Standard Steel Welded Wire Mesh From Mexico: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders, 3173-3175 [2025-00581]

Download as PDF Federal Register / Vol. 90, No. 8 / Tuesday, January 14, 2025 / Notices DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [B–2–2025] khammond on DSK9W7S144PROD with NOTICES Foreign-Trade Zone (FTZ) 49, Notification of Proposed Production Activity; Merck, Sharp & Dohme LLC; (Pharmaceutical Products for Research and Development); Rahway, New Jersey Merck, Sharp & Dohme LLC submitted a notification of proposed production activity to the FTZ Board (the Board) for its facility in Rahway, New Jersey, within Subzone 49Y. The notification conforming to the requirements of the Board’s regulations (15 CFR 400.22) was received on January 3, 2025. Pursuant to 15 CFR 400.14(b), FTZ production activity would be limited to the specific foreign-status material(s)/ component(s) and specific finished product(s) described in the submitted notification (summarized below) and subsequently authorized by the Board. The benefits that may stem from conducting production activity under FTZ procedures are explained in the background section of the Board’s website—accessible via www.trade.gov/ ftz. The proposed finished product(s) and material(s)/component(s) would be added to the production authority that the Board previously approved for the operation, as reflected on the Board’s website. The proposed finished products include MK–0616 macrocycle metabolic disorders drug product, MK–6204 metabolic disorders drug product and MK–5608 immunological disorder macrocyclic peptide drug product (dutyfree). The proposed foreign-status materials/components include: MK– 0616 macrocycle metabolic disorders active pharmaceutical ingredient; MK– 6204 metabolic disorders alkaloid active pharmaceutical ingredient; MK–6204 metabolic disorders monoclonal antibody active pharmaceutical ingredient; MK–5608 macrocyclic peptide immunological disorder active pharmaceutical ingredient; sodium caprate; microcrystalline cellulose; and, empty hydroxypropyl methylcellulose (HPMC) capsules (duty rate ranges from duty-free to 6.5%). The request indicates that certain materials/ components are subject to duties under section 301 of the Trade Act of 1974 (section 301), depending on the country of origin. The applicable section 301 decisions require subject merchandise to be admitted to FTZs in privileged foreign status (19 CFR 146.41). VerDate Sep<11>2014 22:42 Jan 13, 2025 Jkt 265001 Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive Secretary and sent to: ftz@trade.gov. The closing period for their receipt is February 24, 2025. A copy of the notification will be available for public inspection in the ‘‘Online FTZ Information System’’ section of the Board’s website. For further information, contact Diane Finver at Diane.Finver@trade.gov. Dated: January 7, 2025. Elizabeth Whiteman, Executive Secretary. BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [S–206–2024] Approval of Subzone Status; True Manufacturing Co., Inc.; O’Fallon and Mexico, Missouri On November 20, 2024, the Executive Secretary of the Foreign-Trade Zones (FTZ) Board docketed an application submitted by the St. Louis County Port Authority, grantee of FTZ 102, requesting subzone status subject to the existing activation limit of FTZ 102, on behalf of True Manufacturing Co., Inc., in O’Fallon and Mexico, Missouri. The application was processed in accordance with the FTZ Act and Regulations, including notice in the Federal Register inviting public comment (89 FR 93274, November 26, 2024). The FTZ staff examiner reviewed the application and determined that it meets the criteria for approval. Pursuant to the authority delegated to the FTZ Board Executive Secretary (15 CFR 400.36(f)), the application to establish Subzone 102G was approved on January 7, 2025, subject to the FTZ Act and the Board’s regulations, including section 400.13, and further subject to FTZ 102’s 2,000-acre activation limit. Dated: January 7, 2025. Elizabeth Whiteman, Executive Secretary. [FR Doc. 2025–00546 Filed 1–13–25; 8:45 am] PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 DEPARTMENT OF COMMERCE International Trade Administration [A–201–853; C–201–854] Standard Steel Welded Wire Mesh From Mexico: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: In response to requests from Keysteel Corp., Mid-South Wire Company, National Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh Corp. (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether standard steel welded wire mesh (wire mesh) from Mexico, which is completed in the United States from low-carbon steel wire produced in Mexico, is circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on wire mesh from Mexico. SUMMARY: [FR Doc. 2025–00543 Filed 1–13–25; 8:45 am] BILLING CODE 3510–DS–P 3173 DATES: Applicable January 14, 2025. FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, 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) 482–3834. SUPPLEMENTARY INFORMATION: Background On November 5, 2024, pursuant to section 781(a) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.226(h), the requesters filed circumvention inquiry requests alleging that wire mesh completed in the United States using low-carbon steel wire manufactured in Mexico is circumventing the AD and CVD Orders 1 on wire mesh from Mexico and, accordingly, should be included within the scope of the Orders.2 On November 29, 2024, Deacero S.A.P.I de C.V., a Mexican producer of wire mesh, and its subsidiary Deacero USA, Inc. (collectively, Deacero), filed comments 1 See Standard Steel Welded Wire Mesh from Mexico: Antidumping Duty Order, 86 FR 43525 (August 9, 2021); see also Standard Steel Welded Wire Mesh from Mexico: Countervailing Duty Order, 86 FR 18940 (April 12, 2021) (collectively, Orders). 2 See Requesters’ Letter, ‘‘Petitioners’ Request for Circumvention Ruling Pursuant to Section 781(a) of the Act,’’ dated November 5, 2024 (Circumvention Request). E:\FR\FM\14JAN1.SGM 14JAN1 3174 Federal Register / Vol. 90, No. 8 / Tuesday, January 14, 2025 / Notices opposing the requesters’ requests.3 On December 6, 2024, the requesters filed rebuttal comments to Deacero’s November 29, 2024 comments.4 On December 4, 2024, we extended the deadline to initiate this circumvention inquiry by 30 days, in accordance with 19 CFR 351.226(d)(1).5 On December 10, 2024, we issued a questionnaire to the requesters.6 Subsequently, on December 12, 2024, the requesters filed their response to our request for information.7 Scope of the Orders The merchandise covered by the scope of the Orders is wire mesh from Mexico. For a complete description of the scope of Orders, see the Circumvention Initiation Checklist.8 Merchandise Subject to the Circumvention Inquiry This circumvention inquiry covers low-carbon steel wire produced in Mexico and further processed and completed in the United States into wire mesh from Mexico. Initiation of Circumvention Inquiry khammond on DSK9W7S144PROD with NOTICES Section 351.226(d) of Commerce’s regulations states that if Commerce determines that a request for a circumvention inquiry satisfies the requirements of 19 CFR 351.226(c), then Commerce ‘‘will accept the request and initiate a circumvention inquiry.’’ Section 351.226(c)(1) of Commerce’s regulations, in turn, requires that each circumvention inquiry request allege ‘‘that the elements necessary for a circumvention determination under section 781 of the Act exist’’ and be ‘‘accompanied by information reasonably available to the interested party supporting these allegations.’’ The requesters alleged circumvention pursuant to section 781(a) of the Act (i.e., merchandise completed or assembled in the United States). 3 See Deacero’s Letter, ‘‘Response in Opposition to Request for Anti-Circumvention Ruling,’’ dated November 29, 2024. 4 See Requesters’ Letter, ‘‘Petitioners’ Reply to Deacero’s Comments on Petitioners’ Request for Circumvention Inquiry,’’ dated December 6, 2024. 5 See Memorandum, ‘‘Extension of Circumvention Inquiry Initiation Deadline,’’ dated December 4, 2024. 6 See Commerce’s Letter, ‘‘Supplemental Initiation Questionnaire,’’ dated December 10, 2024 (Request for Information). 7 See Requesters’ Letter, ‘‘Petitioners’ Supplemental Questionnaire Response,’’ dated December 12, 2024. 8 For a complete description of the scope of the Orders, see Checklist, ‘‘Standard Steel Welded Wire Mesh from Mexico Antidumping and Countervailing Duty Orders,’’ dated concurrently with this notice (Circumvention Initiation Checklist). VerDate Sep<11>2014 22:42 Jan 13, 2025 Jkt 265001 Section 781(a)(1) of the Act provides that Commerce may find circumvention of an order when merchandise of the same class or kind subject to the order is completed or assembled in the United States. In conducting a circumvention inquiry, under section 781(a)(1) of the Act, Commerce relies on the following criteria: (A) merchandise sold in the United States is of the same class or kind as any merchandise that is the subject of an AD or CVD order; (B) such merchandise sold in the United States is completed or assembled in the United States from parts or components produced in the foreign country with respect to which such order or finding applies; (C) the process of assembly or completion in the United States is minor or insignificant; and (D) the value of the parts or components referred to in subparagraph (B) is a significant portion of the total value of the merchandise. In determining whether the process of assembly or completion in the United States is minor or insignificant under section 781(a)(1)(C) of the Act, section 781(a)(2) of the Act directs Commerce to consider: (A) the level of investment in the United States; (B) the level of research and development in the United States; (C) the nature of the production process in the United States; (D) the extent of production facilities in the United States; and (E) whether the value of the processing performed in the United States represents a small proportion of the value of the merchandise sold in the United States. However, no single factor, by itself, controls Commerce’s determination of whether the process of assembly or completion in the United States is minor or insignificant.9 Accordingly, it is Commerce’s practice to evaluate each of these five factors as they exist in the United States, and to reach an affirmative or negative circumvention determination based on the totality of the circumstances of the particular circumvention inquiry.10 In addition, section 781(a)(3) of the Act sets forth additional factors to consider in determining whether to 9 See Statement of Administrative Action Accompanying the Uruguay Round Agreements Act, H.R. Doc. No. 103–316, Vol. 1 (1994) (SAA), at 893. 10 See Antidumping Duty Order on Hydrofluorocarbon Blends from the People’s Republic of China: Preliminary Affirmative Determination of Circumvention with Respect to R– 410B, R–407G, and a Certain Custom Blend from the People’s Republic of China,’’ 89 FR 25568 (April 11, 2024), and accompanying Preliminary Decision Memorandum, unchanged in Antidumping Order on Hydrofluorocarbon Blends from the People’s Republic of China: Final Affirmative Determination of Circumvention With Respect to R–410B, R–407G, and a Certain Custom Blend from the People’s Republic of China, 89 FR 56848 (July 11, 2024. PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 include merchandise assembled or completed in the United States within the scope of an AD or CVD order. Specifically, Commerce shall take into account such factors as: (A) the pattern of trade, including sourcing patterns; (B) whether the manufacturer or exporter of the parts or components is affiliated with the person who assembles or completes the merchandise sold in the United States from the parts or components produced in the foreign country with respect to which the order applies; and (C) whether imports into the United States of the parts or components products in such foreign country have increased after the initiation of the investigation which resulted in the issuance of such order. Analysis Based on our analysis of the requesters’ circumvention request, Commerce determines that the requesters have satisfied the criteria under 19 CFR 351.226(c) to warrant the initiation of circumvention inquiries of the Orders. For a full discussion of the basis for our decision to initiate these circumvention inquiries, see the Circumvention Initiation Checklist.11 As explained in the Circumvention Initiation Checklist, the information provided by the requesters warrants initiating these circumvention inquiries on a country-wide basis. Commerce has taken this approach in prior circumvention inquiries, where the facts warranted initiation on a country-wide basis.12 Consistent with the approach in the prior circumvention inquiries that were initiated on a country-wide basis, Commerce intends to issue a questionnaire to solicit information from producers and exporters in Mexico concerning their shipments to the United States and the origin of any imported low-carbon steel wire being further processed into merchandise subject to the Order. 11 See Circumvention Initiation Checklist. e.g., Certain Corrosion-Resistant Steel Products from the Republic of Korea and Taiwan: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 FR 37785 (August 2, 2018); Carbon Steel ButtWeld Pipe Fittings from the People’s Republic of China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 25, 2017) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted); and Certain CorrosionResistant Steel Products from the People’s Republic of China: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted). 12 See, E:\FR\FM\14JAN1.SGM 14JAN1 Federal Register / Vol. 90, No. 8 / Tuesday, January 14, 2025 / Notices Respondent Selection Commerce intends to base respondent selection on U.S. Customs and Border and Protection (CBP) data. Commerce intends to place CBP data on each record within five days of the publication of the initiation notice. Comments regarding the CBP data and respondent selection should be submitted within seven days after placement of the CBP data on the record of the relevant inquiry. Commerce intends to establish a schedule for questionnaire responses after respondent selection. A company’s failure to completely respond to Commerce’s requests for information may result in the application of partial or total facts available, pursuant to section 776(a) of the Act, which may include adverse inferences, pursuant to section 776(b) of the Act. khammond on DSK9W7S144PROD with NOTICES Suspension of Liquidation Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs and Border Protection (CBP) of the initiation of this circumvention inquiry and direct CBP to continue the suspension of liquidation of entries of products subject to the circumvention inquiry that were already subject to the suspension of liquidation under the Orders and to apply the cash deposit rate that would be applicable if the product was determined to be covered by the scope of the Orders. Should Commerce issue preliminary or final circumvention determinations, Commerce will follow the suspension of liquidation rules under 19 CFR 351.226(l)(2)–(4). Notification to Interested Parties In accordance with 19 CFR 351.226(d) and section 781(a) of the Act, Commerce determines that the requesters’ requests for this circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce is notifying all interested parties of the initiation of this circumvention inquiry to determine whether certain imports of low-carbon steel wire produced in Mexico and further processed and completed in the United States into wire mesh from Mexico, are circumventing the Orders. In addition, we have included a description of the products that are the subject of this inquiry, and an explanation of the reasons for Commerce’s decision to initiate this inquiry as provided above and in the accompanying Circumvention Initiation Checklist.13 In accordance with 19 CFR 351.226(e)(2), Commerce intends to issue its preliminary circumvention determination within 150 days from the 13 See Circumvention Initiation Checklist. VerDate Sep<11>2014 22:42 Jan 13, 2025 Jkt 265001 date of publication of the notice of initiation of a circumvention inquiry in the Federal Register. This notice is published in accordance with section 781(a) of the Act and 19 CFR 351.226(d)(1)(ii). Dated: January 6, 2025. Steven Presing, Acting Deputy Assistant Secretary for Policy and Negotiations. [FR Doc. 2025–00581 Filed 1–13–25; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–191] Sol Gel Alumina-Based Ceramic Abrasive Grains From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable January 6, 2025. FOR FURTHER INFORMATION CONTACT: Suresh Maniam, Office I, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1603. SUPPLEMENTARY INFORMATION: AGENCY: The Petition On November 25, 2024, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of sol gel alumina-based ceramic abrasive grains (ceramic abrasive grains) from the People’s Republic of China (China) filed in proper form on behalf of SaintGobain Ceramics & Plastics, Inc. (the petitioner), a U.S. producer of ceramic abrasive grains.1 The CVD Petition was accompanied by an antidumping duty (AD) petition concerning imports of ceramic abrasive grains from China.2 Between November 27, 2024, and December 17, 2024, Commerce requested supplemental information pertaining to certain aspects of the Petition in supplemental questionnaires.3 Between December 4 1 See Petitioner’s Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties,’’ dated November 25, 2024 (Petition). 2 Id. 3 See Commerce’s Letters, ‘‘Supplemental Questions,’’ dated November 27, 2024 (General Issues Questionnaire); ‘‘Supplemental Questions,’’ dated November 27, 2024; and ‘‘Supplemental Questions,’’ dated December 17, 2024; see also PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 3175 and 23, 2024, the petitioner filed timely responses to these requests for additional information.4 On December 6, 2024, Commerce extended the initiation deadline by 20 days to poll the domestic industry in accordance with sections 702(c)(1)(B) and 702(c)(4)(D) of the Tariff Act of 1930, as amended (the Act), because the Petition ‘‘{had} not established that the domestic producers or workers accounting for more than 50 percent of total production support the {Petition}. . . .’’ 5 In accordance with section 702(b)(1) of the Act, the petitioner alleges that the Government of China (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of ceramic abrasive grains in China, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing ceramic abrasive grains 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 petitioner supporting its allegations. Commerce finds that the petitioner filed the Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation.6 Period of Investigation Because the Petition was filed on November 25, 2024, the period of investigation for the CVD investigation is January 1, 2023, through December 31, 2023.7 Memorandum, ‘‘Phone Call with Counsel to the Petitioner,’’ dated December 6, 2024 (December 6, 2024, Memorandum). 4 See Petitioner’s Letters, ‘‘Antidumping and Countervailing Supplemental Questionnaire Response,’’ dated December 4, 2024 (General Issues Supplement); ‘‘Countervailing Supplemental Questionnaire Response,’’ dated December 4, 2024; ‘‘Antidumping and Countervailing General Issues Supplement Response,’’ dated December 9, 2024 (Scope Supplement); and ‘‘Antidumping and Countervailing Supplemental Questionnaire Response,’’ dated December 23, 2024. 5 See Notice of Extension of the Deadline for Determining the Adequacy of the Antidumping and Countervailing Duty Petitions: Sol Gel AluminaBased Ceramic Abrasive Grains from the People’s Republic of China, 89 FR 100465 (December 12, 2024) (Initiation Extension Notice). 6 See section on ‘‘Determination of Industry Support for the Petition,’’ infra. 7 See 19 CFR 351.204(b)(2). E:\FR\FM\14JAN1.SGM 14JAN1

Agencies

[Federal Register Volume 90, Number 8 (Tuesday, January 14, 2025)]
[Notices]
[Pages 3173-3175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00581]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-853; C-201-854]


Standard Steel Welded Wire Mesh From Mexico: Initiation of 
Circumvention Inquiry on the Antidumping and Countervailing Duty Orders

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

SUMMARY: In response to requests from Keysteel Corp., Mid-South Wire 
Company, National Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh 
Corp. (collectively, the requesters), the U.S. Department of Commerce 
(Commerce) is initiating a country-wide circumvention inquiry to 
determine whether standard steel welded wire mesh (wire mesh) from 
Mexico, which is completed in the United States from low-carbon steel 
wire produced in Mexico, is circumventing the antidumping duty (AD) and 
countervailing duty (CVD) orders on wire mesh from Mexico.

DATES: Applicable January 14, 2025.

FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, 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) 482-3834.

SUPPLEMENTARY INFORMATION:

Background

    On November 5, 2024, pursuant to section 781(a) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.226(h), the requesters 
filed circumvention inquiry requests alleging that wire mesh completed 
in the United States using low-carbon steel wire manufactured in Mexico 
is circumventing the AD and CVD Orders \1\ on wire mesh from Mexico 
and, accordingly, should be included within the scope of the Orders.\2\ 
On November 29, 2024, Deacero S.A.P.I de C.V., a Mexican producer of 
wire mesh, and its subsidiary Deacero USA, Inc. (collectively, 
Deacero), filed comments

[[Page 3174]]

opposing the requesters' requests.\3\ On December 6, 2024, the 
requesters filed rebuttal comments to Deacero's November 29, 2024 
comments.\4\
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    \1\ See Standard Steel Welded Wire Mesh from Mexico: Antidumping 
Duty Order, 86 FR 43525 (August 9, 2021); see also Standard Steel 
Welded Wire Mesh from Mexico: Countervailing Duty Order, 86 FR 18940 
(April 12, 2021) (collectively, Orders).
    \2\ See Requesters' Letter, ``Petitioners' Request for 
Circumvention Ruling Pursuant to Section 781(a) of the Act,'' dated 
November 5, 2024 (Circumvention Request).
    \3\ See Deacero's Letter, ``Response in Opposition to Request 
for Anti-Circumvention Ruling,'' dated November 29, 2024.
    \4\ See Requesters' Letter, ``Petitioners' Reply to Deacero's 
Comments on Petitioners' Request for Circumvention Inquiry,'' dated 
December 6, 2024.
---------------------------------------------------------------------------

    On December 4, 2024, we extended the deadline to initiate this 
circumvention inquiry by 30 days, in accordance with 19 CFR 
351.226(d)(1).\5\
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    \5\ See Memorandum, ``Extension of Circumvention Inquiry 
Initiation Deadline,'' dated December 4, 2024.
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    On December 10, 2024, we issued a questionnaire to the 
requesters.\6\ Subsequently, on December 12, 2024, the requesters filed 
their response to our request for information.\7\
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    \6\ See Commerce's Letter, ``Supplemental Initiation 
Questionnaire,'' dated December 10, 2024 (Request for Information).
    \7\ See Requesters' Letter, ``Petitioners' Supplemental 
Questionnaire Response,'' dated December 12, 2024.
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Scope of the Orders

    The merchandise covered by the scope of the Orders is wire mesh 
from Mexico. For a complete description of the scope of Orders, see the 
Circumvention Initiation Checklist.\8\
---------------------------------------------------------------------------

    \8\ For a complete description of the scope of the Orders, see 
Checklist, ``Standard Steel Welded Wire Mesh from Mexico Antidumping 
and Countervailing Duty Orders,'' dated concurrently with this 
notice (Circumvention Initiation Checklist).
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Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers low-carbon steel wire produced in 
Mexico and further processed and completed in the United States into 
wire mesh from Mexico.

Initiation of Circumvention Inquiry

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
circumvention inquiry request allege ``that the elements necessary for 
a circumvention determination under section 781 of the Act exist'' and 
be ``accompanied by information reasonably available to the interested 
party supporting these allegations.'' The requesters alleged 
circumvention pursuant to section 781(a) of the Act (i.e., merchandise 
completed or assembled in the United States).
    Section 781(a)(1) of the Act provides that Commerce may find 
circumvention of an order when merchandise of the same class or kind 
subject to the order is completed or assembled in the United States. In 
conducting a circumvention inquiry, under section 781(a)(1) of the Act, 
Commerce relies on the following criteria: (A) merchandise sold in the 
United States is of the same class or kind as any merchandise that is 
the subject of an AD or CVD order; (B) such merchandise sold in the 
United States is completed or assembled in the United States from parts 
or components produced in the foreign country with respect to which 
such order or finding applies; (C) the process of assembly or 
completion in the United States is minor or insignificant; and (D) the 
value of the parts or components referred to in subparagraph (B) is a 
significant portion of the total value of the merchandise.
    In determining whether the process of assembly or completion in the 
United States is minor or insignificant under section 781(a)(1)(C) of 
the Act, section 781(a)(2) of the Act directs Commerce to consider: (A) 
the level of investment in the United States; (B) the level of research 
and development in the United States; (C) the nature of the production 
process in the United States; (D) the extent of production facilities 
in the United States; and (E) whether the value of the processing 
performed in the United States represents a small proportion of the 
value of the merchandise sold in the United States. However, no single 
factor, by itself, controls Commerce's determination of whether the 
process of assembly or completion in the United States is minor or 
insignificant.\9\ Accordingly, it is Commerce's practice to evaluate 
each of these five factors as they exist in the United States, and to 
reach an affirmative or negative circumvention determination based on 
the totality of the circumstances of the particular circumvention 
inquiry.\10\
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    \9\ See Statement of Administrative Action Accompanying the 
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994) 
(SAA), at 893.
    \10\ See Antidumping Duty Order on Hydrofluorocarbon Blends from 
the People's Republic of China: Preliminary Affirmative 
Determination of Circumvention with Respect to R-410B, R-407G, and a 
Certain Custom Blend from the People's Republic of China,'' 89 FR 
25568 (April 11, 2024), and accompanying Preliminary Decision 
Memorandum, unchanged in Antidumping Order on Hydrofluorocarbon 
Blends from the People's Republic of China: Final Affirmative 
Determination of Circumvention With Respect to R-410B, R-407G, and a 
Certain Custom Blend from the People's Republic of China, 89 FR 
56848 (July 11, 2024.
---------------------------------------------------------------------------

    In addition, section 781(a)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in the United States within the scope of an AD 
or CVD order. Specifically, Commerce shall take into account such 
factors as: (A) the pattern of trade, including sourcing patterns; (B) 
whether the manufacturer or exporter of the parts or components is 
affiliated with the person who assembles or completes the merchandise 
sold in the United States from the parts or components produced in the 
foreign country with respect to which the order applies; and (C) 
whether imports into the United States of the parts or components 
products in such foreign country have increased after the initiation of 
the investigation which resulted in the issuance of such order.

Analysis

    Based on our analysis of the requesters' circumvention request, 
Commerce determines that the requesters have satisfied the criteria 
under 19 CFR 351.226(c) to warrant the initiation of circumvention 
inquiries of the Orders. For a full discussion of the basis for our 
decision to initiate these circumvention inquiries, see the 
Circumvention Initiation Checklist.\11\ As explained in the 
Circumvention Initiation Checklist, the information provided by the 
requesters warrants initiating these circumvention inquiries on a 
country-wide basis. Commerce has taken this approach in prior 
circumvention inquiries, where the facts warranted initiation on a 
country-wide basis.\12\
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    \11\ See Circumvention Initiation Checklist.
    \12\ See, e.g., Certain Corrosion-Resistant Steel Products from 
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from 
the People's Republic of China: Initiation of Anti-Circumvention 
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 
25, 2017) (stating at initiation that Commerce would evaluate the 
extent to which a country-wide finding applicable to all exports 
might be warranted); and Certain Corrosion-Resistant Steel Products 
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing 
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at 
initiation that Commerce would evaluate the extent to which a 
country-wide finding applicable to all exports might be warranted).
---------------------------------------------------------------------------

    Consistent with the approach in the prior circumvention inquiries 
that were initiated on a country-wide basis, Commerce intends to issue 
a questionnaire to solicit information from producers and exporters in 
Mexico concerning their shipments to the United States and the origin 
of any imported low-carbon steel wire being further processed into 
merchandise subject to the Order.

[[Page 3175]]

Respondent Selection

    Commerce intends to base respondent selection on U.S. Customs and 
Border and Protection (CBP) data. Commerce intends to place CBP data on 
each record within five days of the publication of the initiation 
notice. Comments regarding the CBP data and respondent selection should 
be submitted within seven days after placement of the CBP data on the 
record of the relevant inquiry.
    Commerce intends to establish a schedule for questionnaire 
responses after respondent selection. A company's failure to completely 
respond to Commerce's requests for information may result in the 
application of partial or total facts available, pursuant to section 
776(a) of the Act, which may include adverse inferences, pursuant to 
section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of the initiation of this circumvention 
inquiry and direct CBP to continue the suspension of liquidation of 
entries of products subject to the circumvention inquiry that were 
already subject to the suspension of liquidation under the Orders and 
to apply the cash deposit rate that would be applicable if the product 
was determined to be covered by the scope of the Orders. Should 
Commerce issue preliminary or final circumvention determinations, 
Commerce will follow the suspension of liquidation rules under 19 CFR 
351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(a) of the Act, 
Commerce determines that the requesters' requests for this 
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). 
Accordingly, Commerce is notifying all interested parties of the 
initiation of this circumvention inquiry to determine whether certain 
imports of low-carbon steel wire produced in Mexico and further 
processed and completed in the United States into wire mesh from 
Mexico, are circumventing the Orders. In addition, we have included a 
description of the products that are the subject of this inquiry, and 
an explanation of the reasons for Commerce's decision to initiate this 
inquiry as provided above and in the accompanying Circumvention 
Initiation Checklist.\13\ In accordance with 19 CFR 351.226(e)(2), 
Commerce intends to issue its preliminary circumvention determination 
within 150 days from the date of publication of the notice of 
initiation of a circumvention inquiry in the Federal Register.
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    \13\ See Circumvention Initiation Checklist.
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    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: January 6, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy and Negotiations.
[FR Doc. 2025-00581 Filed 1-13-25; 8:45 am]
BILLING CODE 3510-DS-P

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