[Federal Register Volume 85, Number 134 (Monday, July 13, 2020)]
[Notices]
[Pages 41962-41964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15054]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-847]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico: Final Results of Antidumping Duty Administrative Review and 
Final Determination of No Shipments; 2017-2018

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) finds that the 
producers/exporters subject to this administrative review made sales of 
subject merchandise at less than normal value during the period of 
review (POR), September 1, 2017 through August 31, 2018.

DATES: Applicable July 13, 2020.

FOR FURTHER INFORMATION CONTACT: David Crespo or Jacob Garten, 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) 482-3693 or (202) 482-3342, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This review covers 11 producers/exporters of the subject 
merchandise. Commerce selected two companies, Maquilacero S.A. de C.V. 
(Maquilacero) and Productos Laminados de Monterrey S.A. de C.V. 
(Prolamsa) (collectively, the respondents), for individual examination. 
The producers/exporters not selected for individual examination are 
listed in the ``Final Results of the Review'' section of this notice.
    On November 18, 2019, Commerce published the Preliminary 
Results.\1\ We invited interested parties to comment on the Preliminary 
Results.\2\ On December 18, 2019, Independence Tube Corporation and 
Southland Tube, Incorporated, both Nucor companies (collectively, 
domestic parties), and Maquilacero filed case briefs \3\. On December 
23, 2019, the domestic parties, Prolamsa, and Maquilacero all filed 
rebuttal briefs.\4\ For a description of the events that occurred since 
the preliminary results, see the Issues and Decision Memorandum.\5\ On 
February 11, 2020, we postponed the final results by 59 days after the 
publication of the Preliminary Results, until May 15, 2020.\6\ On April 
24, 2020, Commerce tolled all deadlines in administrative

[[Page 41963]]

reviews by 50 days, thereby extending the deadline for these final 
results until July 6, 2020.\7\
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    \1\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from Mexico: Preliminary Results of Antidumping Duty 
Administrative Review and Preliminary Determination of No Shipments; 
2017-2018, 84 FR 63610 (November 18, 2019) (Preliminary Results).
    \2\ Id.
    \3\ See Domestic Parties' Case Brief, ``Heavy-Walled Rectangular 
Welded Carbon Steel Pipes and Tubes from Mexico: Case Brief and 
Request to Participate in Hearing if Held,'' dated December 18, 
2019; and Maquilacero's Case Brief, ``Heavy Walled Rectangular 
Welded Carbon Steel Pipes from Mexico: Case Brief of Maquilacero 
S.A. de C.V.,'' dated December 18, 2019.
    \4\ See Domestic Parties' Rebuttal Brief, ``Heavy Walled 
Rectangular Welded Carbon Steel Pipes and Tubes from Mexico: 
Rebuttal Brief,'' dated December 23, 2019; Maquilacero's Rebuttal 
Brief, ``Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from Mexico: Rebuttal Brief,'' dated December 23, 2020; and 
Prolamsa's Rebuttal Brief, ``Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes from Mexico: Rebuttal Brief and Request to 
Participate in Hearing, if Held,'' dated December 23, 2019.
    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Antidumping Duty Administrative Review: Heavy Walled Rectangular 
Welded Carbon Steel Pipes and Tubes from Mexico; 2017-2018,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
    \6\ See Memorandum, ``Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes from Mexico: Extension of Deadline for Final 
Results of Antidumping Duty Administrative Review,'' dated February 
11, 2020.
    \7\ 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.
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    Commerce conducted this administrative review in accordance with 
section 751 of the Tariff Act of 1930, as amended (the Act).

cope of the Order

    The merchandise subject to the order is certain heavy walled 
rectangular welded steel pipes and tubes of rectangular (including 
square) cross section, having a nominal wall thickness of not less than 
4 mm. The merchandise includes, but is not limited to, the American 
Society for Testing and Materials (ASTM) A-500, grade B specifications, 
or comparable domestic or foreign specifications. Included products are 
those in which: (1) Iron predominates, by weight, over each of the 
other contained elements; (2) the carbon content is 2 percent or less, 
by weight; and (3) none of the elements below exceeds the quantity, by 
weight, respectively indicated:
     2.50 percent of manganese, or
     3.30 percent of silicon, or
     1.50 percent of copper, or
     1.50 percent of aluminum, or
     1.25 percent of chromium, or
     0.30 percent of cobalt, or
     0.40 percent of lead, or
     2.0 percent of nickel, or
     0.30 percent of tungsten, or
     0.80 percent of molybdenum, or
     0.10 percent of niobium (also called columbium), or
     0.30 percent of vanadium, or
     0.30 percent of zirconium.
    The product is currently classified under following Harmonized 
Tariff Schedule of the United States (HTSUS) item numbers 7306.61.1000. 
Subject merchandise may also be classified under 7306.61.3000. Although 
the HTSUS numbers and ASTM specification are provided for convenience 
and for customs purposes, the written product description remains 
dispositive. For a full description of the scope, see the Issues and 
Decision Memorandum.\8\
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    \8\ See Issues and Decision Memorandum.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs are listed in the 
appendix to this notice and addressed in the Issues and Decision 
Memorandum. The Issues and 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 http://access.trade.gov. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/index.html. 
The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.

Determination of No Shipments

    As noted in the Preliminary Results, we received no shipment claims 
from two companies involved in this administrative review, Ternium 
M[eacute]xico, S.A. de C.V. (Ternium) and Tuberia Nacional S.A. de C.V. 
(TUNA). In the Preliminary Results, we preliminarily determined that 
Ternium and TUNA had no reviewable transactions during the POR. We 
received no comments from interested parties with respect to these 
claims. Therefore, because the record indicates that these companies 
did not export subject merchandise to the United States during the POR, 
we continue to find that Ternium and TUNA had no reviewable 
transactions during the POR.

Changes Since the Preliminary Results

    Based on a review of the record and comments received from 
interested parties regarding our Preliminary Results, we made certain 
changes to the preliminary weighted-average dumping margins for 
Maquilacero and Prolamsa, and those companies not selected for 
individual review.\9\
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    \9\ See Issues and Decision Memorandum.
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Final Results of the Review

    We are assigning the following weighted-average dumping margins to 
the firms listed below for the period September 1, 2017 through August 
31, 2018:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                     Producers/exporters                        dumping
                                                                margin
                                                               (percent)
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Maquilacero S.A. de C.V.....................................        4.89
Productos Laminados de Monterrey S.A. de C.V................        7.47
Arco Metal S.A. de C.V.*....................................        6.64
Forza Steel S.A. de C.V.*...................................        6.64
Industrias Monterrey, S.A. de C.V.*.........................        6.64
Perfiles y Herrajes LM S.A. de C.V.*........................        6.64
PYTCO S.A. de C.V.*.........................................        6.64
Regiomontana de Perfiles y Tubos S.A. de C.V.*..............        6.64
Ternium S.A. de C.V.**......................................  ..........
Tuberia Nacional S.A. de C.V.**.............................  ..........
Tuberias Procarsa S.A. de C.V.* \10\........................        6.64
------------------------------------------------------------------------
* Review-Specific Average Rate \11\
** No shipments or sales subject to this review.

    We intend to disclose the calculations performed for these final 
results to parties in this proceeding within five days of the date of 
publication of this notice, in accordance with 19 CFR 351.224(b).
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    \10\ We incorrectly listed this company as Tuberia Procarsa S.A. 
de C.V. in the Preliminary Results. We have corrected the name for 
these final results.
    \11\ This rate is based on the rates for the respondents that 
were selected for individual review, excluding rates that are zero, 
de minimis, or based entirely on facts available. See section 
735(c)(5)(A) of the Act.
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Assessment Rates

    Pursuant to section 751(a)(2)(C) of the Act, and 19 CFR 
351.212(b)(1), Commerce has determined, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries of subject merchandise in accordance with the final results of 
this review.
    Where the respondent did not report entered value or reported 
amounts based on average data, we calculated the entered value in order 
to calculate the assessment rate. Where either the respondent's 
weighted-average dumping margin is zero or de minimis within the 
meaning of 19 CFR 351.106(c)(1), or an importer-specific rate is zero 
or de minimis, we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties. We further will instruct 
CBP to take into account the ``provisional measures deposit cap,'' in 
accordance with 19 CFR 351.212(d). The final results of this review 
shall be the basis for the assessment of antidumping duties on entries 
of merchandise covered by the final results of this review.\12\
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    \12\ See section 751(a)(2)(C) of the Act.
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    Commerce's ``reseller policy'' will apply to entries of subject 
merchandise during the POR produced by companies included in these 
final results of review for which the reviewed companies did not know 
that the merchandise they sold to the intermediary (e.g., a reseller, 
trading company, or exporter) was destined for the United States. In 
such instances, we will instruct CBP to liquidate unreviewed entries at 
the all-others rate if there is no rate for the

[[Page 41964]]

intermediate company(ies) involved in the transaction.
    For the companies which were not selected for individual review, we 
will assign an assessment rate based on the average of the cash deposit 
rates calculated for Maquilacero and Prolamsa.\13\ The final results of 
this review shall be the basis for the assessment of antidumping duties 
on entries of merchandise covered by the final results of this review 
and for future deposits of estimated duties, where applicable.\14\
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    \13\ This rate was calculated as discussed in footnote 10, 
above.
    \14\ See section 751(a)(2)(C) of the Act.
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    We intend to issue liquidation instructions to CBP 41 days after 
publication of the final results of this review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for each specific 
company listed above will be equal to the weighted-average dumping 
margin that is established in the final results of this review, except 
if the rate is less than 0.50 percent and, therefore, de minimis within 
the meaning of 19 CFR 351.106(c)(1), in which case the cash deposit 
rate will be zero; (2) for previously investigated companies not 
participating in this review, the cash deposit will continue to be the 
company-specific rate published for the most recently completed segment 
of this proceeding; (3) if the exporter is not a firm covered in this 
review, or the original less-than-fair-value (LTFV) investigation, but 
the producer is, then the cash deposit rate will be the cash deposit 
rate established for the most recently completed segment for the 
producer of the subject merchandise; and (4) the cash deposit rate for 
all other producers or exporters will continue to be 3.24 percent, the 
all-others rate established in the LTFV investigation.\15\ These 
deposit requirements, when imposed, shall remain in effect until 
further notice.
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    \15\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from the Republic of Korea, Mexico, and the Republic of 
Turkey: Antidumping Duty Orders, 81 FR 62865, 62866 (September 13, 
2016).
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Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in Commerce's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3), which continues to govern 
business proprietary information in this segment of the proceeding. 
Timely written notification of return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(5).

    Dated: July 6, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Margin Calculations
IV. Discussion of Issues
    Issues Related to Maquilacero
    Comment 1: Ministerial Errors
    Comment 2: Cost Calculation Methodology
    Comment 3: Section 232 Duties
    Comment 4: Affiliated Reseller Purchases
    Comment 5: Non-Prime Merchandise
    Comment 6: Scrap Offset
    Issues Related to Prolamsa
    Comment 7: Home Market Level of Trade (LOT) and Constructed 
Export Price (CEP) Offset
    Comment 8: Non-Prime Merchandise
    Comment 9: Overrun Sales
V. Recommendation

[FR Doc. 2020-15054 Filed 7-10-20; 8:45 am]
BILLING CODE 3510-DS-P