[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22795-22800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09363]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-845]
Sugar From Mexico: Initiation of Antidumping Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective Date: April 24, 2014.
FOR FURTHER INFORMATION CONTACT: David Lindgren at (202) 482-3870 or
Kaitlin Wojnar (202) 482-3857, AD/CVD Operations, Office VII,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On March 28, 2014, the Department of Commerce (the Department)
received an antidumping duty (AD) petition \1\ concerning imports of
sugar from Mexico filed in proper form on behalf of the American Sugar
Coalition (ASC) and its individual members (collectively,
Petitioners).\2\ Petitioners are domestic processors, millers, and
refiners of sugar and growers of sugar cane and
[[Page 22796]]
sugarbeets. On April 2, April 8, and April 9, 2014, the Department
requested additional information and clarification of certain areas of
the Petition.\3\ Petitioners filed responses to these requests on April
7, April 10, and April 14, 2014.\4\
---------------------------------------------------------------------------
\1\ See ``Petition for the Imposition of Antidumping Duties on
Imports of Sugar from Mexico,'' dated March 28, 2014 (Petition).
\2\ Petitioners are ASC and its individual members: American
Sugar Cane League, American Sugar Refining, Inc., American Sugarbeet
Growers Association, Florida Sugar Cane League, Hawaiian Commercial
and Sugar Company, Rio Grande Valley Sugar Growers, Inc., Sugar Cane
Growers Cooperative of Florida, and United States Beet Sugar
Association.
\3\ See Letter from the Department titled, ``Petition for the
Imposition of Antidumping Duties on Imports of Sugar from Mexico:
Supplemental Questions,'' dated April 2, 2014; Letter from the
Department titled, ``Petition for the Imposition of Antidumping and
Countervailing Duties on Imports of Sugar from Mexico: Supplemental
Questions,'' dated April 2, 2014 (General Issues Questionnaire);
Phone Call with Petitioners Ex Parte Memorandum, dated April 8,
2014; Phone Call with Petitioners Ex Parte Memorandum, dated April
9, 2014.
\4\ See Letters from Petitioners titled, ``Sugar from Mexico;
Response to General Issues Questionnaire,'' dated April 7, 2014
(General Issues Supplement); ``Sugar from Mexico; Response to
Supplemental Antidumping Questions,'' dated April 7, 2014; ``Sugar
from Mexico; Response to Supplemental General Issues Questions,''
dated April 10, 2014 (Second General Issues Supplement); ``Sugar
from Mexico; Response to Supplemental Antidumping Questions,'' dated
April 10, 2014 (Second AD Supplement); and ``Sugar from Mexico;
Response to Supplemental Scope Questions,'' dated April 14, 2014
(Scope Supplement).
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), Petitioners allege that imports of sugar from Mexico
are being, or are likely to be, sold in the United States at less than
fair value within the meaning of section 731 of the Act and that such
imports are materially injuring, or threatening material injury to, an
industry in the United States. Also, consistent with section 732(b)(1)
of the Act, the Petition is accompanied by information reasonably
available to Petitioners supporting their allegations.
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because Petitioners are interested parties as
defined in sections 771(9)(C), (E), (F) and (G) of the Act. The
Department also finds that Petitioners demonstrated sufficient industry
support with respect to the initiation of the AD investigation that
Petitioners are requesting. See the ``Determination of Industry Support
for the Petition'' section below.
Period of Investigation
Because the Petition was filed on March 28, 2014, the period of
investigation (POI) is January 1, 2013 through December 31, 2013.\5\
---------------------------------------------------------------------------
\5\ See 19 CFR 351.204(b)(1).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is sugar from Mexico. For
a full description of the scope of the investigation, see the ``Scope
of the Investigation,'' in the Appendix of this notice.
Comments on Scope of Investigation
During our review of the Petition, the Department issued questions
to, and received responses from, Petitioners pertaining to the proposed
scope in order to ensure that the scope language in the Petition would
be an accurate reflection of the products for which the domestic
industry is seeking relief.\6\ As discussed in the Preamble to the
regulations,\7\ we are setting aside a period for interested parties to
raise issues regarding product coverage. The period of scope comments
is intended to provide the Department with ample opportunity to
consider all comments and to consult with parties prior to the issuance
of the preliminary determinations. All comments must be filed by 5:00
p.m. Eastern Daylight Time (EDT) on May 7, 2014, which is twenty
calendar days from the signature date of this notice. Any rebuttal
comments must be filed by 5:00 p.m. EDT on May 14, 2014. All such
comments must be filed on the records of the AD investigation, as well
as the concurrent CVD investigation.
---------------------------------------------------------------------------
\6\ See General Issues Questionnaire; see also General Issues
Supplement, at 3-8; Phone Call with Petitioners Ex Parte Memorandum,
dated April 9, 2014; Second General Issues Supplement, at 1-4; and
Scope Supplement.
\7\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
---------------------------------------------------------------------------
Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (IA ACCESS).\8\ An electronically
filed document must be received successfully in its entirety by the
time and date noted above. Documents excepted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets United, Room 1870,
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, and stamped with the date and time of receipt by
the established deadline.\9\
---------------------------------------------------------------------------
\8\ For general filing requirements, see 19 CFR 351.303.
\9\ See 19 CFR 351.303(b). For details regarding the
Department's electronic filing requirements, see Antidumping and
Countervailing Duty Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR 39263 (July 6,
2011). Information regarding IA ACCESS assistance can be found at
https://iaaccess.trade.gov/help.aspx, and a handbook can be found at
https://iaaccess.trade.gov/help/Handbook%20on%20Electronic
%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------
Comments on Product Characteristics for Antidumping Questionnaires
The Department requests comments from interested parties regarding
the appropriate physical characteristics of sugar to be reported in
response to the Department's AD questionnaires. This information will
be used to identify the key physical characteristics of the subject
merchandise in order to report the relevant factors and costs of
production accurately as well as to develop appropriate product-
comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics and (2) product-comparison criteria. We note that it is
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful
commercial differences among products. In other words, while there may
be some physical product characteristics utilized by manufacturers to
describe sugar, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, the Department attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, we must receive comments
on product characteristics by May 8, 2014. Rebuttal comments must be
received by May 19, 2014.\10\ All comments and submissions to the
Department must be filed electronically using IA ACCESS, as referenced
above.
---------------------------------------------------------------------------
\10\ Where the deadline falls on a weekend/holiday, the
appropriate date is the next business day.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the
[[Page 22797]]
domestic like product produced by that portion of the industry
expressing support for, or opposition to, the petition. Moreover,
section 732(c)(4)(D) of the Act provides that, if the petition does not
establish support of domestic producers or workers accounting for more
than 50 percent of the total production of the domestic like product,
the Department shall: (i) Poll the industry or rely on other
information in order to determine if there is support for the petition,
as required by subparagraph (A); or (ii) if there is a large number of
producers in the industry, the Department may determine industry
support using a statistically valid sampling method to poll the
industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. In investigations
involving processed agricultural products, the statute allows the
Department also to include growers or producers of the raw agricultural
product within the definition of the industry.\11\ Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product,\12\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, the Department's
determination is subject to limitations of time and information.
Although this may result in different definitions of the like product,
such differences do not render the decision of either agency contrary
to law.\13\
---------------------------------------------------------------------------
\11\ See section 771(4)(E) of the Act. For a full discussion of
this provision of the Act and the Department's analysis, see
Antidumping Duty Investigation Initiation Checklist: Sugar from
Mexico (AD Initiation Checklist), at Attachment II, Analysis of
Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Sugar from Mexico (Attachment II). This checklist
is dated concurrently with, and hereby adopted by, this notice and
is on file electronically via IA ACCESS. Access to documents filed
via IA ACCESS is also available in the Central Records Unit (CRU),
Room 7046 of the main Department of Commerce building.
\12\ See section 771(10) of the Act.
\13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we determined that sugar, as defined in the scope of the
investigation, constitutes a single domestic like product and we
analyzed industry support in terms of that domestic like product.\14\
---------------------------------------------------------------------------
\14\ See AD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------
In determining whether Petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation'' section above. To
establish industry support, Petitioners provided their production of
the domestic like product in crop year 2012/2013,\15\ and compared this
to the total production of the domestic like product for the entire
domestic industry.\16\ We relied upon data Petitioners provided for
purposes of measuring industry support.\17\
---------------------------------------------------------------------------
\15\ Data on the domestic sugar industry are gathered and
presented by the United States Department of Agriculture (USDA) on a
crop year basis to reflect the annual cycle of planting, growing,
harvesting, and processing sugar. The crop year begins on October 1
and ends on September 30. Petitioners contend that data on a crop
year basis more accurately reflects the production of sugar than
would data presented on a calendar year basis. In addition,
Petitioners note that all producers of sugar report their data to
USDA on a crop year basis. See General Issues Supplement, at 12.
\16\ See Exhibit Volume I, at Exhibit I-6; General Issues
Supplement, at 9-16 and Exhibits II and III; and Second General
Issues Supplement, at 4-6 and Attachments 1-3.
\17\ See AD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------
On April 10, 2014, we received comments on industry support from
the Grocery Manufacturers Association (GMA).\18\ We also received
comments on industry support from Archer Daniels Midland Company (ADM)
\19\ and Camara Nacional de Las Industrias Azucarera Y Al Alcoholera
(Camara) on April 11, 2014.\20\ Petitioners responded to the letters
from GMA, ADM, and Camara on April 15, 2014.\21\ In consultations with
the Department held with respect to the companion CVD case on imports
of sugar from Mexico, the Government of Mexico raised the issue of
industry support.\22\ On April 15, 2014, we received additional
comments on industry support from the GMA.\23\ For further discussion
of these comments, see the AD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------
\18\ See Letter from the Grocery Manufacturers Association,
dated April 11, 2014. We note that this letter is dated April 11,
2014; however, it was received by the Department on April 10, 2014.
\19\ See Letter from Archer Daniels Midland Company, dated April
11, 2014.
\20\ See Letter from Camara, dated April 11, 2014.
\21\ See Letter from Petitioners, dated April 15, 2014.
\22\ See Memorandum to the File from Vicki Flynn, dated April
15, 2014, titled ``Placing Consultations Memorandum on the AD
Record.''
\23\ See Letter from the Grocery Manufacturers Association,
dated April 15, 2014.
---------------------------------------------------------------------------
Based on information provided in the Petition, supplemental
submissions, and other information readily available to the Department,
we determine that Petitioners met the statutory criteria for industry
support under section 732(c)(4)(A)(i) of the Act because the domestic
producers (or workers) who support the Petition account for at least 25
percent of the total production of the domestic like product.\24\ Based
on information provided in the Petition, the domestic producers (or
workers) met the statutory criteria for industry support under section
732(c)(4)(A)(ii) of the Act because the domestic producers (or workers)
who support the Petition account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the Petition.
Accordingly, the Department determines that the Petition was filed on
behalf of the domestic industry within the meaning of section 732(b)(1)
of the Act.\25\
---------------------------------------------------------------------------
\24\ Id.
\25\ Id.
---------------------------------------------------------------------------
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because they are interested parties as defined
in sections 771(9)(C), (E), (F), or (G) of the Act and they
demonstrated sufficient industry support with respect to the AD
investigation that they are requesting the Department initiate.\26\
---------------------------------------------------------------------------
\26\ Id.
---------------------------------------------------------------------------
Allegations and Evidence of Material Injury and Causation
Petitioners allege that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than normal
[[Page 22798]]
value (NV). In addition, Petitioners allege that subject imports exceed
the negligibility threshold provided for under section 771(24)(A) of
the Act.\27\
---------------------------------------------------------------------------
\27\ See Petition Narrative, at 31 and Exhibit Volume I, at
Exhibit I-15; see also General Issues Supplement, at 17-18 and
Exhibit VII.
---------------------------------------------------------------------------
Petitioners contend that the industry's injured condition is
illustrated by reduced market share, underselling and price depression
or suppression, lost sales and revenues, forfeitures and USDA purchases
that remove surpluses of domestically produced sugar from the market to
stabilize prices, decline in payments to growers and farmers, and
decline in financial performance.\28\ We have assessed the allegations
and supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation.\29\
---------------------------------------------------------------------------
\28\ See Petition Narrative, at 3-4, 19-21, 28-55 and Exhibit
Volume I, at Exhibits I-3, I-4, I-13 and I-15 through I-21; see also
General Issues Supplement, at 15-19 and Exhibits I.A and VI through
VIII; Second General Issues Supplement, at 5-7 and Attachment 3; and
Scope Supplement, at 2 and Attachment 1.
\29\ See AD Initiation Checklist, at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Sugar from
Mexico.
---------------------------------------------------------------------------
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate an investigation of imports of sugar from Mexico. The sources
of data for the deductions and adjustments relating to U.S. price and
NV are discussed in greater detail in the AD Initiation Checklist.
Export Price
Petitioners calculated export prices (EP) for estandar (a semi-
refined form of sugar) and fully refined sugar based on Mexican export
statistics, which, unlike U.S. import statistics, distinguish between
these two forms of sugar shipped to the United States.\30\ The ability
to segregate estandar import data from the import data relating to
fully-refined sugar is significant because imports of semi-refined
sugar compete directly with U.S. raw sugar sales to refiners, whereas
imports of refined sugar compete with U.S. refined sugar.\31\ To derive
the ex-factory prices, Petitioners made deductions to the Mexican
export prices for inland freight and handling costs between the mills
and the trading companies that export to the United States.\32\
---------------------------------------------------------------------------
\30\ See Petition Narrative at 75 and Exhibit Volume II, at
Exhibit II-11; see also AD Initiation Checklist.
\31\ See Petition Narrative at 59-62.
\32\ Id. at 75-76; see also AD Initiation Checklist.
---------------------------------------------------------------------------
Normal Value
Petitioners provided monthly average home market prices for both
estandar and refined sugar in Mexico for the months of the POI.
Petitioners obtained the home market price data from the Government of
Mexico's Sistema Nacional de Informaci[oacute]n e Integraci[oacute]n de
Mercados (SNIIM).\33\ To derive the ex-factory price, Petitioners
deducted delivery costs for shipment from the mill to the wholesale
market from the SNIIM wholesale market prices.\34\
---------------------------------------------------------------------------
\33\ See Petition Narrative at Table 5 (page 60), Table 6 (page
62), and Exhibit Volume II, at Exhibits II-2E and II-4; see also AD
Initiation Checklist.
\34\ See Petition Narrative, at 67; see also AD Initiation
Checklist.
---------------------------------------------------------------------------
Sales-Below-Cost Allegation
Petitioners provided information demonstrating reasonable grounds
to believe or suspect that sales of sugar in the Mexican market were
made at prices below the fully-absorbed cost of production (COP),
within the meaning of section 773(b) of the Act, and requested that the
Department conduct a country-wide sales-below-cost investigation. The
Statement of Administrative Action (SAA) accompanying the Uruguay Round
Agreements Act, states that an allegation of sales below COP need not
be specific to individual exporters or producers.\35\ The SAA states
that ``Commerce will consider allegations of below-cost sales in the
aggregate for a foreign country, just as Commerce currently considers
allegations of sales at less than fair value on a country-wide basis
for purposes of initiating an antidumping investigation.'' \36\
Further, the SAA provides that section 773(b)(2)(A) of the Act retains
the requirement that the Department have ``reasonable grounds to
believe or suspect'' that below-cost sales occurred before initiating
such an investigation. Reasonable grounds exist when an interested
party provides specific factual information on costs and prices,
observed or constructed, indicating that sales in the foreign market in
question are at below-cost prices.\37\
---------------------------------------------------------------------------
\35\ See SAA, H.R. Doc. No. 103-316 at 833 (1994), reprinted in
1994 U.S.C.C.A.N. 3773.
\36\ Id.
\37\ Id.
---------------------------------------------------------------------------
Cost of Production
Pursuant to section 773(b)(3) of the Act, COP consists of the cost
of manufacturing (COM); selling, general and administrative (SG&A)
expenses; financial expenses; and packing expenses. Petitioners
calculated the COM for estandar and refined sugar based on publicly-
available data on sugar cane costs specific to Mexico and the
production experience of five U.S. producers of raw and refined sugar,
adjusted for known differences between the Mexico and U.S. industries
during the prospective POI. We revised the calculation of the raw
material cost to incorporate an offset for by-product income. To
calculate the by-product offset rate, we relied on the fiscal year
ended December 31, 2013 (FY 2013) financial data for four U.S.
producers of raw sugar. The resulting by-product offset was used to
reduce the raw material costs.\38\
---------------------------------------------------------------------------
\38\ See AD Initiation Checklist at Attachments V and VI.
---------------------------------------------------------------------------
To determine the SG&A rate, Petitioners relied on the FY 2013
financial data for four U.S. producers of raw sugar. We note that it is
the Department's preference to rely upon financial information from a
producer in the country under investigation (i.e., Mexico) when
calculating the SG&A rate. The SG&A rate used in the Petition was
comparable with that expected from sugar producers in Mexico based on
information contained in an article published in the Business
Intelligence Journal. As such, we do not consider the SG&A rate
calculated using the U.S. producers' financial data to be unreasonable.
Petitioners conservatively did not add an amount for financial expenses
or for packing expenses.
To determine the COP of estandar sugar, Petitioners added together
the COM and SG&A expenses calculated above. We revised the calculation
of the COP of estandar sugar to incorporate the revised raw material
costs calculated above.\39\
---------------------------------------------------------------------------
\39\ Id.
---------------------------------------------------------------------------
To determine the COP of refined sugar, Petitioners relied on the
production experience of a U.S. producer of refined sugar. Petitioners
added the additional cost of processing estandar sugar into refined
sugar to the COP of estandar sugar calculated above. We revised the
calculation of the COP of refined sugar to incorporate the revised raw
material costs for estandar sugar calculated above.\40\
---------------------------------------------------------------------------
\40\ Id.
---------------------------------------------------------------------------
Based upon a comparison of the prices of the foreign like product
in the home market to the calculated COP of the most comparable
product, we find reasonable grounds to believe or suspect that sales of
the foreign like product were made below the COP, within the
[[Page 22799]]
meaning of section 773(b)(2)(A)(i) of the Act. Accordingly, the
Department is initiating a country-wide cost investigation.
Normal Value Based on Above-Cost Home Market Prices
Because some home market prices for refined sugar fell below COP,
pursuant to section 773(b)(1) of the Act, Petitioners based NV of
refined sugar on the average of above-cost home market prices obtained
from SNIIM and adjusted for delivery costs from the mill to the
wholesale market.\41\
---------------------------------------------------------------------------
\41\ See Petition Narrative at 66-67 and 74-75; see also First
AD Supplement, at Exhibits 3 and 5; AD Initiation Checklist.
---------------------------------------------------------------------------
Normal Value Based on Constructed Value
Because all home market prices for estandar sugar fell below COP,
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act,
Petitioners calculated the NV of estandar sugar based on constructed
value (CV). Petitioners calculated CV using the same COM and SG&A used
to compute the COP of estandar sugar. To calculate the CV profit rate,
Petitioners relied on the 2013 above-cost home market sales of refined
sugar from the sales below cost allegation in the Petition. The rate
was computed using the average profit (i.e., sales price minus COP) of
the above-cost home market sales of refined sugar, divided by the COP
of refined sugar. We revised the CV profit rate to incorporate the
revised COP of refined sugar. This revised rate was then applied to the
revised COP of estandar sugar as calculated above.\42\
---------------------------------------------------------------------------
\42\ See AD Initiation Checklist at Attachments V and VI.
---------------------------------------------------------------------------
Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of sugar from Mexico are being, or are likely to
be, sold in the United States at less than fair value. Based on
comparisons of EP to NV and EP to CV for Mexico, in accordance with
section 773(a)(4) of the Act, the estimated dumping margins for sugar
from Mexico range from 30.00 to 64.31 percent.\43\
---------------------------------------------------------------------------
\43\ See Second AD Supplement at Exhibit 2; see also AD
Initiation Checklist at Attachments V and VI.
---------------------------------------------------------------------------
Initiation of Antidumping Investigation
Based upon the examination of the AD Petition on sugar from Mexico,
we find that the Petition meets the requirements of section 732 of the
Act. Therefore, we are initiating an AD investigation to determine
whether imports of sugar from Mexico are being, or are likely to be,
sold in the United States at less than fair value. In accordance with
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determination no later than 140
days after the date of this initiation.
Respondent Selection
Following standard practice in AD investigations involving market
economy countries, in the event the Department determines that the
number of known exporters or producers for this investigation is large,
the Department may select respondents based on U.S. Customs and Border
Protection (CBP) data for U.S. imports of sugar from Mexico under all
Harmonized Tariff Schedule of the United States (HTSUS) subheadings
identified in Scope of the Investigation.\44\ We intend to release the
CBP data under Administrative Protective Order (APO) to all parties
with access to information protected by APO within five days of
publication of this Federal Register notice.
---------------------------------------------------------------------------
\44\ See Appendix of this notice for a listing of the HTSUS
subheadings in the Scope of the Investigation.
---------------------------------------------------------------------------
The Petition identified 55 producers and/or exporters of sugar in
Mexico.\45\ We intend to make our decision regarding respondent
selection within 20 days of publication of this notice. The Department
invites comments regarding the CBP data and respondent selection within
seven days of publication of this Federal Register.
---------------------------------------------------------------------------
\45\ See Exhibit Volume I, at Exhibit I-12.
---------------------------------------------------------------------------
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petition have been
provided to the Government of Mexico via IA ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petition to each exporter named in the Petition, as provided under
19 CFR 351.203(c)(2).
ITC Notification
We notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine no later than May 12, 2014,
whether there is a reasonable indication that imports of sugar from
Mexico are materially injuring, or threatening material injury to, a
U.S. industry. A negative ITC determination will result in the
investigation being terminated; otherwise, the investigation will
proceed according to statutory and regulatory time limits.\46\
---------------------------------------------------------------------------
\46\ On September 20, 2013, the Department modified its
regulation concerning the extension of time limits for submissions
in AD and CVD proceedings. See Extension of Time Limits, 78 FR 57790
(September 20, 2013). The modification clarifies that parties may
request an extension of time limits before any time limit
established under Part 351 expires. This modification also requires
that an extension request must be made in a separate, stand-alone
submission, and clarifies the circumstances under which the
Department will grant untimely-filed requests for the extension of
time limits.
---------------------------------------------------------------------------
Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013) (Factual Information Final
Rule), which modified two regulations related to AD and CVD
proceedings: the definition of factual information (19 CFR
351.102(b)(21)), and the time limits for the submission of factual
information (19 CFR 351.301). The final rule identifies five categories
of factual information in 19 CFR 351.102(b)(21), which are summarized
as follows: (i) Evidence submitted in response to questionnaires; (ii)
evidence submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by the Department; and (v) evidence other than
factual information described in (i)-(iv). The final rule requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
and, if the information is submitted to rebut, clarify, or correct
factual information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct. The final rule also
modified 19 CFR 351.301 so that, rather than providing general time
limits, there are specific time limits based on the type of factual
information being submitted. These modifications are effective for all
proceeding segments initiated on or after May 10, 2013, and thus are
applicable to this investigation. Please review the Factual Information
Final Rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt prior to submitting factual information in these
investigations.
[[Page 22800]]
Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective order in accordance with 19 CFR 351.305. On
January 22, 2008, the Department published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to
participate in these investigations should ensure that they meet the
requirements of these procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR 351.103(d)).
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\47\
Parties are hereby reminded that the Department issued a final rule
with respect to certification requirements, effective August 16, 2013.
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives. All segments of any AD or CVD proceedings initiated on
or after August 16, 2013, should use the formats for the revised
certifications provided at the end of the Certifications Final
Rule.\48\ The Department intends to reject factual submissions if the
submitting party does not comply with the applicable revised
certification requirements.
---------------------------------------------------------------------------
\47\ See section 782(b) of the Act.
\48\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Certification Final Rule);
see also the frequently asked questions regarding the Certification
Final Rule, available at the following: http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------
This notice is issued and published pursuant to section 777(i) of
the Act and 19 CFR 351.203(c).
Dated: April 17, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The product covered by this investigation is sugar derived from
sugar cane or sugar beets. Sucrose gives sugar its essential
character. Sucrose is a nonreducing disaccharide composed of glucose
and fructose linked via their anomeric carbons. The molecular
formula for sucrose is C12H22011,
the International Union of Pure and Applied Chemistry (IUPAC)
International Chemical Identifier (InChl) for sucrose is 1S/
C12H22O11/c13-l-4-6(16)8(18)9(19)11(21-4)23-12(3-15)10(20)7(17)5(2-
14)22-12/h4-11,13-20H,1-3H2/t4-,5-,6-,7-,8+,9-,10+,11-,12+/m1/s1,
the InChl Key for sucrose is CZMRCDWAGMRECN-UGDNZRGBSA-N, the U.S.
National Institutes of Health PubChem Compound Identifier (CID) for
sucrose is 5988, and the Chemical Abstracts Service (CAS) Number of
sucrose is 57-50-1.
Sugar within the scope of this investigation includes raw sugar
(sugar with a sucrose content by weight in a dry state that
corresponds to a polarimeter reading of less than 99.5 degrees) and
estandar or standard sugar which is sometimes referred to as ``high
polarity'' or ``semi-refined'' sugar (sugar with a sucrose content
by weight in a dry state that corresponds to a polarimeter reading
of 99.2 to 99.6 degrees). Sugar within the scope of this
investigation includes refined sugar with a sucrose content by
weight in a dry state that corresponds to a polarimeter reading of
at least 99.9 degrees. Sugar within the scope of this investigation
includes brown sugar, liquid sugar (sugar dissolved in water),
organic raw sugar and organic refined sugar.
Inedible molasses is not within the scope of this investigation.
Specialty sugars, e.g., rock candy, fondant, sugar decorations, are
not within the scope of this investigation. Processed food products
that contain sugar, e.g., beverages, candy, cereals, are not within
the scope of this investigation.
Merchandise covered by this investigation is typically imported
under the following headings of the Harmonized Tariff Schedule of
the United States (HTSUS): 1701.12.1000, 1701.12.5000, 1701.13.1000,
1701.13.5000, 1701.14.1000, 1701.14.5000, 1701.91.1000,
1701.91.3000, 1701.99.1025, 1701.99.1050, 1701.99.5025,
1701.99.5050, and 1702.90.4000. The tariff classification is
provided for convenience and customs purposes; however, the written
description of the scope of this investigation is dispositive.
[FR Doc. 2014-09363 Filed 4-23-14; 8:45 am]
BILLING CODE 3510-DS-P