[Federal Register Volume 84, Number 222 (Monday, November 18, 2019)]
[Notices]
[Pages 63610-63612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24852]



[[Page 63610]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-847]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico: Preliminary Results of Antidumping Duty Administrative Review 
and Preliminary Determination of No Shipments; 2017-2018

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that the producers/exporters subject to this administrative review made 
sales of subject merchandise at less than normal value (NV). Interested 
parties are invited to comment on these preliminary results of review.

DATES: Applicable November 18, 2019.

FOR FURTHER INFORMATION CONTACT: Brittany Bauer 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) 482-3860 or (202) 482-3342, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On November 15, 2018, based on timely requests for review, in 
accordance with 19 CFR 351.221(c)(1)(i), we initiated an administrative 
review on heavy walled rectangular welded carbon steel pipes and tubes 
from Mexico.\1\ 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), for individual examination. The producers and/or 
exporters not selected for individual examination are listed in the 
``Preliminary Results of the Review'' section of this notice.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 57411 (November 15, 2018).
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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 28, 2019.\2\ On June 10, 2019, 
Commerce extended the preliminary results of this review by 117 days, 
until November 6, 2019.\3\ For a complete description of the events 
that followed the initiation of this review, see the Preliminary 
Decision Memorandum.
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    \2\ See Memorandum to the Record from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance, ``Deadlines 
Affected by the Partial Shutdown of the Federal Government,'' dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
    \3\ See Memorandum, ``Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes from Mexico: Extension of Deadline for 
Preliminary Results of Antidumping Duty Administrative Review,'' 
dated June 10, 2019.
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Scope of the Order

    The products covered by the order are certain heavy walled 
rectangular welded steel pipes and tubes from Mexico. Products subject 
to the order are currently classified under the Harmonized Tariff 
Schedule of the United States (HTSUS) item number 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.\4\
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    \4\ For a full description of the scope of the order, see 
Memorandum, ``Decision Memorandum for the Preliminary Results of the 
2017-2018 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 (Preliminary Decision Memorandum).
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Methodology

    Commerce is conducting this review in accordance with sections 
751(a)(1)(B) and (2) of the Tariff Act of 1930, as amended (the Act). 
Export price and constructed export price are calculated in accordance 
with section 772 of the Act. NV is calculated in accordance with 
section 773 of the Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. 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, and 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 https://enforcement.trade.gov/frn/. The signed 
and electronic versions of the Preliminary Decision Memorandum are 
identical in content. A list of the topics discussed in the Preliminary 
Decision Memorandum is attached as an appendix to this notice.

Preliminary Determination of No Shipments

    Two of the companies under review, Ternium M[eacute]xico, S.A. de 
C.V. (Ternium) and Tuberia Nacional S.A. de C.V. (TUNA), timely filed 
statements reporting that they made no shipments of subject merchandise 
to the United States during the period of review (POR). Based on the 
certifications submitted by Ternium and TUNA and our analysis of U.S. 
Customs and Border Protection (CBP) information, we preliminarily 
determine that Ternium and TUNA had no shipments during the POR.\5\ 
Commerce finds that it is not appropriate to preliminarily rescind the 
review with respect to these companies, but rather to complete the 
review with respect to them and issue appropriate instructions to CBP 
based on the final results of this review.
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    \5\ See Ternium's Letter, ``Attn: Enforcement and Compliance,'' 
dated December 10, 2018; and TUNA's Letter, ``Heavy Walled 
Rectangular Weld Carbon Steel Pipes and Tubes from Mexico: Notice of 
No Sales,'' dated December 14, 2018; see also Memorandum, ``Heavy 
Walled Rectangular Welded Carbon Steel Pipes from Mexico (A-201-
847),'' dated October 1, 2019.
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Preliminary Results of the Review

    As a result of this review, we preliminarily determine that the 
following weighted-average dumping margins exist for the respondents 
for the period September 1, 2017 through August 31, 2018:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Maquilacero, S.A. de C.V....................................        4.08
Productos Laminados de Monterrey, S.A. de C.V...............        0.80
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    Review-Specific Average Rate Applicable to the Following Companies: 
\6\
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    \6\ 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.....................................        1.85
Forza Steel, S.A. de C.V....................................        1.85
Industrias Monterrey, S.A. de C.V...........................        1.85
Perfiles y Herrajes LM, S.A. de C.V.........................        1.85

[[Page 63611]]

 
PYTCO, S.A. de C.V..........................................        1.85
Regiomontana de Perfiles y Tubos, S.A. de C.V...............        1.85
Tuberias Procarsa S.A. de C.V...............................        1.85
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Disclosure and Public Comment

    Commerce intends to disclose the calculations performed in 
connection with these preliminary results to interested parties within 
five days after the date of publication of this notice.\7\ Interested 
parties may submit case briefs to Commerce no later than 30 days after 
the date of publication of this notice.\8\ Rebuttal briefs, limited to 
issues raised in the case briefs, may be filed no later than five days 
after the time limit for filing case briefs.\9\ Parties who submit case 
briefs or rebuttal briefs in this proceeding 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.\10\ Case and rebuttal 
briefs should be filed using ACCESS.\11\
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    \7\ See 19 CFR 351.224(b).
    \8\ See 19 CFR 351.309(c).
    \9\ See 19 CFR 351.309(d).
    \10\ See 19 CFR 351.309(c)(2) and (d)(2).
    \11\ See 19 CFR 351.303.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically via ACCESS within 30 days after the date of 
publication of this notice.\12\ Hearing requests should contain: (1) 
The party's name, address, and telephone number; (2) the number of 
participants; and (3) a list of issues to be discussed. Issues raised 
in the hearing will be limited to issues raised in the briefs. If a 
request for a hearing is made, parties will be notified of the time and 
date for the hearing to be held at the U.S. Department of Commerce, 
1401 Constitution Avenue NW, Washington, DC 20230.\13\
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    \12\ See 19 CFR 351.310(c).
    \13\ See 19 CFR 351.310(d).
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    An electronically-filed document must be received successfully in 
its entirety by ACCESS by 5:00 p.m. Eastern Time on the established 
deadline.
    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis of issues raised in any 
written briefs, not later than 120 days after the date of publication 
of this notice, unless otherwise extended.\14\
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    \14\ See section 751(a)(3)(A) of the Act.
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Assessment Rates

    Upon completion of the administrative review, Commerce shall 
determine, and CBP shall assess, antidumping duties on all appropriate 
entries.\15\
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    \15\ See 19 CFR 351.212(b).
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    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 
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 \16\ of the cash 
deposit rates calculated for Maquilacero and Prolamsa, excluding any 
which are zero or de minimis or determined entirely based on adverse 
facts available. 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.
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    \16\ This rate was calculated as discussed in footnote 6, above.
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    Commerce's ``automatic assessment'' will apply to entries of 
subject merchandise during the POR produced by companies included in 
these final results of review for which the reviewed companies did not 
know that the merchandise they sold to the intermediary (e.g., a 
reseller, trading company, or exporter) 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.\17\
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    \17\ For a full discussion of this practice, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 
68 FR 23954 (May 6, 2003).
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    Further, if we continue to find in the final results that Ternium 
and TUNA had no shipments of subject merchandise during the POR, we 
will instruct CBP to liquidate any suspended entries that entered under 
their antidumping duty case numbers (i.e., at that exporter's rate) at 
the all-others rate if there is no rate for the intermediate 
company(ies) involved in the transaction.
    We intend to issue liquidation instructions to CBP 15 days after 
publication of the final results of this review.

Cash Deposit Requirements

    The following 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 the exporters 
listed above will be equal to the weighted- average dumping margin 
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 companies not participating in this review, the cash deposit 
rate will continue to be the company-specific cash deposit rate 
published for the most recently completed segment; (3) if the exporter 
is not a firm covered in this review, or the original less-than-fair-
value (LTFV) investigation, but the producer is, the cash deposit rate 
will be the cash deposit rate established for the most recently 
completed segment for the producer of the merchandise; and (4) the cash 
deposit rate for all other producers or exporters will continue to be 
4.91 percent, the all-others rate established in the LTFV 
investigation.\18\ These deposit requirements, when imposed, shall 
remain in effect until further notice.
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    \18\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from Mexico: Final Determination of Sales at Less Than Fair 
Value, 81 FR 47352, 47353 (July 21, 2016).
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Notification to Importers

    This notice serves as a preliminary 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 Commerce's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

[[Page 63612]]

Notification to Interested Parties

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

    Dated: November 6, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Companies Not Selected for Individual Examination
V. Discussion of the Methodology
VI. Currency Conversion
VII. Recommendation

[FR Doc. 2019-24852 Filed 11-15-19; 8:45 am]
 BILLING CODE 3510-DS-P