[Federal Register Volume 85, Number 233 (Thursday, December 3, 2020)]
[Notices]
[Pages 78124-78126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26628]
[[Page 78124]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-854]
Standard Steel Welded Wire Mesh From Mexico: Preliminary
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of standard steel welded wire mesh (wire mesh) from Mexico.
The period of investigation is January 1, 2019 through December 31,
2019. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable December 3, 2020.
FOR FURTHER INFORMATION CONTACT: Ian Hamilton, 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) 482-4798.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
initiated this investigation on July 20, 2020.\1\ On September 9, 2020,
Commerce postponed the preliminary determination of this investigation
and the revised deadline is now November 27, 2020.\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 discussed 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
http://access.trade.gov. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Preliminary Decision Memorandum are identical in content.
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\1\ See Standard Steel Welded Wire Mesh from Mexico: Initiation
of Countervailing Duty Investigation, 85 FR 45181 (July 27, 2020).
\2\ See Standard Steel Welded Wire Mesh from Mexico:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 85 FR 55640 (September 9, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Countervailing Duty Determination of Standard Steel
Welded Wire Mesh 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 wire mesh 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\ the
Initiation Notice 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 and
rebuttal comments submitted on the record for this investigation, see
the Preliminary Decision Memorandum. Commerce has not modified the
scope language as it appeared in the Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\6\
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondent
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Date of Final Determination
Section 705(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
Commerce will issue the final determination within 75 days after the
date of its preliminary determination, unless the final determination
is postponed or aligned with the final determination of a companion AD
investigation of wire mesh. Accordingly, Commerce intends to make its
final determination no later than February 10, 2021, unless postponed.
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act. In this investigation, Commerce preliminarily assigned
a rate based entirely on facts available to Deacero S.A.P.I. de C.V.
Therefore, the only rate that is not zero, de minimis, or based
entirely on facts otherwise available is the rate calculated for
Aceromex S.A. De C.V. (Aceromex). Consequently, the rate calculated for
Aceromex is also assigned as the rate for all other producers and
exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Aceromex S.A. De C.V.................................... 1.02
Deacero S.A.P.I. de C.V................................. 102.09
All Others.............................................. 1.02
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (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
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
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Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of case briefs and
written comments at a later date. Rebuttal briefs, limited to issues
raised in case briefs, may be submitted no later than seven days after
the deadline date for case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2)
and (d)(2), parties who submit case briefs or rebuttal briefs in this
investigation are encouraged to submit with each argument: (1) A
statement of the issue; (2) a brief summary of the argument; and (3) a
table of authorities.
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\8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020)
(Temporary Rule); and Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19; Extension of Effective Period, 85 FR
41363 (July 10, 2020).
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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
the party's name, address, and telephone number; the number of
participants; whether any participant is a foreign national; and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined.\9\ Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
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\9\ See 19 CFR 351.310(c).
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Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\10\
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\10\ See Temporary Rule, 85 FR 41363.
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its 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 these imports are
materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: November 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers uncoated standard welded
steel reinforcement wire mesh (wire mesh) produced from smooth or
deformed wire. Subject wire mesh is produced in square and
rectangular grids of uniformly spaced steel wires that are welded at
all intersections. Sizes are specified by combining the spacing of
the wires in inches or millimeters and the wire cross-sectional area
in hundredths of square inch or millimeters squared. Subject wire
mesh may be packaged and sold in rolls or in sheets.
Subject wire mesh is currently produced to ASTM specification
A1064/A1064M, which covers carbon-steel wire and welded wire
reinforcement, smooth and deformed, for concrete in the following
seven styles:
1. 6 x 6 W1.4/W1.4 or D1.4/D1.4
2. 6 x 6 W2.1/W2.1 or D2.1/D2.1
3. 6 x 6 W2.9/W2.9 or D2.9/D2.9
4. 6 x 6 W4/W4 or D4/D4
5. 6 x 12 W4/W4 or D4/D4
6. 4 x 4 W2.9/W2.9 or D2.9/D2.9
7. 4 x 4 W4/W4 or D4/D4
The first number in the style denotes the nominal spacing
between the longitudinal wires and the second number denotes the
nominal spacing between the transverse wires. In the first style
listed above, for example, ``6 x 6'' denotes a grid size of six
inches by six inches. ``W'' denotes the use of smooth wire, and
``D'' denotes the use of deformed wire in making the mesh. The
number following the W or D denotes the nominal cross-sectional area
of the transverse and longitudinal wires in hundredths of a square
inch (i.e., W1.4 or D1.4 is .014 square inches).
Smooth wire is wire that has a uniform cross-sectional diameter
throughout the length of the wire.
Deformed wire is wire with indentations or raised transverse
ribs, which results in wire that does not have a uniform cross-
sectional diameter throughout the length of the wire.
Rolls of subject wire mesh are produced in the following styles
and nominal width and length combinations:
Style: 6 x 6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Roll Sizes:
5' x 50'
5' x 150'
6' x 150'
5' x 200'
7' x 200'
7.5' x 200'
Style: 6 x 6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Roll Sizes: 5' x 150'
Style: 6 x 6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Roll Sizes:
5' x 150'
7' x 200'
All rolled wire mesh is included in scope regardless of length.
Sheets of subject wire mesh are produced in the following styles
and nominal width and length combinations:
Style: 6 x 6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Sheet Size:
3'6'' x 7'
4' x 7'
4' x 7'6''
5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 15'
8' x 20'
Style: 6 x 6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Sheet Size:
5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 15'
8' x 20'
Style: 6 x 6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size:
3'6'' x 20'
5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 15'
8' x 20'
Style: 6 x 12 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size: 8' x 20'
Style: 4 x 4 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size:
5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 12'8'
8' x 15'
8' x 20'
Style: 4 x 4 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size:
5' x 10'
8' x 12'6''
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8' x 12'8''
8' x 15'
8' x 20'
Any product imported, sold, or invoiced in one of these size
combinations is within the scope.
ASTM specification A1064/A1064M provides for permissible
variations in wire gauges, the spacing between transverse and
longitudinal wires, and the length and width combinations. To the
extent a roll or sheet of welded wire mesh falls within these
permissible variations, it is within this scope.
ASTM specification A1064/A1064M also defines permissible
oversteeling, which is the use of a heavier gauge wire with a larger
cross-sectional area than nominally specified. It also permits a
wire diameter tolerance of 0.003 inches for products up
to W5/D5 and 0.004 for sizes over W5/D5. A producer may
oversteel by increasing smooth or deformed wire diameter up to two
whole number size increments on Table 1 of A1064. Subject wire mesh
has the following actual wire diameter ranges, which account for
both oversteeling and diameter tolerance:
------------------------------------------------------------------------
Maximum
W/D No. oversteeling Diameter range
No. (inch)
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1.4 (i.e., 10 gauge).............. 3.4 0.093 to 0.211.
2.1 (i.e., 8 gauge)............... 4.1 0.161 to 0.231.
2.9 (i.e., 6 gauge)............... 4.9 0.189 to 0.253.
4.0 (i.e., 4 gauge)............... 6.0 0.223 to 0.280.
------------------------------------------------------------------------
To the extent a roll or sheet of welded wire mesh falls within
the permissible variations provided above, it is within this scope.
In addition to the tolerances permitted in ASTM specification
A1064/A1064M, wire mesh within this scope includes combinations
where:
1. A width and/or length combination varies by one
grid size in any direction, i.e., 6 inches in length or
width where the wire mesh's grid size is ``6 x 6''; and/or
2. The center-to-center spacing between individual wires may
vary by up to one quarter of an inch from the nominal grid size
specified.
Length is measured from the ends of any wire and width is
measured between the center-line of end longitudinal wires.
Additionally, although the subject wire mesh typically meets
ASTM A1064/A1064M, the failure to include certifications, test
reports or other documentation establishing that the product meets
this specification does not remove the product from the scope. Wire
mesh made to comparable foreign specifications (e.g., DIN, JIS,
etc.) or proprietary specifications is included in the scope.
Excluded from the scope is wire mesh that is galvanized (i.e.,
coated with zinc) or coated with an epoxy coating. In order to be
excluded as galvanized, the excluded welded wire mesh must have a
zinc coating thickness meeting the requirements of ASTM
specification A641/A641M. Epoxy coating is a mix of epoxy resin and
hardener that can be applied to the surface of steel wire.
Merchandise subject to this investigation are classified under
Harmonized Tariff Schedule of the United States (HTSUS) categories
7314.20.0000 and 7314.39.0000. While HTSUS subheadings are provided
for convenience and customs purposes, 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. Scope of the Investigation
IV. Scope Comments
V. Injury Test
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2020-26628 Filed 12-2-20; 8:45 am]
BILLING CODE 3510-DS-P