[Federal Register Volume 85, Number 110 (Monday, June 8, 2020)]
[Notices]
[Pages 35065-35067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12261]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-844]


Steel Concrete Reinforcing Bar From Mexico: Final Affirmative 
Determination of Circumvention of the Antidumping Duty Order

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

SUMMARY: We determine that steel concrete reinforcing bar (rebar) from 
Mexico that is bent on one or both ends and otherwise meeting the 
description of in-scope merchandise--if produced and/or exported by 
Deacero S.A.P.I. de C.V. (Deacero) to the United States--is 
circumventing the antidumping duty order on rebar from Mexico.

DATES: Applicable June 8, 2020.

FOR FURTHER INFORMATION CONTACT: Jonathan Hall-Eastman, Office III, 
Antidumping and Countervailing Duty Operations, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1468.

SUPPLEMENTARY INFORMATION: 

Background

    On September 15, 2014, the Department of Commerce (Commerce) 
published the antidumping duty (AD) Order on rebar from Mexico.\1\ On 
October 18, 2019, in response to a request from the Rebar Trade Action 
Coalition (the petitioner),\2\ Commerce initiated a circumvention 
inquiry into whether imports of otherwise straight rebar bent on one or 
both ends (also referred to as hooked rebar) that is produced and/or 
exported to the United States by Deacero and otherwise meeting the 
description of in-scope merchandise, constitutes merchandise ``altered 
in form or appearance in minor respects'' from in-scope merchandise 
that should be considered subject to the AD Order on rebar from 
Mexico.\3\ On March 18, 2020, Commerce published the Preliminary 
Determination of the anti-circumvention inquiry into Deacero's hooked 
rebar.\4\ For a full description of the issues raised by parties for 
this final determination, see the Issues and Decision Memorandum.\5\
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    \1\ See Steel Concrete Reinforcing Bar from Mexico: Final 
Determination of Sales at Less Than Fair Value and Final Affirmative 
Determination of Critical Circumstances, 79 FR 54967 (September 15, 
2014) (Order).
    \2\ See Petitioner's Letter, ``Steel Concrete Reinforcing Bar 
from Mexico: Request for Scope Ruling or, Alternatively, an Anti-
Circumvention Ruling,'' dated September 3, 2019.
    \3\ See Steel Concrete Reinforcing Bar from Mexico: Initiation 
of Anti-Circumvention Inquiry of Antidumping Duty Order, 84 FR 58132 
(October 30, 2019), and accompanying Initiation Memorandum.
    \4\ See Steel Concrete Reinforcing Bar from Mexico: Affirmative 
Preliminary Determination of Circumvention of the Antidumping Duty 
Order, 85 FR 15430 (March 18, 2020) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum.
    \5\ See Memorandum, ``Final Affirmative Circumvention Decision 
Memorandum Concerning Certain Hooked or Bent Steel Concrete 
Reinforcing Bar Produced and/or Exported by Deacero S.A.P.I. de C.V 
(Deacero),'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Order

    The merchandise subject to this Order is steel concrete reinforcing 
bar imported in either straight length or coil form (rebar) regardless 
of metallurgy, length, diameter, or grade. The subject merchandise is 
classifiable in the Harmonized Tariff Schedule of the United States 
(HTSUS) primarily under item numbers 7213.10.0000, 7214.20.0000, and 
7228.30.8010.
    The subject merchandise may also enter under other HTSUS numbers 
including 7215.90.1000, 7215.90.5000, 7221.00.0017, 7221.00.0018, 
7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 7222.11.0059, 
7222.30.0001, 7227.20.0080, 7227.90.6085, 7228.20.1000, and 
7228.60.6000. Specifically excluded are plain rounds (i.e., non-
deformed or smooth rebar). Also excluded from the scope is deformed 
steel wire meeting ASTM A1064/A1064M with no bar markings (e.g., mill 
mark, size or grade) and without being subject to an elongation test. 
HTSUS numbers are provided for convenience and customs purposes, 
however, the written description of the scope remains dispositive.

Scope of the Circumvention Inquiry

    The merchandise subject to this circumvention inquiry consists of 
otherwise straight steel concrete reinforcing bar bent on one or both 
ends and otherwise meeting the description of in-scope merchandise 
under the Order produced and/or exported by Deacero from Mexico to the 
United States.

Statutory and Regulatory Framework

    Commerce reached this anti-circumvention determination under 
section 781(c) of the Tariff Act of 1930, as amended (the Act), which 
deals with minor alterations of merchandise. For a full description of 
the methodology

[[Page 35066]]

underlying our conclusions, see the Issues and Decision Memorandum.\6\
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    \6\ Id.
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Final Affirmative Determination

    We determine, pursuant to section 781(c) of the Act that hooked 
rebar produced and/or exported to the United States by Deacero 
constitutes merchandise ``altered in form or appearance in minor 
respects'' that should be considered within the class or kind of 
merchandise subject to the Order.

Suspension of Liquidation

    As stated above, Commerce has made an affirmative finding of 
circumvention of the Order with respect to hooked rebar produced and/or 
exported by Deacero. In accordance with 19 CFR 351.225(l)(2), we will 
direct U.S. Customs and Border Protection (CBP) continue to suspend 
liquidation of entries of otherwise straight steel concrete reinforcing 
bar bent on one or both ends and otherwise meeting the description of 
in-scope merchandise under the Order, if such entries are (1) produced 
and/or exported to the United States by Deacero, and (2) entered, or 
withdrawn from warehouse, for consumption on or after October 18, 2019, 
the date of the initiation of this inquiry. Pursuant to 19 CFR 
351.225(l)(2), we will also instruct CBP to continue to require a cash 
deposit of estimated duties equal to the AD rate in effect for Deacero 
for each such unliquidated entry. The suspension of liquidation 
instructions remains in effect until further notice.
    Hooked rebar produced and/or exported by Deacero that has been sold 
in connection with a specific, identified construction project and 
produced according to an engineer's structural design, consistent with 
industry standards, is not subject to this inquiry. However, imports of 
such merchandise are subject to certification requirements, and cash 
deposits may be required if the certification requirements are not 
satisfied. Accordingly, if an importer imports hooked rebar from Mexico 
produced and/or exported by Deacero and claims that the hooked rebar 
has been sold in connection with a specific, identified construction 
project and produced according to an engineer's structural design, 
consistent with industry standards, the importer is required to meet 
the certification and documentation requirements described in 
Appendices II and III. In the situation where the importer has not 
maintained the requisite certification, Commerce will instruct CBP to 
suspend the entry and collect cash deposits at the rate in effect for 
Deacero at the time of entry.

Notification Regarding Administrative Protective Orders

    This notice will serve as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction or 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

    This final affirmative circumvention determination is in accordance 
with section 781(c) of the Act and 19 CFR 351.225(f).

    Dated: May 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Anti-Circumvention Inquiry
V. Discussion of the Issues
    Comment 1: Whether Deacero's Hooked Rebar was Seen as Straight 
Rebar
    Comment 2: First Prong of the Minor Alteration Analysis--Overall 
Physical Characteristics
    Comment 3: Second Prong of the Minor Alteration Analysis--
Expectations of Ultimate Users
    Comment 4: Third Prong of the Minor Alteration Analysis--Use of 
Merchandise
    Comment 5: Fourth Prong of the Minor Alteration Analysis--
Channels of Marketing
    Comment 6: Fifth Prong of the Minor Alteration Analysis--Cost of 
Modification
    Comment 7: Whether Commerce Should Modify the Certification 
Requirement to Allow Deacero to Certify Hooked Rebar Not Directly 
Connected to Construction Projects and/or to Allow Deacero to 
Complete the Certification Within a ``Reasonable'' Number of Days 
After Entry
VI. Recommendation

Appendix II

Certification Requirements

    If an importer imports otherwise straight rebar bent on one or 
both ends (hooked rebar) from Mexico produced and/or exported by 
Deacero and claims that the hooked rebar has been sold in connection 
with a specific, identified construction project and produced 
according to an engineer's structural design, consistent with 
industry standards, the importer is required to complete and 
maintain the importer certification attached hereto as Appendix III 
and all supporting documentation. Where the importer uses a broker 
to facilitate the entry process, the importer should obtain the 
entry summary number from the broker. Agents of the importer, such 
as brokers, however, are not permitted to make this certification on 
behalf of the importer.
    For entries on or after the date of publication of this notice 
in the Federal Register, for which certifications are required, 
importers should use the certification contained in Appendix III and 
should complete the required certification at or prior to the date 
of Entry Summary.
    The importer is also required to maintain sufficient 
documentation supporting its certifications. The importer will not 
be required to submit the certifications or supporting documentation 
to U.S. Customs and Border Protection (CBP) as part of the entry 
process at this time. However, the importer will be required to 
present the certifications and supporting documentation to Commerce 
and/or CBP, as applicable, upon request by the respective agency. 
Additionally, the claims made in the certifications and any 
supporting documentation are subject to verification by Commerce 
and/or CBP. The importer is required to maintain the certification 
and supporting documentation for the later of: (1) A period of five 
years from the date of entry, or (2) a period of three years after 
the conclusion of any litigation in United States courts regarding 
such entries.
    In the situation where no certification is provided for an 
entry, Commerce intends to instruct CBP to suspend liquidation of 
the entry and collect cash deposits at the rate applicable to 
Deacero for subject merchandise.

Appendix III

Importer Certification

    I hereby certify that:
    (A) My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {IMPORTING COMPANY{time} ;
    (B) I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of the 
otherwise straight rebar bent on one or both ends (hooked rebar) 
from Mexico produced and/or exported by Deacero S.A.P.I. (Deacero) 
that entered under entry summary number(s), identified below, and 
which are covered by this certification. ``Direct personal 
knowledge'' for purposes of this certification refers to facts in 
records maintained by the importing company in the normal course of 
its business.
    (C) The hooked rebar covered by this certification was produced 
and/or exported by Deacero.
    (D) If the importer is acting on behalf of the first U.S. 
customer, complete this paragraph, if not put ``NA'' at the end of 
this paragraph:
    The hooked rebar from Mexico produced and/or exported by Deacero 
covered by this certification was imported by {NAME OF

[[Page 35067]]

IMPORTING COMPANY{time}  on behalf of {NAME OF U.S. CUSTOMER{time} , 
located at {ADDRESS OF U.S. CUSTOMER{time} .
    (E) The hooked rebar from Mexico produced and/or exported by 
Deacero covered by this certification was shipped to {NAME OF PARTY 
TO WHOM MERCHANDISE WAS FIRST SHIPPED IN THE UNITED STATES{time} , 
located at {ADDRESS OF SHIPMENT{time} .
    (F) I have personal knowledge of the facts regarding the 
production of hooked rebar from Mexico produced and/or exported by 
Deacero identified below. ``Personal knowledge'' includes facts 
obtained from another party (e.g., correspondence received by the 
importer from the producer regarding the country of manufacture of 
the imported products).
    (G) The hooked rebar from Mexico was produced and/or exported by 
Deacero.
    (H) The imports of hooked rebar have been sold in connection 
with a specific, identified construction project and produced 
according to an engineer's structural design, consistent with 
industry standards.
    (I) This certification applies to the following entries (repeat 
this block as many times as necessary):
    Producer:
    Exporter:
    Entry Summary #:
    Entry Summary Line Item #:
    Invoice #:
    Invoice Line Item #:
    (J) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, mill certificates, production 
records, invoices, etc.) for the later of (1) a period of five years 
from the date of entry or (2) a period of three years after the 
conclusion of any litigation in the United States courts regarding 
such entries.
    (K) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to provide this certification and supporting records, upon 
request, to U.S. Customs and Border Protection (CBP) and/or the 
Department of Commerce (Commerce).
    (L) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (M) I understand that failure to maintain the required 
certifications, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a determination that all entries 
to which this certification applies are within the scope of the 
antidumping duty order on steel concrete reinforcing bar from 
Mexico. I understand that such finding could result in:
    (i) suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met;
    (ii) the requirement that the importer post applicable 
antidumping duty cash deposits (as appropriate) equal to the rates 
determined by Commerce; and
    (iii) the revocation of {NAME OF IMPORTING COMPANY{time} 's 
privilege to certify future imports of steel concrete reinforcing 
bar from Mexico.
    (N) I understand that agents of the importer, such as brokers, 
are not permitted to make this certification.
    (O) This certification was completed at or prior to the time of 
entry summary.
    (P) I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make material false statements to the U.S. government.

    Signature
    NAME OF COMPANY OFFICIAL
    TITLE
    DATE

[FR Doc. 2020-12261 Filed 6-5-20; 8:45 am]
BILLING CODE 3510-DS-P