[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Notices]
[Pages 21829-21832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08300]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-836]


Light-Walled Rectangular Pipe and Tube From Mexico: Final Results 
of Antidumping Duty Administrative Review and Final Determination of No 
Shipments; 2017-2018

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) finds that sales of 
light-walled rectangular pipe and tube (LWRPT) from Mexico were made at 
less than normal value (NV) during the period August 1, 2017 through 
July 31, 2018.

DATES: Applicable April 20, 2020.

FOR FURTHER INFORMATION CONTACT: Samuel Brummitt (Maquilacero) or John

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Conniff (Regiopytsa), AD/CVD Operations, Office III, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-7851 or (202) 482-1009, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This review covers two producers or exporters of the subject 
merchandise, Maquilacero S.A. de C.V. (Maquilacero) and Regiomontana de 
Perfiles y Tubos S.A. de C.V. (Regiopytsa), and 16 firms that were not 
selected for individual examination. Commerce published the Preliminary 
Results on October 17, 2019.\1\ For events subsequent to the 
Preliminary Results, see the Issues and Decision Memorandum.\2\ 
Commerce conducted this administrative review in accordance with 
section 751 of the Tariff Act of 1930, as amended (the Act).
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    \1\ See Light-Walled Rectangular Pipe and Tube from Mexico: 
Preliminary Results of Antidumping Duty Administrative Review and 
Preliminary Determination of No Shipments; 2017-2018, 84 FR 55555 
(October 17, 2019) (Preliminary Results) and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2017-2018 Administrative Review of the 
Antidumping Duty Order on Light-Walled Rectangular Pipe and Tube 
from Mexico,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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    Commerce extended the deadline for the final results by 60 days. 
Accordingly, the deadline for the final results is now April 14, 
2020.\3\
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    \3\ See Memorandum, ``Light-Walled Rectangular Pipe and Tube 
from Mexico: Extension of Time Limit for Final Results of 
Antidumping Duty Administrative Review; 2017-2018,'' dated January 
21, 2020.
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Scope of the Order

    Imports covered by the Order are shipments of certain welded 
carbon-quality light-walled steel pipe and tube, 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 of 
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 the Order is currently classified 
under the Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings 7306.61.50.00 and 7306.61.70.60. This tariff classification 
is provided for convenience and Customs purposes; however, the written 
description of the scope of the Order is dispositive.
    For a full description of the scope of the order, see Issues and 
Decision Memorandum.

Final Determination of No Shipments

    In the Preliminary Results, we preliminarily found that 
Fabricaciones y Servicios de Mexico (FASEMEX) had no shipments of 
subject merchandise during the POR. Following the publication of the 
Preliminary Results, we received no comments from interested parties 
regarding FASEMEX, nor has any party submitted record evidence which 
would call our preliminary determination of no shipments into question. 
Therefore, for the final results, we continue to find that FASEMEX had 
no shipments of subject merchandise during the POR. Accordingly, 
consistent with Commerce's practice, we intend to instruct U.S. Customs 
and Border Protection (CBP) to liquidate any existing entries of 
merchandise produced by FASEMEX, but exported by other parties, at the 
rate for the intermediate reseller, if available, or at the all-others 
rate.\4\
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    \4\ See, e.g., Magnesium Metal from the Russian Federation: 
Preliminary Results of Antidumping Duty Administrative Review, 75 FR 
26922, 26923 (May 13, 2010), unchanged in Magnesium Metal from the 
Russian Federation: Final Results of Antidumping Duty Administrative 
Review, 75 FR 56989 (September 17, 2010).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Issues and Decision 
Memorandum. A list of the issues that parties raised and to which we 
responded is attached to this notice as an Appendix. 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 https://access.trade.gov. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the internet at http://enforcement.trade.gov/frn/index.html. The 
signed Issues and Decision Memorandum and the electronic versions of 
the Issues and Decision Memorandum are identical in content.

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 each of the preliminary weighted-average dumping margins for 
Maquilacero and Regiopytsa.\5\
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    \5\ See Issues and Decision Memorandum at Comments 1, 6, 7, 8, 
9, and 10.
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Final Results of the Review

    As a result of this review, Commerce determines the following 
weighted-average dumping margins exist for the mandatory respondents 
Maquilacero and Regiopytsa for the period August 1, 2017 through July 
31, 2018. In accordance with section 735(c)(5)(A) of the Act, Commerce 
calculated a weighted-average dumping margin for the firms not selected 
for individual examination using the weighted-average dumping margins 
calculated for the mandatory respondents, which are not zero, de 
minimis, or determined entirely on the basis of facts available.\6\
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    \6\ In the case of two mandatory respondents, our practice is to 
calculate: (A) A weighted average of the dumping margins calculated 
for the mandatory respondents; (B) a simple average of the dumping 
margins calculated for the mandatory respondents; and (C) a weighted 
average of the dumping margins calculated for the mandatory 
respondents using each company's publicly ranged values for the 
merchandise under consideration. We compare (B) and (C) to (A) and 
select the rate closest to (A) as the most appropriate rate for all 
other companies. We have applied that practice here. See Memorandum, 
``Antidumping Duty Administrative Review of Light-Walled Rectangular 
Pipe and Tube from Mexico: Calculation of Margin for Respondents Not 
Selected for Individual Examination,'' dated April 14, 2020.

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                  Producer and/or exporter                      dumping
                                                                margin
                                                               (percent)
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Aceros Cuatro Caminos S.A. de C.V...........................        3.29
Arco Metal S.A. de C.V......................................        3.29
Galvak, S.A. de C.V.........................................        3.29
Grupo Estructuras y Perfiles................................        3.29
Hylsa S.A. de C.V...........................................        3.29
Industrias Monterrey S.A. de C.V............................        3.29
International de Aceros, S.A. de C.V........................        3.29
Maquilacero S.A. de C.V.....................................        3.12
Nacional de Acero S.A. de C.V...............................        3.29
PEASA-Productos Especializados de Acero.....................        3.29
Perfiles LM, S.A. de C.V \7\................................        3.29
Productos Laminados de Monterrey S.A. de C.V................        3.29
Regiomontana de Perfiles y Tubos S.A. de C.V................        3.40
Talleres Acero Rey S.A. de C.V..............................        3.29
Ternium Mexico S.A. de C.V..................................        3.29

[[Page 21831]]

 
Tuberia Laguna, S.A. de C.V.................................        3.29
Tuberias Aspe...............................................        3.29
Tuberias y Derivados S.A de C.V.............................        3.29
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Disclosure of Calculations
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    \7\ See Light-Walled Rectangular Pipe and Tube from Mexico: 
Initiation and Expedited Preliminary Results of Changed 
Circumstances Review, 82 FR 54322 (November 17, 2017), unchanged in 
Light-Walled Rectangular Pipe and Tube from Mexico: Final Results of 
Changed Circumstances Review, 83 FR 13475 (March 29, 2018) 
(determining that Perfiles LM, S.A. de C.V. is the successor-in-
interest to Perfiles y Herrajes).
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    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

    Commerce shall determine and CBP shall assess antidumping duties on 
all appropriate entries.\8\ For each individually examined respondent 
whose weighted-average dumping margin is not zero or de minimis (i.e., 
less than 0.50 percent), we calculated importer-specific ad valorem 
duty assessment rates based on the ratio of the total amount of dumping 
calculated for the importer's examined sales to the total entered value 
of those same sales in accordance with 19 CFR 351.212(b)(1). Upon 
issuance of the final results of this administrative review, if an 
importer-specific assessment rate calculated in the final results is 
not zero or de minimis, Commerce will issue instructions directly to 
CBP to assess antidumping duties on appropriate entries. Where either 
the respondent's weighted-average dumping margin is zero or de minimis, 
or an importer-specific assessment rate is zero or de minimis, we will 
instruct CBP to liquidate the appropriate entries without regard to 
antidumping duties.
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    \8\ In these final results, Commerce applied the assessment rate 
calculation method adopted in Antidumping Proceedings: Calculation 
of the Weighted-Average Dumping Margin and Assessment Rate in 
Certain Antidumping Proceedings: Final Modification, 77 FR 8101 
(February 14, 2012).
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    For each company which was not individually examined whose 
weighted-average dumping margin is not zero or de minimis, we will 
instruct CBP to assess antidumping duties at an ad valorem rate equal 
to each company's weighted-average dumping margin noted above. Where a 
non-examined company's weighted-average dumping margin is zero or de 
minimis, we will instruct CBP to liquidate the appropriate entries 
without regard to antidumping duties.
    In accordance with Commerce's ``automatic assessment'' practice, 
for entries of subject merchandise during the POR produced by each 
individually examined respondent for which it did not know that its 
merchandise was destined for the United States, 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.
    We intend to issue assessment instructions directly to CBP 41 days 
after publication of the final results of this review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the notice of final results of administrative review for 
all shipments of subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication of the final 
results of this administrative review, as provided by section 751(a)(2) 
of the Act: (1) The cash deposit rate for companies noted above will be 
equal to the weighted-average dumping margin established in the final 
results of this administrative review; (2) for merchandise exported by 
producers or exporters not covered in this administrative review but 
covered in a prior segment of the proceeding, the cash deposit rate 
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, a prior review, or the original 
investigation, but the producer is, then the cash deposit rate will be 
the rate established for the most recently completed segment of this 
proceeding for the manufacturer of the subject merchandise; and (4) the 
cash deposit rate for all other producers or exporters will continue to 
be 3.76 percent, the all-others rate established in the less-than-fair-
value investigation.\9\
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    \9\ See Light-Walled Rectangular Pipe and Tube from Mexico, the 
People's Republic of China, and the Republic of Korea: Antidumping 
Duty Orders; Light-Walled Rectangular Pipe and Tube from the 
Republic of Korea: Notice of Amended Final Determination of Sales at 
Less Than Fair Value, 73 FR 45403 (August 5, 2008).
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    These cash deposit requirements, when imposed, shall remain in 
effect until further notice.

Notification to Importers Regarding the Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during the POR. Failure to comply with this 
requirement could result in Commerce's presumption that reimbursement 
of antidumping duties occurred and the subsequent assessment of doubled 
antidumping duties.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction 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 the 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)(1) of the Act and 19 CFR 351.213(h) and 
351.221(b)(5).

    Dated: April 14, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Final Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Analysis of Comments
    Comment 1: Whether Commerce Should Apply Its Normal Cost 
Methodology to Maquilacero and Regiopytsa
    Comment 2: Whether Section 232 Duties Should Be Deducted From 
Export Price
    Comment 3: Whether Downstream Sales of Auto Parts Made From 
LWRPT Are Subject Merchandise
    Comment 4: Whether Downstream Sales of Auto Parts Were Made at a 
Different Level of Trade
    Comment 5: Whether Commerce Should Use Maquilacero's Home Market 
Sales to Its Affiliate in the Final Margin Calculation
    Comment 6: Whether Commerce Should Correct a Clerical Error in 
Its Margin Calculation for Maquilacero
    Comment 7: Whether Commerce Should Apply a ``Transactions 
Disregarded'' Adjustment to the Cost of Steel Coil That Maquilacero 
purchased From an Affiliate
    Comment 8: Whether Commerce Should Revise Maquilacero's General 
and Administrative (G&A) Expense Ratio

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    Comment 9: Whether Commerce Should Adjust the Costs Maquilacero 
Assigned to Non-Prime Products
    Comment 10: Whether Commerce Should Correct Two Clerical Errors 
in Regiopytsa's Margin Calculation
    Comment 11: Whether Commerce Should Assign Perfiles the 
Weighted-Average Dumping Margin It Received as a Mandatory 
Respondent in the 2013-2014 Administrative Review
V. Recommendation

[FR Doc. 2020-08300 Filed 4-17-20; 8:45 am]
BILLING CODE 3510-DS-P