[Federal Register Volume 84, Number 134 (Friday, July 12, 2019)]
[Notices]
[Pages 33227-33230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14871]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-851]
Certain Fabricated Structural Steel From Mexico: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of Final
Determination With Final Antidumping 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 certain fabricated structural steel (fabricated structural
steel) from Mexico. The period of investigation is January 1, 2018
through December 31, 2018. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable July 12, 2019.
FOR FURTHER INFORMATION CONTACT: Robert Galantucci or Maliha Khan, 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) 482-2923 or (202)
482-0895, respectively.
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
published the notice of initiation of this investigation on March 4,
2019.\1\ On April 16, 2019, in accordance with section 703(c)(1)(A) of
the Act, Commerce postponed the preliminary determination of this
investigation, and the revised deadline is now July 5, 2019.\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, and is available to all parties in the Central
Records Unit, Room B8024 of the main Commerce building. 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 Certain Fabricated Structural Steel from Canada, Mexico,
and the People's Republic of China: Initiation of Countervailing
Duty Investigations, 84 FR 7339 (March 4, 2019) (Initiation Notice).
\2\ See Certain Fabricated Structural Steel From Canada, Mexico,
and the People's Republic of China: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 84 FR
15581 (April 16, 2019).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Fabricated Structural Steel 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 fabricated structural
steel 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.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 84 FR at 7340.
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For a summary of the product coverage comments and rebuttal
comments submitted to the record that have been addressed by Commerce
for this preliminary determination, and Commerce's accompanying
discussion and analysis of those comments, see the Preliminary Scope
Decision Memorandum.\6\ Based on our analysis of those comments, we are
preliminarily modifying the scope language as it appeared in the
Initiation Notice. See the revised scope in Appendix I.
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\6\ See Memorandum, ``Fabricated Structural Steel from Canada,
Mexico, and the People's Republic of China: Preliminary Scope
Decision,'' dated concurrently with this notice (Preliminary Scope
Decision Memorandum).
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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
[[Page 33228]]
gives rise to a benefit to the recipient, and that the subsidy is
specific.\7\
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\7\ 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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Additionally, at the outset of this investigation, several
companies failed to respond to Commerce's quantity and value
questionnaire.\8\ For these non-responsive companies, Commerce relied
on facts otherwise available and, because it finds that the companies
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 in
accordance with sections 776(a) and (b) of the Act.\9\ For a full
description of the methodology underlying our preliminary
determination, see the Preliminary Decision Memorandum.
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\8\ The companies that failed to properly respond to Commerce's
quantity and value questionnaire were: Acero Technologia, S.A. de
C.V.; Construcciones Industriales Tapia S.A. de C.V.; Estructuras
Metalicas la Popular S.A. de C.V./MSCI; Operadora CICSA, S. A. de C.
V. Swecomex--Guadalajara; and Preacero Pellizzari Mexico S.A. de
C.V. We refer to these companies, collectively, as the ``non-
responsive companies.''
\9\ See Preliminary Decision Memorandum at ``Use of Facts
Otherwise Available and Adverse Inferences.''
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of fabricated structural steel from Mexico
based on a request made by the American Institute of Steel Construction
Full Member Subgroup (the petitioner).\10\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
November 18, 2019, unless postponed.
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\10\ See Petitioner's Letter, ``Certain Fabricated Structural
Steel from Canada, Mexico, and the People's Republic of China:
Request to Postpone Preliminary Antidumping Duty Determination and
to Align Final Countervailing Duty Determination with Final
Antidumping Duty Determination,'' dated June 19, 2019.
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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 has preliminarily found a de
minimis rate for mandatory respondent Building Systems de Mexico, S.A.
de C.V. (BSM). Additionally, Commerce has assigned a rate to the non-
responsive companies based entirely on facts available, using adverse
inferences, under section 776 of the Act. Therefore, the only rate that
is not zero, de minimis or based entirely on facts otherwise available
is the rate calculated for Corey S.A. de C.V. (Corey). Consequently,
the rate calculated for Corey 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:
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Subsidy
Company rate
(percent)
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Building Systems de Mexico, S.A. de C.V..................... 0.01
Corey S.A. de C.V.11........................................ 13.62
Acero Technologia, S.A. de C.V.............................. 74.01
Construcciones Industriales Tapia S.A. de C.V............... 74.01
Estructuras Metalicas la Popular S.A. de C.V./MSCI.......... 74.01
Operadora CICSA, S. A. de C. V. Swecomex--Guadalajara....... 74.01
Preacero Pellizzari Mexico S.A. de C.V...................... 74.01
All Others.................................................. 13.62
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Suspension of Liquidation
In accordance with sections 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. Because the subsidy rate for BSM is de
minimis , Commerce is directing CBP not to suspend liquidation of
entries of the merchandise from BSM.
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\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Corey: Inversiones de Jalisco, S.A. de C.V.; Aceros Corey, S.A.P.I.
de C.V.; Industrias Recal, S.A. de C.V.; 6190, S.A. de C.V;
Servicios Integrales Corey, S.A. de C.V.; Servicios T[eacute]cnicos
Corey, S.A. de C.V.; Estructuras de Acero CVGS, S.A. de C.V.; and
Operadora Industrial El Salto, S.A. de C.V.
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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).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments regarding non-scope issues
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
verification report is issued in this investigation. Rebuttal briefs,
limited to issues raised in case briefs covering non-scope issues, may
be submitted no later than five days after the deadline for submitting
non-scope related case briefs.\12\
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\12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Case briefs or other written comments regarding scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than 21 days after the publication of the preliminary AD
determinations on fabricated structural steel from Canada, China, and
Mexico in the Federal Register . Rebuttal briefs, limited to issues
raised in scope case briefs, may be submitted no later than five days
after the deadline for submitting scope case briefs. For all scope
issues, parties must file separate and identical briefs and/or rebuttal
briefs on the records of all of the ongoing CVD and AD investigations
of fabricated structural steel from Canada, China, and Mexico through
ACCESS. No new factual information may be included in scope case briefs
or rebuttal scope briefs.
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.
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
[[Page 33229]]
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 the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, 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.
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 imports of the subject
merchandise 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: July 5, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is carbon and
alloy fabricated structural steel. Fabricated structural steel is
made from steel in which: (1) Iron predominates, by weight, over
each of the other contained elements; and (2) the carbon content is
two percent or less by weight. Fabricated structural steel products
are steel products that have been fabricated for erection or
assembly into structures, including, but not limited to, buildings
(commercial, office, institutional, and multi-family residential);
industrial and utility projects; parking decks; arenas and
convention centers; medical facilities; and ports, transportation
and infrastructure facilities. Fabricated structural steel is
manufactured from carbon and alloy (including stainless) steel
products such as angles, columns, beams, girders, plates, flange
shapes (including manufactured structural shapes utilizing welded
plates as a substitute for rolled wide flange sections), channels,
hollow structural section (HSS) shapes, base plates, and plate-work
components. Fabrication includes, but is not limited to cutting,
drilling, welding, joining, bolting, bending, punching, pressure
fitting, molding, grooving, adhesion, beveling, and riveting and may
include items such as fasteners, nuts, bolts, rivets, screws,
hinges, or joints.
The inclusion, attachment, joining, or assembly of non-steel
components with fabricated structural steel does not remove the
fabricated structural steel from the scope.
Fabricated structural steel is covered by the scope of the
investigation regardless of whether it is painted, varnished, or
coated with plastics or other metallic or non-metallic substances
and regardless of whether it is assembled or partially assembled,
such as into modules, modularized construction units, or sub-
assemblies of fabricated structural steel.
Subject merchandise includes fabricated structural steel that
has been assembled or further processed in the subject country or a
third country, including but not limited to painting, varnishing,
trimming, cutting, drilling, welding, joining, bolting, punching,
bending, beveling, riveting, galvanizing, coating, and/or slitting
or any other processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the fabricated structural steel.
All products that meet the written physical description of the
merchandise covered by the investigation are within the scope of the
investigation unless specifically excluded or covered by the scope
of an existing countervailing duty order.
Specifically excluded from the scope of the investigation are:
1. Fabricated steel concrete reinforcing bar (rebar) if: (i) It
is a unitary piece of fabricated rebar, not joined, welded, or
otherwise connected with any other steel product or part; or (ii) it
is joined, welded, or otherwise connected only to other rebar.
2. Fabricated structural steel for bridges and bridge sections
that meets American Association of State and Highway and
Transportation Officials (AASHTO) bridge construction requirements
or any state or local derivatives of the AASHTO bridge construction
requirements.
3. Pre-engineered metal building systems, which are defined as
complete metal buildings that integrate steel framing, roofing and
walls to form one, pre-engineered building system, that meet Metal
Building Manufacturers Association guide specifications. Pre-
engineered metal building systems are typically limited in height to
no more than 60 feet or two stories.
4. Steel roof and floor decking systems that meet Steel Deck
Institute standards.
5. Open web steel bar joists and joist girders that meet Steel
Joist Institute specifications.
6. Also excluded from the scope of the investigation is
scaffolding that complies with ANSI/ASSE A10.8--2011--Scaffolding
Safety Requirements, and/or Occupational Safety and Health
Administration regulations at 29 CFR part 1926 subpart L--Scaffolds.
The outside diameter of the scaffold tubing covered by this
exclusion ranges from 25 mm to 80 mm.
7. Excluded from the scope of the investigation are access
flooring systems panels and accessories, where such panels have a
total thickness ranging from 0.75 inches to 1.75 inches and consist
of concrete, wood, other non-steel materials, or hollow space
permanently attached to a top and bottom layer of galvanized or
painted steel sheet or formed coil steel, the whole of which has
been formed into a square or rectangle having a measurement of 24
inches on each side +/- 0.1 inch; 24 inches by 30 inches +/- 0.1
inch; or 24 by 36 inches +/- 0.1 inch.
8. Excluded from the investigation are the following types of
steel poles, segments of steel poles, and steel components of those
poles:
Steel Electric Transmission Poles, or segments of such
poles, that meet (1) the American Society of Civil Engineers
(ASCE)--Design of Steel Transmission Pole Structures, ASCE/SEI 48 or
(2) the USDA RUS bulletin 1724E-214 Guide specification for standard
class Steel Transmission Poles. The exclusion for steel electric
transmission poles also encompasses the following components
thereof: Transmission arms which attach to poles; pole bases; angles
that do not exceed 8 x 8 x 0.75;
steel vangs, steel brackets, steel flanges, and steel caps; safety
climbing cables; ladders; and steel templates.
Steel Electric Substation Poles, or segments of such
poles, that meet the American Society of Civil Engineers (ASCE)--
Manuals and Reports on Engineering Practice No. 113. The exclusion
for steel electric substation poles also encompasses the following
components thereof: Substation dead end poles; substation bus
stands; substation mast poles, arms, and cross-arms; steel brackets,
steel flanges, and steel caps; pole bases; safety climbing cables;
ladders; and steel templates.
Steel Electric Distribution Poles, or segments of such
poles, that meet (1) American Society of Civil Engineers (ASCE)--
Design of Steel Transmission Pole Structures, ASCE/SEI 48, (2) USDA
RUS bulletin 1724E-204 Guide specification for steel single pole and
H-frame structures, or (3) ANSI 05.1 height and class requirements
for steel poles. The exclusion for steel electric distribution poles
also encompasses the following components thereof: Distribution arms
and cross-arms; pole bases; angles that do not exceed 8 x
8 x 0.75; steel vangs, steel brackets, steel
flanges, and steel caps; safety climbing cables; ladders; and steel
templates.
Steel Traffic Signal Poles, Steel Roadway Lighting
Poles, Steel Parking Lot Lighting Poles, and Steel Sports Lighting
Poles, or segments of such poles, that meet (1) the American
Association of State Highway and Transportation Officials (AASHTO)--
Specifications for Structural Supports for Highway Signs,
Luminaires, and Traffic Signals, (2) any state or local derivatives
of the AASHTO highway sign, luminaries, and traffic signals
requirements, or (3) American National Standard Institute (ANSI)
C136--American National Standard for Roadway and Area Lighting
Equipment standards. The exclusion for steel traffic signal poles,
steel roadway lighting poles, steel parking lot lighting poles, and
steel sports lighting poles also encompasses the following
components thereof: Luminaire arms; hand hole rims; hand hole
covers; base plates that connect to
[[Page 33230]]
either the shaft or the arms; mast arm clamps; mast arm tie rods;
transformer base boxes; formed full base covers that hide anchor
bolts; step lugs; internal cable guides; lighting cross arms;
lighting service platforms; angles that do not exceed 8 x
8 x 0.75; stainless steel hand hole door
hinges and wind restraints; steel brackets, steel flanges, and steel
caps; safety climbing cables; ladders; and steel templates.
Communication Poles, or segments of such poles, that
meet (1) Telecommunications Industry Association (TIA) ANSI/TIA-222
Structural Standards for Steel Antenna Towers and Antenna Supporting
Structures, or (2) American Association of State Highway and
Transportation Officials (AASHTO)--Specifications for Structural
Supports for Highway Signs, Luminaires, and Traffic Signals. The
exclusion for communication poles also encompasses the following
components thereof: Luminaire arms; hand hole rims; hand hole
covers; base plate that connects the pole to the foundation or arm
to the pole; safety climbing cables; ladders; service ground
platforms; step lugs; pole steps; steel brackets, steel flanges, and
steel caps; angles that do not exceed 8 x 8 x
0.75, coax, and safety brackets; subcomponent kits for
antenna mounts weighing 80 lbs. or less; service platforms; ice
bridges; stainless steel hand hole door hinges and wind restraints;
and steel templates.
OEM Round or Polygonal Tapered Steel Poles, segments or
shaft components of such poles, that meet the (1) ASCE 48 or AASHTO,
(2) ANSI/TIA 222, (3) ANSI 05.1, (4) RUS bulletin 1724E-204, or (5)
RUS bulletin 1724E-214. The exclusion for OEM round or polygonal
tapered steel poles also encompasses the following components
thereof: Subcomponent kits for antenna mounts weighing 80 lbs. or
less; mounts and platforms; steel brackets, steel flanges, and steel
caps; angles that do not exceed 8 x 8 x
0.75; bridge kits; safety climbing cables; ladders; and
steel templates.
The inclusion or attachment of one or more of the above-
referenced steel poles in a structure containing fabricated
structural steel (FSS) does not remove the FSS from the scope of the
investigation. No language included in this exclusion should be read
or understood to have applicability to any other aspect of this
scope or to have applicability to or to exclude any product, part,
or component other than those specifically identified in the
exclusion.
The products subject to the investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheadings: 7308.90.3000, 7308.90.6000, and
7308.90.9590.
The products subject to the investigation may also enter under
the following HTSUS subheadings: 7216.91.0010, 7216.91.0090,
7216.99.0010, 7216.99.0090, 7222.40.6000, 7228.70.6000,
7301.10.0000, 7301.20.1000, 7301.20.5000, 7308.40.0000,
7308.90.9530, and 9406.90.0030.
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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Conclusion
[FR Doc. 2019-14871 Filed 7-11-19; 8:45 am]
BILLING CODE 3510-DS-P