[Federal Register Volume 89, Number 64 (Tuesday, April 2, 2024)]
[Notices]
[Pages 22668-22671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06946]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-831]


Antidumping Duty Order on Prestressed Concrete Steel Wire Strand 
From Mexico: Preliminary Affirmative Determination of Circumvention

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that imports of certain high carbon steel (HCS) wire that 
are produced in Mexico and assembled or completed into prestressed 
concrete steel wire strand (PC strand) in the United States are 
circumventing the antidumping duty (AD) order on PC strand from Mexico. 
As a result, all imports of certain HCS wire from Mexico will be 
subject to suspension of liquidation on or after July 31, 2023. 
Commerce is also imposing a certification requirement. We invite 
interested parties to comment on this preliminary determination.

DATES: Applicable April 2, 2024.

FOR FURTHER INFORMATION CONTACT: Craig Matney or Jonathan Schueler, 
Office VIII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2429 or (202) 482-9175, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 28, 2004, Commerce published in the Federal Register the 
AD order on U.S. imports of PC strand from Mexico.\1\ On July 31, 2023, 
pursuant to section 781(a) of the Tariff Act of 1930, as amended (the 
Act), and 19 CFR 351.226(d)(1), Commerce initiated a country-wide 
circumvention inquiry to determine whether imports of HCS wire from 
Mexico that are assembled or completed into PC strand in the United 
States are circumventing the Order and, accordingly, should be covered 
by the scope of the Order.\2\ On

[[Page 22669]]

September 25, 2023, Commerce selected Deacero S.A.P.I. de CV (Deacero) 
and Aceros Camesa S.A. de C.V. (Camesa), Mexican producers of HCS wire, 
as the mandatory respondents in this circumvention inquiry.\3\
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    \1\ See Notice of Antidumping Duty Order: Prestressed Concrete 
Steel Wire Strand from Mexico, 69 FR 4112 (January 28, 2004) 
(Order).
    \2\ See Prestressed Concrete Steel Wire Strand from Mexico: 
Initiation of Circumvention Inquiry on the Antidumping Duty Order, 
88 FR 49438 (July 31, 2023) (Initiation Notice). We note that in the 
Initiation Notice, we stated that we are initiating this 
circumvention inquiry pursuant to 19 CFR 351.226(d)(1)(ii). However, 
this section was amended after the Initiation Notice was published, 
therefore we reference the latest version of the regulation. See 
Administrative Protective Order, Service, and Other Procedures in 
Antidumping and Countervailing Duty Proceedings, 88 FR 67069, 67078 
(September 29, 2023).
    \3\ See Memorandum, ``Respondent Selection,'' dated September 
25, 2023.
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    On December 14, 2023, Commerce extended the deadline for issuing 
the preliminary determination in this circumvention inquiry until March 
27, 2023.\4\ For a complete description of the events that followed the 
initiation of this circumvention inquiry, see the Preliminary Decision 
Memorandum.\5\ The topics included in the Preliminary Decision 
Memorandum are identified in Appendix I to this notice. 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.
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    \4\ See Memorandum, ``Extension of Preliminary Determination,'' 
dated December 14, 2023.
    \5\ See Memorandum, ``Prestressed Concrete Steel Wire Strand (PC 
Strand) from Mexico: Preliminary Decision Memorandum for the 
Circumvention Inquiry with Respect to High Carbon Steel Wire 
Completed into PC Strand in the United States,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Order

    The merchandise covered by this Order is PC strand. Merchandise 
covered by the Order is currently classifiable under subheadings 
7312.10.3010 and 7312.10.3012 of the Harmonized Tariff Schedule of the 
United States (HTSUS). While the HTSUS subheading and are provided for 
convenience and for customs purposes, the written description of the 
subject merchandise is dispositive. For a full description of the scope 
of the Order, see the Preliminary Decision Memorandum.

Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers certain HCS wire imported from 
Mexico. The HCS wire has a high carbon content (i.e., 0.60-0.85 
percent),\6\ is not heat treated, and has a diameter less than 4.50 
millimeters. The HCS wire is assembled or completed in the United 
States by stranding the HCS wire to produce PC strand of the type that 
would be subject to the Order (inquiry merchandise).
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    \6\ We have revised the scope of the inquiry merchandise from 
that stated in the Initiation Notice to lower the required level of 
carbon content from 0.78 percent to 0.60 percent to align with the 
definition of HCS wire as specified by the HTSUS subheading for high 
carbon steel wire (i.e., 7217.10.8090) because record evidence 
indicates that certain merchandise being used to produce PC strand 
does not fall within the parameters of the inquiry merchandise as 
initiated, see Preliminary Decision Memorandum for further details. 
We invite interested parties to comment on this revised scope of the 
merchandise subject to the circumvention inquiry in their case 
briefs.
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    The inquiry merchandise is currently classifiable under HTSUS 
subheading 7217.10.8090. Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the 
merchandise is dispositive.
    Importers of the subject HCS wire that will not be converted into 
PC strand in the United States may certify that the HCS wire will not 
be further processed into subject merchandise covered by the scope of 
the Order. Failure to comply with the requisite certification 
requirement may result in the merchandise being found subject to AD 
duties.

Methodology

    Commerce made this preliminary circumvention determination in 
accordance with section 781(a) of the Act and 19 CFR 351.226. For a 
full description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Circumvention Determination

    We preliminarily determine that PC strand, assembled or completed 
in the United States using Mexican-origin HCS wire produced by Deacero, 
is circumventing the Order. We also preliminarily determine that 
Mexican-origin HCS wire produced by Camesa is not assembled or 
completed into PC strand in the United States, and therefore, is not 
circumventing the Order.
    As detailed in the Preliminary Decision Memorandum, we also 
preliminarily determine that U.S. imports of inquiry merchandise 
exported from Mexico are circumventing the Order on a country-wide 
basis. As a result, we preliminarily determine that this merchandise is 
covered by the Order.
    See the ``Suspension of Liquidation'' section below for details 
regarding suspension of liquidation and cash deposit requirements. See 
the ``Certification'' and ``Certification Requirements'' sections below 
for details regarding the use of certifications.

Suspension of Liquidation

    Based on the preliminary affirmative country-wide determination of 
circumvention, in accordance with 19 CFR 351.226(l)(2), we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation and 
require a cash deposit of estimated duties on unliquidated entries of 
HCS wire that are produced in Mexico and assembled or completed into PC 
strand in the United States, that were entered, or withdrawn from 
warehouse, for consumption on or after July 31, 2023, the date of 
publication of the initiation of this circumvention inquiry in the 
Federal Register.\7\
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    \7\ See Initiation Notice, 88 FR at 49438.
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    For exporters of the HCS wire that have a company-specific cash 
deposit rate under the Order, the cash deposit rate will be the 
company-specific AD cash deposit rate established for that company in 
the most recently completed segment of the PC strand from Mexico 
proceeding.
    If the exporter of the HCS wire from Mexico does not have a 
company-specific cash deposit rate, the AD cash deposit rate will be 
the ``all-others'' rate (62.78 percent).\8\ The suspension of 
liquidation will remain in effect until further notice.
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    \8\ See Order.
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Certified Entries

    Entries for which the importer has met the certification 
requirements described below and in Appendix II to this notice will not 
be subject to suspension of liquidation, or the cash deposit 
requirements described above. Failure to comply with the applicable 
requisite certification requirements may result in the merchandise 
being subject to AD duties.

Certification

    In order to administer the preliminary country-wide and company-
specific affirmative determinations of circumvention for Mexico, 
Commerce has established importer certifications. These certifications 
will permit importers to establish that specific entries of HCS wire 
from Mexico are not subject to suspension of liquidation or

[[Page 22670]]

the collection of cash deposits pursuant to this preliminary country-
wide affirmative determination of circumvention because the merchandise 
will not be further processed into PC strand covered by the Order (see 
Appendix II to this notice).
    Importers that claim that an entry of HCS wire is not subject to 
suspension of liquidation or the collection of cash deposits based on 
the end-use of such merchandise must complete the applicable 
certification and meet the certification and documentation requirements 
described below, as well as the requirements identified in the 
certification.

Certification Requirements

    Importers are required to complete and maintain the applicable 
importer certification and retain all supporting documentation for the 
certification. With the exception of the entries described below, the 
importer certification must be completed, signed, and dated by the time 
the entry summary is filed for the relevant entry. The importer, or the 
importer's agent, must submit the importer's certification to CBP as 
part of the entry process by uploading it into the document imaging 
system (DIS) in ACE. Where the importer uses a broker to facilitate the 
entry process, it should obtain the entry summary number from the 
broker. Agents of the importer, such as brokers, however, are not 
permitted to certify on behalf of the importer.
    Additionally, the claims made in the certifications and any 
supporting documentation are subject to verification by Commerce and/or 
CBP. Importers are required to maintain the certifications and 
supporting documentation until the later of: (1) the date that is five 
years after the latest entry date of the entries covered by the 
certification; or (2) the date that is three years after the conclusion 
of any litigation in United States courts regarding such entries.
    For all shipments of HCS wire from Mexico that were entered, or 
withdrawn from warehouse, for consumption during the period July 31, 
2023 (i.e., the date of publication of the initiation of this 
circumvention inquiry in the Federal Register), through the date of 
publication of this preliminary determination in the Federal Register, 
where the entry has not been liquidated (and entries for which 
liquidation has not become final), the relevant certification should be 
completed and signed as soon as practicable, but not later than 45 days 
after the date of publication of this preliminary determination in the 
Federal Register. For such entries, importers have the option to 
complete a blanket certification covering multiple entries, individual 
certifications for each entry, or a combination thereof.
    For unliquidated entries (and entries for which liquidation has not 
become final) of HCS wire that were declared as non-AD type entries 
(e.g., type 01) and entered, or withdrawn from warehouse, for 
consumption in the United States during the period July 31, 2023 (the 
date of initiation of this circumvention inquiry) through the date of 
publication of this preliminary determination in the Federal Register, 
for which none of the above certifications may be made, importers must 
file a Post Summary Correction with CBP, in accordance with CBP's 
regulations, regarding conversion of such entries from non-AD type 
entries to AD type entries (e.g., type 01 to type 03). The importer 
should pay cash deposits on those entries consistent with the 
regulations governing post summary corrections that require payment of 
additional duties.
    If it is determined that an importer has not met the certification 
and/or related documentation requirements for certain entries, Commerce 
intends to instruct CBP to suspend, pursuant to this preliminary 
country-wide affirmative determination of circumvention and the 
Order,\9\ all unliquidated entries for which these requirements were 
not met and to require the importer to post applicable AD cash deposits 
equal to the rates noted above.
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    \9\ See Order.
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    Interested parties may comment in their case briefs on these 
certification requirements, and on the certification language contained 
in Appendix II to this notice.

Verification

    As provided in 19 CFR 351.307, Commerce intends to verify 
information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments should be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which any verification report is issued. 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline for case 
briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in these circumvention inquiries 
must submit: (1) a statement of the issue; and (2) a table of 
authorities. Case and rebuttal briefs should be filed using ACCESS.
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    \10\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069 (September 29, 2023) 
(APO and Service Final Rule).
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    As provided in 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this circumvention inquiry, we instead 
request that interested parties provide at the beginning of their 
briefs a public, executive summary for each issue raised in their 
briefs.\11\ Further, we request that interested parties limit their 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the executive summaries as the 
basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final determination in this 
circumvention inquiry. We request that interested parties include 
footnotes for relevant citations in the executive summary of each 
issue. Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\12\
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    \11\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \12\ See APO and Service Final 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 in the Federal Register. 
Requests should contain: (1) the requesting party's name, address, and 
telephone number; (2) the number of individuals from the requesting 
party that will attend the hearing and whether any of those individuals 
is a foreign national; and (3) a list of the issues that the party 
intends to discuss at the hearing. 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 of the 
hearing.

U.S. International Trade Commission Notification

    Commerce, consistent with section 781(e) of the Act, will notify 
the U.S. International Trade Commission (ITC) of this preliminary 
determination to

[[Page 22671]]

include the merchandise subject to this circumvention inquiry within 
the Order. Pursuant to section 781(e) of the Act, the ITC may request 
consultations concerning Commerce's proposed inclusion of the inquiry 
merchandise. If, after consultations, the ITC believes that a 
significant injury issue is presented by the proposed inclusion, it 
will have 60 days from the date of notification by Commerce to provide 
written advice.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(a) of the Act and 19 CFR 351.226(g)(1).

    Dated: March 26, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to Circumvention Inquiry
V. Period of the Circumvention Inquiry
VI. Statutory and Regulatory Framework for the Circumvention Inquiry
VII. Statutory Analysis for the Circumvention Inquiry
VIII. Summary of Statutory Analysis
IX. Country-Wide Affirmation Determination of Circumvention and 
Certification Requirements
X. Recommendation

Appendix II

Importer Certification

    I hereby certify that:
    A. My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I am 
an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADDRESS 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 
subject high-carbon steel (HCS) wire produced in Mexico that entered 
under the entry summary number(s), identified below, and which is 
covered by this certification. ``Direct personal knowledge'' refers 
to the facts the certifying party is expected to have in its own 
records. For example, the importer should have direct personal 
knowledge of the exporter's and/or seller's identity and location.
    C. If the importer is acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    The imported subject-HCS wire covered by this certification was 
imported by {NAME OF IMPORTING COMPANY{time}  on behalf of {NAME OF 
U.S. CUSTOMER{time} , located at {ADDRESS OF U.S. CUSTOMER{time} .
    If the importer is not acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    {NAME OF IMPORTING COMPANY{time}  is not acting on behalf of the 
first U.S. customer.
    D. The imported HCS wire covered by this certification was 
shipped to {NAME OF PARTY IN THE UNITED STATES TO WHOM THE 
MERCHANDISE WAS FIRST SHIPPED{time} , located at {U.S. ADDRESS TO 
WHICH MERCHANDISE WAS SHIPPED{time} .
    E. Select the appropriate statement below:
    a. I have personal knowledge of the facts regarding the end-use 
of the imported products covered by this certification because my 
company is the end-user of the imported product covered by this 
certification and I certify that the imported subject-HCS wire will 
not be used to produce subject merchandise. ``Personal knowledge'' 
includes facts obtained from another party, (e.g., correspondence 
received by the importer (or exporter) from the producer regarding 
the source of the inputs used to produce the imported products).
    b. I have personal knowledge of the facts regarding the end-use 
of the imported product because my company is not the end-user of 
the imported product covered by this certification. However, I have 
been able to contact the end-user of the imported product and 
confirm that it will not use this product to produce subject 
merchandise. The end-user of the imported product is {COMPANY 
NAME{time}  located at {ADDRESS{time} . ``Personal knowledge'' 
includes facts obtained from another party (e.g., correspondence 
received by the importer from the end-user of the product).
    F. The imported subject-HCS wire covered by this certification 
will not be further processed into prestressed concrete steel wire 
strand (PC strand) in the United States. (Note: For certifications 
related to entries made on or after the date of publication of the 
Preliminary Determination, and through 14 days after the date of 
publication of the Preliminary Determination, the importer should 
replace ``will not be further processed'' with ``were not further 
processed'' in the certification, as necessary).
    G. This certification applies to the following entries (repeat 
this block as many times as necessary):
    Entry Summary #:
    Entry Summary Line Item #:
    Foreign Seller:
    Foreign Seller's Address:
    Foreign Seller's Invoice #:
    Foreign Seller's Invoice Line Item #:
    Producer:
    Producer's Address:
    H. 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, product 
specification sheets, production records, invoices, etc.) until the 
later of: (1) the date that is five years after the latest entry 
date of the entries covered by the certification; or (2) the date 
that is three years after the conclusion of any litigation in United 
States courts regarding such entries.
    I. I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to provide this certification and supporting records to 
U.S. Customs and Border Protection (CBP) and/or the U.S. Department 
of Commerce (Commerce), upon the request of either agency.
    J. I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    K. I understand that failure to maintain the required 
certifications and supporting documentation, or failure to 
substantiate the claims made herein, or not allowing CBP and/or 
Commerce to verify the claims made herein, may result in a de facto 
determination that all entries to which this certification applies 
are entries of merchandise that is covered by the scope of the 
antidumping duty order on PC strand from Mexico. I understand that 
such a finding will 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 importer being required to post the antidumping duty 
cash deposits determined by Commerce; and
    (iii) the importer no longer being allowed to participate in the 
certification process.
    L. I understand that agents of the importer, such as brokers, 
are not permitted to make this certification. Where a broker or 
other party was used to facilitate the entry process, {NAME OF 
IMPORTING COMPANY{time}  obtained the entry summary number and date 
of entry summary from that party.
    M. This certification was completed and signed on, or prior to, 
the date of the entry summary if the entry date is more than 14 days 
after the date of publication of the notice of Commerce's 
preliminary determination of circumvention in the Federal Register. 
If the entry date is on or before the 14th day after the date of 
publication of the notice of Commerce's preliminary determination of 
circumvention in the Federal Register, this certification was 
completed and signed by no later than 45 days after publication of 
the notice of Commerce's preliminary determination of circumvention 
in the Federal Register.
    N. 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 materially false statements to the U.S. 
government.

Signature
{NAME OF COMPANY OFFICIAL{time} 
{TITLE OF COMPANY OFFICIAL{time} 
{DATE{time} 

[FR Doc. 2024-06946 Filed 4-1-24; 8:45 am]
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