Notice2025-00581
Standard Steel Welded Wire Mesh From Mexico: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
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
January 14, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to requests from Keysteel Corp., Mid-South Wire Company, National Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh Corp. (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether standard steel welded wire mesh (wire mesh) from Mexico, which is completed in the United States from low-carbon steel wire produced in Mexico, is circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on wire mesh from Mexico.
Full Text
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<title>Federal Register, Volume 90 Issue 8 (Tuesday, January 14, 2025)</title>
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[Federal Register Volume 90, Number 8 (Tuesday, January 14, 2025)]
[Notices]
[Pages 3173-3175]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00581]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-853; C-201-854]
Standard Steel Welded Wire Mesh From Mexico: Initiation of
Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from Keysteel Corp., Mid-South Wire
Company, National Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh
Corp. (collectively, the requesters), the U.S. Department of Commerce
(Commerce) is initiating a country-wide circumvention inquiry to
determine whether standard steel welded wire mesh (wire mesh) from
Mexico, which is completed in the United States from low-carbon steel
wire produced in Mexico, is circumventing the antidumping duty (AD) and
countervailing duty (CVD) orders on wire mesh from Mexico.
DATES: Applicable January 14, 2025.
FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, AD/CVD Operations,
Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3834.
SUPPLEMENTARY INFORMATION:
Background
On November 5, 2024, pursuant to section 781(a) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(h), the requesters
filed circumvention inquiry requests alleging that wire mesh completed
in the United States using low-carbon steel wire manufactured in Mexico
is circumventing the AD and CVD Orders \1\ on wire mesh from Mexico
and, accordingly, should be included within the scope of the Orders.\2\
On November 29, 2024, Deacero S.A.P.I de C.V., a Mexican producer of
wire mesh, and its subsidiary Deacero USA, Inc. (collectively,
Deacero), filed comments
[[Page 3174]]
opposing the requesters' requests.\3\ On December 6, 2024, the
requesters filed rebuttal comments to Deacero's November 29, 2024
comments.\4\
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\1\ See Standard Steel Welded Wire Mesh from Mexico: Antidumping
Duty Order, 86 FR 43525 (August 9, 2021); see also Standard Steel
Welded Wire Mesh from Mexico: Countervailing Duty Order, 86 FR 18940
(April 12, 2021) (collectively, Orders).
\2\ See Requesters' Letter, ``Petitioners' Request for
Circumvention Ruling Pursuant to Section 781(a) of the Act,'' dated
November 5, 2024 (Circumvention Request).
\3\ See Deacero's Letter, ``Response in Opposition to Request
for Anti-Circumvention Ruling,'' dated November 29, 2024.
\4\ See Requesters' Letter, ``Petitioners' Reply to Deacero's
Comments on Petitioners' Request for Circumvention Inquiry,'' dated
December 6, 2024.
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On December 4, 2024, we extended the deadline to initiate this
circumvention inquiry by 30 days, in accordance with 19 CFR
351.226(d)(1).\5\
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\5\ See Memorandum, ``Extension of Circumvention Inquiry
Initiation Deadline,'' dated December 4, 2024.
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On December 10, 2024, we issued a questionnaire to the
requesters.\6\ Subsequently, on December 12, 2024, the requesters filed
their response to our request for information.\7\
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\6\ See Commerce's Letter, ``Supplemental Initiation
Questionnaire,'' dated December 10, 2024 (Request for Information).
\7\ See Requesters' Letter, ``Petitioners' Supplemental
Questionnaire Response,'' dated December 12, 2024.
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Scope of the Orders
The merchandise covered by the scope of the Orders is wire mesh
from Mexico. For a complete description of the scope of Orders, see the
Circumvention Initiation Checklist.\8\
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\8\ For a complete description of the scope of the Orders, see
Checklist, ``Standard Steel Welded Wire Mesh from Mexico Antidumping
and Countervailing Duty Orders,'' dated concurrently with this
notice (Circumvention Initiation Checklist).
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Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers low-carbon steel wire produced in
Mexico and further processed and completed in the United States into
wire mesh from Mexico.
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, in turn, requires that each
circumvention inquiry request allege ``that 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 requesters alleged
circumvention pursuant to section 781(a) of the Act (i.e., merchandise
completed or assembled in the United States).
Section 781(a)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in the United States. In
conducting a circumvention inquiry, under section 781(a)(1) of the Act,
Commerce relies on the following criteria: (A) merchandise sold in the
United States is of the same class or kind as any merchandise that is
the subject of an AD or CVD 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 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 the processing
performed in the United States represents a small proportion of the
value of the merchandise sold in the United States. However, no single
factor, by itself, controls Commerce's determination of whether the
process of assembly or completion in the United States is minor or
insignificant.\9\ Accordingly, it is Commerce's practice to evaluate
each of these five factors as they exist in the United States, and to
reach an affirmative or negative circumvention determination based on
the totality of the circumstances of the particular circumvention
inquiry.\10\
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\9\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994)
(SAA), at 893.
\10\ See Antidumping Duty Order on Hydrofluorocarbon Blends from
the People's Republic of China: Preliminary Affirmative
Determination of Circumvention with Respect to R-410B, R-407G, and a
Certain Custom Blend from the People's Republic of China,'' 89 FR
25568 (April 11, 2024), and accompanying Preliminary Decision
Memorandum, unchanged in Antidumping Order on Hydrofluorocarbon
Blends from the People's Republic of China: Final Affirmative
Determination of Circumvention With Respect to R-410B, R-407G, and a
Certain Custom Blend from the People's Republic of China, 89 FR
56848 (July 11, 2024.
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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 AD
or CVD 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 with respect to which the order applies; and (C)
whether imports into the United States of the parts or components
products in such foreign country have increased after the initiation of
the investigation which resulted in the issuance of such order.
Analysis
Based on our analysis of the requesters' circumvention request,
Commerce determines that the requesters have satisfied the criteria
under 19 CFR 351.226(c) to warrant the initiation of circumvention
inquiries of the Orders. For a full discussion of the basis for our
decision to initiate these circumvention inquiries, see the
Circumvention Initiation Checklist.\11\ As explained in the
Circumvention Initiation Checklist, the information provided by the
requesters warrants initiating these circumvention inquiries on a
country-wide basis. Commerce has taken this approach in prior
circumvention inquiries, where the facts warranted initiation on a
country-wide basis.\12\
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\11\ See Circumvention Initiation Checklist.
\12\ 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 in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to issue
a questionnaire to solicit information from producers and exporters in
Mexico concerning their shipments to the United States and the origin
of any imported low-carbon steel wire being further processed into
merchandise subject to the Order.
[[Page 3175]]
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border and Protection (CBP) data. Commerce intends to place CBP data on
each record within five days of the publication of the initiation
notice. Comments regarding the CBP data and respondent selection should
be submitted within seven days after placement of the CBP data on the
record of the relevant inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. 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.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs
and Border Protection (CBP) of the initiation of this 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 under the Orders and
to apply the cash deposit rate that would be applicable if the product
was determined to be covered by the scope of the Orders. Should
Commerce issue preliminary or final circumvention determinations,
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 determines that the requesters' requests for this
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c).
Accordingly, Commerce is notifying all interested parties of the
initiation of this circumvention inquiry to determine whether certain
imports of low-carbon steel wire produced in Mexico and further
processed and completed in the United States into wire mesh from
Mexico, are circumventing the Orders. In addition, we have included a
description of the products that are the subject of this inquiry, and
an explanation of the reasons for Commerce's decision to initiate this
inquiry as provided above and in the accompanying Circumvention
Initiation Checklist.\13\ In accordance with 19 CFR 351.226(e)(2),
Commerce intends to issue its preliminary circumvention determination
within 150 days from the date of publication of the notice of
initiation of a circumvention inquiry in the Federal Register.
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\13\ See Circumvention Initiation Checklist.
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This notice is published in accordance with section 781(a) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: January 6, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy and Negotiations.
[FR Doc. 2025-00581 Filed 1-13-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on January 14, 2025.
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