Notice2025-16606
Certain Corrosion-Resistant Steel Products From Mexico: Final Affirmative Countervailing Duty Determination
Primary source
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Published
August 29, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain corrosion-resistant steel products (CORE) from Mexico during the period of investigation (POI), January 1, 2023, through December 31, 2023.
Full Text
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<title>Federal Register, Volume 90 Issue 166 (Friday, August 29, 2025)</title>
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[Federal Register Volume 90, Number 166 (Friday, August 29, 2025)]
[Notices]
[Pages 42229-42232]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16606]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-864]
Certain Corrosion-Resistant Steel Products From Mexico: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain corrosion-resistant steel products (CORE) from Mexico during
the period of investigation (POI), January 1, 2023, through December
31, 2023.
DATES: Applicable August 29, 2025.
FOR FURTHER INFORMATION CONTACT: Maria Teresa Aymerich or Paul Kebker,
AD/CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0499 or (202)
482-2254, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 10, 2025, Commerce published in the Federal Register
its Preliminary Determination in the countervailing duty (CVD)
investigation of CORE from Mexico and invited interested parties to
comment.\1\ On July 31, 2025, Commerce issued its post-preliminary
analysis regarding new subsidy allegations.\2\ Because Commerce aligned
the deadline for this final determination with the deadline for the
final determination in the less-than-fair-value (LTFV) investigation of
CORE from Mexico, the deadline for the final determination is now
August 25, 2025.\3\
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\1\ 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) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis,'' dated July
31, 2025 (Post-Preliminary Memorandum).
\3\ See Preliminary Determination, 90 FR at 9226-9227; see also
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, 90 FR 15349 (April 10, 2025).
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[[Page 42230]]
For a complete description of the events that occurred since
Commerce published the Preliminary Determination, as well as a full
discussion of the issues raised by parties for this final
determination, see the Issues and Decision Memorandum.\4\ The Issues
and Decision Memorandum is a public document that 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 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, ``Issues and Decision Memorandum for the
Final Affirmative Determination of Countervailing Duty Investigation
of Certain Corrosion-Resistant Steel Products from Mexico,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
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 the Preliminary Scope Memorandum, we set aside a period of time
for parties to raise issues regarding product coverage (i.e., scope) in
scope-specific case briefs or other written comments.\5\ We received
scope case and rebuttal briefs from multiple interested parties. For a
summary of the product coverage comments and rebuttal responses
submitted to the record for this final determination, and accompanying
discussion and analysis of all comments timely received, see the Final
Scope Memorandum.\6\ In the Final Scope Memorandum, Commerce made no
changes to the scope language as it appeared in the Initiation
Notice.\7\ See Appendix I.
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\5\ See Memorandum, ``Less-Than-Fair-Value Investigations of
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, and Countervailing Duty Investigations of
Certain Corrosion-Resistant Steel Products from Brazil, Canada,
Mexico, and the Socialist Republic of Vietnam: Preliminary Scope
Decision Memorandum,'' dated April 3, 2025 (Preliminary Scope
Memorandum).
\6\ See Memorandum, ``Less-Than-Fair-Value Investigations of
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, and Countervailing Duty Investigations of
Certain Corrosion-Resistant Steel Products from Brazil, Canada,
Mexico, and the Socialist Republic of Vietnam: Final Scope Decision
Memorandum,'' dated concurrently with this notice (Final Scope
Memorandum).
\7\ See Certain Corrosion-Resistant Steel Products from Brazil,
Canada, Mexico, and the Socialist Republic of Vietnam: Initiation of
Countervailing Duty Investigations, 89 FR 80204 (October 2, 2024)
(Initiation Notice).
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Verification
Commerce conducted verification of the information relied upon in
making its final determination in this investigation, in accordance
with section 782(i) of the Tariff Act of 1930, as amended (the Act).
Specifically, we conducted on-site verifications of the subsidy
information reported by Ternium Mexico, S.A. de C.V. (Ternium Mexico),
Galvasid S.A. de C.V. (Galvasid), and the Government of Mexico (GOM) in
July 2025 using standard verification procedures, including an
examination of relevant sales and accounting records, and original
source documents provided by Ternium Mexico and Galvasid.\8\
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\8\ See Memoranda, ``Verification of the Questionnaire Responses
of the Ternium Mexico, S.A. de C.V.,'' dated July 24, 2025;
``Verification of the Questionnaire Responses of the Galvasid, S.A.
de C.V.,'' dated July 24, 2025; and ``Verification of the
Questionnaire Responses of the Government of Mexico,'' dated July
24, 2025.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by parties, and to which we responded in
the Issues and Decision Memorandum, see Appendix II.
Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification, our post-preliminary analysis, and comments received from
parties, for this final determination, we made certain changes to the
countervailable subsidy rate calculations for Ternium Mexico, and for
all other producers/exporters. For a discussion of these changes, see
the Issues and Decision Memorandum.
Methodology
Commerce conducted this investigation in accordance with section
701 the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\9\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts available, including adverse facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
application of AFA, see the section ``Use of Facts Otherwise Available
and Application of Adverse Inferences'' in the Issues and Decision
Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted average
countervailable subsidy rates established for those exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates based entirely under
section 776 of the Act. In this investigation, the only rate above de
minimis is partially based on AFA under section 776 of the Act. This is
the only rate available in this proceeding for deriving the all-others
rate. Given these facts, Commerce has determined that a reasonable
method for establishing the estimated all-others countervailable
subsidy rate is to assign Ternium Mexico's estimated countervailable
subsidy rate to all other producers and exporters.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist for the period January 1, 2023,
through December 31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Ternium Mexico, S.A. de C.V............................. 13.26
Galvasid S.A. de C.V.................................... 0.00
All Others.............................................. 13.26
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final 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
[[Page 42231]]
in the Federal Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of CORE as described in the scope of the
investigation section, that were entered, or withdrawn from warehouse,
for consumption on or after February 10, 2025, the date of publication
of the Preliminary Determination in the Federal Register, except for
Galvasid and its cross-owned companies because Galvasid's preliminary
rate was zero. In accordance with section 733(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation of all
entries of CORE entered or withdrawn from warehouse, on or after June
10, 2025, but to continue the suspension of liquidation of all entries
of CORE from February 10, 2025, through June 9, 2025.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for such entries of CORE, other than those produced and exported by
Galvasid and its cross-owned companies because Galvasid's rate is zero,
in the amounts indicated above. If the ITC determines that material
injury, or threat of material injury, does not exist, this proceeding
will be terminated, and all estimated duties deposited or securities
posted as a result of the suspension of liquidation will be refunded or
canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of CORE from
Mexico. As Commerce's final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will determine, within 45 days,
whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
CORE from Mexico. In addition, we are making available to the ITC all
non-privileged and non-proprietary information in our files, provided
the ITC confirms that it will not disclose such information, either
publicly or under administrative protective order (APO), without the
written consent of the Assistant Secretary for Enforcement and
Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the 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/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: August 25, 2025.
Abdelali Elouaradia,
Deputy 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 these investigations 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
investigations 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 these investigations unless specifically
excluded. The following products are outside of and/or specifically
excluded from the scope of these investigations:
<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
non-metallic 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; and
Also excluded from the scope of the antidumping duty
investigation on corrosion resistant steel from Taiwan are any
products covered by the existing antidumping duty order on
corrosion-resistant steel from Taiwan. See Certain Corrosion-
Resistant Steel Products from India, Italy, the People's Republic of
China, the Republic of Korea and Taiwan: Amended Final Affirmative
Antidumping Determination for India and Taiwan, and Antidumping Duty
Orders, 81
[[Page 42232]]
FR 48390 (July 25, 2016); Corrosion-Resistant Steel Products from
Taiwan: Notice of Third Amended Final Determination of Sales at Less
Than Fair Value Pursuant to Court Decision and Partial Exclusion
from Antidumping Duty Order, 88 FR 58245 (August 25, 2023).
Also excluded from the scope of the antidumping duty
investigation on corrosion-resistant steel from the United Arab
Emirates and the antidumping duty and countervailing duty
investigations on corrosion-resistant steel from the Socialist
Republic of Vietnam are any products covered by the existing
antidumping and countervailing duty orders on corrosion-resistant
steel from the People's Republic of China and the Republic of Korea
and the antidumping duty order on corrosion-resistant steel from
Taiwan. See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016); see also Certain Corrosion-Resistant Steel Products from
India, Italy, Republic of Korea and the People's Republic of China:
Countervailing Duty Order, 81 FR 48387 (July 25, 2016). This
exclusion does not apply to imports of corrosion-resistant steel
that are entered, or withdrawn from warehouse, for consumption in
the United States for which the relevant importer and exporter
certifications have been completed and maintained and all other
applicable certification requirements have been met such that the
entry is entered into the United States as not subject to the
antidumping and countervailing duty orders on corrosion-resistant
steel from the People's Republic of China, the antidumping and
countervailing duty orders on corrosion-resistant steel from the
Republic of Korea, or the antidumping duty order on corrosion-
resistant steel from Taiwan.
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 the
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Otherwise Available and Application of Adverse
Inferences
V. Changes Since the Preliminary Determination
VI. Calculation of the All-Others Rate
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Commerce's Determination that the Government of
Mexico's (GOM) Provision of Mining Rights for Less Than Adequate
Remuneration (LTAR) Program Provided No Benefit to Ternium Mexico
Comment 2: Application of Adverse Facts Available (AFA) Rates to
the Banco Nacional de Comercio Exterior S.N.C. (Bancomext) Financial
Factoring and Nacional Financiera, S.N.C., Development Banking
Institution (NAFIN) Factoring Programs
Comment 3: AFA for the Bancomext Program
Comment 4: Whether the Bancomext Program Provides a
Countervailable Subsidy Exceeding the De Minimis Level
Comment 5: AFA for the NAFIN Factoring Program
Comment 6: Whether to Use Ternium Mexico's Total Sales as the
Denominator in Calculating the Benefit for the Bancomext and NAFIN
Factoring Programs
IX. Recommendation
[FR Doc. 2025-16606 Filed 8-28-25; 8:45 am]
BILLING CODE 3510-DS-P
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