[Federal Register Volume 79, Number 178 (Monday, September 15, 2014)]
[Notices]
[Pages 54967-54969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21982]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-844]
Steel Concrete Reinforcing Bar From Mexico: Final Determination
of Sales at Less Than Fair Value and Final Affirmative Determination of
Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) 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 ``Final Determination'' section of this
notice. The Department also determines that critical circumstances
exist with respect to imports of rebar from Mexico from mandatory
respondents Deacero S.A.P.I. de C.V. and Deacero USA, Inc.
(collectively, Deacero) and Grupo Acerero S.A. de C.V. (Acerero), the
voluntary respondent, Grupo Simec (Simec)/Orge S.A. de C.V. (Orge)
(collectively Simec), and Mexican firms that are subject to the all
others rate.
DATES: Effective Date: September 15, 2014.
FOR FURTHER INFORMATION CONTACT: Stephanie Moore (Deacero), or Joy
Zhang (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:
Background
On April 24, 2014, the Department published the Preliminary
Determination in the Federal Register.\1\ In the Preliminary
Determination, we postponed the final determination until no later than
135 days after the publication of the Preliminary Determination in
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii) and (e) and invited parties to comment on our
Preliminary Determination. On August 4, 2014, we received case briefs
from Petitioner,\2\ Deacero, Simec, and Acerero. On August 11, 2014, we
received rebuttal briefs from Petitioner, Deacero, and Simec.
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\1\ See Steel Concrete Reinforcing Bar from Turkey: Preliminary
Affirmative Determination of Sales at Less Than Fair Value,
Preliminary Affirmative Determination of Critical Circumstances, and
Postponement of Final Determination, 79 FR 22804 (April 24, 2014)
(Preliminary Determination).
\2\ Petitioner is the Rebar Trade Action Coalition and its
members: Nucor Corporation, Gerdau Ameristeel U.S. Inc., Commercial
Metals Company, Cascade Steel Rolling Mills, Inc., and Byer Steel
Corporation.
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Period of Investigation
The period of investigation is July 1, 2012, through June 30, 2013.
Scope Comments
On June 19, 2014, Petitioner submitted a request that the
Department amend the scope of this investigation to exclude certain
types of deformed steel wire by inserting the sentence below
immediately before the last sentence of the current scope language:
Also excluded from the scope is deformed steel wire meeting ASTM
A1064/A1064M with no bar markings (e.g., mill mark, size, or grade)
and without being subject to an elongation test.
We solicited comments on the scope of the investigation from interested
parties in the Initiation Notice \3\ and case briefs.\4\ Because no
other interested party has submitted comments regarding the
Petitioner's request to amend the scope language, and we see no reason
to deny Petitioner's request, we incorporated this amendment into the
``Scope of the Investigation'' section below.
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\3\ See Steel Concrete Reinforcing Bar from Mexico and Turkey:
Initiation of Antidumping Duty Investigations, 78 FR 60827 (October
2, 2013) (Initiation Notice).
\4\ See Preliminary Determination, 79 FR at 22803.
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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). Also excluded from the scope is deformed steel wire meeting
ASTM A1064/A1064M with no bar markings (e.g., mill mark, size or grade)
and without being subject to an elongation test. HTSUS numbers are
provided for convenience and customs purposes; however, the written
description of the scope remains dispositive.
Verification
As provided in section 782(i) of the Act, we conducted sales and
cost verifications of the questionnaire responses submitted by Deacero
and Simec. We used standard verification procedures, including
examination of relevant accounting and production records, as well as
original source
[[Page 54968]]
documents provided by both companies.\5\
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\5\ See Memorandum to Melissa G. Skinner, Director, Office III,
Operations, ``Verification of the Sales response of Grupo Simec and
Constructed Export Sales of Simec USA in the Antidumping Duty
Investigation of Steel Concrete Reinforcing Bar from Mexico,'' (July
1, 2014), see also Memorandum to Neal M. Halper, ``Verification of
the Cost Response of Grupo Simec in the Antidumping Duty
Investigation of Steel Concrete Reinforcing Bar from Mexico,'' (July
11, 2014), see also Memorandum to Melissa G. Skinner, Director,
Office III, Operations, ``Verification of the Sales Response of
Deacero in the 2012-2013 Antidumping Duty Investigation of Concrete
Steel Reinforcing Bar (Rebar) from Mexico,'' (July 7, 2014), see
also Memorandum to Neal M. Halper, ``Verification of the Cost
Response of Deacero S.A.P.I. de C.V. in the Antidumping Duty
Investigation of Steel Concrete Reinforcing Bar from Mexico,'' (July
25, 2014).
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Analysis of the Comments Received
All issues raised in the case and rebuttal briefs for this
investigation are addressed in the Issues and Decision Memorandum.\6\ A
list of the issues which parties raised and to which we responded in
the Issues and Decision Memorandum is attached to this notice as an
Appendix. The Issues and 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 (CRU), room 7046 of the main Department of Commerce
building. In addition, a complete version of the Issues and Decision
Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision
Memorandum and the electronic versions of the Issues and Decision
Memorandum are identical in content.
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\6\ See the memorandum from Deputy Assistant Secretary Christian
Marsh to Assistant Secretary Paul Piquado entitled ``Issues and
Decision Memorandum for the Final Affirmative Determination in the
Less than Fair Value Investigation of Steel Concrete Reinforcing Bar
from Mexico,'' dated concurrently with this notice and hereby
adopted by this notice (Issues and Decision Memorandum).
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Changes Since the Preliminary Determination
Based on our analysis of the comments received, pre-verification
corrections, and our findings at verification, we made certain changes
to the margin calculations for Deacero. For Simec, we determined to
apply a margin based on total adverse facts available. Our
determination for Acerero, to apply a margin based on total adverse
facts available, remains unchanged from the Preliminary Determination.
Final Affirmative Determination of Critical Circumstances
On December 17, 2013, Petitioner 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.\7\ Based on
our analysis, pursuant to 735(a)(3), we continue to find that critical
circumstances exist with regard to imports of rebar from Deacero,
Acerero, and the Mexican firms subject to the all others rate.
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\7\ See Petitioners' submission, ``Steel Concrete Reinforcing
Bar from Mexico: Critical Circumstances Allegation,'' dated December
17, 2013.
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For further information concerning our analysis, see the ``Critical
Circumstances'' section of the Issues and Decision Memorandum.
Final Determination
For the final determination, the following margins exist for the
following entities for the POI:
------------------------------------------------------------------------
Estimated
weighted-
Producer or exporter average
dumping margin
(percent)
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Deacero S.A.P.I. de C.V................................. 20.58
Grupo Acerero S.A. de C.V............................... 66.70
Grupo Simec............................................. 66.70
All Others.............................................. 20.58
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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
and producers individually investigated, excluding all rates that are
zero, de minimis, or determined entirely under section 776 of the Act.
Therefore, for purposes of determining the ``all others'' rate and
pursuant to section 735(c)(5)(A) of the Act, we are using the weighted-
average dumping margin calculated for Deacero as the weighted-average
dumping margin for all other producers and exporters of subject
merchandise.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As noted above, the Department reached an affirmative critical
circumstances determination at both the Preliminary Determination and
final determination with respect to imports of the merchandise under
consideration from Deacero, Acerero, and the Mexican firms subject to
the all others rate. Therefore, in accordance with section 735(c)(4)(A)
of the Act, we will instruct U.S. Customs and Border Protection (CBP)
to continue to suspend liquidation of entries of rebar from Mexico from
Deacero, Acerero, and the Mexican firms subject to the all others rate
that were entered, or withdrawn from warehouse, for consumption on or
after January 24, 2014, which is 90 days prior to publication of the
Preliminary Determination in the Federal Register, and require a cash
deposit for such entries as noted above. Because the Department reached
a negative critical circumstances determination at the Preliminary
Determination, and an affirmative critical circumstances determination
at the final determination with respect to Simec, pursuant to section
735(c)(4)(B) of the Act, the Department will instruct CBP to suspend
liquidation of all entries of rebar from Mexico from Simec which were
entered, or withdrawn from warehouse, for consumption on or after
January 24, 2014,which is 90-days prior to the date of publication of
the Preliminary Determination in the Federal Register, and require a
cash deposit for such entries as noted above.
Pursuant to section 735(c)(l) of the Act and 19 CFR 351.210(d), the
Department will instruct CBP to require cash deposits equal to the
weighted-average dumping margins indicated in the table above.\8\ If
the exporter is not a firm identified in this investigation but the
producer is, the rate will be the rate established for the producer of
the subject merchandise. The rate for all other producers or exporters
will be 20.58 percent ad valorem. These suspension of liquidation and
cash deposit instructions will remain in effect until further notice.
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\8\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
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U.S. International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. Because
the final
[[Page 54969]]
determination in this proceeding is affirmative, in accordance with
section 735(b)(2) of the Act, the ITC will 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
rebar from Mexico no later than 45 days after our final determination.
If the ITC determines that material injury or threat of material injury
does not exist, the proceeding will be terminated and all securities
posted will be refunded or canceled. If the ITC determines that such
injury does exist, the Department will issue an antidumping duty order
directing CBP to assess antidumping duties on all imports of the
merchandise under investigation entered, or withdrawn from warehouse,
for consumption on or after the effective date of the suspension of
liquidation.
Notification Regarding Administrative Protective Orders (APO)
This notice also serves as a reminder to the parties subject to the
APO of their responsibility concerning the disposition of proprietary
information disclosed under APO in accordance with 19 CFR 351.305.
Timely written notification of the return or destruction of APO
materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and the terms of an
APO is a sanctionable violation.
This determination and notice are issued and published in
accordance with sections 735(d) and 777(i)(l) of the Act and 19 CFR
351.210(c).
Dated: September 8, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix--List of Issues Discussed in the Final Issues and Decision
Memorandum
I. Summary
II. List of Comments
III. Background
IV. Application of Adverse Facts Available With Regard to Acerero
and Simec
V. Critical Circumstances
VI. Scope Comments
VII. Scope of the Investigation
VIII. All Others Rate
IX. Discussion of the Issues
General Issues
Comment 1: Scope of the Subject Merchandise
Comment 2: Whether Cooling Method Should Be Incorporated Into
CONNUMs
Issues Regarding Deacero
Comment 3: Whether Certain Home Market Sales Are Outside the
Ordinary Course of Trade
Comment 4: Application of Adverse Facts Available for Deacero's
Unreported U.S. Sales
Comment 5: Critical Circumstances Finding
Issues Regarding Simec
Comment 6: Application of Total Adverse Facts Available to Simec
Comment 7: Whether Constructed Value Can Be Used as the Basis
for Normal Value
Comment 8: Whether the Department Can Calculate Indirect Selling
Expenses From the Information on the Record
Comment 9: Whether Simec's Sales to Affiliated Distributors Were
Made at Arm's Length
Issues Regarding Acerero
Comment 10: Whether the Application of Total AFA With Regard to
Acerero is Warranted
Comment 11: Whether the AFA Rate Applied to Acerero is Punitive
and Excessive
X. Recommendation
[FR Doc. 2014-21982 Filed 9-12-14; 8:45 am]
BILLING CODE 3510-DS-P