[Federal Register Volume 86, Number 19 (Monday, February 1, 2021)]
[Notices]
[Pages 7710-7713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02079]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-853]
Standard Steel Welded Wire Mesh 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 Department of Commerce (Commerce) preliminarily determines
that standard steel welded wire mesh (wire mesh) from Mexico is being,
or is likely to be, sold in the United States at less than fair value
(LTFV). The period of investigation (POI) is April 1, 2019, through
March 31, 2020. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable February 1, 2021.
FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Melissa Kinter, 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) 482-4682 or (202)
482-1413, 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 on July 27,
2020.\1\ On November 18, 2020, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
January 26, 2021.\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 https://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 the 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 Less-Than-Fair-Value Investigation, 85 FR 45167 (July 27, 2020)
(Initiation Notice).
\2\ See Standard Steel Welded Wire Mesh from Mexico:
Postponement of Preliminary Detremination in the Less-Than-Fair
Value Investigation, 85 FR 73459 (November 18, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation 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 products covered by this investigation are 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.\6\ 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.
\6\ See Preliminary Decision Memorandum.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated constructed export
prices in accordance with section 772(b) of the Act. Normal value is
calculated in accordance with section 773 of the Act. Furthermore,
pursuant to section 776(a) and (b) of the Act, Commerce has
preliminarily relied upon facts otherwise available with adverse
inferences for Deacero S.A.P.I. de C.V. (Deacero). For a full
description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
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-
[[Page 7711]]
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 preliminarily assigned a rate based
entirely on adverse facts available (AFA) to Deacero. Therefore, the
only rate that is not zero, de minimis or based entirely on adverse
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
weighted-average dumping margins exist:
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\7\ In the companion countervailing duty (CVD) investigation,
Commerce calculated a 1.02 percent export subsidy rate for Aceromex
and for all other producers and exporters under the program ``Eighth
Rule Permit Program.'' See Standard Steel Welded Wire Mesh from
Mexico: Preliminary Affirmative Countervailing Duty Determination,
85 FR 78124 (December 3, 2020), and accompanying Preliminary
Decision Memorandum at 14-18. Because we determined the LTFV all-
others rate based on Aceromex's estimated weighted-average dumping
margin, the export subsidy offset for all other producers and
exporters is the lesser of the export subsidy rate for Aceromex and
the export subsidy rate for all other producers and exporters in the
CVD preliminary determination (i.e., 1.02 percent). The cash deposit
rate for Deacero is equal to the petition rate (152.68 percent)
adjusted for the lowest rate of export subsidies found for any
company in the most recently-completed segment in the companion
countervailing duty proceeding (i.e., 1.02 percent related to the
Eighth Rule Permit Program).
------------------------------------------------------------------------
Estimated Cash deposit
weighted- rate (adjusted
Exporter/producer average for subsidy
dumping margin offset(s))
(percent) (percent) \7\
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Aceromex, S.A. de C.V................... 23.67 22.65
Deacero S.A.P.I. de C.V................. * 152.68 151.66
All Others.............................. 23.67 22.65
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* AFA
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.
Commerce normally adjusts cash deposits for estimated antidumping
duties by the amount of export subsidies countervailed in a companion
countervailing duty (CVD) proceeding, when CVD provisional measures are
in effect. Accordingly, where Commerce preliminarily made an
affirmative determination for countervailable export subsidies,
Commerce has offset the estimated weighted-average dumping margin by
the appropriate CVD rate. 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 estimated
antidumping duty cash deposits unadjusted for countervailed export
subsidies at the time that the provisional CVD measures expire. These
suspension of liquidation instructions will remain in effect until
further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any 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).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. A timeline for the
submission of case briefs and written comments will be notified to
interested parties 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\ Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until further notice.\9\
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).
\9\ See 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
[[Page 7712]]
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. 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 petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
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 January 13, 2021, and January 21, 2021 pursuant to 19 CFR
351.210(e), Insteel Industries Inc., Mid South Wire Company, National
Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh Corp. (the
petitioners) and Aceromex requested that Commerce postpone the final
determination and that provisional measures be extended to a period not
to exceed six months.\10\ 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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\10\ See Petitioners' Letter, ``Standard Steel Welded Wire Mesh
from Mexico--Petitioners' Request for Postponement of Final
Antidumping Determination,'' dated January 13, 2021; see also
Aceromex's Letter, ``Standard Steel Welded Wire Mesh from Mexico:
Aceromex's Request to Extend the Due Date for the Final
Determination,'' dated January 21, 2021.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (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 these imports 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: January 26, 2020.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is 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'
[[Page 7713]]
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''
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)
------------------------------------------------------------------------
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. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Application of Facts Available, Use of Adverse Inferenes, and
Calculation of All-Others Rate
VII. Discussion of the Methodology
A. Determination of the Comparison Method
B. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Constructed Export Price
XI. Normal Value
A. Home Market Viability
B. Affiliated-Party Transactions and Arm's Length Test
C. Level of Trade
D. Cost of Production (COP) Analysis
1. Calculation of COP
2. Test of Comparison Market Sales Prices
3. Results of the COP Test
XII. Currency Conversion
XIII. Recommendation
[FR Doc. 2021-02079 Filed 1-29-21; 8:45 am]
BILLING CODE 3510-DS-P