Notice2024-22113

Prestressed Concrete Steel Wire Strand From Mexico: Final Affirmative Determination of Circumvention of 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
September 27, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) 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.

Full Text

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<title>Federal Register, Volume 89 Issue 188 (Friday, September 27, 2024)</title>
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[Federal Register Volume 89, Number 188 (Friday, September 27, 2024)]
[Notices]
[Pages 79252-79255]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22113]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-831]


Prestressed Concrete Steel Wire Strand From Mexico: Final 
Affirmative Determination of Circumvention of the Antidumping Duty 
Order

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

SUMMARY: The U.S. Department of Commerce (Commerce) 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.

DATES: Applicable September 27, 2024.

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

SUPPLEMENTARY INFORMATION:

Background

    On January 28, 2004, Commerce published in the Federal Register the 
AD order on 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 is 
assembled or completed into PC strand in the United States is 
circumventing the Order and, accordingly, should be covered by the 
scope of the Order.\2\ On April 2, 2024, Commerce published the 
Preliminary Determination that imports of HCS wire that is produced in 
Mexico and assembled or completed into PC strand in the United States 
is circumventing the Order on a country-wide basis,

[[Page 79253]]

pursuant to section 781(a) of the Act.\3\ Between April 23 and 26, 
2024, Commerce conducted on-site verification of the questionnaire 
responses submitted by Aceros Camesa S.A. de C.V. (Camesa) and WireCo 
WorldGroup (WireCo).\4\
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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 Antidumping Duty Order on Prestressed Concrete Steel 
Wire Strand from Mexico: Preliminary Affirmative Determination of 
Circumvention, 89 FR 22668 (April 2, 2024) (Preliminary 
Determination), and accompanying Preliminary Determination 
Memorandum (PDM).
    \4\ See Memorandum, ``Verification of the Questionnaire 
Responses of WireCo and Camesa,'' dated May 20, 2024.
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    On May 16, 2024, Commerce extended the deadline for issuing the 
final determination in this inquiry.\5\ On July 22, 2024, Commerce 
further extended the deadline for issuing the final determination in 
this inquiry.\6\ Also on July 22, 2024, Commerce tolled certain 
deadlines in this administrative proceeding by seven days.\7\ The 
deadline for the final determination is now September 20, 2024. For a 
summary of events that occurred since the Preliminary Determination, as 
well as a full discussion of the issues raised by parties for 
consideration in the final determination, see the Issues and Decision 
Memorandum.\8\
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    \5\ See Memorandum, ``Extension of Final Determination,'' dated 
May 16, 2024.
    \6\ See Memorandum, ``Second Extension of Final Determination,'' 
dated July 22, 2024.
    \7\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \8\ See Memorandum, ``Decision Memorandum for the Final 
Affirmative Determination of Circumvention of the Antidumping Duty 
Order on Prestressed Concrete Steel Wire Strand from Mexico,'' dated 
concurrently with, and hereby adopted by, this notice.
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    The Issues and 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 Issues and Decision Memoranda can 
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.

Scope of the Order

    The merchandise covered by this Order is PC strand. For a full 
description of the scope of the Order, see the Issues and 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),\9\ 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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    \9\ As discussed in Comment 6 of the Issues and Decision 
Memorandum, we revised the scope of the inquiry merchandise in the 
Preliminary Determination and re-affirm that revision in this final 
determination.
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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 is conducting this circumvention inquiry in accordance 
with section 781(a) of the Act, and 19 CFR 351.226.\10\ We have 
continued to apply this methodology, without exception, and incorporate 
by reference this description of the methodology, for our final 
determination.
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    \10\ See Preliminary Determination PDM for a full description of 
the methodology.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
these inquiries are addressed in the Issues and Decision Memorandum. A 
list of the issues raised is attached to this notice at Appendix I. 
Based on our analysis of the comments received from interested parties, 
we made no changes to our Preliminary Determination.

Final Circumvention Determination

    We determine that Mexican-origin HCS wire produced by Deacero 
S.A.P.I. de CV (Deacero) and assembled or completed into PC strand in 
the United States is circumventing the Order. We also determine that 
Mexican-origin HCS wire produced by Aceros Camesa S.A. de C.V. (Camesa) 
is not assembled or completed into PC strand in the United States, and, 
therefore, is not circumventing the Order. For a detailed explanation 
of our determination, see the Preliminary Determination PDM and the 
Issues and Decision Memorandum.
    We also determine that U.S. imports of inquiry merchandise exported 
from Mexico are circumventing the Order on a country-wide basis. As a 
result, in accordance with section 781(a) of the Act, we determine that 
this merchandise is covered by the Order.
    See the ``Suspension of Liquidation and Cash Deposit Requirements'' 
section, below, for details regarding suspension of liquidation and 
cash deposit requirements. See the ``Certifications'' and 
``Certification Requirements'' sections, below, for details regarding 
the use of certifications.

Suspension of Liquidation and Cash Deposit Requirements

    Based on the affirmative country-wide determination of 
circumvention for Mexico, in accordance with 19 CFR 351.226(l)(3) and 
(m)(1)(ii), 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 completed or assembled 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.
    For exporters of HCS wire that have a company-specific cash deposit 
rate under the Order, the cash deposit rate will be the company-
specific cash deposit rate established for that company in the most 
recently completed segment of the proceeding. For exporters of HCS wire 
that do not have a company-specific cash deposit rate under the Order, 
the AD cash deposit rate will be the ``all-others'' rate (62.78 
percent).\11\ The suspension of liquidation will remain in effect until 
further notice.
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    \11\ See Order.
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Certified Entries

    Entries for which importers have 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

    To administer the country-wide affirmative determinations of 
circumvention for Mexico, Commerce established importer certifications 
which will permit importers to establish

[[Page 79254]]

that specific entries of HCS wire from Mexico are not subject to 
suspension of liquidation or the collection of cash deposits pursuant 
to this affirmative determination of circumvention because the 
merchandise meets the requirements described in the certification (see 
Appendix II to this notice).
    Importers that claim that the 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 both the importer's certification and the 
exporter's certification to CBP as part of the entry process by 
uploading them into the document imaging system (DIS) in ACE. Where the 
importer uses a broker to facilitate the entry process, the importer 
should obtain the entry summary number from the broker. Agents of the 
importer, such as a broker, 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 and exporters 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 entries of HCS wire from Mexico that were entered, or 
withdrawn from warehouse, for consumption during the period July 31, 
2023, (the date of initiation of this circumvention inquiry), through 
the date of publication of the Preliminary Determination in the Federal 
Register (i.e., April 2, 2024), where the entry has not been liquidated 
(and entries for which liquidation has not become final), the relevant 
certification should already be complete and signed.
    For unliquidated entries (and entries for which liquidation has not 
become final) of HCS wire that were declared as non-AD/countervailing 
duty (CVD) 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 these circumvention inquiries), 
through the date of publication of the Preliminary Determination in the 
Federal Register (i.e., April 2, 2024), 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/CVD type entries to AD/CVD type 
entries (e.g., type 01 to type 03). The importer should post cash 
deposits on those entries consistent with the regulations governing 
post summary corrections that require payment of additional duties, 
including AD and CVD 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 country-wide 
affirmative determination of circumvention and the Order, all 
unliquidated entries for which these requirements were not met and 
require the importer to post applicable cash deposits equal to the 
rates noted above.

Opportunity To Request an Administrative Review

    Each year during the anniversary month of the publication of an AD 
or CVD order, finding, or suspended investigation, an interested party, 
as defined in section 771(9) of the Act, may request, in accordance 
with 19 CFR 351.213, that Commerce conduct an administrative review of 
that AD or CVD order, finding, or suspended investigation. An 
interested party who would like Commerce to conduct an administrative 
review should wait until Commerce announces via the Federal Register 
the next window during the anniversary month of the publication of the 
Orders to submit such requests. The anniversary month for this Order is 
January.

Administrative Protective Order

    This notice will serve as the only reminder to all parties subject 
to an administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    These determinations are issued and published in accordance with 
section 781(a) of the Act and 19 CFR 351.226(g)(2).

    Dated: September 20, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of Circumvention Inquiry
VI. Discussion of the Issues
    Comment 1: Whether the Scope of the Order Precludes an 
Affirmative Determination of Circumvention
    Comment 2: Whether HCS Wire Is a Part or Component Within the 
Meaning of Section 781(a) of the Act
    Comment 3: Whether Deacero USA Inc.'s Production Process Is 
Minor or Insignificant
    Comment 4: Whether the Value of the HCS Wire Imported From 
Mexico Is a Significant Portion of the Total Value of the PC Strand 
Sold in the United States
    Comment 5: Whether Deacero's Increased Imports of HCS Wire 
Support an Affirmative Circumvention Determination
    Comment 6: Whether Commerce Lawfully Modified the Scope of the 
Inquiry Merchandise
    Comment 7: Whether To Exempt Camesa From the Certification 
Process
VII. 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.

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    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.
    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. 2024-22113 Filed 9-26-24; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on September 27, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.