Standard Steel Welded Wire Mesh From Mexico: Initiation of Countervailing Duty Investigation, 45181-45185 [2020-16186]

Download as PDF Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices percent silicon, and less than 4.00 percent iron, by actual weight. Semiconductor grade silicon (merchandise containing at least 99.99 percent silicon by actual weight and classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2804.61.0000) is excluded from the scope of these investigations. Silicon metal is currently classifiable under subheadings 2804.69.1000 and 2804.69.5000 of the HTSUS. While the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope remains dispositive. [FR Doc. 2020–16220 Filed 7–24–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–201–854] Standard Steel Welded Wire Mesh From Mexico: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: DATES: Applicable July 20, 2020. Period of Investigation FOR FURTHER INFORMATION CONTACT: Joshua Tucker or Ian Hamilton, 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) 482–2044 or (202) 482–4798, respectively. SUPPLEMENTARY INFORMATION: The Petition jbell on DSKJLSW7X2PROD with NOTICES On June 30, 2020, the Department of Commerce (Commerce) received a countervailing duty (CVD) 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 an antidumping duty (AD) petition concerning imports of wire mesh from Mexico.3 On July 2, 2020 and July 6, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition,4 to which the petitioners 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 Letter, ‘‘Petitions for the Imposition of Antidumping Duties and VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 filed responses on July 7, 2020 and July 8, 2020, respectively.5 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that the Government of Mexico (GOM) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of wire mesh in Mexico and that such imports are materially injuring, or threatening material injury to, the domestic industry producing wire mesh in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was 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 CVD investigation.6 Because the Petition was filed on June 30, 2020, the period of investigation (POI) for this CVD investigation is January 1, 2019 through December 31, 2019, pursuant to 19 CFR 351.204(b)(2).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 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 Countervailing Duties on Imports of Standard Steel Welded Wire Mesh from Mexico: Supplemental Questions,’’ dated July 2, 2020; see also Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Standard Steel Welded Wire Mesh from Mexico: Supplemental Questions,’’ dated July 6, 2020. 5 See Petitioners’ Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Petitioners’ Amendment to Volume I Concerning General Issues,’’ dated July 7, 2020 (General Issues Supplement); see also Petitioners’ Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico—Petitioners’ Amendment to Volume III Related to Countervailing Duties from Mexico,’’ dated July 8, 2020. 6 See infra, section on ‘‘Information Related to Industry Support.’’ 7 See 19 CFR 351.204(b)(2). PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 45181 (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 scope 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 time 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 comments must also be filed on the record of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically using Enforcement and Compliance’s (E&C’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. 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’s 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); and 19 CFR 351.303(b). 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 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 45182 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the GOM of the receipt of the Petition and provided it the opportunity for consultations with respect to the CVD Petition.12 The GOM requested consultations, which were held on July 17, 2020.13 jbell on DSKJLSW7X2PROD with NOTICES Determination of Industry Support for the Petition Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(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 702(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,14 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 12 See Commerce’s Letter, ‘‘Standard Steel Welded Wire Mesh from Mexico: Invitation for Consultation to Discuss the Countervailing Duty Petition,’’ dated July 10, 2020. 13 See Memorandum, ‘‘Standard Steel Welded Wire Mesh from Mexico Countervailing Duty Petition: Consultations with the Government of Mexico,’’ dated July 17, 2020. 14 See section 771(10) of the Act. VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 definitions of the like product, such differences do not render the decision of either agency contrary to law.15 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.16 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.17 In determining whether the petitioners have standing under section 702(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.18 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.19 We relied on data 15 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), cert. denied 492 U.S. 919 (1989)). 16 See Volume I of the Petition at 16–17; see also General Issues Supplement at 9–10. 17 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Standard Steel Welded Wire Mesh from Mexico (Mexico CVD 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. 18 See Volume I of the Petition at 3–4 and Exhibit GEN–3. 19 See Volume I of the Petition at 4 and Exhibits GEN–1 and GEN–3; see also General Issues Supplement at 11 and Exhibit GEN–SUPP–3. PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 provided by the petitioners for purposes of measuring industry support.20 From July 13–July 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).21 The petitioners responded to these industry support comments on July 14 and July 16, 2020, respectively.22 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.23 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).24 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(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.25 Finally, the domestic producers (or workers) have met the statutory criterion for industry support under section 702(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.26 Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within 20 Id. For further discussion, see Mexico CVD Initiation Checklist at Attachment II. 21 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. 22 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. 23 Id. 24 See Mexico CVD Initiation Checklist at Attachment II; see also section 702(c)(4)(D) of the Act. 25 see Mexico CVD Initiation Checklist at Attachment II. 26 Id. E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices the meaning of section 702(b)(1) of the Act.27 Injury Test Because Mexico is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from Mexico materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation The petitioners allege that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.28 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.29 We have 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.30 Initiation of CVD Investigation Based upon the examination of the Petition and supplemental responses, we find that the Petition meets the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of wire mesh from Mexico benefit from countervailable subsidies conferred by the GOM. Based on our review of the Petition, we find that there jbell on DSKJLSW7X2PROD with NOTICES 27 Id. 28 See Volume I of the Petition at 18–19 and Exhibit GEN–9. 29 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. 30 See Mexico CVD 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.’’ VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 45183 is sufficient information to initiate a CVD investigation on 16 of the 17 alleged programs. For a full discussion of the basis for our decision to initiate on each program, see Mexico CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation. Distribution of Copies of the Petition Respondent Selection Commerce will notify the ITC of our initiation, as required by section 702(d) of the Act. In the Petition, the petitioners named nine companies in Mexico as producers/ exporters of wire mesh.31 Commerce intends to follow its standard practice in CVD investigations and calculate company-specific subsidy rates in this investigation. In the event Commerce determines that the number of companies is large and it cannot individually examine each company based upon Commerce’s resources, where appropriate, Commerce intends to select mandatory respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports of wire mesh from Mexico during the POI under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigation,’’ in the appendix. On July 15, 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.32 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 E&C’s website at https://enforcement.trade.gov/apo. 31 See Volume I of the Petition at Exhibit GEN– 7. 32 See Memorandum, ‘‘Standard Steel Welded Wire Mesh from Mexico Countervailing Duty Petition: Release of Customs Data from U.S. Customs and Border Protection,’’ dated July 15, 2020. PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the CVD Petition has been provided to the GOM via ACCESS. Furthermore, to the extent practicable, we will attempt to provide a copy of the public version of the CVD Petition to each exporter named in the CVD Petition, as provided under 19 CFR 351.203(c)(2). ITC Notification Preliminary Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the CVD 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.33 A negative ITC determination will result in the investigation being terminated.34 Otherwise, the CVD investigation will proceed according to statutory and regulatory time limits. 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 35 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.36 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 33 See section 703(a)(1) of the Act. 34 Id. 35 See 36 See E:\FR\FM\27JYN1.SGM 19 CFR 351.301(b). 19 CFR 351.301(b)(2). 27JYN1 45184 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices submitting factual information in this investigation. 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 351.301.37 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, Commerce 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, Commerce 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 extension requests or 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.38 Parties must use the certification formats provided in 19 CFR 351.303(g).39 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 jbell on DSKJLSW7X2PROD with NOTICES 37 See 19 CFR 351.302. section 782(b) of the Act. 39 See Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 38 See VerDate Sep<11>2014 19:31 Jul 24, 2020 Jkt 250001 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 of its requirements for serving documents containing business proprietary information, until further notice.40 This notice is issued and published pursuant to sections 702 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 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. 40 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 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′ E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices 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 1.4 2.1 2.9 4.0 (i.e., (i.e., (i.e., (i.e., 10 gauge) ..................................................................... 8 gauge) ....................................................................... 6 gauge) ....................................................................... 4 gauge) ....................................................................... jbell on DSKJLSW7X2PROD with NOTICES 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. 2020–16186 Filed 7–24–20; 8:45 am] BILLING CODE 3510–DS–P VerDate Sep<11>2014 19:31 Jul 24, 2020 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. DEPARTMENT OF COMMERCE International Trade Administration [C–580–888] Certain Carbon and Alloy Steel Cut-toLength Plate From the Republic of Korea: Preliminary Results of Countervailing Duty Administrative Review, and Intent to Rescind Review, in Part; 2018 Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain carbon and alloy steel cut-tolength plate (CTL plate) from the Republic of Korea (Korea). The period of review is January 1, 2018 through December 31, 2018. DATES: Applicable July 27, 2020. FOR FURTHER INFORMATION CONTACT: Bob Palmer or Faris Montgomery, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–9068 and (202) 482–1537, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On July 15, 2019, Commerce published a notice of initiation of an administrative review of the countervailing duty (CVD) order on CTL plate from Korea.1 On December 30, 2019, Commerce extended the deadline for the preliminary results of this review to no later than May 29, 2019.2 On April 1 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 84 FR 33739 (July 15, 2019). 2 See Memorandum ‘‘Certain Carbon and Alloy Steel Cut-to-Length Plate from the Republic of Korea: Extension of Deadline for Preliminary Jkt 250001 ± 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 oversteeling Number W/D Number PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 45185 24, 2020, Commerce tolled all deadlines in administrative reviews by 50 days, thereby extending the deadline for these preliminary results until July 20, 2020.3 For a complete description of the events that followed the initiation of this review, see the Preliminary Decision Memorandum.4 A list of topics discussed in the Preliminary Decision Memorandum is included at the appendix to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Order The merchandise covered by the order is carbon and alloy steel cut-to-length plate. For a complete description of the scope of the order, see the Preliminary Decision Memorandum. Methodology Commerce is conducting this review in accordance with section 751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, we Results of Countervailing Duty Administrative Review; 2018,’’ dated December 30, 2019. 3 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty Administrative Reviews in Response to Operational Adjustments Due to COVID–19,’’ dated April 24, 2020. 4 See Memorandum, ‘‘Decision Memorandum for the Preliminary Results of the Countervailing Duty Administrative Review; 2018: Certain Carbon and Alloy Steel Cut-to-Length Plate from the Republic of Korea,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Notices]
[Pages 45181-45185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16186]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-854]


Standard Steel Welded Wire Mesh From Mexico: Initiation of 
Countervailing Duty Investigation

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


DATES: Applicable July 20, 2020.

FOR FURTHER INFORMATION CONTACT: Joshua Tucker or Ian Hamilton, 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) 482-2044 or (202) 482-4798, 
respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On June 30, 2020, the Department of Commerce (Commerce) received a 
countervailing duty (CVD) 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 an antidumping duty (AD) 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 and July 6, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition,\4\ to which 
the petitioners filed responses on July 7, 2020 and July 8, 2020, 
respectively.\5\
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    \4\ See Commerce's Letter, ``Petitions for the Imposition of 
Antidumping Duties and Countervailing Duties on Imports of Standard 
Steel Welded Wire Mesh from Mexico: Supplemental Questions,'' dated 
July 2, 2020; see also Commerce's Letter, ``Petition for the 
Imposition of Countervailing Duties on Standard Steel Welded Wire 
Mesh from Mexico: Supplemental Questions,'' dated July 6, 2020.
    \5\ See Petitioners' Letter, ``Standard Steel Welded Wire Mesh 
from Mexico--Petitioners' Amendment to
    Volume I Concerning General Issues,'' dated July 7, 2020 
(General Issues Supplement); see also Petitioners' Letter, 
``Standard Steel Welded Wire Mesh from Mexico--Petitioners' 
Amendment to Volume III Related to Countervailing Duties from 
Mexico,'' dated July 8, 2020.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that the Government of Mexico 
(GOM) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of wire mesh in Mexico 
and that such imports are materially injuring, or threatening material 
injury to, the domestic industry producing wire mesh in the United 
States. Consistent with section 702(b)(1) of the Act and 19 CFR 
351.202(b), for those alleged programs on which we are initiating a CVD 
investigation, the Petition was 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 CVD investigation.\6\
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    \6\ See infra, section on ``Information Related to Industry 
Support.''
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Period of Investigation

    Because the Petition was filed on June 30, 2020, the period of 
investigation (POI) for this CVD investigation is January 1, 2019 
through December 31, 2019, pursuant to 19 CFR 351.204(b)(2).\7\
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    \7\ See 19 CFR 351.204(b)(2).
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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 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 scope 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's 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); and 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
time 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 comments must also be filed 
on the record of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's (E&C'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 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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[[Page 45182]]

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOM of the receipt of the Petition and provided it the 
opportunity for consultations with respect to the CVD Petition.\12\ The 
GOM requested consultations, which were held on July 17, 2020.\13\
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    \12\ See Commerce's Letter, ``Standard Steel Welded Wire Mesh 
from Mexico: Invitation for Consultation to Discuss the 
Countervailing Duty Petition,'' dated July 10, 2020.
    \13\ See Memorandum, ``Standard Steel Welded Wire Mesh from 
Mexico Countervailing Duty Petition: Consultations with the 
Government of Mexico,'' dated July 17, 2020.
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(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 702(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,\14\ 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.\15\
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    \14\ See section 771(10) of the Act.
    \15\ 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), 
cert. denied 492 U.S. 919 (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.\16\ 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.\17\
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    \16\ See Volume I of the Petition at 16-17; see also General 
Issues Supplement at 9-10.
    \17\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Standard 
Steel Welded Wire Mesh from Mexico (Mexico CVD 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.
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    In determining whether the petitioners have standing under section 
702(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.\18\ 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.\19\ We relied 
on data provided by the petitioners for purposes of measuring industry 
support.\20\
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    \18\ See Volume I of the Petition at 3-4 and Exhibit GEN-3.
    \19\ See Volume I of the Petition at 4 and Exhibits GEN-1 and 
GEN-3; see also General Issues Supplement at 11 and Exhibit GEN-
SUPP-3.
    \20\ Id. For further discussion, see Mexico CVD Initiation 
Checklist at Attachment II.
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    From July 13-July 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).\21\ The petitioners responded to these industry support 
comments on July 14 and July 16, 2020, respectively.\22\
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    \21\ 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.
    \22\ 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.\23\ 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).\24\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(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.\25\ Finally, the domestic 
producers (or workers) have met the statutory criterion for industry 
support under section 702(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.\26\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within

[[Page 45183]]

the meaning of section 702(b)(1) of the Act.\27\
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    \23\ Id.
    \24\ See Mexico CVD Initiation Checklist at Attachment II; see 
also section 702(c)(4)(D) of the Act.
    \25\ see Mexico CVD Initiation Checklist at Attachment II.
    \26\ Id.
    \27\ Id.
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Injury Test

    Because Mexico is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from Mexico materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioners 
allege that subject imports exceed the negligibility threshold provided 
for under section 771(24)(A) of the Act.\28\
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    \28\ See Volume I of the Petition at 18-19 and Exhibit GEN-9.
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    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.\29\ We have 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.\30\
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    \29\ 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.
    \30\ See Mexico CVD 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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Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that the Petition meets the requirements of section 
702 of the Act. Therefore, we are initiating a CVD investigation to 
determine whether imports of wire mesh from Mexico benefit from 
countervailable subsidies conferred by the GOM. Based on our review of 
the Petition, we find that there is sufficient information to initiate 
a CVD investigation on 16 of the 17 alleged programs. For a full 
discussion of the basis for our decision to initiate on each program, 
see Mexico CVD Initiation Checklist. A public version of the initiation 
checklist for this investigation is available on ACCESS. In accordance 
with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 65 
days after the date of this initiation.

Respondent Selection

    In the Petition, the petitioners named nine companies in Mexico as 
producers/exporters of wire mesh.\31\ Commerce intends to follow its 
standard practice in CVD investigations and calculate company-specific 
subsidy rates in this investigation. In the event Commerce determines 
that the number of companies is large and it cannot individually 
examine each company based upon Commerce's resources, where 
appropriate, Commerce intends to select mandatory respondents based on 
U.S. Customs and Border Protection (CBP) data for U.S. imports of wire 
mesh from Mexico during the POI under the appropriate Harmonized Tariff 
Schedule of the United States numbers listed in the ``Scope of the 
Investigation,'' in the appendix.
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    \31\ See Volume I of the Petition at Exhibit GEN-7.
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    On July 15, 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.\32\ 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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    \32\ See Memorandum, ``Standard Steel Welded Wire Mesh from 
Mexico Countervailing Duty Petition: Release of Customs Data from 
U.S. Customs and Border Protection,'' dated July 15, 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 E&C's website at https://enforcement.trade.gov/apo.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the CVD Petition has been 
provided to the GOM via ACCESS. Furthermore, to the extent practicable, 
we will attempt to provide a copy of the public version of the CVD 
Petition to each exporter named in the CVD Petition, as provided under 
19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the CVD 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.\33\ A 
negative ITC determination will result in the investigation being 
terminated.\34\ Otherwise, the CVD investigation will proceed according 
to statutory and regulatory time limits.
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    \33\ See section 703(a)(1) of the Act.
    \34\ 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 \35\ 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.\36\ 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

[[Page 45184]]

submitting factual information in this investigation.
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    \35\ See 19 CFR 351.301(b).
    \36\ See 19 CFR 351.301(b)(2).
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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.\37\ 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, Commerce 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, Commerce 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 extension requests 
or factual information in this investigation.
---------------------------------------------------------------------------

    \37\ See 19 CFR 351.302.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\38\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\39\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \38\ See section 782(b) of the Act.
    \39\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, 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 of its requirements for 
serving documents containing business proprietary information, until 
further notice.\40\
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    \40\ 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 702 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
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'


[[Page 45185]]


    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 Number               oversteeling      Diameter range
                                        Number             (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. 2020-16186 Filed 7-24-20; 8:45 am]
BILLING CODE 3510-DS-P

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