[Federal Register Volume 86, Number 118 (Wednesday, June 23, 2021)]
[Notices]
[Pages 32891-32893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13158]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-853]
Standard Steel Welded Wire Mesh From Mexico: Final Determination
of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of standard steel welded wire mesh (wire mesh) from Mexico are being,
or are likely to be, sold in the United States at less than fair value
(LTFV) for the period of investigation April 1, 2019, through March 31,
2020.
DATES: Applicable June 23, 2021.
FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Melissa Kinter, 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) 482-4682 or (202)
482-1413, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 1, 2021, Commerce published in the Federal Register its
preliminary affirmative determination in the LTFV investigation of wire
mesh from Mexico, in which we also postponed the final determination
until June 16, 2021.\1\ We invited interested parties to comment on the
Preliminary Determination. A summary of the events that occurred since
Commerce published the Preliminary Determination, as well as a full
discussion of the issues raised by parties for this final
determination, may be found in the Issues and Decision Memorandum.\2\
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\1\ See Standard Steel Welded Wire Mesh from Mexico: Preliminary
Affirmative Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and, Extension of Provisional
Measures, 86 FR 7710 (February 1, 2021) (Preliminary Determination),
and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Standard Steel Welded Wire Mesh from Mexico,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is wire mesh from Mexico.
For a full description of the scope of this investigation, see the
``Scope of the Investigation'' in Appendix I of this notice.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
parties in this investigation are addressed in the Issues and Decision
Memorandum. A list of the issues addressed in the Issues and Decision
Memorandum is attached to this notice as Appendix II. 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
at http://enforcement.trade.gov/frn/.
Methodology--Adverse Facts Available (AFA)
For purposes of this final determination, we relied, in part, on
facts available pursuant to section 776(a)(2)(A) of the Tariff Act of
1930, as amended (the Act). As discussed in the Issues and Decision
Memorandum, because one respondent did not act to the best of its
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 S.A.P.I. de C.V. (Deacero), did not respond to
Commerce's initial antidumping duty questionnaire, and we have
continued to use an adverse inference in selection of facts available
for determining the dumping rate for this company, 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.\3\
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\3\ See Commerce's Letter, In Lieu of Verification Questionnaire
for Aceromex, dated February 26, 2021; and Aceromex's Letter,
``Standard Steel Welded Wire Mesh from Mexico: Submission of
Aceromex's Verification Response,'' dated March 8, 2021.
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Changes Since the Preliminary Determination
Based on our analysis of both the comments and information received
in lieu of on-site verification, we made certain changes to the margin
calculations for Aceromex, S.A. de C.V. (Aceromex). For a discussion of
these changes, see the ``Margin Calculations'' section of the Issues
and Decision Memorandum.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated all-
others rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero or de
minimis margins and margins determined entirely under section 776 of
the Act. Section 735(c)(5)(B) of the Act provides that, if the
estimated weighted-average dumping margins for all individually
investigated exporters and producers are zero or de minimis or
determined entirely under section 776 of the Act, then Commerce may use
any reasonable method to establish the estimated all-others rate,
including averaging the estimated weighted-average dumping margins
determined for the individually investigated exporters and producers.
In this investigation, Commerce assigned an estimated weighted-
average dumping margin based entirely on facts available, i.e., under
section 776 of the Act, to Deacero. Therefore, the only estimated
weighted-average dumping margin that is not zero, de minimis, or based
entirely on facts otherwise available is the margin calculated for
Aceromex. Thus, the estimated weighted-average dumping margin
calculated for Aceromex is the margin assigned to all other producers
and exporters, pursuant to section 735(c)(5)(A) of the Act.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
[[Page 32892]]
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Cash deposit rate
Estimated weighted- (adjusted for
Exporter or producer average dumping subsidy offset)
margin (percent) (percent) \4\
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Aceromex, S.A. de C.V........... 23.04 22.01
Deacero S.A.P.I. de C.V......... * 110.42 109.39
All Others...................... 23.04 22.01
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* AFA.
Disclosure
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\4\ In the companion countervailing duty (CVD) investigation,
Commerce calculated a 1.03 percent export subsidy rate for Aceromex
and for all other producers and exporters under the program ``Eighth
Rule Permit Program.'' See Standard Steel Welded Wire Mesh from
Mexico: Final Affirmative Countervailing Duty Determination, 86 FR
10034 (February 18, 2021), and accompanying Issues and Decision
Memorandum. Because we determined the LTFV all-others rate based on
Aceromex's estimated weighted-average dumping margin, the export
subsidy offset for all other producers and exporters is the lesser
of the export subsidy rate for Aceromex and the export subsidy rate
for all other producers and exporters in the CVD final determination
(i.e., 1.03 percent). The cash deposit rate for Deacero is equal to
the petition rate (110.42 percent) adjusted for the lowest rate of
export subsidies found for any company in the most recently-
completed segment in the companion countervailing duty proceeding
(i.e., 1.03 percent related to the Eighth Rule Permit Program).
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We intend to disclose the calculations performed in 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
For this final determination, for entries made by Aceromex,
Deacero, and the companies covered by the all-others rate, in
accordance with section 735(c)(4)(A) of the Act, we will direct U.S.
Customs and Border Protection (CBP) to continue to suspend liquidation
of all entries of subject merchandise, as described in Appendix I of
this notice, which were entered, or withdrawn from warehouse, for
consumption on or after February 1, 2021, the date of publication of
the Preliminary Determination of this investigation in the Federal
Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the estimated weighted-average dumping
margin as follows: (1) The cash deposit rate for the respondents listed
above will be equal to the company-specific estimated weighted-average
dumping margin determined in this final determination; (2) if the
exporter is not a respondent identified above, but the producer is,
then the cash deposit rate will be equal to the company-specific
estimated weighted-average dumping margin established for that producer
of the subject merchandise; and (3) the cash deposit rate for all other
producers and exporters will be equal to the all-others estimated
weighted-average dumping margin. These suspension of liquidation
instructions will remain in effect until further notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of export
subsidies determined in a companion CVD proceeding when CVD provisional
measures are in effect. Accordingly, where Commerce makes an
affirmative determination for export subsidies, Commerce offsets the
calculated estimated weighted-average dumping margin by the appropriate
rate(s). In the companion CVD investigation, we have found export
subsidies for all producers and exporters of subject merchandise.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of our final affirmative
determination of sales at LTFV. We will allow the ITC access to all
privileged and business proprietary information in our files, provided
the ITC confirms 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 Commerce's final determination in this proceeding is
affirmative, in accordance with section 735(b)(2) 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
days after our final determination. If the ITC determines that such
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded and suspension of liquidation will be lifted.
If the ITC determines that such injury does exist, Commerce will issue
an antidumping duty order directing CBP to assess, upon further
instruction by Commerce, antidumping duties on all imports of the
subject merchandise 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 Administrative Protective Orders
This notice serves as the only reminder to parties subject to APO
of their responsibility concerning the disposition of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of return/or 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
This determination is issued and published pursuant to sections
735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: June 16, 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. 6X6 W1.4/W1.4 or D1.4/D1.4
2. 6X6 W2.1/W2.1 or D2.1/D2.1
3. 6X6 W2.9/W2.9 or D2.9/D2.9
4. 6X6 W4/W4 or D4/D4
5. 6X12 W4/W4 or D4/D4
[[Page 32893]]
6. 4X4 W2.9/W2.9 or D2.9/D2.9
7. 4X4 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, ``6X6'' 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: 6X6 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: 6X6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Roll Sizes: 5' X 150'
Style: 6X6 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: 6X6 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: 6X6 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: 6X6 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: 6X12 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size: 8' X 20'
Style: 4X4 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: 4X4 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:
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Maximum
W/D No. oversteeling Diameter range
No. (inch)
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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 ``6X6''; 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. Scope of the Investigation
IV. Use of Adverse Facts Available
V. Margin Calculations
VI. Adjustment for Countervailed Export Subsidies
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Partial AFA to Aceromex
Comment 2: Indirect Selling Expenses for Sales Made by Kratos
Comment 3: Peninsula's Warehousing Costs in Florida
VIII. Recommendation
[FR Doc. 2021-13158 Filed 6-22-21; 8:45 am]
BILLING CODE 3510-DS-P