Steel Concrete Reinforcing Bar From Mexico: Affirmative Preliminary Determination of Circumvention of the Antidumping Duty Order, 15430-15433 [2020-05608]
Download as PDF
<![CDATA[
15430
Federal Register / Vol. 85, No. 53 / Wednesday, March 18, 2020 / Notices
Notification to Interested Parties
We are issuing and publishing this
notice in accordance with sections
781(a) and 777(i) of the Act, and 19 CFR
351.213(h) and 351.221(b)(5).
Dated: March 11, 2020.
Christian Marsh,
Deputy Assistant Secretary for Enforcement
and Compliance.
[FR Doc. 2020–05609 Filed 3–17–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–201–844]
Steel Concrete Reinforcing Bar From
Mexico: Affirmative Preliminary
Determination of Circumvention of the
Antidumping Duty Order
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: We preliminarily determine
that steel concrete reinforcing bar (rebar)
from Mexico that is bent on one or both
ends and otherwise meeting the
description of in-scope merchandise—if
produced and/or exported by Deacero
S.A.P.I. de C.V. (Deacero) to the United
States—is circumventing the
antidumping duty order on rebar from
Mexico.
DATES: Applicable March 18, 2020.
FOR FURTHER INFORMATION CONTACT:
Jonathan Hall-Eastman, Office III,
Antidumping and Countervailing Duty
Operations, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1468.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On September 15, 2014, the
Department of Commerce (Commerce)
published antidumping duty (AD) Order
on rebar from Mexico.1 On October 18,
2019, in response to a request from the
Rebar Trade Action Coalition (the
petitioner),2 Commerce initiated a
circumvention inquiry into whether
imports of otherwise straight rebar bent
on one or both ends (also referred to as
hooked rebar) that is produced and/or
jbell on DSKJLSW7X2PROD with NOTICES
1 See
Steel Concrete Reinforcing Bar from Mexico:
Final Determination of Sales at Less Than Fair
Value and Final Affirmative Determination of
Critical Circumstances, 79 FR 54967 (September 15,
2014) (Order).
2 See Petitioner’s Letter, ‘‘Steel Concrete
Reinforcing Bar from Mexico: Request for Scope
Ruling or, Alternatively, an Anti-Circumvention
Ruling,’’ dated September 3, 2019.
VerDate Sep<11>2014
18:54 Mar 17, 2020
Jkt 250001
exported to the United States by
Deacero and otherwise meeting the
description of in-scope merchandise,
constitutes merchandise ‘‘altered in
form or appearance in minor respects’’
from in-scope merchandise that should
be considered subject to AD Order on
rebar from Mexico.3 Commerce also
indicated that it would examine
‘‘whether to apply the results of this
anti-circumvention inquiry to imports of
similarly situated other straight rebar
bent at one or both ends from Mexico
regardless of producer or exporter.’’ 4
For a complete description of the events
that followed the initiation of this
review, see the Preliminary Decision
Memorandum.5
Scope of the Order
The merchandise subject to this Order
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,
7221.00.0017, 7221.00.0018,
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.
Scope of the Circumvention Inquiry
The merchandise subject to this
circumvention inquiry consists of
otherwise straight steel concrete
reinforcing bar bent on one or both ends
and otherwise meeting the description
of in-scope merchandise under the
3 See Steel Concrete Reinforcing Bar from Mexico:
Initiation of Anti-Circumvention Inquiry of
Antidumping Duty Order; 84 FR 58132 (October 30,
2019), and accompanying Initiation Memorandum.
4 Id., Initiation Memorandum at 8–9.
5 See Memorandum, ‘‘Affirmative Preliminary
Decision Memorandum of Circumvention
Concerning Certain Hooked or Bent Steel Concrete
Reinforcing Bar Produced and/or Exported by
Deacero S.A.P.I. de C.V,’’ dated concurrently with,
and hereby adopted by, this notice (Preliminary
Decision Memorandum).
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
Order produced and/or exported by
Deacero from Mexico to the United
States. The petitioner’s December 27,
2019 filing stated that:
the issues present in this anticircumvention inquiry are limited to
deterring circumvention of the order due to
modification of straight length with a hook or
bend that is easily removable, has no
commercially relevant purpose, and is not
designed to an industry standard design for
incorporation into a specific construction
project. Petitioner does not attempt to
include all fabricated products in the scope
of the order as minor alterations and this
issue is not before the Department.6
The petitioner’s January 31, 2020
filing further noted that ‘‘the issue
before the Department is whether
Deacero’s sales to (a particular
customer) circumvented the order.’’ 7
Unlike for Deacero, we preliminarily
find there is no evidence on the record
of this inquiry indicating that other
Mexican producers are exporting
hooked rebar to the United States that
did not have a connection to a specific,
identified construction project.
Therefore, we have not applied our
preliminary affirmative finding to
hooked rebar country-wide.8
Statutory and Regulatory Framework
Section 781(c) of the Tariff Act of
1930, as amended (the Act), which deals
with minor alterations of merchandise,
states that:
(1) In general: The class or kind of
merchandise subject to (A) an investigation
under this title, (B) an antidumping duty
order issued under section 736, (C) a finding
issued under the Antidumping Act, 1921, or
(D) a countervailing duty order issued under
section 706 or section 303, shall include
articles altered in form or appearance in
minor respects (including raw agricultural
products that have undergone minor
processing), whether or not included in the
same tariff classification. (2) Exception.
Paragraph (1) shall not apply with respect to
altered merchandise if the administering
authority determines that it would be
unnecessary to consider the altered
merchandise within the scope of the
investigation, order, or finding.
As stated under 19 CFR 351.225(a),
issues may arise as to whether a
particular product is included within
the scope of an AD or countervailing
duty (CVD) order or a suspended
investigation. Such issues can arise
6 See Petitioner’s Letter ‘‘Steel Concrete
Reinforcing Bar from Mexico: Response to Deacero
December 10, 2019 Comments,’’ dated December
27, 2019, at 2.
7 See Petitioner’s Letter, ‘‘Steel Concrete
Reinforcing Bar from Mexico: Response to Deacero’s
January 15, 2020 Comments,’’ dated January 31,
2020, at 9.
8 For further information, see the Preliminary
Decision Memorandum.
E:\FR\FM\18MRN1.SGM
18MRN1
Federal Register / Vol. 85, No. 53 / Wednesday, March 18, 2020 / Notices
because the descriptions of subject
merchandise contained in Commerce’s
determinations must be written in
general terms. At other times, a
domestic interested party may allege
that a change to an imported product or
the place where the imported product is
assembled constitutes circumvention
under section 781 of the Act. When
such issues arise, Commerce conducts
circumvention inquiries that clarify the
scope of an order or suspended
investigation with respect to particular
products. Pursuant to section 781(c) of
the Act and 19 CFR 351.225(i),
Commerce may include within the
scope of an AD or CVD order articles
altered in form or appearance in minor
respects.
While the statute is silent regarding
what factors to consider in determining
whether alterations are properly
considered ‘‘minor,’’ the legislative
history of this provision indicates that
there are certain factors which should
be considered before reaching a
circumvention determination. Previous
circumvention cases 9 have relied on the
factors listed in the Senate Finance
Committee report on the Omnibus Trade
and Competitiveness Act of 1988 (which
amended the Act to include the
circumvention provisions contained in
section 781 of the Act), which states:
{i}n applying this provision, the
Commerce Department should apply
practical measurements regarding minor
alterations, so that circumvention can be
dealt with effectively, even where such
alterations to an article technically transform
it into a differently designated article. The
Commerce Department should consider such
criteria as the overall physical characteristics
of the merchandise, the expectations of the
ultimate users, the use of the merchandise,
the channels of marketing and the cost of any
modification relative to the total value of the
imported products.10
jbell on DSKJLSW7X2PROD with NOTICES
In the case of an allegation of a
‘‘minor alteration’’ under section 781(c)
of the Act, it is Commerce’s practice to
look at the five factors listed in the
Senate Finance Committee report to
9 See, e.g., Final Determination of Circumvention
of the Antidumping Order: Cut-to-Length Carbon
Steel Plate From Canada, 66 FR 7617, 7618 (January
24, 2001)) (CTL Plate from Canada), and
accompanying Issues and Decision Memorandum
(IDM) at Comment 4, in which Commerce discusses
its application of the factors discussed in the Senate
Finance Committee report; see also Final Results of
Anti-Circumvention Review of Antidumping Order:
Corrosion-Resistant Carbon Steel Flat Products
From Japan, 68 FR 33676, 33677 (June 5, 2003); and
Affirmative Final Determination of Circumvention
of the Antidumping Duty Order on Certain Cut-toLength Carbon Steel Plate From the People’s
Republic of China, 74 FR 40565, 40566 (August 12,
2009), and accompanying IDM.
10 See Omnibus Trade Act of 1987, Report of the
Senate Finance Committee, S. Rep. No. 71, 100th
Cong., 1st Sess. 100 (1987).
VerDate Sep<11>2014
20:22 Mar 17, 2020
Jkt 250001
determine if circumvention exists in a
particular case.11
Preliminary Determination
We preliminarily determine that
hooked rebar and straight rebar are not
significantly dissimilar in terms of
overall physical characteristics of the
merchandise, the expectations of the
ultimate users, the use of the
merchandise, channels of marketing,
and the timing and circumstances under
which Deacero exported the hooked
rebar. We also preliminarily determine
that, based on the information
submitted by Deacero, there is a
significant dissimilarity in production
costs between the hooked rebar and
straight rebar. Because we find that
hooked rebar and straight rebar are not
significantly dissimilar as regards the
first four criteria, and based on the
timing and circumstances under which
Deacero exported the hooked rebar, we
preliminarily determine that the hooked
rebar at issue produced and/or exported
by Deacero constitutes merchandise
‘‘altered in form or appearance in minor
respects’’ from in-scope merchandise,
within the meaning of section 781(c)(1)
of the Act.12
Also, we preliminarily determine
there is no evidence on the record of
this inquiry indicating that other
Mexican producers and exporters of
hooked rebar to the United States are
circumventing the AD Order on rebar
from Mexico. Further, unlike Aluminum
Extrusions,13 where Commerce applied
a circumvention finding country-wide,
there are no arguments or information
on the record that demonstrates the
need for Commerce to extend our
preliminary findings to all Mexican
producers.14
Suspension of Liquidation
In accordance with section
351.225(l)(2) of Commerce’s regulations,
we will direct U.S. Customs and Border
Protection (CBP) to suspend liquidation
of otherwise straight steel concrete
reinforcing bar bent on one or both ends
and otherwise meeting the description
of in-scope merchandise under the
Order that is produced and/or exported
to the United States by Deacero that are
entered, or withdrawn from warehouse,
11 See, e.g., CTL Plate from Canada IDM at
Comment 4.
12 For additional information, see the Preliminary
Decision Memorandum.
13 See Aluminum Extrusions from the People’s
Republic of China: Final Affirmative Determination
of Circumvention of the Antidumping Duty and
Countervailing Duty Orders, and Partial Rescission,
84 FR 39805 (August 12, 2019) (Aluminum
Extrusions), and accompanying IDM at 18.
14 For additional information, see the Preliminary
Decision Memorandum.
PO 00000
Frm 00019
Fmt 4703
Sfmt 4703
15431
for consumption on or after October 18,
2019, the date of the initiation of this
inquiry. Pursuant to 19 CFR
351.225(l)(2), we will also instruct CBP
to require a cash deposit of estimated
duties equal to the AD rate in effect for
Deacero for each unliquidated entry of
otherwise straight steel concrete
reinforcing bar bent on one or both ends
and otherwise meeting the description
of in-scope merchandise under the
Order that is produced and/or exported
to the United States by Deacero on or
after October 18, 2019.15 The
suspension of liquidation instructions
will remain in effect until further notice.
Hooked rebar produced and/or
exported by Deacero that has been sold
in connection with a specific, identified
construction project and produced
according to an engineer’s structural
design, consistent with industry
standards, is not subject to this inquiry.
However, imports of such merchandise
are subject to certification requirements,
and cash deposits may be required if the
certification requirements are not
satisfied. Accordingly, if an importer
imports hooked rebar from Mexico
produced and/or exported by Deacero
and claims that the hooked rebar has
been sold in connection with a specific,
identified construction project and
produced according to an engineer’s
structural design, consistent with
industry standards, the importer is
required to meet the certification and
documentation requirements described
in Appendices II and III, in order for
cash deposits pursuant to the Mexico
rebar order not to be required.
Public Comment
Interested parties are invited to
comment on this preliminary
determination of circumvention and
may submit case briefs and/or written
comments within 20 days of the
publication of this notice.16 Interested
parties may file rebuttal briefs limited to
issues raised in the case briefs no later
than 10 days after the date on which the
case briefs are due.17 Interested parties
may request a hearing within 20 days of
the publication of this notice. Interested
parties will be notified by Commerce of
the location and time of any hearing, if
one is requested.
Notification to Interested Parties
This affirmative preliminary
circumvention determination is in
15 See Steel Concrete Reinforcing Bar from
Mexico: Final Results of Antidumping Duty
Administrative Review; 2016–2017, 84 FR 35599
(July 24, 2019).
16 See 19 CFR 351.225(f)(3).
17 Id.
E:\FR\FM\18MRN1.SGM
18MRN1
15432
Federal Register / Vol. 85, No. 53 / Wednesday, March 18, 2020 / Notices
accordance with section 781(c) of the
Act and 19 CFR 351.225.
Dated: February 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix I
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Statutory and Regulatory Framework
V. Analysis
A. Whether the Hooked Rebar at Issue
Constitutes Merchandise Altered in Form
or Appearance in Minor Respects
B. Certification Language
VI. Recommendation
Appendix II
Certification Requirements
If an importer imports otherwise straight
rebar bent on one or both ends (hooked rebar)
from Mexico produced and/or exported by
Deacero and claims that the hooked rebar has
been sold in connection with specific,
identified construction project and produced
according to an engineer’s structural design,
consistent with industry standards, the
importer is required to complete and
maintain the importer certification attached
hereto as Appendix III and all supporting
documentation. Where the importer uses a
broker to facilitate the entry process, the
importer should obtain the entry number
from the broker. Agents of the importer, such
as brokers, however, are not permitted to
make this certification on behalf of the
importer.
For shipments and/or entries from October
18, 2019 through March 29, 2020, if a
certification is required, importers should
complete the required certification within 30
days of the publication of this notice in the
Federal Register. Accordingly, where
appropriate, the relevant bullet in the
certification should be edited to reflect that
jbell on DSKJLSW7X2PROD with NOTICES
Producer
18:54 Mar 17, 2020
Appendix III
Importer Certification
I hereby certify that:
Entry summary No.
• I understand that {NAME OF
IMPORTING COMPANY} is required to
maintain a copy of this certification and
sufficient documentation supporting this
certification (i.e., documents maintained in
the normal course of business, or documents
obtained by the certifying party, for example,
mill certificates, production records,
invoices, etc.) for the later of (1) a period of
five years from the date of entry or (2) a
period of three years after the conclusion of
any litigation in the United States courts
regarding such entries.
• I understand that {NAME OF
IMPORTING COMPANY} is required to
provide this certification and supporting
VerDate Sep<11>2014
the certification was completed within the
time frame specified above. For example, the
bullet in the importer certification that reads:
‘‘This certification was completed at or prior
to the time of entry,’’ could be edited as
follows: ‘‘The imports referenced herein
entered before March 30, 2020. This
certification was completed on mm/dd/yyyy,
within 30 days of the Federal Register notice
publication of the preliminary determination
of circumvention.’’ For such entries/
shipments, importers have the option to
complete a blanket certification covering
multiple entries/shipments, individual
certifications for each entry/shipment, or a
combination thereof.
For shipments and/or entries on or after
March 30, 2020, if a certification is required,
importers should complete the certification
at or prior to the date of entry.
The importer is also required to maintain
sufficient documentation supporting its
certifications. The importer will not be
required to submit the certifications or
supporting documentation to U.S. Customs
and Border Protection (CBP) as part of the
entry process at this time. However, the
importer will be required to present the
certifications and supporting documentation
to Commerce and/or CBP, as applicable,
upon request by the respective agency.
Additionally, the claims made in the
certifications and any supporting
documentation are subject to verification by
Commerce and/or CBP. The importer is
required to maintain the certification and
supporting documentation for the later of: (1)
A period of five years from the date of entry,
or (2) a period of three years after the
conclusion of any litigation in United States
courts regarding such entries.
In the situation where no certification is
provided for an entry, Commerce intends to
instruct CBP to suspend liquidation of the
entry and collect cash deposits at the rate
applicable to Deacero.
Jkt 250001
Entry summary line item
No.
records, upon request, to U.S. Customs and
Border Protection (CBP) and/or the
Department of Commerce (Commerce).
• I understand that the claims made
herein, and the substantiating
documentation, are subject to verification by
CBP and/or Commerce.
• I understand that failure to maintain the
required certifications, and/or failure to
substantiate the claims made herein, and/or
failure to allow CBP and/or Commerce to
verify the claims made herein, may result in
a determination that all entries to which this
certification applies are within the scope of
the antidumping duty order on steel concrete
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
• My name is {IMPORTING COMPANY
OFFICIAL’S NAME} and I am an official of
{IMPORTING COMPANY};
• I have direct personal knowledge of the
facts regarding the importation into the
Customs territory of the United States of the
otherwise straight rebar bent on one or both
ends (hooked rebar) from Mexico produced
and/or exported by Deacero S.A.P.I.
(Deacero) that entered under entry number(s),
identified below, and which are covered by
this certification. ‘‘Direct personal
knowledge’’ for purposes of this certification
refers to facts in records maintained by the
importing company in the normal course of
its business.
• The hooked rebar covered by this
certification was produced and/or exported
by Deacero.
If the importer is acting on behalf of the
first U.S. customer, complete this paragraph:
• The hooked rebar from Mexico produced
and/or exported by Deacero covered by this
certification was imported by {NAME OF
IMPORTING COMPANY} on behalf of
{NAME OF U.S. CUSTOMER}, located at
{ADDRESS OF U.S. CUSTOMER}.
• The hooked rebar from Mexico produced
and/or exported by Deacero covered by this
certification was shipped to {NAME OF
PARTY TO WHOM MERCHANDISE WAS
FIRST SHIPPED IN THE UNITED STATES},
located at {ADDRESS OF SHIPMENT}.
• I have personal knowledge of the facts
regarding the production of hooked rebar
from Mexico produced and/or exported by
Deacero identified below. ‘‘Personal
knowledge’’ includes facts obtained from
another party (e.g., correspondence received
by the importer from the producer regarding
the country of manufacture of the imported
products).
• The hooked rebar from Mexico was
produced and/or exported by Deacero.
• The imports of hooked rebar have been
sold in connection with a specific, identified
construction project and produced according
to an engineer’s structural design, consistent
with industry standards.
• This certification applies to the
following entries:
Invoice No.
Invoice line item No.
reinforcing bar from Mexico. I understand
that such finding could result in:
Æ Suspension of liquidation of all
unliquidated entries (and entries for which
liquidation has not become final) for which
these requirements were not met;
Æ the requirement that the importer post
applicable antidumping duty cash deposits
(as appropriate) equal to the rates determined
by Commerce; and
Æ the revocation of {NAME OF
IMPORTING COMPANY}’s privilege to
certify future imports of steel concrete
reinforcing bar from Mexico.
E:\FR\FM\18MRN1.SGM
18MRN1
Federal Register / Vol. 85, No. 53 / Wednesday, March 18, 2020 / Notices
• I understand that agents of the importer,
such as brokers, are not permitted to make
this certification.
• This certification was completed at or
prior to the time of entry.
• I am aware that U.S. law (including, but
not limited to, 18 U.S.C. 1001) imposes
criminal sanctions on individuals who
knowingly and willfully make materially
false statements to the U.S. government.
Signature
NAME OF COMPANY OFFICIAL
TITLE
DATE
[FR Doc. 2020–05608 Filed 3–17–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–118]
Wood Mouldings and Millwork
Products From the People’s Republic
of China: Postponement of Preliminary
Determination in the Countervailing
Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable March 18, 2020.
FOR FURTHER INFORMATION CONTACT:
Irene Gorelik or Faris Montgomery, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–6905 or
(202) 482–1537, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On January 28, 2020, the Department
of Commerce (Commerce) initiated a
countervailing duty (CVD) investigation
of imports of wood mouldings and
millwork products (millwork products)
from the People’s Republic of China.1
Currently, the preliminary
determination is due no later than April
2, 2020.
jbell on DSKJLSW7X2PROD with NOTICES
Postponement of Preliminary
Determination
Section 703(b)(1) of the Tariff Act of
1930, as amended (the Act), requires the
Department to issue the preliminary
determination in a countervailing duty
investigation within 65 days after the
date on which Commerce initiated the
investigation. However, section
703(c)(1) of the Act permits Commerce
1 See Wood Mouldings and Millwork Products
from the People’s Republic of China: Initiation of
Countervailing Duty Investigation, 85 FR 6513
(February 5, 2020) (Initiation Notice).
VerDate Sep<11>2014
18:54 Mar 17, 2020
Jkt 250001
to postpone the preliminary
determination until no later than 130
days after the date on which Commerce
initiated the investigation if: (A) The
petitioner makes a timely request for a
postponement; or (B) Commerce
concludes that the parties concerned are
cooperating, that the investigation is
extraordinarily complicated, and that
additional time is necessary to make a
preliminary determination. Under 19
CFR 351.205(e), the petitioner must
submit a request for postponement 25
days or more before the scheduled date
of the preliminary determination and
must state the reasons for the request.
Commerce will grant the request unless
it finds compelling reasons to deny the
request.
On March 6, 2020, the petitioner 2
submitted a timely request that
Commerce postpone the preliminary
CVD determination.3 The petitioner
stated that it requests postponement
‘‘because additional time will be
necessary to receive questionnaire
responses and to ensure that the
Department {of Commerce} has
sufficient time to review all responses
and request clarification and additional
information as necessary.’’ 4
In accordance with 19 CFR
351.205(e), the petitioner has stated the
reasons for requesting a postponement
of the preliminary determination, and
Commerce finds no compelling reason
to deny the request. Therefore, in
accordance with section 703(c)(1)(A) of
the Act, Commerce is postponing the
deadline for the preliminary
determination to no later than 130 days
after the date on which this
investigation was initiated, i.e., June, 8,
2020.5 Pursuant to section 705(a)(1) of
the Act and 19 CFR 351.210(b)(1), the
deadline for the final determination of
this investigation will continue to be 75
days after the date of the preliminary
determination.
Notification to Interested Parties
This notice is issued and published
pursuant to section 703(c)(2) of the Act
and 19 CFR 351.205(f)(1).
2 The petitioner is the Coalition of American
Millwork Producers.
3 See Petitioner’s Letter, ‘‘Wood Mouldings and
Millwork Products from the People’s Republic of
China: Request to Postpone Preliminary
Determination,’’ dated March 6, 2020.
4 Id.
5 Postponing the preliminary determination to
130 days after initiation would place the deadline
on Saturday, June 6, 2020. Commerce’s practice
dictates that where a deadline falls on a weekend
or federal holiday, the appropriate deadline is 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).
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
15433
Dated: March 12, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2020–05610 Filed 3–17–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XA087]
Pacific Fishery Management Council;
Public Meetings
National Marine Fisheries
Service, National Oceanic and
Atmospheric Administration,
Commerce.
ACTION: Notice of public meetings.
AGENCY:
The Pacific Fishery
Management Council (Pacific Council)
and its advisory entities will hold
public meetings.
DATES: The Pacific Council and its
advisory entities will meet April 4–10,
2020. The Pacific Council meeting will
begin on Sunday, April 5, 2020 at 8 a.m.
Pacific Daylight Time (PDT),
reconvening at 8 a.m. each day through
Friday, April 10, 2020. All meetings are
open to the public, except a closed
session will be held from 8 a.m. to 9
a.m., Sunday, April 5, to address
litigation and personnel matters. The
Pacific Council will meet as late as
necessary each day to complete its
scheduled business.
ADDRESSES: Meetings of the Pacific
Council and its advisory entities will be
held at the Hilton Vancouver, 301 West
6th Street, Vancouver, WA; telephone:
(360) 993–4500.
Council address: Pacific Fishery
Management Council, 7700 NE
Ambassador Place, Suite 101, Portland,
OR 97220. Instructions for attending the
meeting via live stream broadcast are
given under SUPPLEMENTARY
INFORMATION, below.
FOR FURTHER INFORMATION CONTACT: Mr.
Chuck Tracy, Executive Director;
telephone: (503) 820–2280 or (866) 806–
7204 toll-free; or access the Pacific
Council website, https://
www.pcouncil.org for the current
meeting location, proposed agenda, and
meeting briefing materials.
SUPPLEMENTARY INFORMATION: The April
5–10, 2020 meeting of the Pacific
Council will be streamed live on the
internet. The broadcasts begin initially
at 9 a.m. PDT Sunday, April 5, 2020 and
continue at 8 a.m. daily through Friday,
April 10, 2020. Broadcasts end when
SUMMARY:
E:\FR\FM\18MRN1.SGM
18MRN1
]]>Agencies
[Federal Register Volume 85, Number 53 (Wednesday, March 18, 2020)]
[Notices]
[Pages 15430-15433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05608]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-844]
Steel Concrete Reinforcing Bar From Mexico: Affirmative
Preliminary Determination of Circumvention of the Antidumping Duty
Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: We preliminarily determine that steel concrete reinforcing bar
(rebar) from Mexico that is bent on one or both ends and otherwise
meeting the description of in-scope merchandise--if produced and/or
exported by Deacero S.A.P.I. de C.V. (Deacero) to the United States--is
circumventing the antidumping duty order on rebar from Mexico.
DATES: Applicable March 18, 2020.
FOR FURTHER INFORMATION CONTACT: Jonathan Hall-Eastman, Office III,
Antidumping and Countervailing Duty Operations, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1468.
SUPPLEMENTARY INFORMATION:
Background
On September 15, 2014, the Department of Commerce (Commerce)
published antidumping duty (AD) Order on rebar from Mexico.\1\ On
October 18, 2019, in response to a request from the Rebar Trade Action
Coalition (the petitioner),\2\ Commerce initiated a circumvention
inquiry into whether imports of otherwise straight rebar bent on one or
both ends (also referred to as hooked rebar) that is produced and/or
exported to the United States by Deacero and otherwise meeting the
description of in-scope merchandise, constitutes merchandise ``altered
in form or appearance in minor respects'' from in-scope merchandise
that should be considered subject to AD Order on rebar from Mexico.\3\
Commerce also indicated that it would examine ``whether to apply the
results of this anti-circumvention inquiry to imports of similarly
situated other straight rebar bent at one or both ends from Mexico
regardless of producer or exporter.'' \4\ For a complete description of
the events that followed the initiation of this review, see the
Preliminary Decision Memorandum.\5\
---------------------------------------------------------------------------
\1\ See Steel Concrete Reinforcing Bar from Mexico: Final
Determination of Sales at Less Than Fair Value and Final Affirmative
Determination of Critical Circumstances, 79 FR 54967 (September 15,
2014) (Order).
\2\ See Petitioner's Letter, ``Steel Concrete Reinforcing Bar
from Mexico: Request for Scope Ruling or, Alternatively, an Anti-
Circumvention Ruling,'' dated September 3, 2019.
\3\ See Steel Concrete Reinforcing Bar from Mexico: Initiation
of Anti-Circumvention Inquiry of Antidumping Duty Order; 84 FR 58132
(October 30, 2019), and accompanying Initiation Memorandum.
\4\ Id., Initiation Memorandum at 8-9.
\5\ See Memorandum, ``Affirmative Preliminary Decision
Memorandum of Circumvention Concerning Certain Hooked or Bent Steel
Concrete Reinforcing Bar Produced and/or Exported by Deacero
S.A.P.I. de C.V,'' dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Order
The merchandise subject to this Order 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, 7221.00.0017, 7221.00.0018,
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.
Scope of the Circumvention Inquiry
The merchandise subject to this circumvention inquiry consists of
otherwise straight steel concrete reinforcing bar bent on one or both
ends and otherwise meeting the description of in-scope merchandise
under the Order produced and/or exported by Deacero from Mexico to the
United States. The petitioner's December 27, 2019 filing stated that:
the issues present in this anti-circumvention inquiry are
limited to deterring circumvention of the order due to modification
of straight length with a hook or bend that is easily removable, has
no commercially relevant purpose, and is not designed to an industry
standard design for incorporation into a specific construction
project. Petitioner does not attempt to include all fabricated
products in the scope of the order as minor alterations and this
issue is not before the Department.\6\
---------------------------------------------------------------------------
\6\ See Petitioner's Letter ``Steel Concrete Reinforcing Bar
from Mexico: Response to Deacero December 10, 2019 Comments,'' dated
December 27, 2019, at 2.
The petitioner's January 31, 2020 filing further noted that ``the
issue before the Department is whether Deacero's sales to (a particular
customer) circumvented the order.'' \7\ Unlike for Deacero, we
preliminarily find there is no evidence on the record of this inquiry
indicating that other Mexican producers are exporting hooked rebar to
the United States that did not have a connection to a specific,
identified construction project. Therefore, we have not applied our
preliminary affirmative finding to hooked rebar country-wide.\8\
---------------------------------------------------------------------------
\7\ See Petitioner's Letter, ``Steel Concrete Reinforcing Bar
from Mexico: Response to Deacero's January 15, 2020 Comments,''
dated January 31, 2020, at 9.
\8\ For further information, see the Preliminary Decision
Memorandum.
---------------------------------------------------------------------------
Statutory and Regulatory Framework
Section 781(c) of the Tariff Act of 1930, as amended (the Act),
which deals with minor alterations of merchandise, states that:
(1) In general: The class or kind of merchandise subject to (A)
an investigation under this title, (B) an antidumping duty order
issued under section 736, (C) a finding issued under the Antidumping
Act, 1921, or (D) a countervailing duty order issued under section
706 or section 303, shall include articles altered in form or
appearance in minor respects (including raw agricultural products
that have undergone minor processing), whether or not included in
the same tariff classification. (2) Exception. Paragraph (1) shall
not apply with respect to altered merchandise if the administering
authority determines that it would be unnecessary to consider the
altered merchandise within the scope of the investigation, order, or
finding.
As stated under 19 CFR 351.225(a), issues may arise as to whether a
particular product is included within the scope of an AD or
countervailing duty (CVD) order or a suspended investigation. Such
issues can arise
[[Page 15431]]
because the descriptions of subject merchandise contained in Commerce's
determinations must be written in general terms. At other times, a
domestic interested party may allege that a change to an imported
product or the place where the imported product is assembled
constitutes circumvention under section 781 of the Act. When such
issues arise, Commerce conducts circumvention inquiries that clarify
the scope of an order or suspended investigation with respect to
particular products. Pursuant to section 781(c) of the Act and 19 CFR
351.225(i), Commerce may include within the scope of an AD or CVD order
articles altered in form or appearance in minor respects.
While the statute is silent regarding what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors which should be considered before reaching a circumvention
determination. Previous circumvention cases \9\ have relied on the
factors listed in the Senate Finance Committee report on the Omnibus
Trade and Competitiveness Act of 1988 (which amended the Act to include
the circumvention provisions contained in section 781 of the Act),
which states:
---------------------------------------------------------------------------
\9\ See, e.g., Final Determination of Circumvention of the
Antidumping Order: Cut-to-Length Carbon Steel Plate From Canada, 66
FR 7617, 7618 (January 24, 2001)) (CTL Plate from Canada), and
accompanying Issues and Decision Memorandum (IDM) at Comment 4, in
which Commerce discusses its application of the factors discussed in
the Senate Finance Committee report; see also Final Results of Anti-
Circumvention Review of Antidumping Order: Corrosion-Resistant
Carbon Steel Flat Products From Japan, 68 FR 33676, 33677 (June 5,
2003); and Affirmative Final Determination of Circumvention of the
Antidumping Duty Order on Certain Cut-to-Length Carbon Steel Plate
From the People's Republic of China, 74 FR 40565, 40566 (August 12,
2009), and accompanying IDM.
{i{time} n applying this provision, the Commerce Department
should apply practical measurements regarding minor alterations, so
that circumvention can be dealt with effectively, even where such
alterations to an article technically transform it into a
differently designated article. The Commerce Department should
consider such criteria as the overall physical characteristics of
the merchandise, the expectations of the ultimate users, the use of
the merchandise, the channels of marketing and the cost of any
modification relative to the total value of the imported
products.\10\
---------------------------------------------------------------------------
\10\ See Omnibus Trade Act of 1987, Report of the Senate Finance
Committee, S. Rep. No. 71, 100th Cong., 1st Sess. 100 (1987).
In the case of an allegation of a ``minor alteration'' under
section 781(c) of the Act, it is Commerce's practice to look at the
five factors listed in the Senate Finance Committee report to determine
if circumvention exists in a particular case.\11\
---------------------------------------------------------------------------
\11\ See, e.g., CTL Plate from Canada IDM at Comment 4.
---------------------------------------------------------------------------
Preliminary Determination
We preliminarily determine that hooked rebar and straight rebar are
not significantly dissimilar in terms of overall physical
characteristics of the merchandise, the expectations of the ultimate
users, the use of the merchandise, channels of marketing, and the
timing and circumstances under which Deacero exported the hooked rebar.
We also preliminarily determine that, based on the information
submitted by Deacero, there is a significant dissimilarity in
production costs between the hooked rebar and straight rebar. Because
we find that hooked rebar and straight rebar are not significantly
dissimilar as regards the first four criteria, and based on the timing
and circumstances under which Deacero exported the hooked rebar, we
preliminarily determine that the hooked rebar at issue produced and/or
exported by Deacero constitutes merchandise ``altered in form or
appearance in minor respects'' from in-scope merchandise, within the
meaning of section 781(c)(1) of the Act.\12\
---------------------------------------------------------------------------
\12\ For additional information, see the Preliminary Decision
Memorandum.
---------------------------------------------------------------------------
Also, we preliminarily determine there is no evidence on the record
of this inquiry indicating that other Mexican producers and exporters
of hooked rebar to the United States are circumventing the AD Order on
rebar from Mexico. Further, unlike Aluminum Extrusions,\13\ where
Commerce applied a circumvention finding country-wide, there are no
arguments or information on the record that demonstrates the need for
Commerce to extend our preliminary findings to all Mexican
producers.\14\
---------------------------------------------------------------------------
\13\ See Aluminum Extrusions from the People's Republic of
China: Final Affirmative Determination of Circumvention of the
Antidumping Duty and Countervailing Duty Orders, and Partial
Rescission, 84 FR 39805 (August 12, 2019) (Aluminum Extrusions), and
accompanying IDM at 18.
\14\ For additional information, see the Preliminary Decision
Memorandum.
---------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 351.225(l)(2) of Commerce's regulations,
we will direct U.S. Customs and Border Protection (CBP) to suspend
liquidation of otherwise straight steel concrete reinforcing bar bent
on one or both ends and otherwise meeting the description of in-scope
merchandise under the Order that is produced and/or exported to the
United States by Deacero that are entered, or withdrawn from warehouse,
for consumption on or after October 18, 2019, the date of the
initiation of this inquiry. Pursuant to 19 CFR 351.225(l)(2), we will
also instruct CBP to require a cash deposit of estimated duties equal
to the AD rate in effect for Deacero for each unliquidated entry of
otherwise straight steel concrete reinforcing bar bent on one or both
ends and otherwise meeting the description of in-scope merchandise
under the Order that is produced and/or exported to the United States
by Deacero on or after October 18, 2019.\15\ The suspension of
liquidation instructions will remain in effect until further notice.
---------------------------------------------------------------------------
\15\ See Steel Concrete Reinforcing Bar from Mexico: Final
Results of Antidumping Duty Administrative Review; 2016-2017, 84 FR
35599 (July 24, 2019).
---------------------------------------------------------------------------
Hooked rebar produced and/or exported by Deacero that has been sold
in connection with a specific, identified construction project and
produced according to an engineer's structural design, consistent with
industry standards, is not subject to this inquiry. However, imports of
such merchandise are subject to certification requirements, and cash
deposits may be required if the certification requirements are not
satisfied. Accordingly, if an importer imports hooked rebar from Mexico
produced and/or exported by Deacero and claims that the hooked rebar
has been sold in connection with a specific, identified construction
project and produced according to an engineer's structural design,
consistent with industry standards, the importer is required to meet
the certification and documentation requirements described in
Appendices II and III, in order for cash deposits pursuant to the
Mexico rebar order not to be required.
Public Comment
Interested parties are invited to comment on this preliminary
determination of circumvention and may submit case briefs and/or
written comments within 20 days of the publication of this notice.\16\
Interested parties may file rebuttal briefs limited to issues raised in
the case briefs no later than 10 days after the date on which the case
briefs are due.\17\ Interested parties may request a hearing within 20
days of the publication of this notice. Interested parties will be
notified by Commerce of the location and time of any hearing, if one is
requested.
---------------------------------------------------------------------------
\16\ See 19 CFR 351.225(f)(3).
\17\ Id.
---------------------------------------------------------------------------
Notification to Interested Parties
This affirmative preliminary circumvention determination is in
[[Page 15432]]
accordance with section 781(c) of the Act and 19 CFR 351.225.
Dated: February 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Statutory and Regulatory Framework
V. Analysis
A. Whether the Hooked Rebar at Issue Constitutes Merchandise Altered
in Form or Appearance in Minor Respects
B. Certification Language
VI. Recommendation
Appendix II
Certification Requirements
If an importer imports otherwise straight rebar bent on one or
both ends (hooked rebar) from Mexico produced and/or exported by
Deacero and claims that the hooked rebar has been sold in connection
with specific, identified construction project and produced
according to an engineer's structural design, consistent with
industry standards, the importer is required to complete and
maintain the importer certification attached hereto as Appendix III
and all supporting documentation. Where the importer uses a broker
to facilitate the entry process, the importer should obtain the
entry number from the broker. Agents of the importer, such as
brokers, however, are not permitted to make this certification on
behalf of the importer.
For shipments and/or entries from October 18, 2019 through March
29, 2020, if a certification is required, importers should complete
the required certification within 30 days of the publication of this
notice in the Federal Register. Accordingly, where appropriate, the
relevant bullet in the certification should be edited to reflect
that the certification was completed within the time frame specified
above. For example, the bullet in the importer certification that
reads: ``This certification was completed at or prior to the time of
entry,'' could be edited as follows: ``The imports referenced herein
entered before March 30, 2020. This certification was completed on
mm/dd/yyyy, within 30 days of the Federal Register notice
publication of the preliminary determination of circumvention.'' For
such entries/shipments, importers have the option to complete a
blanket certification covering multiple entries/shipments,
individual certifications for each entry/shipment, or a combination
thereof.
For shipments and/or entries on or after March 30, 2020, if a
certification is required, importers should complete the
certification at or prior to the date of entry.
The importer is also required to maintain sufficient
documentation supporting its certifications. The importer will not
be required to submit the certifications or supporting documentation
to U.S. Customs and Border Protection (CBP) as part of the entry
process at this time. However, the importer will be required to
present the certifications and supporting documentation to Commerce
and/or CBP, as applicable, upon request by the respective agency.
Additionally, the claims made in the certifications and any
supporting documentation are subject to verification by Commerce
and/or CBP. The importer is required to maintain the certification
and supporting documentation for the later of: (1) A period of five
years from the date of entry, or (2) a period of three years after
the conclusion of any litigation in United States courts regarding
such entries.
In the situation where no certification is provided for an
entry, Commerce intends to instruct CBP to suspend liquidation of
the entry and collect cash deposits at the rate applicable to
Deacero.
Appendix III
Importer Certification
I hereby certify that:
My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}
and I am an official of {IMPORTING COMPANY{time} ;
I have direct personal knowledge of the facts regarding
the importation into the Customs territory of the United States of
the otherwise straight rebar bent on one or both ends (hooked rebar)
from Mexico produced and/or exported by Deacero S.A.P.I. (Deacero)
that entered under entry number(s), identified below, and which are
covered by this certification. ``Direct personal knowledge'' for
purposes of this certification refers to facts in records maintained
by the importing company in the normal course of its business.
The hooked rebar covered by this certification was
produced and/or exported by Deacero.
If the importer is acting on behalf of the first U.S. customer,
complete this paragraph:
The hooked rebar from Mexico produced and/or exported
by Deacero covered by this certification was imported by {NAME OF
IMPORTING COMPANY{time} on behalf of {NAME OF U.S. CUSTOMER{time} ,
located at {ADDRESS OF U.S. CUSTOMER{time} .
The hooked rebar from Mexico produced and/or exported
by Deacero covered by this certification was shipped to {NAME OF
PARTY TO WHOM MERCHANDISE WAS FIRST SHIPPED IN THE UNITED
STATES{time} , located at {ADDRESS OF SHIPMENT{time} .
I have personal knowledge of the facts regarding the
production of hooked rebar from Mexico produced and/or exported by
Deacero identified below. ``Personal knowledge'' includes facts
obtained from another party (e.g., correspondence received by the
importer from the producer regarding the country of manufacture of
the imported products).
The hooked rebar from Mexico was produced and/or
exported by Deacero.
The imports of hooked rebar have been sold in
connection with a specific, identified construction project and
produced according to an engineer's structural design, consistent
with industry standards.
This certification applies to the following entries:
----------------------------------------------------------------------------------------------------------------
Entry summary line Invoice line item
Producer Entry summary No. item No. Invoice No. No.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
I understand that {NAME OF IMPORTING COMPANY{time} is
required to maintain a copy of this certification and sufficient
documentation supporting this certification (i.e., documents
maintained in the normal course of business, or documents obtained
by the certifying party, for example, mill certificates, production
records, invoices, etc.) for the later of (1) a period of five years
from the date of entry or (2) a period of three years after the
conclusion of any litigation in the United States courts regarding
such entries.
I understand that {NAME OF IMPORTING COMPANY{time} is
required to provide this certification and supporting records, upon
request, to U.S. Customs and Border Protection (CBP) and/or the
Department of Commerce (Commerce).
I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce.
I understand that failure to maintain the required
certifications, and/or failure to substantiate the claims made
herein, and/or failure to allow CBP and/or Commerce to verify the
claims made herein, may result in a determination that all entries
to which this certification applies are within the scope of the
antidumping duty order on steel concrete reinforcing bar from
Mexico. I understand that such finding could result in:
[cir] Suspension of liquidation of all unliquidated entries (and
entries for which liquidation has not become final) for which these
requirements were not met;
[cir] the requirement that the importer post applicable
antidumping duty cash deposits (as appropriate) equal to the rates
determined by Commerce; and
[cir] the revocation of {NAME OF IMPORTING COMPANY{time} 's
privilege to certify future imports of steel concrete reinforcing
bar from Mexico.
[[Page 15433]]
I understand that agents of the importer, such as
brokers, are not permitted to make this certification.
This certification was completed at or prior to the
time of entry.
I am aware that U.S. law (including, but not limited
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
knowingly and willfully make materially false statements to the U.S.
government.
Signature
NAME OF COMPANY OFFICIAL
TITLE
DATE
[FR Doc. 2020-05608 Filed 3-17-20; 8:45 am]
BILLING CODE 3510-DS-P
