Notice2025-06136
Certain Corrosion-Resistant Steel Products From Mexico: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
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Published
April 10, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that certain corrosion-resistant steel products (CORE) from Mexico are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is July 1, 2023, through June 30, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 90 Issue 68 (Thursday, April 10, 2025)</title>
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[Federal Register Volume 90, Number 68 (Thursday, April 10, 2025)]
[Notices]
[Pages 15349-15352]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-06136]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-863]
Certain Corrosion-Resistant Steel Products From Mexico:
Preliminary Affirmative Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that certain corrosion-resistant steel products (CORE) from
Mexico are being, or are likely to be, sold in the United States at
less than fair value (LTFV). The period of investigation is July 1,
2023, through June 30, 2024. Interested parties are invited to comment
on this preliminary determination.
DATES: Applicable April 10, 2025.
FOR FURTHER INFORMATION CONTACT: Katerina Katsiadas or Brian Smith, 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) 482-4929 or (202)
482-1766, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation
[[Page 15350]]
on October 2, 2024.\1\ On January 28, 2025, Commerce postponed the
preliminary determination of this investigation until April 3, 2025.\2\
For a complete description of the events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\3\ A
list of topics included in the Preliminary Decision Memorandum is
included as Appendix II 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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\1\ See Certain Corrosion-Resistant Steel Products From
Australia, Brazil, Canada, Mexico, the Netherlands, South Africa,
Taiwan, the Republic of T[uuml]rkiye, the United Arab Emirates, and
the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-
Value Investigations, 89 FR 80196 (October 2, 2024) (Initiation
Notice).
\2\ See Certain Corrosion-Resistant Steel Products From
Australia, Brazil, Canada, Mexico, the Netherlands, South Africa,
Taiwan, the Republic of T[uuml]rkiye, the United Arab Emirates, and
the Socialist Republic of Vietnam: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 90 FR
8260 (January 28, 2025).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmaative Determination in the Less-Than-Fair-Value Investigation
of Certain Corrosion Resistant Steel Products from Mexico'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is CORE from Mexico. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ in
the Initiation Notice, Commerce set aside a period of time for parties
to raise issues regarding product coverage (i.e., scope).\5\ Certain
interested parties commented on the scope of the investigation as it
appeared in the Initiation Notice. For a summary of the product
coverage comments and rebuttal responses submitted to the record for
this investigation and accompanying discussion and analysis of all
comments timely received, see the Preliminary Scope Decision
Memorandum.\6\ Commerce is not preliminarily modifying the scope
language as it appeared in the Initiation Notice. In the Preliminary
Scope Decision Memorandum, Commerce established the deadline for
parties to submit scope case and rebuttal briefs.\7\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 89 FR at 80197.
\6\ See Memorandum, ``Certain Corrosion-Resistant Steel Products
From Australia, Brazil, Canada, Mexico, the Netherlands, South
Africa, Taiwan, the Republic of T[uuml]rkiye, the United Arab
Emirates, and the Socialist Republic of Vietnam: Scope Comments
Decision Memorandum for the Preliminary Determination,'' dated
concurrently with this Preliminary Determination (Preliminary Scope
Decision Memorandum).
\7\ Id.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce calculated export prices for Galvasid
S.A. de C.V. and Perfiles LM, S.A. de C.V. (collectively, Galvasid/
Perfiles) \8\ in accordance with section 772(a) of the Act and
calculated constructed export prices for Ternium Mexico, S.A. de C.V.
and Tenigal, S.de R.L. de C.V. (collectively, Ternium Mexico/Tenegal)
\9\ in accordance with section 772(b) of the Act. Normal value is
calculated in accordance with section 773 of the Act. For a full
description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
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\8\ Commerce preliminarily determines that Galvasid and Perfiles
are a single entity. See Preliminary Decision Memorandum.
\9\ Commerce preliminarily determines that Ternium Mexico and
Tenigal are a single entity. See Preliminary Decision Memorandum.
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All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in
the preliminary determination Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding any zero
and de minimis margins, and any margins determined entirely under
section 776 of the Act.
In this investigation, Commerce calculated estimated weighted-
average dumping margins for Galvasid/Perfiles and Ternium Mexico/
Tenigal that are not zero, de minimis, or based entirely on facts
otherwise available. Commerce calculated the all-others rate using a
weighted average of the estimated weighted-average dumping margins
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.\10\
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\10\ See Memorandum, ``Calculation of the All-Others Rate,''
dated concurrently with this notice. With two respondents under
examination, Commerce normally calculates: (A) a weighted-average of
the estimated weighted-average dumping margins calculated for the
examined respondents; (B) a simple average of the estimated
weighted-average dumping margins calculated for the examined
respondents; and (C) a weighted-average of the estimated weighted-
average dumping margins calculated for the examined respondents
using each company's publicly-ranged U.S. sales values for the
merchandise under consideration. Commerce then compares (B) and (C)
to (A) and selects the rate closest to (A) as the most appropriate
rate for all other producers and exporters. See, e.g., Ball Bearings
and Parts Thereof from France, Germany, Italy, Japan, and the United
Kingdom: Final Results of Antidumping Duty Administrative Reviews,
Final Results of Changed-Circumstances Review, and Revocation of an
Order in Part, 75 FR 53661, 53662 (September 1, 2010), and
accompanying Issues and Decision Memorandum at Comment 1. As
complete publicly ranged sales data were available, Commerce based
the all-others rate on the publicly ranged sales data of the
mandatory respondents.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\11\ See Certain Corrosion-Resistant Steel Products from Mexico:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination, 90 FR 9226 (February 10, 2025), and accompanying
Preliminary Decision Memorandum at 9-10.
\12\ Id.
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Estimated Cash deposit rate
weighted-average (adjusted for
Exporter/producer dumping margin subsidy offset(s))
(percent) (percent)
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Galvasid S.A. de C.V./Perfiles 14.43 \11\ 14.43
LM, S.A. de C.V................
Ternium Mexico S.A. de C.V./ 3.43 \12\ 1.87
Tenigal, S.de R.L. de C.V......
All Others...................... 7.03 5.47
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[[Page 15351]]
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows:
(1) the cash deposit rate for the respondents listed above will be
equal to the company-specific estimated weighted-average dumping
margins determined in this preliminary determination; (2) if the
exporter is not a respondent identified above, but the producer is,
then the cash deposit rate will be equal to the company-specific
estimated weighted-average dumping margin established for that producer
of the subject merchandise; and (3) the cash deposit rate for all other
producers and exporters will be equal to the all-others estimated
weighted-average dumping margin.
To determine the cash deposit rates, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
cash deposit rate may be found in the ``Preliminary Determination''
section above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments, excluding scope comments,
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
verification report is issued in this investigation.\13\ Rebuttal
briefs, limited to issues raised in the case briefs, may be filed not
later than five days after the date for filing case briefs.\14\
Interested parties who submit case briefs or rebuttal briefs in this
proceeding must submit: (1) a table of contents listing each issue; and
(2) a table of authorities.\15\
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\13\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for
general filing requirements).
\14\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\15\ See 19 351.309(c)(2) and (d)(2).
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As provided under 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 investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\16\
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 investigation. 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).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ 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. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a date and time to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On March 10, 2025, pursuant to 19 CFR 351.210(e), Ternium Mexico/
Tenigal requested that Commerce
[[Page 15352]]
postpone the final determination and that provisional measures be
extended to a period not to exceed six months.\18\ In accordance with
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because:
(1) the preliminary determination is affirmative; (2) the requesting
exporter accounts for a significant proportion of exports of the
subject merchandise; and (3) no compelling reasons for denial exist,
Commerce is postponing the final determination and extending the
provisional measures from a four-month period to a period not greater
than six months. Accordingly, Commerce will make its final
determination no later than 135 days after the date of publication of
this preliminary determination.
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\18\ See Ternium Mexico's Letter, ``Request to Extend Final
Determination,'' dated March 10, 2025.
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U.S. International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, Commerce will notify
the ITC of its preliminary determination. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of CORE from Mexico are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: April 3, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are certain flat-
rolled steel products, either clad, plated, or coated with
corrosion-resistant metals such as zinc, aluminum, or zinc-,
aluminum-, nickel- or iron-based alloys, whether or not corrugated
or painted, varnished, laminated, or coated with plastics or other
non-metallic substances in addition to the metallic coating. The
products covered include coils that have a width of 12.7 mm or
greater, regardless of form of coil (e.g., in successively
superimposed layers, spirally oscillating, etc.). The products
covered also include products not in coils (e.g., in straight
lengths) of a thickness less than 4.75 mm and a width that is 12.7
mm or greater and that measures at least 10 times the thickness. The
products covered also include products not in coils (e.g., in
straight lengths) of a thickness of 4.75 mm or more and a width
exceeding 150 mm and measuring at least twice the thickness. The
products described above may be rectangular, square, circular, or
other shape and include products of either rectangular or non-
rectangular cross-section where such cross-section is achieved
subsequent to the rolling process, i.e., products which have been
``worked after rolling'' (e.g., products which have been beveled or
rounded at the edges).
For purposes of the width and thickness requirements referenced
above:
(1) Where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set forth above, and
(2) where the width and thickness vary for a specific product
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape,
etc.), the measurement at its greatest width or thickness applies.
Steel products included in the scope of this investigation are
products in which: (1) iron predominates, by weight, over each of
the other contained elements; and (2) the carbon content is 2
percent or less, by weight.
Subject merchandise also includes corrosion-resistant steel that
has been further processed in a third country, including but not
limited to annealing, tempering, painting, varnishing, trimming,
cutting, punching and/or slitting or any other processing that would
not otherwise remove the merchandise from the scope of the
investigation if performed in the country of manufacture of the in-
scope corrosion resistant steel.
All products that meet the written physical description are
within the scope of this investigation unless specifically excluded.
The following products are outside of and/or specifically excluded
from the scope of this investigation:
<bullet> Flat-rolled steel products either plated or coated with
tin, lead, chromium, chromium oxides, both tin and lead (``terne
plate'') or both chromium and chromium oxides (``tin free steel''),
whether or not painted, varnished or coated with plastics or other
nonmetallic substances in addition to the metallic coating;
<bullet> Clad products in straight lengths of 4.7625 mm or more
in composite thickness and of a width which exceeds 150 mm and
measures at least twice the thickness;
<bullet> Certain clad stainless flat-rolled products, which are
three-layered corrosion-resistant carbon steel flat-rolled products
less than 4.75 mm in composite thickness that consist of a carbon
steel flat-rolled product clad on both sides with stainless steel in
a 20%-60%-20% ratio.
The products subject to this investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7210.30.0030, 7210.30.0060,
7210.41.0000, 7210.49.0030, 7210.49.0040, 7210.49.0045,
7210.49.0091, 7210.49.0095, 7210.61.0000, 7210.69.0000,
7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.6000,
7210.90.9000, 7212.20.0000, 7212.30.1030, 7212.30.1090,
7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000,
7212.50.0000, 7212.60.0000, 7225.91.0000, 7225.92.0000,
7226.99.0110, and 7226.99.0130.
The products subject to this investigation may also enter under
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000,
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530,
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060,
7217.90.5090, 7225.99.0090, 7226.99.0180, 7228.60.6000,
7228.60.8000, and 7229.90.1000.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Affiliation and Single Entity Treatment
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Adjustments to Cash Deposit Rates for Export Subsidies in the
Companion Countervailing Duty Investigation
IX. Recommendation
[FR Doc. 2025-06136 Filed 4-9-25; 8:45 am]
BILLING CODE 3510-DS-P
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