Fresh Tomatoes From Mexico: Intent To Terminate Suspension Agreement, Rescind the Sunset and Administrative Reviews, and Resume the Antidumping Duty Investigation, 7872-7875 [2019-03928]

Download as PDF 7872 Federal Register / Vol. 84, No. 43 / Tuesday, March 5, 2019 / Notices Dated: February 28, 2019. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2019–03919 Filed 3–4–19; 8:45 am] BILLING CODE P Dated: February 27, 2019. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance, Alternate Chairman, Foreign-Trade Zones Board. [FR Doc. 2019–03926 Filed 3–4–19; 8:45 am] DEPARTMENT OF COMMERCE BILLING CODE 3510–DS–P Foreign-Trade Zones Board DEPARTMENT OF COMMERCE [Order No. 2079] Foreign-Trade Zones Board amozie on DSK9F9SC42PROD with NOTICES Approval of Subzone Status; Gulf Coast Growth Ventures LLC, San Patricio County, Texas [S–29–2019] Pursuant to its authority under the Foreign-Trade Zones Act of June 18, 1934, as amended (19 U.S.C. 81a–81u), the Foreign-Trade Zones Board (the Board) adopts the following Order: Whereas, the Foreign-Trade Zones (FTZ) Act provides for ‘‘. . . the establishment . . . of foreign-trade zones in ports of entry of the United States, to expedite and encourage foreign commerce, and for other purposes,’’ and authorizes the ForeignTrade Zones Board to grant to qualified corporations the privilege of establishing foreign-trade zones in or adjacent to U.S. Customs and Border Protection ports of entry; Whereas, the Board’s regulations (15 CFR part 400) provide for the establishment of subzones for specific uses; Whereas, the Port of Corpus Christi Authority, grantee of Foreign-Trade Zone 122, has made application to the Board for the establishment of a subzone at the facilities of Gulf Coast Growth Ventures LLC, located in San Patricio County, Texas (FTZ Docket B–59–2018, docketed September 25, 2018); Whereas, notice inviting public comment has been given in the Federal Register (83 FR 49356, October 1, 2018) and the application has been processed pursuant to the FTZ Act and the Board’s regulations; and, Whereas, the Board adopts the findings and recommendations of the examiner’s memorandum, and finds that the requirements of the FTZ Act and the Board’s regulations are satisfied; Now, therefore, the Board hereby approves subzone status at the facilities of Gulf Coast Growth Ventures LLC, located in San Patricio County, Texas (Subzone 122W), as described in the application and Federal Register notice, subject to the FTZ Act and the Board’s regulations, including Section 400.13. VerDate Sep<11>2014 17:54 Mar 04, 2019 Jkt 247001 Foreign-Trade Zone 279—Terrebonne Parish, Louisiana; Application for Expansion of Subzone 279A; ThomaSea Marine Constructors, L.L.C., Houma and Lockport, Louisiana An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Houma-Terrebonne Airport Commission, grantee of FTZ 279, requesting an expansion of Subzone 279A on behalf of Thoma-Sea Marine Constructors, L.L.C. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a– 81u), and the regulations of the Board (15 CFR part 400). It was formally docketed on February 27, 2019. Subzone 279A was approved on May 25, 2016 (S–8–2016, 81 FR 35298, June 2, 2016) and currently consists of the following sites: Site 1 (14.44 acres)—137 Barry Belanger Street (1874 Industrial Boulevard), Houma; Site 2 (63.758 acres)—6130 Louisiana Highway 308, Lockport; Site 3 (21.8 acres)—429 Rome Woodard Street (429 Main Port Court), Houma; and, Site 4 (18.377 acres)—139 Joe Brown Road, Lockport. A notification of production activity was authorized on June 2, 2016 (B–5–2016, 81 FR 37570, June 10, 2016). The applicant is requesting authority to expand Subzone 279A to include an additional site: Proposed Site 5 (12.9 acres)—202 Industrial Boulevard, Houma. The expanded subzone would be subject to the existing activation limit of FTZ 279. No additional authorization for production activity has been requested at this time. In accordance with the Board’s regulations, Camille Evans of the FTZ Staff is designated examiner to review the application and make recommendations to the Executive Secretary. Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive Secretary at the address below. The PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 closing period for their receipt is April 15, 2019. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to April 29, 2019. A copy of the application will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230–0002, and in the ‘‘Reading Room’’ section of the Board’s website, which is accessible via www.trade.gov/ftz. For further information, contact Camille Evans at Camille.Evans@ trade.gov or (202) 482–2350. Dated: February 27, 2019. Andrew McGilvray, Executive Secretary. [FR Doc. 2019–03925 Filed 3–4–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–201–820] Fresh Tomatoes From Mexico: Intent To Terminate Suspension Agreement, Rescind the Sunset and Administrative Reviews, and Resume the Antidumping Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) intends to terminate the 2013 Suspension Agreement on Fresh Tomatoes from Mexico (2013 Agreement), rescind the five-year sunset review of the suspended investigation and the administrative review of the 2013 Agreement, and to resume the antidumping duty (AD) investigation initiated in 1996. DATES: Applicable March 5, 2019. FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or Rebecca Lee, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0162 or (202) 482–6188, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On April 18, 1996, Commerce initiated an AD investigation to determine whether imports of fresh tomatoes from Mexico are being, or are likely to be, sold in the United States at E:\FR\FM\05MRN1.SGM 05MRN1 Federal Register / Vol. 84, No. 43 / Tuesday, March 5, 2019 / Notices less than fair value (LTFV).1 On May 16, 1996, the United States International Trade Commission (ITC) notified Commerce of its affirmative preliminary injury determination. On October 10, 1996, Commerce and certain tomato growers/exporters from Mexico initialed a proposed agreement to suspend the AD investigation. On October 28, 1996, Commerce issued its 1996 Preliminary Determination and found imports of fresh tomatoes from Mexico were being sold at LTFV in the United States.2 On the same day, Commerce and producers/exporters accounting for substantially all imports of fresh tomatoes from Mexico signed an agreement to suspend the investigation (1996 Agreement).3 On May 31, 2002, certain tomato growers/exporters from Mexico accounting for a significant percentage of all fresh tomatoes imported into the United States from Mexico provided written notice to Commerce of their withdrawal from the 1996 Agreement, effective July 30, 2002. Because the 1996 Agreement would no longer cover substantially all imports of fresh tomatoes from Mexico, effective July 30, 2002, Commerce terminated the 1996 Agreement, terminated the sunset review of the suspended investigation, and resumed the AD investigation.4 On November 8, 2002, Commerce and certain tomato growers/exporters from Mexico initialed a proposed agreement suspending the resumed AD investigation on imports of fresh tomatoes from Mexico. On December 4, 2002, Commerce and producers/ exporters accounting for substantially all imports of fresh tomatoes from Mexico signed a new suspension agreement (2002 Agreement).5 On November 26, 2007, certain tomato growers/exporters from Mexico accounting for a significant percentage of all fresh tomatoes imported into the United States provided written notice to Commerce of their withdrawal from the 2002 Agreement, effective 90 days from amozie on DSK9F9SC42PROD with NOTICES 1 See Initiation of Antidumping Duty Investigation: Fresh Tomatoes from Mexico, 61 FR 18377 (April 25, 1996). 2 See Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Fresh Tomatoes from Mexico, 61 FR 56608 (November 1, 1996) (1996 Preliminary Determination). 3 See Suspension of Antidumping Investigation: Fresh Tomatoes from Mexico, 61 FR 56618 (November 1, 1996). 4 See Notice of Termination of Suspension Agreement, Termination of Sunset Review, and Resumption of Antidumping Investigation: Fresh Tomatoes from Mexico, 67 FR 50858 (August 6, 2002). 5 See Suspension of Antidumping Investigation: Fresh Tomatoes from Mexico, 67 FR 77044 (December 16, 2002). VerDate Sep<11>2014 17:54 Mar 04, 2019 Jkt 247001 the date of their withdrawal letter (i.e., February 24, 2008), or earlier, at Commerce’s discretion. On November 28, 2007, Commerce and certain tomato growers/exporters from Mexico initialed a new proposed agreement to suspend the AD investigation on imports of fresh tomatoes from Mexico. On December 3, 2007, Commerce released the initialed agreement to interested parties for comment. On December 17 and 18, 2007, several interested parties filed comments in support of the initialed agreement. Because the 2002 Agreement would no longer cover substantially all imports of fresh tomatoes from Mexico, Commerce published a notice of intent to terminate the 2002 Agreement, intent to terminate the five-year sunset review of the suspended investigation, and intent to resume the AD investigation.6 On January 16, 2008, Commerce published a notice of termination of the 2002 Agreement, termination of the fiveyear sunset review of the suspended investigation, and resumption of the AD investigation, effective January 18, 2008.7 On January 22, 2008, Commerce signed a new suspension agreement (2008 Agreement) with producers/ exporters accounting for substantially all imports of fresh tomatoes from Mexico.8 On August 15, 2012, certain growers/ exporters of fresh tomatoes from Mexico filed a letter with Commerce requesting consultations under Section IV.G.9 of the 2008 Agreement, and Commerce agreed to consult. As a result of these consultations, on February 2, 2013, Commerce and tomato growers/ exporters from Mexico accounting for a significant percentage of all fresh tomatoes imported into the United States from Mexico initialed a draft agreement that would suspend a resumed AD investigation on fresh tomatoes from Mexico. On February 08, 2013, Commerce published a notice of 6 See Fresh Tomatoes from Mexico: Notice of Intent to Terminate Suspension Agreement, Intent to Terminate the Five-Year Sunset Review, and Intent to Resume Antidumping Investigation, 72 FR 70820 (December 13, 2007). 7 See Fresh Tomatoes from Mexico: Notice of Termination of Suspension Agreement, Termination of Five-Year Sunset Review, and Resumption of Antidumping Investigation, 73 FR 2887 (January 16, 2008). 8 See Suspension of Antidumping Investigation: Fresh Tomatoes from Mexico, 73 FR 4831 (January 28, 2008). 9 Section IV.G. of the 2008 Agreement states that Commerce will consult with signatory producers/ exporters regarding the operations of the 2008 Agreement. A party may request such consultations in any April or September (i.e. prior to the beginning of each season) following the first year of the signing of the 2008 Agreement. PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 7873 intent to terminate the 2008 Agreement, intent to terminate the five-year sunset review of the suspended investigation, and intent to resume the AD investigation.10 On March 1, 2013, Commerce issued a notice of termination of the 2008 Agreement, termination of the five-year sunset review of the suspended investigation, and resumption of the AD investigation.11 On March 4, 2013, Commerce and producers/exporters accounting for substantially all imports of fresh tomatoes from Mexico signed a new suspension agreement (2013 Agreement).12 On January 9, 2018, Commerce issued a letter that formally opened consultations with the Mexican tomato growers/exporters to negotiate possible revisions to the 2013 Agreement.13 Since that time, Commerce has continued to negotiate with the Mexican growers/exporters and, in parallel, has continually consulted with representatives of the domestic industry. On February 1, 2018, Commerce initiated a five-year sunset review of the suspended investigation.14 On March 29, 2018, the Florida Tomato Exchange (FTE), a member of the U.S. petitioning industry, filed a request that Commerce conduct an administrative review on growers/exporters of fresh tomatoes from Mexico covered by the 2013 Agreement. On May 2, 2018, Commerce initiated the administrative review of the 2013 Agreement.15 On August 27, 2018, Commerce published in the Federal Register the preliminary results of the five-year sunset review of the suspended investigation.16 Commerce preliminarily found dumping was likely to continue or recur at weighted-average margins up to 188.14 percent. On November 14, 2018, the FTE filed a request that Commerce terminate the 10 See Fresh Tomatoes from Mexico: Intent To Terminate Suspension Agreement and Resume Antidumping Investigation and Intent To Terminate Sunset Review, 78 FR 9366 (February 8, 2013). 11 See Fresh Tomatoes from Mexico: Termination of Suspension Agreement, Termination of Five-Year Sunset Review, and Resumption of Antidumping Investigation, 78 FR 14771 (March 7, 2013). 12 See Fresh Tomatoes from Mexico: Suspension of Antidumping Investigation,78 FR 14967 (March 8, 2013). 13 See Letter from Commerce to CAADES et al., ‘‘Consultations on the 2013 Agreement Suspending the Antidumping Investigation on Fresh Tomatoes from Mexico,’’ dated January 9, 2018. 14 See Initiation of Five-Year (Sunset) Reviews, 83 FR 4641 (February 1, 2018). 15 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 83 FR 19215 (May 2, 2018). 16 See Fresh Tomatoes from Mexico: Preliminary Results of the Five-Year Sunset Review of the 2013 Suspension Agreement on Fresh Tomatoes from Mexico 83 FR 43642 (August 27, 2018). E:\FR\FM\05MRN1.SGM 05MRN1 7874 Federal Register / Vol. 84, No. 43 / Tuesday, March 5, 2019 / Notices 2013 Agreement and resume the AD investigation under Section VI.B of the 2013 Agreement.17 Section VI.B of the 2013 Agreement states that ‘‘the signatories or the Department may withdraw from this Agreement upon ninety days written notice to the other party.’’ On November 27, 2018, the Fresh Produce Association of the Americas, filed a rebuttal to FTE’s request to terminate.18 On November 26, 2018 and November 28, 2018, respectively, Confederacio´n de Asociaciones Agrı´colas del Estado de Sinaloa, A.C., Consejo Agrı´cola de Baja California, A.C., Asociacio´n Mexicana de Horticultura Protegida, A.C., Asociacio´n de Productores de Hortalizas del Yaqui y Mayo, and Sistema Producto Tomate (CAADES et al. or the Mexican growers) submitted responses to FTE’s previous request for Commerce to terminate the 2013 Agreement.19 20 On December 18, 2018, NS Brands, Ltd (NatureSweet), a signatory to the 2013 Agreement, filed a letter in support of the November 28, 2018 response by the Mexican growers.21 amozie on DSK9F9SC42PROD with NOTICES Scope of the Agreement The merchandise subject to the 2013 Agreement is all fresh or chilled tomatoes (fresh tomatoes) which have Mexico as their origin, except for those tomatoes which are for processing. For purposes of this suspended investigation, processing is defined to include preserving by any commercial process, such as canning, dehydrating, drying, or the addition of chemical substances, or converting the tomato product into juices, sauces, or purees. Fresh tomatoes that are imported for cutting up, not further processing (e.g., tomatoes used in the preparation of fresh salsa or salad bars), are covered by the 2013 Agreement. Commercially grown tomatoes, both for the fresh market and for processing, 17 See Letter to Wilbur Ross, Secretary of Commerce, from the FTE, ‘‘Fresh Tomatoes from Mexico: Request to Terminate Antidumping Suspension Agreement,’’ dated November 14, 2018. 18 See Letter to Wilbur Ross, Secretary of Commerce, from the Fresh Produce Association of the Americas, ‘‘Re: Fresh Tomatoes from Mexico: FTE’s Misleading Request to Terminate Agreement,’’ dated November 27, 2018. 19 See Letter to Wilbur Ross, Secretary of Commerce, from CAADES et al., ‘‘2013 Suspension Agreement on Fresh Tomatoes from Mexico,’’ dated November 26, 2018. 20 See Letter to Wilbur Ross, Secretary of Commerce, from CAADES et al., ‘‘2013 Suspension Agreement on Fresh Tomatoes from Mexico,’’ dated November 28, 2018. 21 See Letter to Wilbur Ross, Secretary of Commerce, from NS Brands, Ltd., ‘‘2013 Suspension Agreement on Fresh Tomatoes from Mexico: NS Brands’ Response to Petitions Request to Terminate 2013 Suspension Agreement,’’ dated December 18, 2018. VerDate Sep<11>2014 17:54 Mar 04, 2019 Jkt 247001 are classified as Lycopersicon esculentum. Important commercial varieties of fresh tomatoes include common round, cherry, grape, plum, greenhouse, and pear tomatoes, all of which are covered by the 2013 Agreement. Tomatoes imported from Mexico covered by the 2013 Agreement are classified under the following subheading of the Harmonized Tariff Schedule of the United States (HTSUS), according to the season of importation: 0702. Although the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope of the 2013 Agreement is dispositive. Intent To Terminate Suspension Agreement and Resume the Antidumping Investigation On February 6, 2019, Commerce gave notice of intent to withdraw from the 2013 Agreement to the Mexican signatories.22 23 In accordance with Section VI.B of the 2013 Agreement, Commerce’s withdrawal from the 2013 Agreement shall be effective on May 7, 2019 which is 90 days after such notice.24 If parties do not reach a new suspension agreement on or before May 7, 2019, Commerce intends to terminate the 2013 Agreement and resume the underlying AD investigation, in accordance with section 734(i)(1)(B) of the Tariff Act of 1930, as amended (the Act). Pursuant to section 734(i)(1)(B) of the Act, Commerce will resume the investigation as if it had published the affirmative preliminary determination under section 733(b) of the Act on the effective date of the termination, May 7, 2019. As explained in its 1996 Preliminary Determination, Commerce postponed the final determination until the 135th day after the date of the preliminary determination.25 Commerce, therefore, will issue its final determination in a resumed investigation 135 days after the affirmative preliminary determination (i.e. the effective date of termination of the 2013 Agreement on May 7, 2019), 22 See Letter to Interested Parties from P. Lee Smith, Deputy Assistant Secretary for Policy & Negotiations, re ‘‘Withdrawal from the 2013 Suspension Agreement on Fresh Tomatoes from Mexico,’’ dated February 6, 2019. 23 See Ex Parte Memorandums for Telephone Calls to Interested Parties, filed February 13, 2019. 24 Ninety days from December 31, 2018 falls on March 31, 2019. Because this date falls on a nonbusiness day (i.e., the weekend), consistent with Commerce’s practice, the period will run until the next business day. See Notice of Clarification: Application of ‘‘Next Business Day’’ Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005). 25 See 1996 Preliminary Determination at 56609. PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 unless a new suspension agreement becomes effective. However, if Commerce and producers/exporters accounting for substantially all imports of fresh tomatoes from Mexico sign a new suspension agreement, following the notice and comment period provided in accordance with section 734(c) of the Act, the resumed investigation will be suspended. On February 14, 2019, and February 19, 2019, the Mexican growers and NatureSweet, respectively, filed comments in response to Commerce’s intent to withdraw.26 27 Intent To Rescind the Five-Year Sunset Review On February 1, 2018, Commerce initiated a five-year sunset review of the suspended AD investigation on fresh tomatoes from Mexico pursuant to section 751(c) of the Act. If Commerce terminates the 2013 Agreement, there will no longer be a suspended investigation of which to conduct a sunset review. Therefore, Commerce will rescind the sunset review of the suspended AD investigation on fresh tomatoes from Mexico, effective on the date of termination of the 2013 Agreement, if the 2013 Agreement is terminated. Intent To Rescind the Administrative Review On May 2, 2018, Commerce initiated an administrative review of the 2013 Agreement for the period March 1, 2017 through February 28, 2018. If Commerce terminates the 2013 Agreement, the ongoing administrative review would be moot. Therefore, Commerce will rescind the administrative review of the 2013 Agreement, effective on the date of termination of the 2013 Agreement. International Trade Commission Commerce has notified the ITC of its intent to terminate the 2013 Agreement and resume the suspended AD investigation.28 If Commerce resumes the suspended AD investigation, and if Commerce makes a final affirmative determination in the investigation, the 26 See Letter to Wilbur Ross, Secretary of Commerce, from CAADES et al., ‘‘2013 Suspension Agreement on Fresh Tomatoes from Mexico,’’ dated February 14, 2019. 27 See Letter to Wilbur Ross, Secretary of Commerce, from NatureSweet, ‘‘2013 Suspension Agreement on Fresh Tomatoes from Mexico: NS Brands’ Response to the Commerce Department’s letter of Withdrawal from 2013 Suspension Agreement,’’ dated February 19, 2019. 28 See Letter to Michael Anderson, Director of Office of Investigations, from P. Lee Smith, Deputy Assistant Secretary for Policy & Negotiations, re ‘‘Fresh Tomatoes from Mexico: Withdrawal from the 2013 Suspension Agreement,’’ dated February 6, 2019. E:\FR\FM\05MRN1.SGM 05MRN1 7875 Federal Register / Vol. 84, No. 43 / Tuesday, March 5, 2019 / Notices ITC is scheduled to make its final determination concerning injury within 45 days of publication of Commerce’s final determination. If both Commerce’s and the ITC’s final determinations are affirmative, Commerce will issue an AD order. However, as indicated above, if Commerce and producers/exporters accounting for substantially all imports of fresh tomatoes from Mexico sign a new suspension agreement, following the notice and comment period provided in accordance with section 734(c) of the Act, the resumed investigation will be suspended. Suspension of Liquidation If Commerce terminates the 2013 Agreement and resumes the suspended AD investigation as described above, Commerce will instruct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of fresh tomatoes from Mexico that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the termination of the 2013 Agreement. CBP shall require AD cash deposits or bonds for entries of the subject merchandise based on the preliminary dumping margins, which range from 4.16 to 188.45 percent.29 Administrative Protective Order Access and Applicable Regulations The following requirements will apply if and during such time as the suspended investigation is resumed. Because of the significant changes made to the administrative protective order (APO) process since initiation of the investigation in 1996, Commerce will issue a new APO for any resumed investigation that will supersede the previously issued firm-specific APOs. Those authorized applicants that were granted APOs during the original investigation, as indicated in the most recent APO service list on Commerce’s website, will continue to have access to business proprietary information under APO. Any new APO applications or necessary amendments for changes in staff under the pre-existing APOs should be submitted promptly, and in accordance with Commerce’s regulations currently in effect.30 In addition, because of the significant changes made to Commerce’s filing and certification requirements since the investigation, including electronic filing, Commerce intends to apply its current regulations and practices with regard to filing and certification, should the AD investigation be resumed.31 However, with respect to all other procedures for the conduct of any resumed investigation generally, including any possible suspension thereof, Commerce’s regulations in effect in 1996 shall govern.32 This determination is issued and published in accordance with section 733(f) and 734(i) of the Act. DEPARTMENT OF COMMERCE Dated: February 27, 2019. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. Pursuant to section 751(c) of the Act, the following Sunset Review is scheduled for initiation in April 2019 and will appear in that month’s Notice of Initiation of Five-Year Sunset Reviews (Sunset Review). International Trade Administration Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Review Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: Background Every five years, pursuant to the Tariff Act of 1930, as amended (the Act), the Department of Commerce (Commerce) and the International Trade Commission automatically initiate and conduct reviews to determine whether revocation of a countervailing or antidumping duty order or termination of an investigation suspended under section 704 or 734 of the Act would be likely to lead to continuation or recurrence of dumping or a countervailable subsidy (as the case may be) and of material injury. Upcoming Sunset Reviews for April 2019 [FR Doc. 2019–03928 Filed 3–4–19; 8:45 am] BILLING CODE 3510–DS–P Department contact Antidumping Duty Proceedings Circular Welded Carbon Quality Steel Line Pipe from China (A–570–935) (2nd Review) ................................................................................. Freshwater Crawfish Tailmeat (A–570–848) (4th Review) .................................................................................................................................. Diffusion-Annealed Nickel-Plated Flat-Rolled Steel Products from Japan (A–588–869) (1st Review) .............................................................. Countervailing Duty Proceedings Circular Welded Carbon Quality Steel Line Pipe from China (C–570–936) (2nd Review) ................................................................................. Matthew Renkey (202) 482–2312. Joshua Poole (202) 482– 1293. Jacqueline Arrowsmith (202) 482–5255. Joshua Poole (202) 482– 1293. amozie on DSK9F9SC42PROD with NOTICES Suspended Investigations No Sunset Review of suspended investigations is scheduled for initiation in April 2019. Commerce’s procedures for the conduct of Sunset Review are set forth in 19 CFR 351.218. The Notice of Initiation of Five-Year (Sunset) Review provides further information regarding what is required of all parties to participate in Sunset Review. 29 See 1996 Preliminary Determination. section 777(c)(1) of the Act and 19 CFR 351.103, 351.304, 351.305 and 351.306. Pursuant to 19 CFR 351.103(c), Commerce will maintain and make available a service list for these proceedings. To facilitate the timely preparation of the service list(s), it is requested that those seeking recognition as interested parties to a proceeding 31 See 19 CFR 351.303(b) and (g). 30 See VerDate Sep<11>2014 17:54 Mar 04, 2019 Jkt 247001 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 contact Commerce in writing within 10 days of the publication of the Notice of Initiation. Please note that if Commerce receives a Notice of Intent to Participate from a member of the domestic industry within 32 See 19 CFR 351.701; San Vicente Camalu SPR de Ri v. United States, 491 F.Supp.2d 1186 (CIT 2007). E:\FR\FM\05MRN1.SGM 05MRN1

Agencies

[Federal Register Volume 84, Number 43 (Tuesday, March 5, 2019)]
[Notices]
[Pages 7872-7875]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03928]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-820]


Fresh Tomatoes From Mexico: Intent To Terminate Suspension 
Agreement, Rescind the Sunset and Administrative Reviews, and Resume 
the Antidumping Duty Investigation

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

SUMMARY: The Department of Commerce (Commerce) intends to terminate the 
2013 Suspension Agreement on Fresh Tomatoes from Mexico (2013 
Agreement), rescind the five-year sunset review of the suspended 
investigation and the administrative review of the 2013 Agreement, and 
to resume the antidumping duty (AD) investigation initiated in 1996.

DATES: Applicable March 5, 2019.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or Rebecca Lee, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-0162 or (202) 482-6188, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On April 18, 1996, Commerce initiated an AD investigation to 
determine whether imports of fresh tomatoes from Mexico are being, or 
are likely to be, sold in the United States at

[[Page 7873]]

less than fair value (LTFV).\1\ On May 16, 1996, the United States 
International Trade Commission (ITC) notified Commerce of its 
affirmative preliminary injury determination.
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    \1\ See Initiation of Antidumping Duty Investigation: Fresh 
Tomatoes from Mexico, 61 FR 18377 (April 25, 1996).
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    On October 10, 1996, Commerce and certain tomato growers/exporters 
from Mexico initialed a proposed agreement to suspend the AD 
investigation. On October 28, 1996, Commerce issued its 1996 
Preliminary Determination and found imports of fresh tomatoes from 
Mexico were being sold at LTFV in the United States.\2\ On the same 
day, Commerce and producers/exporters accounting for substantially all 
imports of fresh tomatoes from Mexico signed an agreement to suspend 
the investigation (1996 Agreement).\3\
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    \2\ See Notice of Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination: Fresh 
Tomatoes from Mexico, 61 FR 56608 (November 1, 1996) (1996 
Preliminary Determination).
    \3\ See Suspension of Antidumping Investigation: Fresh Tomatoes 
from Mexico, 61 FR 56618 (November 1, 1996).
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    On May 31, 2002, certain tomato growers/exporters from Mexico 
accounting for a significant percentage of all fresh tomatoes imported 
into the United States from Mexico provided written notice to Commerce 
of their withdrawal from the 1996 Agreement, effective July 30, 2002. 
Because the 1996 Agreement would no longer cover substantially all 
imports of fresh tomatoes from Mexico, effective July 30, 2002, 
Commerce terminated the 1996 Agreement, terminated the sunset review of 
the suspended investigation, and resumed the AD investigation.\4\
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    \4\ See Notice of Termination of Suspension Agreement, 
Termination of Sunset Review, and Resumption of Antidumping 
Investigation: Fresh Tomatoes from Mexico, 67 FR 50858 (August 6, 
2002).
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    On November 8, 2002, Commerce and certain tomato growers/exporters 
from Mexico initialed a proposed agreement suspending the resumed AD 
investigation on imports of fresh tomatoes from Mexico. On December 4, 
2002, Commerce and producers/exporters accounting for substantially all 
imports of fresh tomatoes from Mexico signed a new suspension agreement 
(2002 Agreement).\5\
---------------------------------------------------------------------------

    \5\ See Suspension of Antidumping Investigation: Fresh Tomatoes 
from Mexico, 67 FR 77044 (December 16, 2002).
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    On November 26, 2007, certain tomato growers/exporters from Mexico 
accounting for a significant percentage of all fresh tomatoes imported 
into the United States provided written notice to Commerce of their 
withdrawal from the 2002 Agreement, effective 90 days from the date of 
their withdrawal letter (i.e., February 24, 2008), or earlier, at 
Commerce's discretion.
    On November 28, 2007, Commerce and certain tomato growers/exporters 
from Mexico initialed a new proposed agreement to suspend the AD 
investigation on imports of fresh tomatoes from Mexico. On December 3, 
2007, Commerce released the initialed agreement to interested parties 
for comment. On December 17 and 18, 2007, several interested parties 
filed comments in support of the initialed agreement.
    Because the 2002 Agreement would no longer cover substantially all 
imports of fresh tomatoes from Mexico, Commerce published a notice of 
intent to terminate the 2002 Agreement, intent to terminate the five-
year sunset review of the suspended investigation, and intent to resume 
the AD investigation.\6\ On January 16, 2008, Commerce published a 
notice of termination of the 2002 Agreement, termination of the five-
year sunset review of the suspended investigation, and resumption of 
the AD investigation, effective January 18, 2008.\7\ On January 22, 
2008, Commerce signed a new suspension agreement (2008 Agreement) with 
producers/exporters accounting for substantially all imports of fresh 
tomatoes from Mexico.\8\
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    \6\ See Fresh Tomatoes from Mexico: Notice of Intent to 
Terminate Suspension Agreement, Intent to Terminate the Five-Year 
Sunset Review, and Intent to Resume Antidumping Investigation, 72 FR 
70820 (December 13, 2007).
    \7\ See Fresh Tomatoes from Mexico: Notice of Termination of 
Suspension Agreement, Termination of Five-Year Sunset Review, and 
Resumption of Antidumping Investigation, 73 FR 2887 (January 16, 
2008).
    \8\ See Suspension of Antidumping Investigation: Fresh Tomatoes 
from Mexico, 73 FR 4831 (January 28, 2008).
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    On August 15, 2012, certain growers/exporters of fresh tomatoes 
from Mexico filed a letter with Commerce requesting consultations under 
Section IV.G.\9\ of the 2008 Agreement, and Commerce agreed to consult. 
As a result of these consultations, on February 2, 2013, Commerce and 
tomato growers/exporters from Mexico accounting for a significant 
percentage of all fresh tomatoes imported into the United States from 
Mexico initialed a draft agreement that would suspend a resumed AD 
investigation on fresh tomatoes from Mexico. On February 08, 2013, 
Commerce published a notice of intent to terminate the 2008 Agreement, 
intent to terminate the five-year sunset review of the suspended 
investigation, and intent to resume the AD investigation.\10\ On March 
1, 2013, Commerce issued a notice of termination of the 2008 Agreement, 
termination of the five-year sunset review of the suspended 
investigation, and resumption of the AD investigation.\11\ On March 4, 
2013, Commerce and producers/exporters accounting for substantially all 
imports of fresh tomatoes from Mexico signed a new suspension agreement 
(2013 Agreement).\12\
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    \9\ Section IV.G. of the 2008 Agreement states that Commerce 
will consult with signatory producers/exporters regarding the 
operations of the 2008 Agreement. A party may request such 
consultations in any April or September (i.e. prior to the beginning 
of each season) following the first year of the signing of the 2008 
Agreement.
    \10\ See Fresh Tomatoes from Mexico: Intent To Terminate 
Suspension Agreement and Resume Antidumping Investigation and Intent 
To Terminate Sunset Review, 78 FR 9366 (February 8, 2013).
    \11\ See Fresh Tomatoes from Mexico: Termination of Suspension 
Agreement, Termination of Five-Year Sunset Review, and Resumption of 
Antidumping Investigation, 78 FR 14771 (March 7, 2013).
    \12\ See Fresh Tomatoes from Mexico: Suspension of Antidumping 
Investigation,78 FR 14967 (March 8, 2013).
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    On January 9, 2018, Commerce issued a letter that formally opened 
consultations with the Mexican tomato growers/exporters to negotiate 
possible revisions to the 2013 Agreement.\13\ Since that time, Commerce 
has continued to negotiate with the Mexican growers/exporters and, in 
parallel, has continually consulted with representatives of the 
domestic industry.
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    \13\ See Letter from Commerce to CAADES et al., ``Consultations 
on the 2013 Agreement Suspending the Antidumping Investigation on 
Fresh Tomatoes from Mexico,'' dated January 9, 2018.
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    On February 1, 2018, Commerce initiated a five-year sunset review 
of the suspended investigation.\14\ On March 29, 2018, the Florida 
Tomato Exchange (FTE), a member of the U.S. petitioning industry, filed 
a request that Commerce conduct an administrative review on growers/
exporters of fresh tomatoes from Mexico covered by the 2013 Agreement. 
On May 2, 2018, Commerce initiated the administrative review of the 
2013 Agreement.\15\ On August 27, 2018, Commerce published in the 
Federal Register the preliminary results of the five-year sunset review 
of the suspended investigation.\16\ Commerce preliminarily found 
dumping was likely to continue or recur at weighted-average margins up 
to 188.14 percent.
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    \14\ See Initiation of Five-Year (Sunset) Reviews, 83 FR 4641 
(February 1, 2018).
    \15\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 19215 (May 2, 2018).
    \16\ See Fresh Tomatoes from Mexico: Preliminary Results of the 
Five-Year Sunset Review of the 2013 Suspension Agreement on Fresh 
Tomatoes from Mexico 83 FR 43642 (August 27, 2018).
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    On November 14, 2018, the FTE filed a request that Commerce 
terminate the

[[Page 7874]]

2013 Agreement and resume the AD investigation under Section VI.B of 
the 2013 Agreement.\17\ Section VI.B of the 2013 Agreement states that 
``the signatories or the Department may withdraw from this Agreement 
upon ninety days written notice to the other party.'' On November 27, 
2018, the Fresh Produce Association of the Americas, filed a rebuttal 
to FTE's request to terminate.\18\ On November 26, 2018 and November 
28, 2018, respectively, Confederaci[oacute]n de Asociaciones 
Agr[iacute]colas del Estado de Sinaloa, A.C., Consejo Agr[iacute]cola 
de Baja California, A.C., Asociaci[oacute]n Mexicana de Horticultura 
Protegida, A.C., Asociaci[oacute]n de Productores de Hortalizas del 
Yaqui y Mayo, and Sistema Producto Tomate (CAADES et al. or the Mexican 
growers) submitted responses to FTE's previous request for Commerce to 
terminate the 2013 Agreement.19 20 On December 18, 2018, NS 
Brands, Ltd (NatureSweet), a signatory to the 2013 Agreement, filed a 
letter in support of the November 28, 2018 response by the Mexican 
growers.\21\
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    \17\ See Letter to Wilbur Ross, Secretary of Commerce, from the 
FTE, ``Fresh Tomatoes from Mexico: Request to Terminate Antidumping 
Suspension Agreement,'' dated November 14, 2018.
    \18\ See Letter to Wilbur Ross, Secretary of Commerce, from the 
Fresh Produce Association of the Americas, ``Re: Fresh Tomatoes from 
Mexico: FTE's Misleading Request to Terminate Agreement,'' dated 
November 27, 2018.
    \19\ See Letter to Wilbur Ross, Secretary of Commerce, from 
CAADES et al., ``2013 Suspension Agreement on Fresh Tomatoes from 
Mexico,'' dated November 26, 2018.
    \20\ See Letter to Wilbur Ross, Secretary of Commerce, from 
CAADES et al., ``2013 Suspension Agreement on Fresh Tomatoes from 
Mexico,'' dated November 28, 2018.
    \21\ See Letter to Wilbur Ross, Secretary of Commerce, from NS 
Brands, Ltd., ``2013 Suspension Agreement on Fresh Tomatoes from 
Mexico: NS Brands' Response to Petitions Request to Terminate 2013 
Suspension Agreement,'' dated December 18, 2018.
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Scope of the Agreement

    The merchandise subject to the 2013 Agreement is all fresh or 
chilled tomatoes (fresh tomatoes) which have Mexico as their origin, 
except for those tomatoes which are for processing. For purposes of 
this suspended investigation, processing is defined to include 
preserving by any commercial process, such as canning, dehydrating, 
drying, or the addition of chemical substances, or converting the 
tomato product into juices, sauces, or purees. Fresh tomatoes that are 
imported for cutting up, not further processing (e.g., tomatoes used in 
the preparation of fresh salsa or salad bars), are covered by the 2013 
Agreement.
    Commercially grown tomatoes, both for the fresh market and for 
processing, are classified as Lycopersicon esculentum. Important 
commercial varieties of fresh tomatoes include common round, cherry, 
grape, plum, greenhouse, and pear tomatoes, all of which are covered by 
the 2013 Agreement.
    Tomatoes imported from Mexico covered by the 2013 Agreement are 
classified under the following subheading of the Harmonized Tariff 
Schedule of the United States (HTSUS), according to the season of 
importation: 0702. Although the HTSUS numbers are provided for 
convenience and customs purposes, the written description of the scope 
of the 2013 Agreement is dispositive.

Intent To Terminate Suspension Agreement and Resume the Antidumping 
Investigation

    On February 6, 2019, Commerce gave notice of intent to withdraw 
from the 2013 Agreement to the Mexican signatories.22 23 In 
accordance with Section VI.B of the 2013 Agreement, Commerce's 
withdrawal from the 2013 Agreement shall be effective on May 7, 2019 
which is 90 days after such notice.\24\ If parties do not reach a new 
suspension agreement on or before May 7, 2019, Commerce intends to 
terminate the 2013 Agreement and resume the underlying AD 
investigation, in accordance with section 734(i)(1)(B) of the Tariff 
Act of 1930, as amended (the Act). Pursuant to section 734(i)(1)(B) of 
the Act, Commerce will resume the investigation as if it had published 
the affirmative preliminary determination under section 733(b) of the 
Act on the effective date of the termination, May 7, 2019. As explained 
in its 1996 Preliminary Determination, Commerce postponed the final 
determination until the 135th day after the date of the preliminary 
determination.\25\ Commerce, therefore, will issue its final 
determination in a resumed investigation 135 days after the affirmative 
preliminary determination (i.e. the effective date of termination of 
the 2013 Agreement on May 7, 2019), unless a new suspension agreement 
becomes effective. However, if Commerce and producers/exporters 
accounting for substantially all imports of fresh tomatoes from Mexico 
sign a new suspension agreement, following the notice and comment 
period provided in accordance with section 734(c) of the Act, the 
resumed investigation will be suspended.
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    \22\ See Letter to Interested Parties from P. Lee Smith, Deputy 
Assistant Secretary for Policy & Negotiations, re ``Withdrawal from 
the 2013 Suspension Agreement on Fresh Tomatoes from Mexico,'' dated 
February 6, 2019.
    \23\ See Ex Parte Memorandums for Telephone Calls to Interested 
Parties, filed February 13, 2019.
    \24\ Ninety days from December 31, 2018 falls on March 31, 2019. 
Because this date falls on a non-business day (i.e., the weekend), 
consistent with Commerce's practice, the period will run until the 
next business day. See Notice of Clarification: Application of 
``Next Business Day'' Rule for Administrative Determination 
Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 
24533 (May 10, 2005).
    \25\ See 1996 Preliminary Determination at 56609.
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    On February 14, 2019, and February 19, 2019, the Mexican growers 
and NatureSweet, respectively, filed comments in response to Commerce's 
intent to withdraw.26 27
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    \26\ See Letter to Wilbur Ross, Secretary of Commerce, from 
CAADES et al., ``2013 Suspension Agreement on Fresh Tomatoes from 
Mexico,'' dated February 14, 2019.
    \27\ See Letter to Wilbur Ross, Secretary of Commerce, from 
NatureSweet, ``2013 Suspension Agreement on Fresh Tomatoes from 
Mexico: NS Brands' Response to the Commerce Department's letter of 
Withdrawal from 2013 Suspension Agreement,'' dated February 19, 
2019.
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Intent To Rescind the Five-Year Sunset Review

    On February 1, 2018, Commerce initiated a five-year sunset review 
of the suspended AD investigation on fresh tomatoes from Mexico 
pursuant to section 751(c) of the Act. If Commerce terminates the 2013 
Agreement, there will no longer be a suspended investigation of which 
to conduct a sunset review. Therefore, Commerce will rescind the sunset 
review of the suspended AD investigation on fresh tomatoes from Mexico, 
effective on the date of termination of the 2013 Agreement, if the 2013 
Agreement is terminated.

Intent To Rescind the Administrative Review

    On May 2, 2018, Commerce initiated an administrative review of the 
2013 Agreement for the period March 1, 2017 through February 28, 2018. 
If Commerce terminates the 2013 Agreement, the ongoing administrative 
review would be moot. Therefore, Commerce will rescind the 
administrative review of the 2013 Agreement, effective on the date of 
termination of the 2013 Agreement.

International Trade Commission

    Commerce has notified the ITC of its intent to terminate the 2013 
Agreement and resume the suspended AD investigation.\28\ If Commerce 
resumes the suspended AD investigation, and if Commerce makes a final 
affirmative determination in the investigation, the

[[Page 7875]]

ITC is scheduled to make its final determination concerning injury 
within 45 days of publication of Commerce's final determination. If 
both Commerce's and the ITC's final determinations are affirmative, 
Commerce will issue an AD order. However, as indicated above, if 
Commerce and producers/exporters accounting for substantially all 
imports of fresh tomatoes from Mexico sign a new suspension agreement, 
following the notice and comment period provided in accordance with 
section 734(c) of the Act, the resumed investigation will be suspended.
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    \28\ See Letter to Michael Anderson, Director of Office of 
Investigations, from P. Lee Smith, Deputy Assistant Secretary for 
Policy & Negotiations, re ``Fresh Tomatoes from Mexico: Withdrawal 
from the 2013 Suspension Agreement,'' dated February 6, 2019.
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Suspension of Liquidation

    If Commerce terminates the 2013 Agreement and resumes the suspended 
AD investigation as described above, Commerce will instruct U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of fresh tomatoes from Mexico that are entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
termination of the 2013 Agreement. CBP shall require AD cash deposits 
or bonds for entries of the subject merchandise based on the 
preliminary dumping margins, which range from 4.16 to 188.45 
percent.\29\
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    \29\ See 1996 Preliminary Determination.
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Administrative Protective Order Access and Applicable Regulations

    The following requirements will apply if and during such time as 
the suspended investigation is resumed. Because of the significant 
changes made to the administrative protective order (APO) process since 
initiation of the investigation in 1996, Commerce will issue a new APO 
for any resumed investigation that will supersede the previously issued 
firm-specific APOs. Those authorized applicants that were granted APOs 
during the original investigation, as indicated in the most recent APO 
service list on Commerce's website, will continue to have access to 
business proprietary information under APO. Any new APO applications or 
necessary amendments for changes in staff under the pre-existing APOs 
should be submitted promptly, and in accordance with Commerce's 
regulations currently in effect.\30\
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    \30\ See section 777(c)(1) of the Act and 19 CFR 351.103, 
351.304, 351.305 and 351.306.
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    In addition, because of the significant changes made to Commerce's 
filing and certification requirements since the investigation, 
including electronic filing, Commerce intends to apply its current 
regulations and practices with regard to filing and certification, 
should the AD investigation be resumed.\31\ However, with respect to 
all other procedures for the conduct of any resumed investigation 
generally, including any possible suspension thereof, Commerce's 
regulations in effect in 1996 shall govern.\32\
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    \31\ See 19 CFR 351.303(b) and (g).
    \32\ See 19 CFR 351.701; San Vicente Camalu SPR de Ri v. United 
States, 491 F.Supp.2d 1186 (CIT 2007).
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    This determination is issued and published in accordance with 
section 733(f) and 734(i) of the Act.

    Dated: February 27, 2019.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-03928 Filed 3-4-19; 8:45 am]
 BILLING CODE 3510-DS-P