[Federal Register Volume 84, Number 102 (Tuesday, May 28, 2019)]
[Notices]
[Pages 24473-24475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11016]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-847]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico: Final Results of Antidumping Duty Administrative Review and 
Final Determination of No Shipments; 2016-2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
producers and/or exporters subject to this administrative review made 
sales of subject merchandise at less than normal value during the 
period of review (POR), March 1, 2016, through August 31, 2017.

DATES: Effective May 28, 2019.

FOR FURTHER INFORMATION CONTACT: David Crespo or Jacob Garten, 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) 482-3693 or (202) 482-3342, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This review covers 11 producers and exporters of the subject 
merchandise. Commerce selected two companies, Maquilacero S.A. de C.V. 
(Maquilacero) and Productos Laminados de Monterrey S.A. de C.V. 
(Prolamsa) (collectively, the respondents), for individual examination. 
The producers and or exporters not selected for individual examination 
are listed in the ``Final Results of the Review'' section of this 
notice.
    On October 10, 2018, Commerce published the Preliminary Results.\1\ 
In November 2018, the domestic parties,\2\ Maquilacero, Prolamsa, and 
one of the companies not selected for individual examination (i.e., 
Perfiles y Herrajes LM S.A. de C.V.) submitted case briefs and the 
domestic parties, Maquilacero, and Prolamsa submitted rebuttal briefs.
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    \1\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from Mexico: Preliminary Results of Antidumping Duty 
Administrative Review and Preliminary Determination of No Shipments; 
2016-2017, 83 FR 50888 (October 10, 2018) (Preliminary Results).
    \2\ The petitioners are Independence Tube Corporation and 
Southland Tube, Incorporated, both Nucor companies; and domestic 
interested parties are Atlas Tube, a division of Zekelman 
Industries; and Searing Industries (collectively, domestic parties).
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    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\3\ On February 28, 
2019, we postponed the final results by 60 days, until May 20, 2019.\4\
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    \3\ See Memorandum, ``Deadlines Affected by the Partial Shutdown 
of the Federal Government,'' dated January 28, 2019.
    \4\ See Memorandum, ``Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes from Mexico: Extension of Deadline for Final 
Results of Antidumping Duty Administrative Review,'' dated February 
28, 2019.
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    Commerce conducted this administrative review in accordance with 
section 751 of the Tariff Act of 1930, as amended (the Act).

Scope of the Order

    The merchandise subject to the order is certain heavy walled 
rectangular welded steel pipes and tubes of rectangular (including 
square) cross section, having a nominal wall thickness of not less than 
4 mm. The merchandise includes, but is not limited to, the American 
Society for Testing and Materials (ASTM) A-500, grade B specifications, 
or comparable domestic or foreign specifications. Included products are 
those in which: (1) Iron predominates, by weight, over each of the 
other contained elements; (2) the carbon content is 2 percent or less, 
by weight; and (3) none of the elements below exceeds the quantity, by 
weight, respectively indicated:
     2.50 percent of manganese, or
     3.30 percent of silicon, or
     1.50 percent of copper, or
     1.50 percent of aluminum, or
     1.25 percent of chromium, or
     0.30 percent of cobalt, or
     0.40 percent of lead, or
     2.0 percent of nickel, or
     0.30 percent of tungsten, or
     0.80 percent of molybdenum, or
     0.10 percent of niobium (also called columbium), or
     0.30 percent of vanadium, or
     0.30 percent of zirconium.
    The product is currently classified under following Harmonized 
Tariff Schedule of the United States (HTSUS)

[[Page 24474]]

item numbers 7306.61.1000. Subject merchandise may also be classified 
under 7306.61.3000. Although the HTSUS numbers and ASTM specification 
are provided for convenience and for customs purposes, the written 
product description remains dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs are listed in the 
Appendix to this notice and addressed in the Issues and Decision 
Memorandum.\5\ Interested parties can find a complete discussion of 
these issues and the corresponding recommendations in this public 
memorandum, which 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, and is also available to all interested 
parties in the Central Records Unit, room B8024, of the main Department 
of Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2016-2017 Administrative Review of the 
Antidumping Duty Order on Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes from Mexico,'' dated concurrently with, and 
hereby adopted by this notice (Issues and Decision Memorandum).
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Determination of No Shipments

    As noted in the Preliminary Results, we received a no shipment 
claim from one company involved in this administrative review, Tuberia 
Nacional S.A. de C.V. (TUNA). In the Preliminary Results, we 
preliminarily determined that TUNA had no reviewable transactions 
during the POR. We received no comments from interested parties with 
respect to this claim. Therefore, because the record indicates that 
this company did not export subject merchandise to the United States 
during the POR, we continue to find that TUNA had no reviewable 
transactions during the POR.

Changes Since the Preliminary Results

    Based on a review of the record and comments received from 
interested parties regarding our Preliminary Results, we made certain 
changes to the preliminary weighted-average margin calculations for 
Maquilacero and Prolamsa, and those companies not selected for 
individual review.\6\
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    \6\ See accompanying Issues and Decision Memorandum.
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Final Results of the Review

    We are assigning the following weighted-average dumping margins to 
the firms listed below for the period March 1, 2016, through August 31, 
2017:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Maquilacero S.A. de C.V.....................................        1.43
Productos Laminados de Monterrrey S.A. de C.V...............        8.09
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    Review-Specific Average Rate Applicable to the Following Companies: 
\7\
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    \7\ This rate is based on the rates for the respondents that 
were selected for individual review, excluding rates that are zero, 
de minimis, or based entirely on facts available. See section 
735(c)(5)(A) of the Act.

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/Producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Arco Metal S.A. de C.V......................................        5.88
Forza Steel S.A. de C.V.....................................        5.88
Industrias Monterrey, S.A. de C.V...........................        5.88
Perfiles y Herrajes LM S.A. de C.V..........................        5.88
PYTCO S.A. de C.V...........................................        5.88
Regiomontana de Perfiles y Tubos S.A. de C.V................        5.88
Ternium S.A. de C.V.........................................        5.88
Tuberia Nacional S.A. de C.V................................         (*)
Tuberia Procarsa S.A. de C.V................................        5.88
------------------------------------------------------------------------
* No shipments or sales subject to this review.

    We intend to disclose the calculations performed within five days 
of the date of publication of this notice to parties in this 
proceeding, in accordance with 19 CFR 351.224(b).

Assessment Rates

    Pursuant to section 751(a)(2)(C) of the Act, and 19 CFR 
351.212(b)(1), Commerce has determined, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries of subject merchandise in accordance with the final results of 
this review.
    Pursuant to 19 CFR 351.212(b)(1), where Maquilacero and Prolamsa 
reported the entered value of their U.S. sales, we calculated importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the examined sales to the total 
entered value of the sales for which entered value was reported. Where 
the respondents did not report entered value, we calculated the entered 
value in order to calculate the assessment rate. Where either the 
respondent's weighted-average dumping margin is zero or de minimis 
within the meaning of 19 CFR 351.106(c)(1), or an importer-specific 
rate is zero or de minimis, we will instruct CBP to liquidate the 
appropriate entries without regard to antidumping duties.
    For the companies which were not selected for individual review, we 
will assign an assessment rate based on the average \8\ of the cash 
deposit rates calculated for Maquilacero and Prolamsa. The final 
results of this review shall be the basis for the assessment of 
antidumping duties on entries of merchandise covered by the final 
results of this review and for future deposits of estimated duties, 
where applicable.\9\
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    \8\ This rate was calculated as discussed in footnote 7, above.
    \9\ See section 751(a)(2)(C) of the Act.
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    We intend to issue liquidation instructions to CBP 15 days after 
publication of the final results of this administrative review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for each specific 
company listed above will be that established in the final results of 
this review, except if the rate is less than 0.50 percent and, 
therefore, de minimis within the meaning of 19 CFR 351.106(c)(1), in 
which case the cash deposit rate will be zero; (2) for previously 
investigated companies not participating in this review, the cash 
deposit will continue to be the company-specific rate published for the 
most recently completed segment of this proceeding; (3) if the exporter 
is not a firm covered in this review, or the original less-than-fair-
value (LTFV) investigation, but the manufacturer is, the cash deposit 
rate will be the rate established for the most recent segment for the 
manufacturer of the merchandise; and (4) the cash deposit rate for all 
other manufacturers or exporters will continue to be 3.24 percent, the 
all-others rate established

[[Page 24475]]

in the LTFV investigation.\10\ These deposit requirements, when 
imposed, shall remain in effect until further notice.
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    \10\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from the Republic of Korea, Mexico, and the Republic of 
Turkey: Antidumping Duty Orders, 81 FR 62865, 62866 (September 13, 
2016).
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Notification to Importers

    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 Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification Regarding Administrative Protective Order

    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3), which continues to govern 
business proprietary information in this segment of the proceeding. 
Timely written notification of return/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.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i) of the Act.

    Dated: May 20, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Margin Calculations
IV. Discussion of Issues
    General Issues
    Comment 1: Ministerial Errors
    Maquilacero-Specific Issues
    Comment 2: Use of Adverse Facts Available (AFA)
    Comment 3: Further-Manufactured Products in the Home Market
    Prolamsa-Specific Issues
    Comment 4: Theoretical Weights
    Comment 5: U.S. Indirect Selling Expenses (ISE)
    Comment 6: Home Market Level of Trade (LOT)
    Comment 7: U.S. Sales of Subject Merchandise Further 
Manufactured by an Unaffiliated Mexican Company
    Perfiles-Specific Issues
    Comment 8: Whether Commerce Correctly Determined the Dumping 
Margin for Perfiles
V. Recommendation

[FR Doc. 2019-11016 Filed 5-24-19; 8:45 am]
 BILLING CODE 3510-DS-P