[Federal Register Volume 87, Number 128 (Wednesday, July 6, 2022)]
[Notices]
[Pages 40177-40178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14282]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-846]


Agreement Suspending the Countervailing Duty Investigation on 
Sugar From Mexico: Final Results of the 2020 Administrative Review

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

SUMMARY: The Department of Commerce (Commerce) continues to find that 
the signatories, the Government of Mexico (GOM), and the respondent 
companies selected for individual examination, respectively, Impulsora 
Azucarera Del Tr[oacute]pico, S.A. de C.V. and its affiliate 
(collectively, Grupo Del Tropico), and Ingenio Huixtla SA de C.V. and 
its affiliates (collectively, Grupo Porres) (together, we refer to 
Grupo Del Tropico and Grupo Porres as ``Respondents''), were in 
compliance with the terms of the Agreement Suspending the 
Countervailing Duty Investigation on Sugar from Mexico, as amended (CVD 
Agreement), during the period of review (POR) from January 1, 2020, 
through December 31, 2020, except for certain instances of 
inconsequential non-compliance. Commerce also continues to find that 
the CVD Agreement met the statutory requirements under sections 704(c) 
and (d) of the Tariff Act of 1930, as amended (the Act) during the POR. 
However, we intend to address certain issues identified in this review 
by opening consultations with the GOM under Section VIII.D.4 of the CVD 
Agreement.

DATES: Applicable July 6, 2022.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or David Cordell, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-0162 or (202) 482-0408, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 7, 2022, Commerce published the Preliminary Results of 
this administrative review.\1\
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    \1\ See Agreement Suspending the Countervailing Duty 
Investigation on Sugar from Mexico; Preliminary Results of the 2020 
Administrative Review, 87 FR 938 (January 7, 2022) (Preliminary 
Results), and accompanying Preliminary Issues and Decision 
Memorandum.
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    On February 14, 2022, the American Sugar Coalition and its members 
(petitioners) \2\ and Respondents filed case briefs, and the GOM filed 
a letter in lieu of a case brief.\3\
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    \2\ The members of the American Sugar Coalition are as follows: 
American Sugar Cane League; American Sugarbeet Growers Association; 
American Sugar Refining, Inc.; Florida Sugar Cane League; Rio Grande 
Valley Sugar Growers, Inc.; Sugar Cane Growers Cooperative of 
Florida; and the United States Beet Sugar Association.
    \3\ See Petitioners' Letter, ``Case Brief on Behalf of the 
American Sugar Coalition,'' dated February 14, 2022; Respondents' 
Letter, ``Case Brief'' dated February 14, 2022; and GOM's Letter, 
``Letter In Lieu of Case Brief,'' dated February 14, 2022.
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    On February 22, 2022, petitioners and Respondents filed rebuttal 
briefs, and the GOM filed a letter in lieu of a rebuttal brief.\4\
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    \4\ See Petitioners' Letter, ``Rebuttal Brief on Behalf of the 
American Sugar Coalition,'' dated February 22, 2022; Respondents' 
Letter, ``Rebuttal Brief,'' dated February 22, 2022; and GOM's 
Letter, ``Letter In Lieu of Rebuttal Brief,'' dated February 22, 
2022.
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Scope of the CVD Agreement

    The product covered by this CVD Agreement is raw and refined sugar 
of all polarimeter readings derived from sugar cane or sugar beets. 
Merchandise covered by this CVD Agreement is typically imported under 
the following headings of the HTSUS: 1701.12.1000, 1701.12.5000, 
1701.13.1000, 1701.13.5000, 1701.14.1020, 1701.14.1040, 1701.14.5000, 
1701.91.1000, 1701.91.3000, 1701.99.1015, 1701.99.1017, 1701.99.1025, 
1701.99.1050, 1701.99.5015, 1701.99.5017, 1701.99.5025, 1701.99.5050, 
and 1702.90.4000.\5\ The tariff classification is provided for 
convenience and customs purposes; however, the written description of 
the scope of this CVD Agreement is dispositive.\6\
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    \5\ Prior to July 1, 2016, merchandise covered by the CVD 
Agreement was classified in the HTSUS under subheading 1701.99.1010. 
Prior to January 1, 2020, merchandise covered by the CVD Agreement 
was classified in the HTSUS under subheadings 1701.14.1000 and 
1701.99.5010.
    \6\ For a complete description of the Scope of the CVD 
Agreement, see Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2020 Administrative Review of the Agreement 
Suspending the Countervailing Duty Investigation on Sugar from 
Mexico, as Amended,'' dated concurrently with, and hereby adopted 
by, this notice (Issues and Decision Memorandum).
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Analysis

    Commerce continues to determine that the CVD Agreement met the 
statutory requirements under sections 704(c) and (d) of the Act, during 
the POR. We also continue to find, based on record evidence, that the 
GOM and Respondents, Grupo Del Tropico and Grupo Porres, were in 
compliance with the terms of the CVD Agreement during the POR, except 
for certain instances of inconsequential non-compliance. During the 
review, Commerce identified issues related to recordkeeping and certain 
complex transactions referred to as ``swap transactions.'' We intend to 
consult with the GOM under Section VIII.D.4 of the CVD Agreement 
(``Operations Consultations'') to ensure compliance with the CVD 
Agreement. Such consultations are necessary to demonstrate adherence to 
the statutory requirements of the CVD Agreement and to ensure that any 
potential administrative challenges to effective monitoring are 
diminished.
    The issues raised in the case and rebuttal briefs are addressed in 
the accompanying Issues and Decision Memorandum and business 
proprietary memorandum.\7\ The issues are identified in the Appendix to 
this notice. The Issues and Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and

[[Page 40178]]

Countervailing Duty Centralized 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \7\ See Issues and Decision Memorandum; Memorandum, ``Final 
Results Analysis of Proprietary Information in the 2020 
Administrative Review of the Agreement Suspending the Countervailing 
Duty Investigation on Sugar from Mexico, as Amended,'' dated 
concurrently with the Issues and Decision Memorandum.
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Notification Regarding Administrative Protective Order

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

Notification to Interested Parties

    We are issuing and publishing these results of review in accordance 
with sections 751(a)(l) and 777(i)(l) of the Act and 19 CFR 351.213 and 
19 CFR 351.221(b)(5).

    Dated: June 29, 2022.
Ryan Majerus,
Deputy Assistant Secretary for Policy & Negotiations, Enforcement and 
Compliance.

Appendix

Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Agreement
IV. Discussion of the Issues
    1. Alleged Violations and Consultations with the GOM
    2. Allocation Reduction
    3. Swap Transactions
V. Recommendation

[FR Doc. 2022-14282 Filed 7-5-22; 8:45 am]
BILLING CODE 3510-DS-P