Standard Steel Welded Wire Mesh from Mexico: Initiation of Less-Than-Fair-Value Investigation, 45167-45172 [2020-16185]

Download as PDF Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices requirements for serving documents containing business proprietary information, until further notice.17 Interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, using Enforcement and Compliance’s ACCESS system within 30 days of publication of this notice. 18 Requests should contain: (1) The party’s name, address, and telephone number; (2) the number of participants; and (3) a list of issues to be discussed. Issues raised in the hearing will be limited to those raised in the respective case and rebuttal briefs. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. Parties should confirm the date and time of the hearing two days before the scheduled date. Unless the deadline is extended pursuant to section 751(a)(2)(B)(iv) of the Act and 19 CFR 351.213(h)(2), Commerce intends to issue the final results of this administrative review, including the results of its analysis of issues raised in any written briefs, not later than 120 days after the date of publication of this notice.19 jbell on DSKJLSW7X2PROD with NOTICES Assessment Rates Upon publication of the final results of this administrative review, Commerce shall determine, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries covered by this review.20 Commerce will calculate importerspecific antidumping duty assessment rates when a respondent’s weighted average dumping margin is not zero or de minimis (i.e., less than 0.5 percent). Pursuant to 19 CFR 351.212(b)(1), where the respondent reported the entered value of its U.S. sales, we will calculate importer-specific ad valorem duty assessment rates based on the ratio of the total amount of dumping calculated for the examined sales to the total entered value of such sales. Where the respondent did not report entered value, we will calculate importer-specific assessment rates on the basis of the ratio of the total amount of dumping calculated for the importer’s examined sales and the total quantity of those sales, in accordance with 19 CFR 351.212(b)(1).21 We will also calculate 17 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). 18 See 19 CFR 351.310(c). 19 See section 751(a)(3)(A) of the Act and 19 CFR 351.213(h). 20 See 19 CFR 351.212(b)(1). 21 In these preliminary results, Commerce applied the assessment rate calculation method adopted in VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 (estimated) ad valorem importerspecific assessment rates with which to assess whether the per-unit assessment rate is de minimis . We will instruct CBP to assess antidumping duties on all appropriate entries covered by this review when either the respondent’s weighted-average dumping margin is not zero or de minimis or the importerspecific ad valorem assessment rate calculated in the final results of this review is not zero or de minimis. Where either the respondent’s ad valorem weighted-average dumping margin is zero or de minimis, or an importerspecific ad valorem assessment rate is zero or de minimis,22 we will instruct CBP to liquidate the appropriate entries without regard to antidumping duties. Commerce’s ‘‘reseller policy’’ will apply to entries of subject merchandise during the POR produced by the POSCO single entity for which it did not know that the merchandise it sold to the intermediary (e.g., a reseller, trading company, or exporter) was destined for the United States. In such instances, we will instruct CBP to liquidate unreviewed entries at the all-others rate if there is no rate for the intermediate company(ies) involved in the transaction.23 We intend to issue instructions to CBP 15 days after the date of publication of the final results of this review. Cash Deposit Requirements The following deposit requirements will be effective upon publication of the notice of final results of administrative review for all shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided by section 751(a)(2)(C) of the Act: (1) The cash deposit rate for the POSCO single entity will be the rate established in the final results of this review, except if the rate is de minimis within the meaning of 19 CFR 351.106(c)(1) (i.e., less than 0.5 percent), in which case the cash deposit rate will be zero; (2) for merchandise exported by producers or exporters not covered in this review but covered in a prior segment of the proceeding, the cash deposit rate will continue to be the company-specific rate published for the most recentlyAntidumping Proceedings: Calculation of the Weighted-Average Dumping Margin and Assessment Rate in Certain Antidumping Proceedings: Final Modification, 77 FR 8101 (February 14, 2012). 22 See 19 CFR 351.106(c)(2). 23 For a full discussion of this clarification, see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 45167 completed segment; (3) if the exporter is not a firm covered in this review, a prior review, or the original investigation, but the producer is, then the cash deposit rate will be the rate established for the most recently-completed segment for the producer of the merchandise; and (4) the cash deposit rate for all other producers or exporters will continue to be 7.39 percent, the all-others rate established in the less-than-fair-value investigation.24 These cash deposit requirements, when imposed, shall remain in effect until further notice. Notification to Importers This notice also serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary’s presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. Notification to Interested Parties We are issuing and publishing these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4). Dated: July 20, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Affiliation and Collapsing V. Discussion of the Methodology VI. Currency Conversion VII. Recommendation [FR Doc. 2020–16200 Filed 7–24–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–201–853] Standard Steel Welded Wire Mesh from Mexico: Initiation of Less-Than-FairValue Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: DATES: 24 See E:\FR\FM\27JYN1.SGM Applicable July 20, 2020. Order. 27JYN1 45168 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Melissa Kinter; AD/ CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4682 or (202) 482–1413, respectively. SUPPLEMENTARY INFORMATION: jbell on DSKJLSW7X2PROD with NOTICES The Petition On June 30, 2020, the Department of Commerce (Commerce) received an antidumping duty (AD) petition concerning imports of standard steel welded wire mesh (wire mesh) from Mexico filed in proper form on behalf of the petitioners,1 domestic producers of wire mesh.2 The Petition was accompanied by a countervailing duty (CVD) petition concerning imports of wire mesh from Mexico.3 On July 2, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition in separate supplemental questionnaires.4 The petitioners filed responses to the supplemental questionnaires on July 7, 2020.5 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that imports of wire mesh from Mexico are being, or are likely to be, sold in the United States at less than fair value (LTFV) within the meaning of section 731 of the Act, and that imports of such products are materially injuring, or threatening material injury to, the wire mesh industry in the United States. Consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to the petitioners supporting their allegations. Commerce finds that the petitioners filed the Petition on behalf of the 1 Insteel Industries, Inc.; Mid South Wire Company; National Wire LLC; Oklahoma Steel & Wire Co.; and Wire Mesh Corp. (collectively, the petitioners). 2 See Petitioners’ Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated June 30, 2020 (the Petition). 3 Id. 4 See Commerce’s Letters, ‘‘Petitions for the Imposition of Antidumping Duties and Countervailing Duties on Imports of Standard Steel Welded Wire Mesh from Mexico: Supplemental Questions’’; and ‘‘Petition for the Imposition of Antidumping Duties on Imports of Standard Steel Welded Wire Mesh from Mexico: Supplemental Questions,’’ both dated July 2, 2020. 5 See Petitioners’ Letters, ‘‘Standard Steel Welded Wire Mesh from Mexico—Petitioners’ Amendment to Volume I Concerning General Issues,’’ (General Issues Supplement); and ‘‘Standard Steel Welded Wire Mesh from Mexico—Petitioners’ Amendment to Volume II Related to Antidumping Duties from Mexico,’’ (Mexico AD Supplement), both dated July 7, 2020. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 domestic industry because the petitioners are interested parties, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioners demonstrated sufficient industry support for the initiation of the requested AD investigation.6 Period of Investigation Because the Petition was filed on June 30, 2020, the period of investigation (POI) for this AD investigation is April 1, 2019 through March 31, 2020, pursuant to 19 CFR 351.204(b)(1).7 Scope of the Investigation The products covered by this investigation are wire mesh from Mexico. For a full description of the scope of this investigation, see the appendix to this notice. Comments on the Scope of the Investigation As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (i.e., scope).8 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,9 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit such comments by 5:00 p.m. Eastern Time (ET) on August 10, 2020, which is the next business day after 20 calendar days from the signature date of this notice.10 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on August 20, 2020, which is ten calendar days from the initial comment deadline. Commerce requests that any factual information parties consider relevant to the scope of the investigation be submitted during this period. However, if a party subsequently finds that 6 See infra, section on ‘‘Determination of Industry Support for the Petition.’’ 7 See 19 CFR 351.204(b)(1). 8 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 9 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 10 See 19 CFR 351.303(b). Commerce practice dictates that where a deadline falls on a weekend or Federal holiday, the appropriate deadline is the next business day (in this instance, August 10, 2020). See also 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) (Next Business Day Rule). PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information. All such submissions must be filed on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies.11 An electronically filed document must be received successfully in its entirety by the time and date it is due. Comments on Product Characteristics Commerce is providing interested parties an opportunity to comment on the appropriate physical characteristics of wire mesh to be reported in response to Commerce’s AD questionnaires. This information will be used to identify the key physical characteristics of the subject merchandise in order to report the relevant costs of production accurately, as well as to develop appropriate product-comparison criteria. Interested parties may provide any information or comments that they feel are relevant to the development of an accurate list of physical characteristics. Specifically, they may provide comments as to which characteristics are appropriate to use as: (1) General product characteristics; and (2) product comparison criteria. We note that it is not always appropriate to use all product characteristics as product comparison criteria. We base product comparison criteria on meaningful commercial differences among products. In other words, although there may be some physical product characteristics utilized by manufacturers to describe wire mesh, it may be that only a select few product characteristics take into account commercially meaningful physical characteristics. In addition, interested parties may comment on the order in which the physical characteristics should be used in matching products. Generally, 11 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, effective August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/ help.aspx and a handbook can be found at https:// access.trade.gov/help/Handbook_on_Electronic_ Filing_Procedures.pdf. E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES Commerce attempts to list the most important physical characteristics first and the least important characteristics last. In order to consider the suggestions of interested parties in developing and issuing the AD questionnaires, all product characteristics comments must be filed by 5:00 p.m. ET on August 10, 2020, which is the next business day after 20 calendar days from the signature date of this notice.12 Any rebuttal comments must be filed by 5:00 p.m. ET on August 20, 2020. All comments and submissions to Commerce must be filed electronically using ACCESS, as explained above. Determination of Industry Support for the Petition Section 732(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 732(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC must apply the same statutory definition regarding the domestic like product,13 they do so for different purposes and pursuant to a separate and distinct authority. In addition, 12 See 19 CFR 351.303(b); and Next Business Day Rule. 13 See section 771(10) of the Act. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 Commerce’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.14 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioners do not offer a definition of the domestic like product distinct from the scope of the investigation.15 Based on our analysis of the information submitted on the record, we have determined that wire mesh, as defined in the scope, constitutes a single domestic like product, and we have analyzed industry support in terms of that domestic like product.16 In determining whether the petitioners have standing under section 732(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the ‘‘Scope of the Investigation,’’ in the appendix to this notice. To establish industry support, the petitioners provided their 2019 production of the domestic like product, as well as the 2019 production of Davis Wire Corporation and Liberty Steel USA, supporters of the Petition.17 The petitioners compared the production of the supporters of the Petition to the estimated total production of the domestic like product for the entire domestic industry.18 We relied on data 14 See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 15 See Volume I of the Petition at 16–17; see also General Issues Supplement at 9–10. 16 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Antidumping Duty Investigation Initiation Checklist: Standard Steel Welded Wire Mesh from Mexico (Mexico AD Initiation Checklist) at Attachment II, ‘‘Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Standard Steel Welded Wire Mesh from Mexico’’ (Attachment II), dated concurrently with this notice and on file electronically via ACCESS. 17 See Volume I of the Petition at 3–4 and Exhibit GEN–3. 18 See Volume I of the Petition at 3–4 and Exhibits GEN–1 and GEN–3; see also General Issues Supplement at 11 and Exhibit GEN–SUPP–3. PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 45169 provided by the petitioners for purposes of measuring industry support.19 From July 13 through 17, 2020, we received comments on industry support from Deacero S.A.P.I. de C.V, a Mexican producer, and its affiliated U.S. importer, Deacero USA, Inc. (collectively, Deacero).20 The petitioners responded to these industry support comments on July 14 and 16, 2020, respectively.21 Our review of the data provided in the Petition, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioners have established industry support for the Petition.22 First, the Petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product, and, as such, Commerce is not required to take further action in order to evaluate industry support (e.g., polling).23 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 732(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total production of the domestic like product.24 Finally, the domestic producers (or workers) have met the statutory criterion for industry support under section 732(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.25 Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within 19 Id. For further discussion, see Mexico AD Initiation Checklist at Attachment II. 20 See Deacero’s Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Request to Clarify Scope and to Poll Domestic Industry,’’ dated July 13, 2020; Deacero’s Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Continued Request to Clarify Scope and to Poll Domestic Industry,’’ dated July 15, 2020; and Deacero’s Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Third Request to Clarify Scope and to Poll Domestic Industry,’’ dated July 17, 2020. 21 See Petitioners’ Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Petitioners’ Response to Deacero’s Request to Clarify Scope and to Poll Domestic Industry,’’ dated July 14, 2020; see also Petitioners’ Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Petitioners’ Response to Deacero’s Second Request to Clarify Scope and to Poll Domestic Industry,’’ dated July 16, 2020. 22 Id. 23 See Mexico AD Initiation Checklist at Attachment II.; see also section 732(c)(4)(D) of the Act. 24 See Mexico AD Initiation Checklist at Attachment II. 25 Id. E:\FR\FM\27JYN1.SGM 27JYN1 45170 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices the meaning of section 732(b)(1) of the Act.26 Allegations and Evidence of Material Injury and Causation The petitioners allege that the U.S. industry producing the domestic like product is being materially injured, or is threatened with material injury, by reason of the imports of the subject merchandise sold at LTFV. In addition, the petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.27 The petitioners contend that the industry’s injured condition is illustrated by a significant and increasing volume of subject imports; reduced market share; underselling and price depression and/or suppression; lost sales and revenues; decreasing capacity utilization rates and shipments; declines in employment variables; and declining financial performance and operating income.28 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.29 Allegations of Sales at LTFV The following is a description of the allegations of sales at LTFV upon which Commerce based its decision to initiate an AD investigation of imports of wire mesh from Mexico. The sources of data for the deductions and adjustments relating to U.S. price and normal value (NV) are discussed in greater detail in the Mexico AD Initiation Checklist. U.S. Price The petitioners based EP on pricing information for a sale of wire mesh produced in and exported from Mexico. The petitioners made certain adjustments to U.S. price to calculate a net ex-factory U.S. price.30 26 Id. jbell on DSKJLSW7X2PROD with NOTICES 27 See Volume I of the Petition at 18–19 and Exhibit GEN–9. 28 See Volume I of the Petition at 9–10, 15, 18– 27 and Exhibits GEN–1, GEN–5, GEN–6 and GEN– 9 through GEN–12; see also General Issues Supplement at 11 and Exhibit GEN–SUPP–5. 29 See Mexico AD Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Standard Steel Welded Wire Mesh from Mexico. 30 See Mexico AD Initiation Checklist. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 Normal Value 31 The petitioners based NV on a home market price quote obtained through market research for wire mesh produced in and sold, or offered for sale, in Mexico within the applicable time period.32 The petitioners provided information indicating that the price quote was below the COP and, therefore, the petitioners also calculated NV based on constructed value (CV). For further discussion of CV, see the section ‘‘Normal Value Based on Constructed Value.’’ Normal Value Based on Constructed Value As noted above, the petitioners provided information indicating that the price charged for wire mesh produced in and sold, or offered for sale, in Mexico was below the COP. Accordingly, the petitioners also based NV on CV.33 Pursuant to section 773(e) of the Act, the petitioners calculated CV as the sum of the cost of manufacturing; selling, general, and administrative expenses; financial expenses; and profit.34 Fair Value Comparisons Based on the data provided by the petitioners, there is reason to believe that imports of wire mesh from Mexico are being, or are likely to be, sold in the United States at LTFV. Based on comparisons of EP to NV in accordance with sections 772 and 773 of the Act, the estimated dumping margins for wire mesh for Mexico range from 64.07 to 152.68 percent.35 Initiation of LTFV Investigation Based upon the examination of the Petition and supplemental responses, we find that they meet the requirements of section 732 of the Act. Therefore, we are initiating an AD investigation to determine whether imports of wire mesh from Mexico are being, or are likely to be, sold in the United States at LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no 31 In accordance with section 773(b)(2) of the Act, for this investigation, Commerce will request information necessary to calculate the constructed value and cost of production (COP) to determine whether there are reasonable grounds to believe or suspect that sales of the foreign like product have been made at prices that represent less than the COP of the product. 32 See Mexico AD Initiation Checklist. 33 See Mexico AD Initiation Checklist for details of calculations. 34 See Mexico AD Initiation Checklist. 35 See Mexico AD Initiation Checklist for details of calculations. PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 later than 140 days after the date of this initiation. Respondent Selection In the Petition, the petitioners named nine companies in Mexico 36 as producers/exporters of wire mesh. Following standard practice in AD investigations involving market economy countries, in the event Commerce determines that the number of exporters or producers in any individual case is large such that Commerce cannot individually examine each company based upon its resources, where appropriate, Commerce intends to select mandatory respondents in that case based on U.S. Customs and Border Protection (CBP) data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigation,’’ in the appendix. On July 14, 2020, Commerce released CBP data on imports of wire mesh from Mexico under Administrative Protective Order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment on the CBP data must do so within three business days of the publication date of the notice of initiation of this investigation.37 Comments must be filed electronically using ACCESS. An electronically-filed document must be received successfully in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce will not accept rebuttal comments regarding the CBP data or respondent selection. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on Commerce’s website at http://enforcement.trade.gov/apo. Distribution of Copies of the AD Petition In accordance with section 732(b)(3)(A) of the Act and 19 CFR 351.202(f), copies of the public version of the AD Petition has been provided to the Government of Mexico via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the AD Petition to each exporter named in the AD Petition, as provided under 19 CFR 351.203(c)(2). 36 See Volume I of the Petition at Exhibit GEN– 7. 37 See Memorandum, ‘‘Antidumping Duty Investigation of Standard Steel Welded Wire Mesh from Mexico: Release of Customs Data from U.S. Customs and Border Protection,’’ dated July 14, 2020. E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices ITC Notification We will notify the ITC of our initiation, as required by section 732(d) of the Act. Preliminary Determinations by the ITC The ITC will preliminarily determine, within 45 days after the date on which the AD Petition was filed, whether there is a reasonable indication that imports of wire mesh from Mexico are materially injuring, or threatening material injury to, a U.S. industry.38 A negative ITC determination will result in the investigation being terminated.39 Otherwise, the AD investigation will proceed according to statutory and regulatory time limits. jbell on DSKJLSW7X2PROD with NOTICES Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)–(iv). Section 351.301(b) of Commerce’s regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 40 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.41 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in this investigation. Particular Market Situation Allegation Section 773(e) of the Act addresses the concept of particular market situation (PMS) for purposes of CV, stating that ‘‘if a particular market situation exists such that the cost of materials and fabrication or other processing of any kind does not accurately reflect the cost of production in the ordinary course of trade, the administering authority may use another calculation methodology under this subtitle or any other calculation methodology.’’ When an interested party submits a PMS allegation pursuant to section 773(e) of the Act, Commerce will respond to such a submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section 773(e) of the Act, then it will modify its dumping calculations appropriately. Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set a deadline for the submission of PMS allegations and supporting factual information. However, in order to administer section 773(e) of the Act, Commerce must receive PMS allegations and supporting factual information with enough time to consider the submission. Thus, should an interested party wish to submit a PMS allegation and supporting new factual information pursuant to section 773(e) of the Act, it must do so no later than 20 days after submission of a respondent’s initial section D questionnaire response. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301 or as otherwise specified by Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, we may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances we will grant untimelyfiled requests for the extension of time limits. Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to submitting factual information in this investigation. Certification Requirements 38 See section 733(a) of the Act. Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy 39 Id. 40 See 19 CFR 351.301(b). 41 See 19 CFR 351.301(b)(2). VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 45171 and completeness of that information.42 Parties must use the certification formats provided in 19 CFR 351.303(g).43 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to participate in this investigation should ensure that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed at 19 CFR 351.103(d)). Note that Commerce has temporarily modified certain portions of its requirements for serving documents containing business proprietary information, until further notice.44 This notice is issued and published pursuant to sections 732(c)(2) and 777(i) of the Act, and 19 CFR 351.203(c). Dated: July 20, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigation The scope of this investigation covers uncoated standard welded steel reinforcement wire mesh (wire mesh) produced from smooth or deformed wire. Subject wire mesh is produced in square and rectangular grids of uniformly spaced steel wires that are welded at all intersections. Sizes are specified by combining the spacing of the wires in inches or millimeters and the wire cross-sectional area in hundredths of square inch or millimeters squared. Subject wire mesh may be packaged and sold in rolls or in sheets. Subject wire mesh is currently produced to ASTM specification A1064/A1064M, which covers carbon-steel wire and welded wire reinforcement, smooth and deformed, for concrete in the following seven styles: 1. 6x6 W1.4/W1.4 or D1.4/D1.4 2. 6x6 W2.1/W2.1 or D2.1/D2.1 3. 6x6 W2.9/W2.9 or D2.9/D2.9 4. 6x6 W4/W4 or D4/D4 42 See section 782(b) of the Act. Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to frequently asked questions regarding the Final Rule are available at http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 44 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). 43 See E:\FR\FM\27JYN1.SGM 27JYN1 45172 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices 5. 6x12 W4/W4 or D4/D4 6. 4x4 W2.9/W2.9 or D2.9/D2.9 7. 4x4 W4/W4 or D4/D4 The first number in the style denotes the nominal spacing between the longitudinal wires and the second number denotes the nominal spacing between the transverse wires. In the first style listed above, for example, ‘‘6x6’’ denotes a grid size of six inches by six inches. ‘‘W’’ denotes the use of smooth wire, and ‘‘D’’ denotes the use of deformed wire in making the mesh. The number following the W or D denotes the nominal cross-sectional area of the transverse and longitudinal wires in hundredths of a square inch (i.e., W1.4 or D1.4 is .014 square inches). Smooth wire is wire that has a uniform cross-sectional diameter throughout the length of the wire. Deformed wire is wire with indentations or raised transverse ribs, which results in wire that does not have a uniform cross-sectional diameter throughout the length of the wire. Rolls of subject wire mesh are produced in the following styles and nominal width and length combinations: Style: 6x6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge) Roll Sizes: 5′ x 50′ 5′ x 150′ 6′ x 150′ 5′ x 200′ 7′ x 200′ 7.5′ x 200′ Style: 6x6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge) Roll Sizes: 5′ x 150′ Style: 6x6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge) Roll Sizes: 5′ x 150′ 7′ x 200′ All rolled wire mesh is included in scope regardless of length. Sheets of subject wire mesh are produced in the following styles and nominal width and length combinations: Style: 6x6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge) Sheet Size: 3′6″ x 7′ 4′ x 7′ 4′ x 7′6″ 5′ x 10′ 7′ x 20′ 7′6″ x 20′ 8′ x 12′6″ 8′ x 15′ 8′ x 20′ Style: 6x6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge) Sheet Size: 5′ x 10′ 7′ x 20′ 7′6″ x 20′ 8′ x 12′6″ 8′ x 15′ 8′ x 20′ Style: 6x6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge) Sheet Size: 3′6″ x 20′ 5′ x 10′ 7′ x 20′ 7′6″ x 20′ 8′ x 12′6″ 8′ x 15′ 8′ x 20′ Style: 6x12 W4/W4 or D4/D4 (i.e., 4 gauge) Sheet Size: 8′ x 20′ Style: 4x4 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 Maximum oversteeling No. W/D No. jbell on DSKJLSW7X2PROD with NOTICES 1.4 2.1 2.9 4.0 (i.e., (i.e., (i.e., (i.e., 10 gauge) ..................................................................... 8 gauge) ....................................................................... 6 gauge) ....................................................................... 4 gauge) ....................................................................... To the extent a roll or sheet of welded wire mesh falls within the permissible variations provided above, it is within this scope. In addition to the tolerances permitted in ASTM specification A1064/A1064M, wire mesh within this scope includes combinations where: 1. A width and/or length combination varies by ± one grid size in any direction, i.e., ± 6 inches in length or width where the wire mesh’s grid size is ‘‘6x6’’; and/or 2. The center-to-center spacing between individual wires may vary by up to one quarter of an inch from the nominal grid size specified. Length is measured from the ends of any wire and width is measured between the center-line of end longitudinal wires. Additionally, although the subject wire mesh typically meets ASTM A1064/A1064M, the failure to include certifications, test reports or other documentation establishing that the product meets this specification does not remove the product from the scope. Wire mesh made to comparable foreign specifications (e.g., DIN, JIS, etc.) or VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 gauge) Sheet Size: 5′ x 10′ 7′ x 20′ 7′6″ x 20′ 8′ x 12′6″ 8′ x 12′8″ 8′ x 15′ 8′ x 20′ Style: 4x4 W4/W4 or D4/D4 (i.e., 4 gauge) Sheet Size: 5′ x 10′ 8′ x 12′6″ 8′ x 12′8″ 8′ x 15′ 8′ x 20′ Any product imported, sold, or invoiced in one of these size combinations is within the scope. ASTM specification A1064/A1064M provides for permissible variations in wire gauges, the spacing between transverse and longitudinal wires, and the length and width combinations. To the extent a roll or sheet of welded wire mesh falls within these permissible variations, it is within this scope. ASTM specification A1064/A1064M also defines permissible oversteeling, which is the use of a heavier gauge wire with a larger cross-sectional area than nominally specified. It also permits a wire diameter tolerance of ± 0.003 inches for products up to W5/D5 and ± 0.004 for sizes over W5/D5. A producer may oversteel by increasing smooth or deformed wire diameter up to two whole number size increments on Table 1 of A1064. Subject wire mesh has the following actual wire diameter ranges, which account for both oversteeling and diameter tolerance: 3.4 4.1 4.9 6.0 Diameter range (inch) 0.093 0.161 0.189 0.223 to to to to 0.211 0.231 0.253 0.280 proprietary specifications is included in the scope. Excluded from the scope is wire mesh that is galvanized (i.e., coated with zinc) or coated with an epoxy coating. In order to be excluded as galvanized, the excluded welded wire mesh must have a zinc coating thickness meeting the requirements of ASTM specification A641/A641M. Epoxy coating is a mix of epoxy resin and hardener that can be applied to the surface of steel wire. Merchandise subject to this investigation are classified under Harmonized Tariff Schedule of the United States (HTSUS) categories 7314.20.0000 and 7314.39.0000. While HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive. [FR Doc. 2020–16185 Filed 7–24–20; 8:45 am] BILLING CODE 3510–DS–P PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 DEPARTMENT OF COMMERCE International Trade Administration Notice of Amendment to the Cybersecurity Business Development Mission to Peru, Chile, and Uruguay, With an Optional Stop in Argentina International Trade Administration, Department of Commerce. ACTION: Notice. AGENCY: The United States Department of Commerce, International Trade Administration, is amending the Notice published March 2, 2020, regarding the Cybersecurity Business Development Mission to Peru, Chile, and Uruguay, with an optional stop in Argentina, scheduled from October 5–9, 2020, to amend the dates and deadline for submitting applications for the event. SUMMARY: E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Notices]
[Pages 45167-45172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16185]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-853]


Standard Steel Welded Wire Mesh from Mexico: Initiation of Less-
Than-Fair-Value Investigation

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


DATES: Applicable July 20, 2020.

[[Page 45168]]


FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Melissa Kinter; AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4682 or (202) 
482-1413, respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On June 30, 2020, the Department of Commerce (Commerce) received an 
antidumping duty (AD) petition concerning imports of standard steel 
welded wire mesh (wire mesh) from Mexico filed in proper form on behalf 
of the petitioners,\1\ domestic producers of wire mesh.\2\ The Petition 
was accompanied by a countervailing duty (CVD) petition concerning 
imports of wire mesh from Mexico.\3\
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    \1\ Insteel Industries, Inc.; Mid South Wire Company; National 
Wire LLC; Oklahoma Steel & Wire Co.; and Wire Mesh Corp. 
(collectively, the petitioners).
    \2\ See Petitioners' Letter, ``Standard Steel Welded Wire Mesh 
from Mexico--Petition for the Imposition of Antidumping and 
Countervailing Duties,'' dated June 30, 2020 (the Petition).
    \3\ Id.
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    On July 2, 2020, Commerce requested supplemental information 
pertaining to certain aspects of the Petition in separate supplemental 
questionnaires.\4\ The petitioners filed responses to the supplemental 
questionnaires on July 7, 2020.\5\
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    \4\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping Duties and Countervailing Duties on Imports of Standard 
Steel Welded Wire Mesh from Mexico: Supplemental Questions''; and 
``Petition for the Imposition of Antidumping Duties on Imports of 
Standard Steel Welded Wire Mesh from Mexico: Supplemental 
Questions,'' both dated July 2, 2020.
    \5\ See Petitioners' Letters, ``Standard Steel Welded Wire Mesh 
from Mexico--Petitioners' Amendment to Volume I Concerning General 
Issues,'' (General Issues Supplement); and ``Standard Steel Welded 
Wire Mesh from Mexico--Petitioners' Amendment to Volume II Related 
to Antidumping Duties from Mexico,'' (Mexico AD Supplement), both 
dated July 7, 2020.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of wire mesh 
from Mexico are being, or are likely to be, sold in the United States 
at less than fair value (LTFV) within the meaning of section 731 of the 
Act, and that imports of such products are materially injuring, or 
threatening material injury to, the wire mesh industry in the United 
States. Consistent with section 732(b)(1) of the Act, the Petition is 
accompanied by information reasonably available to the petitioners 
supporting their allegations.
    Commerce finds that the petitioners filed the Petition on behalf of 
the domestic industry because the petitioners are interested parties, 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioners demonstrated sufficient industry support for the 
initiation of the requested AD investigation.\6\
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    \6\ See infra, section on ``Determination of Industry Support 
for the Petition.''
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Period of Investigation

    Because the Petition was filed on June 30, 2020, the period of 
investigation (POI) for this AD investigation is April 1, 2019 through 
March 31, 2020, pursuant to 19 CFR 351.204(b)(1).\7\
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    \7\ See 19 CFR 351.204(b)(1).
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Scope of the Investigation

    The products covered by this investigation are wire mesh from 
Mexico. For a full description of the scope of this investigation, see 
the appendix to this notice.

Comments on the Scope of the Investigation

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\8\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\9\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on August 10, 2020, which is the next business day after 20 
calendar days from the signature date of this notice.\10\ Any rebuttal 
comments, which may include factual information, must be filed by 5:00 
p.m. ET on August 20, 2020, which is ten calendar days from the initial 
comment deadline.
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    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ See 19 CFR 351.303(b). Commerce practice dictates that 
where a deadline falls on a weekend or Federal holiday, the 
appropriate deadline is the next business day (in this instance, 
August 10, 2020). See also 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) (Next Business Day Rule).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\11\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of wire mesh to be reported 
in response to Commerce's AD questionnaires. This information will be 
used to identify the key physical characteristics of the subject 
merchandise in order to report the relevant costs of production 
accurately, as well as to develop appropriate product-comparison 
criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe wire mesh, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally,

[[Page 45169]]

Commerce attempts to list the most important physical characteristics 
first and the least important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on August 10, 
2020, which is the next business day after 20 calendar days from the 
signature date of this notice.\12\ Any rebuttal comments must be filed 
by 5:00 p.m. ET on August 20, 2020. All comments and submissions to 
Commerce must be filed electronically using ACCESS, as explained above.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.303(b); and Next Business Day Rule.
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Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\13\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\14\
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    \13\ See section 771(10) of the Act.
    \14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\15\ Based on our analysis of the information 
submitted on the record, we have determined that wire mesh, as defined 
in the scope, constitutes a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\16\
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    \15\ See Volume I of the Petition at 16-17; see also General 
Issues Supplement at 9-10.
    \16\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Antidumping Duty Investigation Initiation Checklist: Standard Steel 
Welded Wire Mesh from Mexico (Mexico AD Initiation Checklist) at 
Attachment II, ``Analysis of Industry Support for the Antidumping 
and Countervailing Duty Petitions Covering Standard Steel Welded 
Wire Mesh from Mexico'' (Attachment II), dated concurrently with 
this notice and on file electronically via ACCESS.
---------------------------------------------------------------------------

    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioners provided 
their 2019 production of the domestic like product, as well as the 2019 
production of Davis Wire Corporation and Liberty Steel USA, supporters 
of the Petition.\17\ The petitioners compared the production of the 
supporters of the Petition to the estimated total production of the 
domestic like product for the entire domestic industry.\18\ We relied 
on data provided by the petitioners for purposes of measuring industry 
support.\19\
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    \17\ See Volume I of the Petition at 3-4 and Exhibit GEN-3.
    \18\ See Volume I of the Petition at 3-4 and Exhibits GEN-1 and 
GEN-3; see also General Issues Supplement at 11 and Exhibit GEN-
SUPP-3.
    \19\ Id. For further discussion, see Mexico AD Initiation 
Checklist at Attachment II.
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    From July 13 through 17, 2020, we received comments on industry 
support from Deacero S.A.P.I. de C.V, a Mexican producer, and its 
affiliated U.S. importer, Deacero USA, Inc. (collectively, 
Deacero).\20\ The petitioners responded to these industry support 
comments on July 14 and 16, 2020, respectively.\21\
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    \20\ See Deacero's Letter, ``Standard Steel Welded Wire Mesh 
from Mexico--Request to Clarify Scope and to Poll Domestic 
Industry,'' dated July 13, 2020; Deacero's Letter, ``Standard Steel 
Welded Wire Mesh from Mexico--Continued Request to Clarify Scope and 
to Poll Domestic Industry,'' dated July 15, 2020; and Deacero's 
Letter, ``Standard Steel Welded Wire Mesh from Mexico--Third Request 
to Clarify Scope and to Poll Domestic Industry,'' dated July 17, 
2020.
    \21\ See Petitioners' Letter, ``Standard Steel Welded Wire Mesh 
from Mexico--Petitioners' Response to Deacero's Request to Clarify 
Scope and to Poll Domestic Industry,'' dated July 14, 2020; see also 
Petitioners' Letter, ``Standard Steel Welded Wire Mesh from Mexico--
Petitioners' Response to Deacero's Second Request to Clarify Scope 
and to Poll Domestic Industry,'' dated July 16, 2020.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petition.\22\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product, and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\23\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\24\ Finally, the domestic 
producers (or workers) have met the statutory criterion for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\25\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within

[[Page 45170]]

the meaning of section 732(b)(1) of the Act.\26\
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    \22\ Id.
    \23\ See Mexico AD Initiation Checklist at Attachment II.; see 
also section 732(c)(4)(D) of the Act.
    \24\ See Mexico AD Initiation Checklist at Attachment II.
    \25\ Id.
    \26\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioners allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioners allege that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\27\
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    \27\ See Volume I of the Petition at 18-19 and Exhibit GEN-9.
---------------------------------------------------------------------------

    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression and/or 
suppression; lost sales and revenues; decreasing capacity utilization 
rates and shipments; declines in employment variables; and declining 
financial performance and operating income.\28\ We assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, causation, as well as negligibility, and we have 
determined that these allegations are properly supported by adequate 
evidence, and meet the statutory requirements for initiation.\29\
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    \28\ See Volume I of the Petition at 9-10, 15, 18-27 and 
Exhibits GEN-1, GEN-5, GEN-6 and GEN-9 through GEN-12; see also 
General Issues Supplement at 11 and Exhibit GEN-SUPP-5.
    \29\ See Mexico AD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Standard Steel Welded Wire Mesh from Mexico.
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate an AD investigation 
of imports of wire mesh from Mexico. The sources of data for the 
deductions and adjustments relating to U.S. price and normal value (NV) 
are discussed in greater detail in the Mexico AD Initiation Checklist.

U.S. Price

    The petitioners based EP on pricing information for a sale of wire 
mesh produced in and exported from Mexico. The petitioners made certain 
adjustments to U.S. price to calculate a net ex-factory U.S. price.\30\
---------------------------------------------------------------------------

    \30\ See Mexico AD Initiation Checklist.
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Normal Value \31\
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    \31\ In accordance with section 773(b)(2) of the Act, for this 
investigation, Commerce will request information necessary to 
calculate the constructed value and cost of production (COP) to 
determine whether there are reasonable grounds to believe or suspect 
that sales of the foreign like product have been made at prices that 
represent less than the COP of the product.
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    The petitioners based NV on a home market price quote obtained 
through market research for wire mesh produced in and sold, or offered 
for sale, in Mexico within the applicable time period.\32\ The 
petitioners provided information indicating that the price quote was 
below the COP and, therefore, the petitioners also calculated NV based 
on constructed value (CV).
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    \32\ See Mexico AD Initiation Checklist.
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    For further discussion of CV, see the section ``Normal Value Based 
on Constructed Value.''

Normal Value Based on Constructed Value

    As noted above, the petitioners provided information indicating 
that the price charged for wire mesh produced in and sold, or offered 
for sale, in Mexico was below the COP. Accordingly, the petitioners 
also based NV on CV.\33\ Pursuant to section 773(e) of the Act, the 
petitioners calculated CV as the sum of the cost of manufacturing; 
selling, general, and administrative expenses; financial expenses; and 
profit.\34\
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    \33\ See Mexico AD Initiation Checklist for details of 
calculations.
    \34\ See Mexico AD Initiation Checklist.
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Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of wire mesh from Mexico are being, or are likely 
to be, sold in the United States at LTFV. Based on comparisons of EP to 
NV in accordance with sections 772 and 773 of the Act, the estimated 
dumping margins for wire mesh for Mexico range from 64.07 to 152.68 
percent.\35\
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    \35\ See Mexico AD Initiation Checklist for details of 
calculations.
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Initiation of LTFV Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating an AD investigation to determine 
whether imports of wire mesh from Mexico are being, or are likely to 
be, sold in the United States at LTFV. In accordance with section 
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determination no later than 140 days after 
the date of this initiation.

Respondent Selection

    In the Petition, the petitioners named nine companies in Mexico 
\36\ as producers/exporters of wire mesh.
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    \36\ See Volume I of the Petition at Exhibit GEN-7.
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    Following standard practice in AD investigations involving market 
economy countries, in the event Commerce determines that the number of 
exporters or producers in any individual case is large such that 
Commerce cannot individually examine each company based upon its 
resources, where appropriate, Commerce intends to select mandatory 
respondents in that case based on U.S. Customs and Border Protection 
(CBP) data for U.S. imports under the appropriate Harmonized Tariff 
Schedule of the United States numbers listed in the ``Scope of the 
Investigation,'' in the appendix.
    On July 14, 2020, Commerce released CBP data on imports of wire 
mesh from Mexico under Administrative Protective Order (APO) to all 
parties with access to information protected by APO and indicated that 
interested parties wishing to comment on the CBP data must do so within 
three business days of the publication date of the notice of initiation 
of this investigation.\37\ Comments must be filed electronically using 
ACCESS. An electronically-filed document must be received successfully 
in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. 
Commerce will not accept rebuttal comments regarding the CBP data or 
respondent selection.
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    \37\ See Memorandum, ``Antidumping Duty Investigation of 
Standard Steel Welded Wire Mesh from Mexico: Release of Customs Data 
from U.S. Customs and Border Protection,'' dated July 14, 2020.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at http://enforcement.trade.gov/apo.

Distribution of Copies of the AD Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the AD Petition has been 
provided to the Government of Mexico via ACCESS. To the extent 
practicable, we will attempt to provide a copy of the public version of 
the AD Petition to each exporter named in the AD Petition, as provided 
under 19 CFR 351.203(c)(2).

[[Page 45171]]

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the AD Petition was filed, whether there is a reasonable 
indication that imports of wire mesh from Mexico are materially 
injuring, or threatening material injury to, a U.S. industry.\38\ A 
negative ITC determination will result in the investigation being 
terminated.\39\ Otherwise, the AD investigation will proceed according 
to statutory and regulatory time limits.
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    \38\ See section 733(a) of the Act.
    \39\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \40\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\41\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in this investigation.
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    \40\ See 19 CFR 351.301(b).
    \41\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested party submits a PMS allegation pursuant to section 773(e) of 
the Act, Commerce will respond to such a submission consistent with 19 
CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section 
773(e) of the Act, then it will modify its dumping calculations 
appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set 
a deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
section D questionnaire response.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301 or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\42\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\43\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \42\ See section 782(b) of the Act.
    \43\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in this investigation should ensure that 
they meet the requirements of these procedures (e.g., the filing of 
letters of appearance as discussed at 19 CFR 351.103(d)). Note that 
Commerce has temporarily modified certain portions of its requirements 
for serving documents containing business proprietary information, 
until further notice.\44\
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    \44\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: July 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The scope of this investigation covers uncoated standard welded 
steel reinforcement wire mesh (wire mesh) produced from smooth or 
deformed wire. Subject wire mesh is produced in square and 
rectangular grids of uniformly spaced steel wires that are welded at 
all intersections. Sizes are specified by combining the spacing of 
the wires in inches or millimeters and the wire cross-sectional area 
in hundredths of square inch or millimeters squared. Subject wire 
mesh may be packaged and sold in rolls or in sheets.
    Subject wire mesh is currently produced to ASTM specification 
A1064/A1064M, which covers carbon-steel wire and welded wire 
reinforcement, smooth and deformed, for concrete in the following 
seven styles:

1. 6x6 W1.4/W1.4 or D1.4/D1.4
2. 6x6 W2.1/W2.1 or D2.1/D2.1
3. 6x6 W2.9/W2.9 or D2.9/D2.9
4. 6x6 W4/W4 or D4/D4

[[Page 45172]]

5. 6x12 W4/W4 or D4/D4
6. 4x4 W2.9/W2.9 or D2.9/D2.9
7. 4x4 W4/W4 or D4/D4

    The first number in the style denotes the nominal spacing 
between the longitudinal wires and the second number denotes the 
nominal spacing between the transverse wires. In the first style 
listed above, for example, ``6x6'' denotes a grid size of six inches 
by six inches. ``W'' denotes the use of smooth wire, and ``D'' 
denotes the use of deformed wire in making the mesh. The number 
following the W or D denotes the nominal cross-sectional area of the 
transverse and longitudinal wires in hundredths of a square inch 
(i.e., W1.4 or D1.4 is .014 square inches).
    Smooth wire is wire that has a uniform cross-sectional diameter 
throughout the length of the wire.
    Deformed wire is wire with indentations or raised transverse 
ribs, which results in wire that does not have a uniform cross-
sectional diameter throughout the length of the wire.
    Rolls of subject wire mesh are produced in the following styles 
and nominal width and length combinations:

Style: 6x6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Roll Sizes: 5' x 50'
5' x 150'
6' x 150'
5' x 200'
7' x 200'
7.5' x 200'
Style: 6x6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Roll Sizes: 5' x 150'
Style: 6x6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Roll Sizes: 5' x 150'
7' x 200'

    All rolled wire mesh is included in scope regardless of length.
    Sheets of subject wire mesh are produced in the following styles 
and nominal width and length combinations:

Style: 6x6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Sheet Size: 3'6'' x 7'
4' x 7'
4' x 7'6''
5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 15'
8' x 20'
Style: 6x6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Sheet Size: 5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 15'
8' x 20'
Style: 6x6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size: 3'6'' x 20'
5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 15'
8' x 20'
Style: 6x12 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size: 8' x 20'
Style: 4x4 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size: 5' x 10'
7' x 20'
7'6'' x 20'
8' x 12'6''
8' x 12'8''
8' x 15'
8' x 20'
Style: 4x4 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size: 5' x 10'
8' x 12'6''
8' x 12'8''
8' x 15'
8' x 20'

    Any product imported, sold, or invoiced in one of these size 
combinations is within the scope.
    ASTM specification A1064/A1064M provides for permissible 
variations in wire gauges, the spacing between transverse and 
longitudinal wires, and the length and width combinations. To the 
extent a roll or sheet of welded wire mesh falls within these 
permissible variations, it is within this scope.
    ASTM specification A1064/A1064M also defines permissible 
oversteeling, which is the use of a heavier gauge wire with a larger 
cross-sectional area than nominally specified. It also permits a 
wire diameter tolerance of  0.003 inches for products up 
to W5/D5 and  0.004 for sizes over W5/D5. A producer may 
oversteel by increasing smooth or deformed wire diameter up to two 
whole number size increments on Table 1 of A1064. Subject wire mesh 
has the following actual wire diameter ranges, which account for 
both oversteeling and diameter tolerance:

------------------------------------------------------------------------
                                        Maximum
              W/D No.                oversteeling      Diameter range
                                          No.              (inch)
------------------------------------------------------------------------
1.4 (i.e., 10 gauge)..............             3.4  0.093 to 0.211
2.1 (i.e., 8 gauge)...............             4.1  0.161 to 0.231
2.9 (i.e., 6 gauge)...............             4.9  0.189 to 0.253
4.0 (i.e., 4 gauge)...............             6.0  0.223 to 0.280
------------------------------------------------------------------------

    To the extent a roll or sheet of welded wire mesh falls within 
the permissible variations provided above, it is within this scope.
    In addition to the tolerances permitted in ASTM specification 
A1064/A1064M, wire mesh within this scope includes combinations 
where:
    1. A width and/or length combination varies by  one 
grid size in any direction, i.e.,  6 inches in length or 
width where the wire mesh's grid size is ``6x6''; and/or
    2. The center-to-center spacing between individual wires may 
vary by up to one quarter of an inch from the nominal grid size 
specified.
    Length is measured from the ends of any wire and width is 
measured between the center-line of end longitudinal wires.
    Additionally, although the subject wire mesh typically meets 
ASTM A1064/A1064M, the failure to include certifications, test 
reports or other documentation establishing that the product meets 
this specification does not remove the product from the scope. Wire 
mesh made to comparable foreign specifications (e.g., DIN, JIS, 
etc.) or proprietary specifications is included in the scope.
    Excluded from the scope is wire mesh that is galvanized (i.e., 
coated with zinc) or coated with an epoxy coating. In order to be 
excluded as galvanized, the excluded welded wire mesh must have a 
zinc coating thickness meeting the requirements of ASTM 
specification A641/A641M. Epoxy coating is a mix of epoxy resin and 
hardener that can be applied to the surface of steel wire.
    Merchandise subject to this investigation are classified under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
7314.20.0000 and 7314.39.0000. While HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

[FR Doc. 2020-16185 Filed 7-24-20; 8:45 am]
BILLING CODE 3510-DS-P