[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22802-22804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09368]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-844]


Steel Concrete Reinforcing Bar From Mexico: Preliminary 
Determination of Sales at Less Than Fair Value, Preliminary Affirmative 
Determination of Critical Circumstances, and Postponement of Final 
Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that steel concrete reinforcing bar (rebar) from Mexico is 
being, or is likely to be, sold in the United States at less than fair 
value (LTFV), as provided in section 733(b) of the Tariff Act of 1930, 
as amended (the Act). The period of investigation (POI) is July 1, 
2012, through June 30, 2013. The estimated weighted-average dumping 
margins of sales at LTFV are listed in the ``Preliminary 
Determination'' section of this notice. The Department also 
preliminarily determines that critical circumstances exist for certain 
imports of rebar from Mexico. Finally, in response to a request from an 
exporter accounting for a significant proportion of export of the 
subject merchandise, we are postponing the final determination. The 
final determination will be issued 135 days after the publication of 
this preliminary determination in the Federal Register. We invite 
interested parties to comment on this preliminary determination.

DATES: Effective Date: April 24, 2014.

FOR FURTHER INFORMATION CONTACT: Stephanie Moore (Deacero), or Joy 
Zhang (Grupo Simec), AD/CVD Operations, Office III, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230; telephone: (202) 482-3692 or (202) 482-1168.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The merchandise subject to this investigation is steel concrete 
reinforcing bar imported in either straight length or coil form (rebar) 
regardless of metallurgy, length, diameter, or grade. The subject 
merchandise is classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS) primarily under item numbers 7213.10.0000, 
7214.20.0000, and 7228.30.8010. The subject merchandise may also enter 
under other HTSUS numbers including 7215.90.1000, 7215.90.5000, 
7221.00.0015, 7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 
7222.11.0059, 7222.30.0001, 7227.20.0080, 7227.90.6085, 7228.20.1000, 
and 7228.60.6000. Specifically excluded are plain rounds (i.e., non-
deformed or smooth rebar). HTSUS numbers are provided for convenience 
and customs purposes; however, the written description of the scope 
remains dispositive.

Postponement of Final Determination

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who

[[Page 22803]]

account for a significant proportion of exports of the subject 
merchandise, or in the event of a negative preliminary determination, a 
request for such postponement is made by Petitioner. Under 19 CFR 
351.210(e)(2), the Department requires that requests by respondents for 
postponement of a final determination be accompanied by a request for 
extension of provisional measures from a four-month period to not more 
than six months.
    On April 15, 2014, Deacero S.A.P.I. de C.V. (``Deacero''),\1\ the 
only mandatory respondent participating in this proceeding requested 
that the Department postpone the final determination.\2\ Deacero also 
agreed to extend the application of the provisional measures prescribed 
under section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-
month period to a six-month period.\3\ In accordance with section 
733(d) of the Act and 19 CFR 351.210(b), because (1) our preliminary 
determination is affirmative, (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise, and (3) 
no compelling reason for denial exists, we are granting the requests 
and are postponing the final determination until no later than 135 days 
after the publication of this preliminary determination notice in the 
Federal Register. The Department is further extending the application 
of the provisional measures from a four-month period to a period not 
longer than six months.
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    \1\ On December 16, 2013, Deacero S.A. de C.V. changed its legal 
name to Deacero S.A.P.I. de C.V. (Deacero). See letter from Deacero 
dated December 23, 2013.
    \2\ See letter from Deacero titled, ``Rebar from Mexico; request 
to postpone final determination,'' dated April 15, 2014.
    \3\ Id.
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Preliminary Affirmative Determination of Critical Circumstances

    On December 17, 2013, Petitioners \4\ filed a timely critical 
circumstances allegation pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of the merchandise under consideration.\5\ We 
preliminarily determine that the criteria under section 
733(a)(3)(A)(ii) and (B) of the Act are met and, thus, that critical 
circumstances exist with regard to certain imports of rebar from 
Mexico. For a full description of the methodology and results of our 
analysis, see the Preliminary Critical Circumstances Memorandum.\6\
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    \4\ The petition was filed by the Rebar Trade Action Coalition 
(RTAC) and its individual members (collectively, Petitioners).
    \5\ See Petitioners' submission, ``Steel Concrete Reinforcing 
Bar from Mexico: Critical Circumstances Allegation,'' dated December 
17, 2013.
    \6\ See Memorandum from James Doyle, Director, Office V, 
Antidumping and Countervailing Duty Operations to Paul Piquado, 
Assistant Secretary for Enforcement and Compliance, ``Antidumping 
Duty Investigation: Steel Concrete Reinforcing Bar from Mexico; 
Preliminary Affirmative Determination of Critical Circumstances, 
2012-2013,'' dated concurrently with this determination and hereby 
adopted by this notice (Preliminary Critical Circumstances 
Memorandum).
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Methodology

    The Department conducted this investigation in accordance with 
section 731 of the Act. Export prices have been calculated in 
accordance with section 772 of the Act. Constructed export prices have 
been calculated in accordance with section 772(b) of the Act. Normal 
value has been calculated in accordance with section 773 of the Act. 
Because the mandatory respondent Grupo Acerero S.A. de C.V. (Acerero) 
failed to respond to the Department's questionnaire, we preliminarily 
determine to apply adverse facts available to this respondent, in 
accordance with sections 776(a) and (b) of the Act and 19 CFR 351.308. 
The critical circumstances allegation has been analyzed in accordance 
with section 733(e)(1) of the Act and 19 CFR 351.206.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum dated concurrently 
with and hereby adopted by this notice.\7\ 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 (IA ACCESS). IA ACCESS is 
available to registered users at http://iaaccess.trade.gov, and it is 
available to all parties in the Central Records Unit, Room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Preliminary Decision Memorandum can be accessed directly on the 
internet at http://enforcement.trade.gov/frn/. The signed Preliminary 
Decision Memorandum and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
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    \7\ See Memorandum from James Doyle, Director, Office V, to Paul 
Piquado, Assistant Secretary for Enforcement and Compliance, 
regarding ``Decision Memorandum for the Preliminary Determination in 
the Less-Than-Fair-Value Investigation of Steel Concrete Reinforcing 
Bar from Mexico'' dated concurrently with this notice (Preliminary 
Decision Memorandum).
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Preliminary Determination

    We preliminarily determine the estimated weighted-average dumping 
margins are as follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Deacero S.A.P.I. de C.V.....................................       20.59
Grupo Acerero S.A. de C.V...................................       66.70
Grupo Simec.................................................       10.66
All Others..................................................       20.59
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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 or 
producers individually examined, excluding all zero or de minimis 
rates, and all rates determined entirely under section 776 of the Act. 
The Department's regulations further state that in calculating the all-
others rate under section 735(c)(5) of the Act, the Department will 
exclude estimated weighted-average dumping margin rates calculated for 
voluntary respondents.\8\ In this investigation, Grupo Simec is a 
voluntary respondent and Deacero is the only mandatory respondent for 
which we calculated an estimated weighted-average dumping margin that 
is not zero, de minimis or based entirely on facts otherwise available. 
Therefore, for purposes of determining the ``all others'' rate and 
pursuant to section 735(c)(5)(A) of the Act, we are using the estimated 
weighted-average dumping margin calculated for Deacero, as referenced 
above.
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    \8\ See 19 CFR 351.204(d)(3). See also Antidumping Duties; 
Countervailing Duties, 62 FR 27296, 27310 (May 19, 1997).
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Disclosure and Public Comment

    The Department intends to disclose to parties the calculations 
performed in connection with this preliminary determination within five 
days of the date of publication of this notice.\9\
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    \9\ See 19 CFR 351.224(b).
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    Interested parties are invited to comment on the preliminary 
determination. Case briefs or other written comments may be submitted 
to the Assistant Secretary for Enforcement and Compliance via IA ACCESS 
no later than seven days after the date on which the final verification 
report is issued in this investigation. Rebuttal briefs, the content of 
which is limited to the issues raised in the case briefs, must be filed

[[Page 22804]]

within five days from the deadline date for the submission of case 
briefs.\10\ A list of authorities used, a table of contents, and an 
executive summary of issues should accompany any briefs submitted to 
the Department.\11\ Executive summaries should be limited to five pages 
total, including footnotes. As noted above, interested parties who wish 
to comment on the preliminary determination must file briefs 
electronically using IA ACCESS.\12\ An electronically filed document 
must be received successfully in its entirety by the Department's 
electronic records system, IA ACCESS, by 5 p.m. Eastern Time on the 
date the document is due.
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    \10\ See 19 CFR 351.309(c), 19 CFR 351.309(d)(1), and 19 CFR 
351.309(d)(2).
    \11\ See 19 CFR 351.309(c)(2).
    \12\ See 19 CFR 351.303 (for general filing requirements).
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    In accordance with section 774 of the Act, the Department will hold 
a hearing, if timely requested, to afford interested parties an 
opportunity to comment on arguments raised in case or rebuttal briefs, 
provided that such a hearing is requested by an interested party.\13\ 
Interested parties who wish to request a hearing, or to participate if 
one is requested, must submit a written request within 30 days after 
the date of publication of this notice to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, filed 
electronically using IA ACCESS, as noted above.\14\ Requests should 
contain the following information: (1) The party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of the 
issues to be discussed.\15\ If a request for a hearing is made, we will 
inform parties of the scheduled date for the hearing which will be held 
at the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230.\16\ Parties should confirm by telephone the 
date, time, and location of the hearing.
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    \13\ See also 19 CFR 351.310.
    \14\ See 19 CFR 351.310(c).
    \15\ See id.
    \16\ See 19 CFR 351.310.
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we are directing 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of rebar from Mexico as described in the scope of the 
investigation section that are entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice in 
the Federal Register, and to require a cash deposit for such entries as 
described below. Moreover, with the exception of Grupo Simec, we 
preliminarily find that critical circumstances exist with respect to 
all exporters. Thus, with the exception of Grupo Simec, in accordance 
with section 733(e)(2)(A) of the Act, we are directing CBP to apply the 
suspension of liquidation and cash deposit requirements to any 
unliquidated entries of rebar from Mexico that are entered, or 
withdrawn from warehouse, for consumption on or after 90 days prior to 
the date of publication of this notice in the Federal Register.
    We will instruct CBP to require a cash deposit equal to the 
weighted-average amount by which the normal value exceeds U.S. price, 
as indicated in the chart above.\17\ The suspension of liquidation 
instructions will remain in effect until further notice.
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    \17\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping Duty Investigations, 76 FR 61042 (October 3, 2011).
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U.S. International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our preliminary affirmative determination of sales at LTFV. If 
our final determination in this proceeding is affirmative, then section 
735(b)(2) of the Act requires that the ITC 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 
steel concrete reinforcing bar from Mexico before the later of 120 days 
after the date of this preliminary determination or 45 days after our 
final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: April 18, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Issues Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Initiation of Sales-Below-Cost Investigation
V. Postponement of Preliminary Determination
VI. Postponement of Final Determination and Extension of Provisional 
Measures
VII. Scope of the Investigation
VIII. Scope Comments
IX. Respondent Selection
X. Physical Characteristics and Model Matching Hierarchy
XI. Application of Facts Available
XII. All Others Rate
XIII. Discussion of the Methodology
    A. Fair Value Comparisons
    B. Determination of Comparison Method
    C. Results of the Differential Pricing Analysis
    D. Product Comparisons
    E. Date of Sale
    F. Constructed Export Price
    G. Normal Value
    H. Currency Conversion
XIV. Verification
XV. Conclusion

[FR Doc. 2014-09368 Filed 4-23-14; 8:45 am]
BILLING CODE 3510-DS-P