[Federal Register Volume 76, Number 34 (Friday, February 18, 2011)]
[Notices]
[Pages 9547-9549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3746]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-836]


Light-Walled Rectangular Pipe and Tube From Mexico; Final Results 
of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: February 18, 2011.
SUMMARY: On September 13, 2010, the Department of Commerce (the 
Department) published the preliminary results of the administrative 
review of the antidumping duty order on light-walled rectangular pipe 
and tube from Mexico. This first administrative review covers nine 
manufacturers/exporters and has a period of review (POR) from January 
30, 2008, through July 31, 2009. On January 6, 2011, the Department 
published a notice in which it extended the time limit for completion 
of the final results of the review until no later than February 10, 
2011.
    Based on our analysis of the comments received on the preliminary 
results, we have made changes to the margin calculations for two 
companies and, as a result, the final results of review differ from the 
preliminary results for all companies. The final dumping margins for 
all companies are listed below in the section entitled ``Final Results 
of Review.''

FOR FURTHER INFORMATION CONTACT: John Drury/Brian Davis (Regiopytsa) or 
Edythe Artman (Maquilacero), AD/CVD Operations, Office 7, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-0195, (202) 482-7924, or (202) 482-3931, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 13, 2010, the Department published the preliminary 
results of the administrative review of the antidumping duty order on 
light-walled rectangular pipe and tube from Mexico. See Light-Walled 
Rectangular Pipe and Tube From Mexico: Preliminary Results of 
Antidumping Duty Administrative Review, 75 FR 55559 (September 13, 
2010) (Preliminary Results). This first administrative review of the 
order covers sales of subject merchandise, as described in the ``Scope 
of the Order'' section below, made during the POR from January 30, 
2008, through July 31, 2009. Although we named nine companies in the 
notice of initiation for this review,\1\ we only examined the 
individual sales of two companies--Maquilacero S.A. de C.V. 
(Maquilacero) and Regiomontana de Perfiles y Tubos S.A. de C.V. 
(Regiopytsa). See ``Antidumping Duty Administrative Review of Light-
Walled Rectangular Pipe and Tube from Mexico: Respondent Selection 
Memorandum'' from Ericka Ukrow, International Trade Compliance Analyst, 
AD/CVD Operations, Office 7, to Richard O. Weible, Director, AD/CVD 
Operations, Office 7, dated October 15, 2009 (Respondent Selection 
Memorandum).
---------------------------------------------------------------------------

    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in Part, 74 FR 
48224, 48225 (September 22, 2009).
---------------------------------------------------------------------------

    We invited parties to comment on the Preliminary Results (75 at 
55567) and received case and rebuttal briefs from the respondent 
companies, companies not selected for individual examination, and the 
domestic interested parties.\2\ None of the parties requested a hearing 
on the issues raised in comments.
---------------------------------------------------------------------------

    \2\ These parties identified themselves as Atlas Tube, Bull 
Moose Tube Company, and Searing Industries, Inc., in their August 
28, 2009, request for an administrative review.
---------------------------------------------------------------------------

    On January 6, 2011, the Department published a notice in which it 
extended the limit for completion of the final results of review until 
no later than February 10, 2011. See Light-Walled Rectangular Pipe and 
Tube From Mexico: Extension of Time Limit for Final Results of 
Antidumping Duty Administrative Review, 76 FR 774 (January 6, 2011).

Period of Review

    The POR is from January 30, 2008, through July 31, 2009.

Scope of the Order

    The merchandise that is the subject of this order is certain welded 
carbon-quality light-walled steel pipe and tube,

[[Page 9548]]

of rectangular (including square) cross section, having a wall 
thickness of less than 4 mm. The term carbon-quality steel includes 
both carbon steel and alloy steel which contains only small amounts of 
alloying elements. Specifically, the term carbon-quality includes 
products in which none of the elements listed below exceeds the 
quantity by weight respectively indicated: 1.80 percent of manganese, 
or 2.25 percent of silicon, or 1.00 percent of copper, or 0.50 percent 
of aluminum, or 1.25 percent of chromium, or 0.30 percent of cobalt, or 
0.40 percent of lead, or 1.25 percent of nickel, or 0.30 percent of 
tungsten, or 0.10 percent of molybdenum, or 0.10 percent of niobium, or 
0.15 percent vanadium, or 0.15 percent of zirconium. The description of 
carbon-quality is intended to identify carbon-quality products within 
the scope. The welded carbon-quality rectangular pipe and tube subject 
to this order is currently classified under the Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings 7306.61.50.00 and 
7306.61.70.60. While HTSUS subheadings are provided for convenience and 
Customs purposes, our written description of the scope of this order is 
dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this antidumping duty administrative review are addressed in the 
``Issues and Decision Memorandum for the Final Results of the 
Antidumping Duty Administrative Review of Light-Walled Rectangular Pipe 
and Tube from Mexico'' from Christian Marsh, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Deputy Assistant Secretary for Import Administration, dated 
February 10, 2011 (Decision Memorandum), which is hereby adopted by 
this notice. A list of all issues, which parties have raised and to 
which we have responded, is in the Decision Memorandum and attached to 
this notice as an appendix. The Decision Memorandum, which is a public 
document, contains a complete discussion of the issues raised in the 
review and their corresponding recommendations and is on file in the 
Central Records Unit (CRU) of the main Department of Commerce building, 
Room 7046. In addition, a complete version of the memorandum can be 
accessed on the Internet at http://ia.ita.doc.gov/frn/index.html. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Rates for Non-Selected Companies

    For reasons set forth in our Respondent Selection Memorandum, we 
selected two companies, Maquilacero and Regiopytsa, for individual 
examination of their sales of the subject merchandise to the United 
States during the POR as permitted under section 777A(c)(2) of the 
Tariff Act of 1930, as amended (the Act). For the final results, we 
have not changed the basis of the rate we applied to companies not 
selected for individual examination. In the Preliminary Results, we 
assigned the simple-average margin of the selected companies because 
Regiopytsa's public quantity-and-value sales information was indexed 
(as permitted under 19 CFR 351.304(c)), thereby making it impossible 
for us to calculate a weighted-average margin of the selected 
companies. See Preliminary Results, 75 FR at 55567. Thus, for the final 
results, we have continued to take the simple average of the revised 
margins for Maquilacero and Regiopytsa and applied this rate to the 
companies not selected for individual examination.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we have made 
revisions that have changed the results for all companies subject to 
this review (i.e., including the companies named in the initiation 
notice but not selected for examination of individual sales). Where the 
revisions required corrections or modifications to programming language 
or draft instructions to U.S. Customs and Border Protection (CBP), any 
such changes have been detailed in company-specific analysis memoranda 
and cost-adjustment memoranda for Maquilacero and Regiopytsa; all 
memoranda are dated concurrently with this notice and are on file in 
the CRU.
    For Maquilacero, we have made the following revisions:
    (1) We have adjusted the calculation of general and administrative 
(G&A) expenses by disallowing an offset, which Maquilacero claimed for 
revenue earned from a special project. We have also removed labor 
expenses, related to the special project, from the calculation of 
variable overhead expenses as a result of the offset disallowance. For 
a discussion of these adjustments, see Comment 3 of the Decision 
Memorandum.
    (2) We have revised the draft liquidation instructions in order to 
clarify that, for the gap period (i.e., July 28, 2008, through August 
4, 2008), the CBP should terminate the suspension of liquidation of any 
entries and liquidate the entries without regard to antidumping duties. 
(We have similarly revised the draft liquidations instructions for 
Regiopytsa and the companies not selected for individual examination.) 
See Comment 4 of the Decision Memorandum.
    (3) We have corrected the margin-calculation program so that 
domestic inland freight and domestic brokerage and handling expenses 
are converted from Mexican pesos to U.S.-dollar amounts before being 
deducted from U.S. price. See Comment 5 of the Decision Memorandum.
    For Regiopytsa, we have made the following changes:
    (1) We have revised our calculation to follow the Department's 
practice of basing the universe of sales on the entry date of export-
price sales, where this information has been made available to the 
record. See Comment 2 of the Decision Memorandum.
    (2) We have revised our calculation to follow the Department's 
practice of capping sales-related revenues (in this case interest and 
insurance revenues) to offset directly associated sales expenses. See 
Comment 6 of the Decision Memorandum.
    (3) We have modified the margin program to ensure that, for 
products not produced in all six quarters, the total costs of 
manufacturing reflect quarterly values for scrap cost, scrap revenue, 
and the reconciliation adjustment, rather than values from the earliest 
quarter of production. See Comment 7 of the Decision Memorandum.

Final Results of the Review

    We determine that the following weighted-average or, if 
appropriate, simple-average dumping margins exist on light-walled 
rectangular pipe and tube from Mexico for the period January 30, 2008, 
through July 31, 2009:
---------------------------------------------------------------------------

    \3\ On August 18, 2009, the Department determined that Ternium 
Mexico, S.A. de C.V., is the successor-in-interest to Hylsa S.A. de 
C.V. and should be treated as such for antidumping duty cash-deposit 
purposes. See Final Results of Antidumping Duty Changed 
Circumstances Review: Light-Walled Rectangular Pipe and Tube From 
Mexico, 74 FR 41680 (August 18, 2009).

[[Page 9549]]



------------------------------------------------------------------------
                                                              Percentage
                  Manufacturer or exporter                      margin
------------------------------------------------------------------------
Maquilacero S.A. de C.V....................................         3.11
Regiomontana de Perfiles y Tubos S.A. de C.V...............         9.15
Galvak S.A. de C.V.........................................         6.13
Hylsa S.A. de C.V..........................................         6.13
Industrias Monterrey S.A. de C.V...........................         6.13
Nacional de Acero S.A. de C.V..............................         6.13
Perfiles y Herrajes LM S.A. de C.V.........................         6.13
Productos Laminados de Monterrey S.A. de C.V...............         6.13
Ternium Mexico S.A. de C.V.\3\.............................         6.13
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. In accordance with 19 CFR 
351.212(b)(1), the Department normally calculates an assessment rate 
for each importer of the subject merchandise covered by the review. 
Because both Maquilacero and Regiopytsa reported the entered value for 
all U.S. sales, we have calculated importer-specific, ad valorem duty 
assessment rates based on the ratio of each importer's total amount of 
antidumping duties calculated for the examined sales to the total 
entered value of the sales for that importer. Where an assessment rate 
is above de minimis (de minimis being less than 0.5 percent in a 
review), we will instruct CBP to assess duties on all entries of 
subject merchandise for that importer during the period from August 5, 
2008, through July 31, 2009. For entries made during the provisional-
measures period (i.e., January 30, 2008, through July 27, 2008), we 
will instruct CBP to liquidate the entries at the proper assessment 
rates for Maquilacero and Regiopytsa, pursuant to section 737(a) of the 
Act.
    For the companies not selected for individual examination, we will 
instruct CBP to apply the rates listed above and to the entries of 
subject merchandise produced and/or exported by such companies and 
entered during the period from August 5, 2008, through July 31, 2009. 
The rates were obtained by averaging the cash-deposit rates calculated 
for the companies selected for individual examination. For entries made 
during the provisional-measures period, we will instruct CBP to apply 
the lower of the rates calculated or assigned to the companies as a 
result of our preliminary and final determinations for the less-than-
fair-value (LTFV) investigation, if the lower rate is above de minimis. 
If the lower is below de minimis, we will instruct CBP to liquidate the 
entries without assessment of antidumping duties. If a firm was not 
assigned a company-specific rate as a result of our investigation, then 
we will instruct CBP to apply the rate of 3.76 percent, the all-others 
rate established by our amended final determination for the 
investigation, as this rate was lower than the all-others rate 
calculated for the preliminary determination. See Notice of Amended 
Final Determination of Sales at Less Than Fair Value: Light-Walled 
Rectangular Pipe and Tube From Mexico, 73 FR 45400, 45401 (August 5, 
2008) (Amended Final Determination).
    For any entries of subject merchandise made during the period from 
July 28, 2008, through August 4, 2008, we will instruct CBP to 
terminate the suspension of liquidation and to liquidate these entries 
without regard to antidumping duties.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
Notice). This clarification will apply to entries of subject 
merchandise during the POR produced by companies included in these 
final results of review for which these companies did not know that the 
merchandise it sold to an intermediary was destined for the United 
States. In such instances, we will instruct CBP to liquidate unreviewed 
entries at the all-others rate if there is no rate for the intermediate 
company(ies) involved in the transaction. For a full discussion of this 
clarification, see Assessment Notice.
    Pursuant to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate 
without regard to antidumping duties any entries for which the 
assessment rate is de minimis. The Department intends to issue 
assessment instructions directly to CBP 15 days after the publication 
of these final results of review.

Cash-Deposit Requirements

    The following cash-deposit requirements will be effective upon 
publication of these final results of review for all shipments of the 
subject merchandise entered or withdrawn from warehouse for consumption 
on or after the date of publication, consistent with section 751(a)(1) 
of the Act: (1) The cash-deposit rates for the reviewed companies will 
be the rates listed above; (2) if the exporter is not a firm covered in 
this review but that was covered in the less-than-fair-value (LTFV) 
investigation, the cash-deposit rate will continue to be the company-
specific rate established in the investigation; (3) if the exporter is 
not a firm covered in this review or the investigation but the 
manufacturer is, the cash-deposit rate will be the rate established for 
the manufacturer in the LTFV investigation; and (4) the cash-deposit 
rate for all other manufacturers or exporters will continue to be 3.76 
percent, the all-others rate published in the amended final 
determination of the LTFV investigation. See Amended Final 
Determination.
    These deposit requirements shall remain in effect until further 
notice.

Notifications to Interested Parties

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a sanctionable 
violation.
    This notice is issued and published in accordance with sections 
751(a)(1) and 777(i)(1) of the Act.

    Dated: February 10, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix

1. Offsetting of Negative Margins
2. Inclusion of Sales Entered After Review Period
3. Revenue Offset to General and Administrative Expenses for a 
Special Project
4. Clarification to Draft Liquidation Instructions for First Review 
Period
5. Clerical Errors
    A. Currency Conversion of Movement Expenses
    B. Capping of Sales-Related Revenues
    C. Indexing of the Department's Cost Adjustment and Scrap Cost 
and Revenue on a Quarterly Basis

[FR Doc. 2011-3746 Filed 2-17-11; 8:45 am]
BILLING CODE 3510-DS-P