[Federal Register Volume 85, Number 67 (Tuesday, April 7, 2020)]
[Notices]
[Pages 19454-19455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07200]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-846]


Sugar From Mexico: Final Results of the Expedited First Sunset 
Review of the Agreement Suspending the Countervailing Duty 
Investigation

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

SUMMARY: As a result of this sunset review, the Department of Commerce 
(Commerce) finds that termination of the Agreement Suspending the 
Countervailing Duty Investigation on Sugar from Mexico (Agreement) and 
the suspended countervailing duty (CVD) investigation would be likely 
to lead to the continuation or recurrence of a countervailable subsidy 
at the levels indicated in the ``Final Results of Review'' section of 
this notice.

DATES: Applicable April 7, 2020.

FOR FURTHER INFORMATION: Sally C. Gannon, Bilateral Agreements, Office 
of Policy, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0162.

SUPPLEMENTARY INFORMATION:

Background

    On December 3, 2019, Commerce published the notice of initiation of 
the first sunset review of the agreement suspending the countervailing 
duty investigation on sugar from Mexico, pursuant to section 751(c)(2) 
of the Tariff Act of 1930, as amended (the Act).\1\ We received notice 
of intent to participate in the review from the following parties, both 
domestic interested parties: Imperial Sugar Company and the American 
Sugar Coalition (ASC).\2\ Commerce received complete substantive 
responses from the domestic interested parties within the 30-day 
deadline specified in 19 CFR 351.218(d)(3)(i).\3\ We rejected untimely 
submissions filed by Sweetener Users Association (SUA) on January 21, 
2020 and January 23, 2020.\4\ We received no substantive responses from 
any other interested parties, nor was a hearing requested. As a result, 
pursuant to section 751(c)(3)(B) of the Act and 19 CFR 
351.218(e)(1)(ii)(B)-(C), Commerce conducted an expedited (120-day) 
sunset review of the Agreement and suspended investigation.\5\
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    \1\ See Initiation of Five-Year (Sunset) Reviews, 84 FR 58687 
(November 1, 2019); see also Initiation of Five-Year (Sunset 
Review); Correction, 84 FR 66153 (December 3, 2019).
    \2\ See Letter, American Sugar Coalition, ``Sugar from Mexico: 
Notice of Intent to Participate'', dated December 18, 2019; Letter, 
Imperial Sugar Company, ``Sugar from Mexico, Case Nos. C-201-846 and 
A-201-845 (Five-Year Sunset Reviews): Notice of Intent to 
Participate'', dated December 18, 2019.
    \3\ See Letter, American Sugar Coalition, ``Sugar from Mexico: 
Substantive Response to Notice of Initiation of Five-Year (Sunset) 
Reviews of the Antidumping and Countervailing Duty Suspension 
Agreements,'' dated January 2, 2020; Letter, ``Sugar from Mexico: 
Substantive Response of the Imperial Sugar Company to Commerce's 
Notice of Initiation of Five-Year (``Sunset'') Reviews'', dated 
January 2, 2020.
    \4\ See Letter to Wilbur Ross, Secretary of Commerce, from 
Sweetener Users Association. re: ``Sugar from Mexico'' (January 21, 
2020); Letter to Wilbur Ross, Secretary of Commerce, from Sweetener 
Users Association, re: ``Sugar from Mexico'' (January 23, 2020); 
Letter, ``Rejection on January 21 and January 23 Filings'', dated 
February 5, 2020.
    \5\ See Letter, ``Sunset Reviews Initiated on December 2, 
2019'', dated January 22, 2020.
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Scope of the Agreement

    The merchandise subject to the Agreement is raw and refined sugar 
of all polarimeter readings derived from sugar cane or sugar beets. The 
chemical sucrose gives sugar its essential character. Sucrose is a 
nonreducing disaccharide composed of glucose and fructose linked by a 
glycosidic bond via their anomeric carbons. The molecular formula for 
sucrose is C12H22O11; the International Union of Pure and Applied 
Chemistry (IUPAC) International Chemical Identifier (InChl) for sucrose 
is 1S/C12H22O11/c13-l-4-6(16)8(18)9(19)11(21-4)23-12(3-15)10(20)7(17) 
5(2-14)22-12/h4-11,13-20H,1-3H2/t4-,5-,6-,7-,8+,9-,10+,11-,12+/m1/s1; 
the InChl Key for sucrose is CZMRCDWAGMRECN-UGDNZRGBSA-N; the U.S. 
National Institutes of Health PubChem Compound Identifier (CID) for 
sucrose is 5988; and the Chemical Abstracts Service (CAS) Number of 
sucrose is 57-50-1.
    Sugar includes products of all polarimeter readings described in 
various forms, such as raw sugar, estandar or standard sugar, high 
polarity or semi-refined sugar, special white sugar, refined sugar, 
brown sugar, edible molasses, de-sugaring molasses, organic raw sugar, 
and organic refined sugar. Other sugar products, such as powdered 
sugar, colored sugar, flavored sugar, and liquids and syrups that 
contain 95 percent or more sugar by dry weight are also within the 
scope of this Agreement. Merchandise covered by this Agreement is 
typically imported under the following headings of the HTSUS: 
1701.12.1000, 1701.12.5000, 1701.13.1000, 1701.13.5000, 1701.14.1000, 
1701.14.5000, 1701.91.1000, 1701.91.3000,

[[Page 19455]]

1701.99.1010, 1701.99.1025, 1701.99.1050, 1701.99.5010, 1701.99.5025, 
1701.99.5050, and 1702.90.4000.
    The scope of the Agreement excludes sugar imported under the 
Refined Sugar Re-Export Programs of the U.S. Department of Agriculture, 
sugar products produced in Mexico that contain 95 percent or more sugar 
by dry weight that originated outside of Mexico, inedible molasses 
(other than inedible desugaring molasses noted above), beverages, 
candy, certain specialty sugars, and processed food products that 
contain sugar (e.g., cereals). Specialty sugars excluded from the scope 
of this Agreement are limited to the following: Caramelized slab sugar 
candy, pearl sugar, rock candy, dragees for cooking and baking, 
fondant, golden syrup, and sugar decorations.\6\
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    \6\ See ``Sugar from Mexico: Suspension of Antidumping 
Investigation'', 79 FR 78039 (December 29, 2014).
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Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum, which is hereby adopted by this notice. The issues 
discussed in the Issues and Decision Memorandum include the likelihood 
of continuation or recurrence of a countervailable subsidy and the net 
countervailable subsidy likely to prevail if the order were revoked.\7\ 
The Issues and 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 
to all parties in the Central Records Unit, Room B8024 of the main 
Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.
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    \7\ See Memorandum, ``Issues and Decision Memorandum for the 
Expedited First Sunset Review of the Agreement Suspending the 
Countervailing Duty Investigation on Sugar from Mexico,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Final Results of Review

    Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce 
determines that termination of the Agreement and suspended 
countervailing duty investigation on sugar from Mexico is likely to 
lead to the continuation or recurrence of a countervailable subsidy at 
the rates listed below:
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    \8\ Id.

------------------------------------------------------------------------
                                                               Net
                                                         countervailable
                        Company                              subsidy
                                                            (percent)
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Fondo de Empresas Expropiadas del Sector Azucarero.....            43.93
Ingenio Tala S.A. de C.V. and certain affiliated sugar              5.78
 mills of Grupo Azucarero Mexico S.A. de C.V...........
All Others.............................................        \8\ 38.11
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Administrative Protective Order (APO)

    This notice serves as the only reminder to parties subject to an 
APO of their responsibility concerning the return or destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305. Timely 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 terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    We are issuing and publishing these final results and notice in 
accordance with sections 751(c), 752(c), and 777(i)(1) of the Act and 
19 CFR 351.218.

    Dated: March 31, 2020.
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. Scope of the Orders
IV. History of the Orders
V. Legal Framework
VI. Discussion of the Issues
    1. Likelihood of Continuation or Recurrence of a Countervailable 
Subsidy
    2. Net Countervailable Subsidy Rates Likely to Prevail
    3. Nature of the Subsidy
VII. Final Results of Review
VIII. Recommendation

[FR Doc. 2020-07200 Filed 4-6-20; 8:45 am]
BILLING CODE 3510-DS-P