[Federal Register Volume 86, Number 31 (Thursday, February 18, 2021)]
[Notices]
[Pages 10034-10037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03263]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-854]


Standard Steel Welded Wire Mesh From Mexico: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of standard steel welded wire mesh (wire mesh) from Mexico.

DATES: Applicable February 18, 2021.

FOR FURTHER INFORMATION CONTACT: Ian Hamilton, 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) 482-4798.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioners in this investigation are Insteel Industries Inc., 
Mid-South Wire Company, National Wire LLC, Oklahoma Steel & Wire Co., 
and Wire Mesh Corp. (collectively, the petitioners). In addition to the 
Government of Mexico, the mandatory respondents in this investigation 
are Aceromex S.A. De C.V. (Aceromex) and Deacero S.A.P.I. de C.V. 
(Deacero).
    A summary of the events that occurred since Commerce published the 
Preliminary Determination,\1\ as well as a full discussion of the 
issues raised by parties for this final determination, are discussed in 
the Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\ The Issues and Decision Memorandum is a public document and 
on file electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized

[[Page 10035]]

Electronic Service System (ACCESS). ACCESS is available to registered 
users at http://access.trade.gov. 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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    \1\ See Standard Steel Welded Wire Mesh from Mexico: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary 
Affirmative Critical Circumstances Determination, 85 FR 78124 
(December 3, 2020) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Final 
Determination of the Countervailing Duty Investigation of Standard 
Steel Welded Wire Mesh from Mexico,'' dated concurrently with this 
determination (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019 through December 31, 
2019.

Scope of the Investigation

    The scope of the investigation is wire mesh from Mexico. For a 
complete description of the scope of this investigation, see Appendix 
I.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is included as Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e., a financial contribution by an ``authority'' that 
confers a benefit on the recipient and that the subsidy is specific.\3\ 
For a full description of the methodology underlying our final 
determination, see the Issues and Decision Memorandum.
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    \3\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because one respondent 
did not act to the best of their ability in responding to our requests 
for information, we drew adverse inferences, where appropriate, in 
selecting from among the facts otherwise available, pursuant to section 
776(b) of the Act. The respondent, Deacero, did not respond to 
Commerce's initial countervailing duty (CVD) questionnaire, and we have 
continued to use an adverse inference in selection of facts available 
for determining the subsidy rates for these companies, pursuant to 
section 776(d) of the Act. For further information, see the section 
``Use of Facts Otherwise Available and Adverse Inferences'' in the 
accompanying Issues and Decision Memorandum.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\4\
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    \4\ See Commerce Letter, In Lieu of Verification Questionnaire 
for Aceromex, dated December 28, 2020.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the information received in 
lieu of on-site verification, we made certain changes to the subsidy 
rate calculations for Aceromex. As a result of these changes, Commerce 
also revised the all-others rate. For a discussion of these changes, 
see the Issues and Decision Memorandum.\5\
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    \5\ See also Memorandum, ``Countervailing Duty Investigation of 
Standard Steel Welded Wire Mesh from Mexico: Final Determination 
Calculation Memorandum for Aceromex, S.A. de C.V.,'' dated 
concurrently with this final determination.
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All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated a countervailable subsidy rate for Aceromex. Section 
705(c)(5)(A)(i) of the Act states that, for all exporters and producers 
not individually investigated, we will determine an all-others rate 
equal to the weighted-average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act.
    In this investigation, Commerce assigned a rate based entirely on 
facts available, i.e., under section 776 of the Act, to Deacero. 
Therefore, the only rate that is not zero, de minimis, or based 
entirely on facts otherwise available is the rate calculated for 
Aceromex. Consequently, the rate calculated for Aceromex is also 
assigned as the rate for all other producers and exporters.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Aceromex S.A. De C.V....................................            1.03
Deacero S.A.P.I. de C.V.................................          102.10
All Others..............................................            1.03
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose the calculations performed in 
connection with this final determination within five days of the date 
of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise as described in the scope of the investigation 
section, that was entered or withdrawn from warehouse for consumption 
on or after the date of publication of the Preliminary Determination in 
the Federal Register.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and require 
a cash deposit of estimated countervailing duties for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.
    Because the final determination in this proceeding is affirmative, 
in accordance with section 705(b) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of wire mesh from Mexico no later than 45

[[Page 10036]]

days after our final determination. If the ITC determines that material 
injury or threat of material injury does not exist, this proceeding 
will be terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise that 
are entered, or withdrawn from warehouse, for consumption on or after 
the effective date of the suspension of liquidation, as discussed above 
in the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the 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 the return/
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.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: February 10, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers uncoated standard welded 
steel reinforcement wire mesh (wire mesh) produced from smooth or 
deformed wire. Subject wire mesh is produced in square and 
rectangular grids of uniformly spaced steel wires that are welded at 
all intersections. Sizes are specified by combining the spacing of 
the wires in inches or millimeters and the wire cross-sectional area 
in hundredths of square inch or millimeters squared. Subject wire 
mesh may be packaged and sold in rolls or in sheets.
    Subject wire mesh is currently produced to ASTM specification 
A1064/A1064M, which covers carbon-steel wire and welded wire 
reinforcement, smooth and deformed, for concrete in the following 
seven styles:

1. 6 x 6 W1.4/W1.4 or D1.4/D1.4
2. 6 x 6 W2.1/W2.1 or D2.1/D2.1
3. 6 x 6 W2.9/W2.9 or D2.9/D2.9
4. 6 x 6 W4/W4 or D4/D4
5. 6 x 12 W4/W4 or D4/D4
6. 4 x 4 W2.9/W2.9 or D2.9/D2.9
7. 4 x 4 W4/W4 or D4/D4

    The first number in the style denotes the nominal spacing 
between the longitudinal wires and the second number denotes the 
nominal spacing between the transverse wires. In the first style 
listed above, for example, ``6 x 6'' denotes a grid size of six 
inches by six inches. ``W'' denotes the use of smooth wire, and 
``D'' denotes the use of deformed wire in making the mesh. The 
number following the W or D denotes the nominal cross-sectional area 
of the transverse and longitudinal wires in hundredths of a square 
inch (i.e., W1.4 or D1.4 is .014 square inches).
    Smooth wire is wire that has a uniform cross-sectional diameter 
throughout the length of the wire.
    Deformed wire is wire with indentations or raised transverse 
ribs, which results in wire that does not have a uniform cross-
sectional diameter throughout the length of the wire.
    Rolls of subject wire mesh are produced in the following styles 
and nominal width and length combinations:

Style: 6 x 6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Roll Sizes:
    5' x 50'
    5' x 150'
    6' x 150'
    5' x 200'
    7' x 200'
    7.5' x 200'
Style: 6 x 6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Roll Sizes:
    5' x 150'
Style: 6 x 6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Roll Sizes:
    5' x 150'
    7' x 200'

All rolled wire mesh is included in scope regardless of length.
Sheets of subject wire mesh are produced in the following styles and 
nominal width and length combinations:

Style: 6 x 6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Sheet Size:
    3'6'' x 7'
    4' x 7'
    4' x 7'6''
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 15'
    8' x 20'
Style: 6 x 6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Sheet Size:
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 15'
    8' x 20'
Style: 6 x 6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size:
    3'6'' x 20'
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
8' x 15'
8' x 20'
Style: 6 x 12 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size:
    8' x 20'
Style: 4 x 4 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size:
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 12'8''
    8' x 15'
    8' x 20'
Style: 4 x 4 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size:
    5' x 10'
    8' x 12'6''
    8' x 12'8''
    8' x 15'
    8' x 20'
    Any product imported, sold, or invoiced in one of these size 
combinations is within the scope.
    ASTM specification A1064/A1064M provides for permissible 
variations in wire gauges, the spacing between transverse and 
longitudinal wires, and the length and width combinations. To the 
extent a roll or sheet of welded wire mesh falls within these 
permissible variations, it is within this scope.
    ASTM specification A1064/A1064M also defines permissible 
oversteeling, which is the use of a heavier gauge wire with a larger 
cross-sectional area than nominally specified. It also permits a 
wire diameter tolerance of  0.003 inches for products up 
to W5/D5 and  0.004 for sizes over W5/D5. A producer may 
oversteel by increasing smooth or deformed wire diameter up to two 
whole number size increments on Table 1 of A1064. Subject wire mesh 
has the following actual wire diameter ranges, which account for 
both oversteeling and diameter tolerance:

------------------------------------------------------------------------
                                      Maximum
             W/D No.               oversteeling   Diameter range  (inch)
                                        No.
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1.4 (i.e., 10 gauge)............             3.4  0.093 to 0.211
2.1 (i.e., 8 gauge).............             4.1  0.161 to 0.231
2.9 (i.e., 6 gauge).............             4.9  0.189 to 0.253
4.0 (i.e., 4 gauge).............             6.0  0.223 to 0.280
------------------------------------------------------------------------


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    To the extent a roll or sheet of welded wire mesh falls within 
the permissible variations provided above, it is within this scope.
    In addition to the tolerances permitted in ASTM specification 
A1064/A1064M, wire mesh within this scope includes combinations 
where:
    1. A width and/or length combination varies by  one 
grid size in any direction, i.e.,  6 inches in length or 
width where the wire mesh's grid size is ``6 x 6''; and/or
    2. The center-to-center spacing between individual wires may 
vary by up to one quarter of an inch from the nominal grid size 
specified.
    Length is measured from the ends of any wire and width is 
measured between the center-line of end longitudinal wires.
    Additionally, although the subject wire mesh typically meets 
ASTM A1064/A1064M, the failure to include certifications, test 
reports or other documentation establishing that the product meets 
this specification does not remove the product from the scope. Wire 
mesh made to comparable foreign specifications (e.g., DIN, JIS, 
etc.) or proprietary specifications is included in the scope.
    Excluded from the scope is wire mesh that is galvanized (i.e., 
coated with zinc) or coated with an epoxy coating. In order to be 
excluded as galvanized, the excluded welded wire mesh must have a 
zinc coating thickness meeting the requirements of ASTM 
specification A641/A641M. Epoxy coating is a mix of epoxy resin and 
hardener that can be applied to the surface of steel wire.
    Merchandise subject to this investigation are classified under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
7314.20.0000 and 7314.39.0000. While HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Use of Adverse Facts Available
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether Commerce Properly Initiated This 
Investigation
    Comment 2: Whether Commerce Should Amend the Scope to Explicitly 
Exclude Engineered Wire Mesh
    Comment 3: Whether To Apply Adverse Facts Available to Aceromex
    Comment 4: Whether Commerce Should Countervail Certain Programs 
in the Final Determination
VII. Recommendation

[FR Doc. 2021-03263 Filed 2-17-21; 8:45 am]
BILLING CODE 3510-DS-P