Standard Steel Welded Wire Mesh from Mexico: Initiation of Less-Than-Fair-Value Investigation, 45167-45172 [2020-16185]
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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
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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
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(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).
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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
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Applicable July 20, 2020.
Order.
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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:
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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.
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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).
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
https://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.
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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
https://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).
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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
https://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
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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
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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
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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]
-----------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\6\ See infra, section on ``Determination of Industry Support
for the Petition.''
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\7\ See 19 CFR 351.204(b)(1).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
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\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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 https://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 https://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
https://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