[Federal Register Volume 88, Number 2 (Wednesday, January 4, 2023)]
[Notices]
[Pages 339-340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28551]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-845]


Agreement Suspending the Antidumping Duty Investigation on Sugar 
From Mexico: Preliminary Results of the 2020-2021 Administrative Review 
and Postponement of Final Results

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that the respondents selected for individual examination, 
respectively, Ingenio Tala S.A. de C.V. and Ingenio Tamazula S.A. de 
C.V. (collectively, respondents), were in compliance with the terms of 
the Agreement Suspending the Antidumping Duty Investigation on Sugar 
from Mexico, as amended (AD Agreement) during the period of review 
(POR) from December 1, 2020, through November 30, 2021. Commerce also 
preliminarily determines that the AD Agreement met the applicable 
statutory requirements during the POR.

DATES: Applicable January 4, 2023.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or Jill Buckles, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-0162 or (202) 482-6230, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce and Mexican producers/exporters accounting for 
substantially all imports of sugar from Mexico signed the AD Agreement 
under section 734(c) of the Tariff Act of 1930, as amended (the Act), 
which suspended the underlying antidumping duty investigation, on 
December 19, 2014, and which was subsequently amended on January 15, 
2020.\1\
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    \1\ See Sugar from Mexico: Suspension of Antidumping 
Investigation, 79 FR 78039 (December 29, 2014); see also Sugar from 
Mexico: Amendment to the Agreement Suspending the Antidumping Duty 
Investigation, 85 FR 3620 (January 22, 2020) (collectively, AD 
Agreement).
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    On December 23, 2021, the American Sugar Coalition and its members 
(the petitioners) \2\ filed a timely request for an administrative 
review of the AD Agreement.\3\ On February 4, 2022, Commerce initiated 
an administrative review for the period December 1, 2020, through 
November 30, 2021.\4\
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    \2\ The members of the American Sugar Coalition are: 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, ``Request for Administrative 
Review,'' dated December 23, 2021.
    \4\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 6487 (February 4, 2022).
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    On March 15, 2022, Commerce selected two companies as mandatory 
respondents, listed in alphabetical order: Ingenio Tala S.A. de C.V. 
and Ingenio Tamazula S.A. de C.V.\5\
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    \5\ See Memorandum, ``Respondent Selection,'' dated March 15, 
2022.
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Scope of the AD Agreement

    The product covered by this AD Agreement is raw and refined sugar 
of all polarimeter readings derived from sugar cane or sugar beets. 
Merchandise covered by this AD 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.\6\ The tariff classification is provided for 
convenience and customs purposes; however, the written description of 
the scope of this AD Agreement is dispositive.\7\
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    \6\ Prior to July 1, 2016, merchandise covered by the AD 
Agreement was also classified in the HTSUS under subheading 
1701.99.1010. Prior to January 1, 2020, merchandise covered by the 
AD Agreement was also classified in the HTSUS under subheadings 
1701.14.1000 and 1701.99.5010.
    \7\ For a complete description of the Scope of the AD Agreement, 
see Memorandum, ``Decision Memorandum for the Preliminary Results of 
the 2020-2021 Administrative Review: Sugar from Mexico,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Methodology and Preliminary Results

    Commerce has conducted this review in accordance with section 
751(a)(1)(C) of the Act, which specifies that Commerce shall ``review 
the current status of, and compliance with, any agreement by reason of 
which an investigation was suspended.'' Pursuant to the AD Agreement, 
each signatory producer/exporter individually agrees that it will not 
sell subject merchandise at prices less than the reference prices 
established in Appendix I to the AD Agreement.\8\ Each signatory 
producer/exporter also individually agrees that for each entry the 
amount by which the estimated normal value exceeds the export price (or 
the constructed export price) will not exceed 15 percent of the 
weighted average amount by which the estimated normal value exceeded 
the export price (or constructed export price) for all less-than-fair-
value entries of the producer/exporter examined during the course of 
the investigation.\9\ The signatory producers/exporters also 
individually agree to provide documentation upon request from Commerce 
\10\ and provide certifications each quarter \11\ to allow Commerce to 
monitor the AD Agreement. In addition, the signatory producers/
exporters agree to incorporate into their sales contracts with 
Intermediary Customers \12\ the obligation that such customers will 
abide by the terms of the AD Agreement.\13\ Lastly, the signatory 
producers/exporters agree to ensure that Other Sugar \14\ is tested for 
polarity by a laboratory approved by CBP upon entry into the United 
States and that the importers of record report the polarity

[[Page 340]]

test results for each entry to Commerce within 30 days of entry.\15\
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    \8\ See AD Agreement at Section VI and Appendix I.
    \9\ Id. at Section VI.
    \10\ Id. at Sections VII.B.1, VII.B.2, and VII.B.4.
    \11\ Id. at Section VII.C.4.
    \12\ ``Intermediary Customer'' is defined in Section II.N of the 
AD Agreement.
    \13\ See AD Agreement at Section VII.C.5.
    \14\ ``Other Sugar'' is defined Section II.F of the AD 
Agreement.
    \15\ See AD Agreement at Section VII.C.6.
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    After reviewing the information received to date from the 
respondent companies in their questionnaire and supplemental 
questionnaire responses, we preliminarily determine that the 
respondents have adhered to the terms of the AD Agreement and that the 
AD Agreement is functioning as intended. Further, we preliminarily 
determine that the AD Agreement continues to meet the statutory 
requirements under sections 734(c) and (d) of the Act.
    We were not able to complete our review of one aspect of the AD 
Agreement, the requirement in Section VI to eliminate at least 85 
percent of the dumping found in the investigation, and we therefore 
intend to address this issue in a post-preliminary analysis. Due to the 
complex nature of the issue, we find that we require additional time 
and information in order to complete our examination. Therefore, we 
will continue our examination after the issuance of these preliminary 
results as to whether the respondents complied with the requirement to 
eliminate at least 85 percent of the dumping found in the investigation 
during the POR, and we intend to issue a post-preliminary analysis 
addressing the issue as soon as practicable.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. The Preliminary 
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 Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx. Commerce 
also addresses one issue, which requires discussion of business 
proprietary information, in a separate memorandum which we incorporate 
into the Preliminary Decision Memorandum.\16\
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    \16\ See Preliminary Decision Memorandum at 6 and fn. 44.
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Verification

    As provided in section 782(i) of the Act, Commerce may verify the 
information relied upon in making its final results. Normally, Commerce 
verifies information using standard procedures, including an on-site 
examination of original accounting, financial, and sales documentation. 
While we consider the possibility of conducting an on-site verification 
for the information submitted by the respondents, we may also need to 
verify the information relied upon in making the final results through 
alternative means in lieu of an on-site verification. Commerce intends 
to notify parties of its verification procedures, as applicable.

Public Comment

    Commerce intends to issue a post-preliminary analysis memorandum 
subsequent to the publication of this notice to address the issue of 
compliance with the requirement to eliminate at least 85 percent of the 
dumping found in the investigation. Case briefs may be submitted no 
later than seven days after the date on which the last final 
verification report is issued in this review. Rebuttal briefs, limited 
to issues raised in case briefs, may be submitted no later than seven 
days after the deadline date for case briefs.\17\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this investigation are encouraged to submit with each 
argument: (1) a statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.\18\ All briefs must be filed 
electronically using ACCESS. An electronically filed document must be 
received successfully in its entirety by the established deadline. Note 
that Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
further notice.\19\
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    \17\ See 19 CFR 351.309(d)(1); see also Temporary Rule Modifying 
AD/CVD Service Requirements Due to COVID-19; Extension of Effective 
Period, 85 FR 41363 (July 10, 2020) (Temporary Rule).
    \18\ See 19 CFR 351.309(c)(2) and (d)(2).
    \19\ See Temporary Rule.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice.\20\ Requests should 
contain the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. Issues raised in the hearing will be 
limited to those raised in the respective case and rebuttal briefs. If 
a request for a hearing is made, Commerce intends to hold the hearing 
at a time and date to be determined. Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
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    \20\ See 19 CFR 351.310(c).
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Postponement of Final Results

    Section 751(a)(3)(A) of the Act, requires Commerce to complete the 
final results of an administrative review within 120 days after the 
date on which the preliminary results are published. If it is not 
practicable to complete the review within this time period, section 
751(a)(3)(A) of the Act and 19 CFR 351.213(h)(2) allow Commerce to 
extend the time limit for the final results to a maximum of 180 days 
after the date on which the preliminary results are published. We 
determine that it is not practicable to complete the final results of 
this administrative review within 120 days from the date of publication 
of these preliminary results. Commerce requires additional time to 
analyze supplemental questionnaire responses and submissions of factual 
information, complete our examination, issue our post-preliminary 
analysis, potentially conduct verification of questionnaire responses, 
and allow for case briefs and rebuttal briefs on our preliminary and 
post-preliminary results. Accordingly, Commerce is extending the 
deadline for the final results of this administrative review by 60 
days. The final results of the review will now be due no later than 180 
days from the date of publication of these preliminary results.

Notification to Interested Parties

    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: December 27, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Agreement
IV. Preliminary Results of Review
V. Discussion of the Issues
VI. Recommendation

[FR Doc. 2022-28551 Filed 1-3-23; 8:45 am]
BILLING CODE 3510-DS-P