See Memorandum, ``Extension of Preliminary Determination,''
dated December 14, 2023.
\5\ See Memorandum, ``Prestressed Concrete Steel Wire Strand (PC
Strand) from Mexico: Preliminary Decision Memorandum for the
Circumvention Inquiry with Respect to High Carbon Steel Wire
Completed into PC Strand in the United States,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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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 full description of the scope
of the Order, see the Preliminary Decision Memorandum.
Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers certain HCS wire imported from
Mexico. The HCS wire has a high carbon content (i.e., 0.60-0.85
percent),\6\ 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 (inquiry merchandise).
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\6\ We have revised the scope of the inquiry merchandise from
that stated in the Initiation Notice to lower the required level of
carbon content from 0.78 percent to 0.60 percent to align with the
definition of HCS wire as specified by the HTSUS subheading for high
carbon steel wire (i.e., 7217.10.8090) because record evidence
indicates that certain merchandise being used to produce PC strand
does not fall within the parameters of the inquiry merchandise as
initiated, see Preliminary Decision Memorandum for further details.
We invite interested parties to comment on this revised scope of the
merchandise subject to the circumvention inquiry in their case
briefs.
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The inquiry merchandise is currently classifiable under HTSUS
subheading 7217.10.8090. Although the HTSUS subheading is provided for
convenience and customs purposes, the written description of the
merchandise is dispositive.
Importers of the subject HCS wire that will not be converted into
PC strand in the United States may certify that the HCS wire will not
be further processed into subject merchandise covered by the scope of
the Order. Failure to comply with the requisite certification
requirement may result in the merchandise being found subject to AD
duties.
Methodology
Commerce made this preliminary circumvention determination in
accordance with section 781(a) of the Act and 19 CFR 351.226. For a
full description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
Preliminary Circumvention Determination
We preliminarily determine that PC strand, assembled or completed
in the United States using Mexican-origin HCS wire produced by Deacero,
is circumventing the Order. We also preliminarily determine that
Mexican-origin HCS wire produced by Camesa is not assembled or
completed into PC strand in the United States, and therefore, is not
circumventing the Order.
As detailed in the Preliminary Decision Memorandum, we also
preliminarily determine that U.S. imports of inquiry merchandise
exported from Mexico are circumventing the Order on a country-wide
basis. As a result, we preliminarily determine that this merchandise is
covered by the Order.
See the ``Suspension of Liquidation'' section below for details
regarding suspension of liquidation and cash deposit requirements. See
the ``Certification'' and ``Certification Requirements'' sections below
for details regarding the use of certifications.
Suspension of Liquidation
Based on the preliminary affirmative country-wide determination of
circumvention, in accordance with 19 CFR 351.226(l)(2), we will direct
U.S. Customs and Border Protection (CBP) to suspend liquidation and
require a cash deposit of estimated duties on unliquidated entries of
HCS wire that are produced in Mexico and assembled or completed into PC
strand in the United States, that were entered, or withdrawn from
warehouse, for consumption on or after July 31, 2023, the date of
publication of the initiation of this circumvention inquiry in the
Federal Register.\7\
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\7\ See Initiation Notice, 88 FR at 49438.
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For exporters of the HCS wire that have a company-specific cash
deposit rate under the Order, the cash deposit rate will be the
company-specific AD cash deposit rate established for that company in
the most recently completed segment of the PC strand from Mexico
proceeding.
If the exporter of the HCS wire from Mexico does not have a
company-specific cash deposit rate, the AD cash deposit rate will be
the ``all-others'' rate (62.78 percent).\8\ The suspension of
liquidation will remain in effect until further notice.
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\8\ See Order.
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Certified Entries
Entries for which the importer has met the certification
requirements described below and in Appendix II to this notice will not
be subject to suspension of liquidation, or the cash deposit
requirements described above. Failure to comply with the applicable
requisite certification requirements may result in the merchandise
being subject to AD duties.
Certification
In order to administer the preliminary country-wide and company-
specific affirmative determinations of circumvention for Mexico,
Commerce has established importer certifications. These certifications
will permit importers to establish that specific entries of HCS wire
from Mexico are not subject to suspension of liquidation or
[[Page 22670]]
the collection of cash deposits pursuant to this preliminary country-
wide affirmative determination of circumvention because the merchandise
will not be further processed into PC strand covered by the Order (see
Appendix II to this notice).
Importers that claim that an entry of HCS wire is not subject to
suspension of liquidation or the collection of cash deposits based on
the end-use of such merchandise must complete the applicable
certification and meet the certification and documentation requirements
described below, as well as the requirements identified in the
certification.
Certification Requirements
Importers are required to complete and maintain the applicable
importer certification and retain all supporting documentation for the
certification. With the exception of the entries described below, the
importer certification must be completed, signed, and dated by the time
the entry summary is filed for the relevant entry. The importer, or the
importer's agent, must submit the importer's certification to CBP as
part of the entry process by uploading it into the document imaging
system (DIS) in ACE. Where the importer uses a broker to facilitate the
entry process, it should obtain the entry summary number from the
broker. Agents of the importer, such as brokers, however, are not
permitted to certify on behalf of the importer.
Additionally, the claims made in the certifications and any
supporting documentation are subject to verification by Commerce and/or
CBP. Importers are required to maintain the certifications and
supporting documentation until the later of: (1) the date that is five
years after the latest entry date of the entries covered by the
certification; or (2) the date that is three years after the conclusion
of any litigation in United States courts regarding such entries.
For all shipments of HCS wire from Mexico that were entered, or
withdrawn from warehouse, for consumption during the period July 31,
2023 (i.e., the date of publication of the initiation of this
circumvention inquiry in the Federal Register), through the date of
publication of this preliminary determination in the Federal Register,
where the entry has not been liquidated (and entries for which
liquidation has not become final), the relevant certification should be
completed and signed as soon as practicable, but not later than 45 days
after the date of publication of this preliminary determination in the
Federal Register. For such entries, importers have the option to
complete a blanket certification covering multiple entries, individual
certifications for each entry, or a combination thereof.
For unliquidated entries (and entries for which liquidation has not
become final) of HCS wire that were declared as non-AD type entries
(e.g., type 01) and entered, or withdrawn from warehouse, for
consumption in the United States during the period July 31, 2023 (the
date of initiation of this circumvention inquiry) through the date of
publication of this preliminary determination in the Federal Register,
for which none of the above certifications may be made, importers must
file a Post Summary Correction with CBP, in accordance with CBP's
regulations, regarding conversion of such entries from non-AD type
entries to AD type entries (e.g., type 01 to type 03). The importer
should pay cash deposits on those entries consistent with the
regulations governing post summary corrections that require payment of
additional duties.
If it is determined that an importer has not met the certification
and/or related documentation requirements for certain entries, Commerce
intends to instruct CBP to suspend, pursuant to this preliminary
country-wide affirmative determination of circumvention and the
Order,\9\ all unliquidated entries for which these requirements were
not met and to require the importer to post applicable AD cash deposits
equal to the rates noted above.
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\9\ See Order.
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Interested parties may comment in their case briefs on these
certification requirements, and on the certification language contained
in Appendix II to this notice.
Verification
As provided in 19 CFR 351.307, Commerce intends to verify
information relied upon in making its final determination.
Public Comment
Case briefs or other written comments should be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which any verification report is issued.
Rebuttal briefs, limited to issues raised in case briefs, may be
submitted no later than five days after the deadline for case
briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in these circumvention inquiries
must submit: (1) a statement of the issue; and (2) a table of
authorities. Case and rebuttal briefs should be filed using ACCESS.
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\10\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069 (September 29, 2023)
(APO and Service Final Rule).
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As provided in 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this circumvention inquiry, we instead
request that interested parties provide at the beginning of their
briefs a public, executive summary for each issue raised in their
briefs.\11\ Further, we request that interested parties limit their
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the executive summaries as the
basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
circumvention inquiry. We request that interested parties include
footnotes for relevant citations in the executive summary of each
issue. Note that Commerce has amended certain of its requirements
pertaining to the service of documents in 19 CFR 351.303(f).\12\
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\11\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\12\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice in the Federal Register.
Requests should contain: (1) the requesting party's name, address, and
telephone number; (2) the number of individuals from the requesting
party that will attend the hearing and whether any of those individuals
is a foreign national; and (3) a list of the issues that the party
intends to discuss at the hearing. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date of the
hearing.
U.S. International Trade Commission Notification
Commerce, consistent with section 781(e) of the Act, will notify
the U.S. International Trade Commission (ITC) of this preliminary
determination to
[[Page 22671]]
include the merchandise subject to this circumvention inquiry within
the Order. Pursuant to section 781(e) of the Act, the ITC may request
consultations concerning Commerce's proposed inclusion of the inquiry
merchandise. If, after consultations, the ITC believes that a
significant injury issue is presented by the proposed inclusion, it
will have 60 days from the date of notification by Commerce to provide
written advice.
Notification to Interested Parties
This determination is issued and published in accordance with
section 781(a) of the Act and 19 CFR 351.226(g)(1).
Dated: March 26, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to Circumvention Inquiry
V. Period of the Circumvention Inquiry
VI. Statutory and Regulatory Framework for the Circumvention Inquiry
VII. Statutory Analysis for the Circumvention Inquiry
VIII. Summary of Statutory Analysis
IX. Country-Wide Affirmation Determination of Circumvention and
Certification Requirements
X. Recommendation
Appendix II
Importer Certification
I hereby certify that:
A. My name is {IMPORTING COMPANY OFFICIAL'S NAME{time} and I am
an official of {NAME OF IMPORTING COMPANY{time} , located at
{ADDRESS OF IMPORTING COMPANY{time} .
B. I have direct personal knowledge of the facts regarding the
importation into the Customs territory of the United States of
subject high-carbon steel (HCS) wire produced in Mexico that entered
under the entry summary number(s), identified below, and which is
covered by this certification. ``Direct personal knowledge'' refers
to the facts the certifying party is expected to have in its own
records. For example, the importer should have direct personal
knowledge of the exporter's and/or seller's identity and location.
C. If the importer is acting on behalf of the first U.S.
customer, include the following sentence as paragraph C of this
certification:
The imported subject-HCS wire covered by this certification was
imported by {NAME OF IMPORTING COMPANY{time} on behalf of {NAME OF
U.S. CUSTOMER{time} , located at {ADDRESS OF U.S. CUSTOMER{time} .
If the importer is not acting on behalf of the first U.S.
customer, include the following sentence as paragraph C of this
certification:
{NAME OF IMPORTING COMPANY{time} is not acting on behalf of the
first U.S. customer.
D. The imported HCS wire covered by this certification was
shipped to {NAME OF PARTY IN THE UNITED STATES TO WHOM THE
MERCHANDISE WAS FIRST SHIPPED{time} , located at {U.S. ADDRESS TO
WHICH MERCHANDISE WAS SHIPPED{time} .
E. Select the appropriate statement below:
a. I have personal knowledge of the facts regarding the end-use
of the imported products covered by this certification because my
company is the end-user of the imported product covered by this
certification and I certify that the imported subject-HCS wire will
not be used to produce subject merchandise. ``Personal knowledge''
includes facts obtained from another party, (e.g., correspondence
received by the importer (or exporter) from the producer regarding
the source of the inputs used to produce the imported products).
b. I have personal knowledge of the facts regarding the end-use
of the imported product because my company is not the end-user of
the imported product covered by this certification. However, I have
been able to contact the end-user of the imported product and
confirm that it will not use this product to produce subject
merchandise. The end-user of the imported product is {COMPANY
NAME{time} located at {ADDRESS{time} . ``Personal knowledge''
includes facts obtained from another party (e.g., correspondence
received by the importer from the end-user of the product).
F. The imported subject-HCS wire covered by this certification
will not be further processed into prestressed concrete steel wire
strand (PC strand) in the United States. (Note: For certifications
related to entries made on or after the date of publication of the
Preliminary Determination, and through 14 days after the date of
publication of the Preliminary Determination, the importer should
replace ``will not be further processed'' with ``were not further
processed'' in the certification, as necessary).
G. This certification applies to the following entries (repeat
this block as many times as necessary):
Entry Summary #:
Entry Summary Line Item #:
Foreign Seller:
Foreign Seller's Address:
Foreign Seller's Invoice #:
Foreign Seller's Invoice Line Item #:
Producer:
Producer's Address:
H. I understand that {NAME OF IMPORTING COMPANY{time} is
required to maintain a copy of this certification and sufficient
documentation supporting this certification (i.e., documents
maintained in the normal course of business, or documents obtained
by the certifying party, for example, mill certificates, product
specification sheets, production records, invoices, etc.) until the
later of: (1) the date that is five years after the latest entry
date of the entries covered by the certification; or (2) the date
that is three years after the conclusion of any litigation in United
States courts regarding such entries.
I. I understand that {NAME OF IMPORTING COMPANY{time} is
required to provide this certification and supporting records to
U.S. Customs and Border Protection (CBP) and/or the U.S. Department
of Commerce (Commerce), upon the request of either agency.
J. I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce.
K. I understand that failure to maintain the required
certifications and supporting documentation, or failure to
substantiate the claims made herein, or not allowing CBP and/or
Commerce to verify the claims made herein, may result in a de facto
determination that all entries to which this certification applies
are entries of merchandise that is covered by the scope of the
antidumping duty order on PC strand from Mexico. I understand that
such a finding will result in:
(i) suspension of liquidation of all unliquidated entries (and
entries for which liquidation has not become final) for which these
requirements were not met;
(ii) the importer being required to post the antidumping duty
cash deposits determined by Commerce; and
(iii) the importer no longer being allowed to participate in the
certification process.
L. I understand that agents of the importer, such as brokers,
are not permitted to make this certification. Where a broker or
other party was used to facilitate the entry process, {NAME OF
IMPORTING COMPANY{time} obtained the entry summary number and date
of entry summary from that party.
M. This certification was completed and signed on, or prior to,
the date of the entry summary if the entry date is more than 14 days
after the date of publication of the notice of Commerce's
preliminary determination of circumvention in the Federal Register.
If the entry date is on or before the 14th day after the date of
publication of the notice of Commerce's preliminary determination of
circumvention in the Federal Register, this certification was
completed and signed by no later than 45 days after publication of
the notice of Commerce's preliminary determination of circumvention
in the Federal Register.
N. I am aware that U.S. law (including, but not limited to, 18
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly
and willfully make materially false statements to the U.S.
government.
Signature
{NAME OF COMPANY OFFICIAL{time}
{TITLE OF COMPANY OFFICIAL{time}
{DATE{time}
[FR Doc. 2024-06946 Filed 4-1-24; 8:45 am]
BILLING CODE 3510-DS-P
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