[Federal Register Volume 84, Number 210 (Wednesday, October 30, 2019)]
[Notices]
[Pages 58132-58133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23610]
[[Page 58132]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-844]
Steel Concrete Reinforcing Bar From Mexico: Initiation of Anti-
Circumvention Inquiry of Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from the Rebar Trade Action Coalition
(RTAC), the Department of Commerce (Commerce) is initiating an anti-
circumvention inquiry to determine whether otherwise straight rebar
bent at one or both ends produced and/or exported to the United States
by Deacero S.A.P.I de C.V. (Deacero) is circumventing the antidumping
duty (AD) order on rebar from Mexico.
DATES: Applicable October 30, 2019.
FOR FURTHER INFORMATION CONTACT: Jonathan Hall-Eastman, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
1468.
SUPPLEMENTARY INFORMATION:
Background
On September 3, 2019, RTAC, a domestic interested party in the
above-mentioned proceeding recommended that Commerce issue a scope
ruling or initiate an anti-circumvention inquiry with regard to certain
hooked or bent rebar that is produced and/or exported to the United
States by Deacero.\1\ RTAC alleges that the hooked or bent rebar at
issue constitutes merchandise altered in such minor respects that it
should be included within the scope of the order on rebar from Mexico
pursuant to section 781(c) of the Tariff Act of 1930, as amended, (the
Act) and 19 CFR 351.225(i) and, thus, falls within the scope of the
Order.\2\
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\1\ See RTAC's Letter, ``Steel Concrete Reinforcing Bar from
Mexico: Request for Scope Ruling or, Alternatively, an Anti-
Circumvention Ruling,'' dated September 3, 2019 (Circumvention
Allegation). The rebar product described in the Circumvention
Allegation is 31 feet and 1 inch in length, 1 foot and 1 inch of
which is curved or hooked on one end.
\2\ See Steel Concrete Reinforcing Bar from Mexico: Antidumping
Duty Order, 79 FR 65925 (November 6, 2014) (Order).
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In its September 25, 2019 submission, Deacero opposed RTAC's
request for a scope ruling or initiation of an anti-circumvention
proceeding.\3\ On October 9, 2019, RTAC submitted a surrebuttal to
Deacero's Rebuttal Comments.\4\
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\3\ See Deacero's Letter, ``Steel Concrete Reinforcing Bar from
Mexico--Response to Petitioner's Scope Inquiry Request,'' dated
September 25, 2019 (Deacero's Rebuttal Comments).
\4\ See RTAC's Letter, ``Steel Concrete Reinforcing Bar from
Mexico: Comments on Deacero's September 25, 2019 Response to
Petitioner's Scope Inquiry,'' dated October 9, 2019 (RTAC's
Surrebuttal Comments).
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Scope of the Order
The merchandise subject to this Order is steel concrete reinforcing
bar imported in either straight length or coil form (rebar) regardless
of metallurgy, length, diameter, or grade. The subject merchandise is
classifiable in the Harmonized Tariff Schedule of the United States
(HTSUS) primarily under item numbers 7213.10.0000, 7214.20.0000, and
7228.30.8010.
The subject merchandise may also enter under other HTSUS numbers
including 7215.90.1000, 7215.90.5000, 7221.00.0017, 7221.00.0018,
7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 7222.11.0059,
7222.30.0001, 7227.20.0080, 7227.90.6085, 7228.20.1000, and
7228.60.6000. Specifically excluded are plain rounds (i.e., non-
deformed or smooth rebar). Also excluded from the scope is deformed
steel wire meeting ASTM A1064/A1064M with no bar markings (e.g., mill
mark, size or grade) and without being subject to an elongation test.
HTSUS numbers are provided for convenience and customs purposes;
however, the written description of the scope remains dispositive.
Merchandise Subject to the Anti-Circumvention Inquiry
This minor alternation anti-circumvention inquiry covers otherwise
straight rebar bent at one or both ends produced and/or exported to the
United States by Deacero. In this circumvention proceeding, Commerce
intends to consider whether any affirmative finding of circumvention
through minor alterations to otherwise straight rebar should be applied
to imports of similarly situated otherwise straight rebar bent at one
or both ends rebar from Mexico, regardless of producer or exporter.
Initiation of Anti-Circumvention Inquiry
Section 781(c) of the Act provides that Commerce may find
circumvention of an AD order when products which are of the class or
kind of merchandise subject to an AD order have been ``altered in form
or appearance in minor respects . . . whether or not included in the
same tariff classification.'' Section 781(c)(2) of the Act provides an
exception that ``{p{time} aragraph 1 shall not apply with respect to
altered merchandise if the administering authority determines that it
would be unnecessary to consider the altered merchandise within the
scope of the AD order.''
While the statute is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors which should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \5\ Concerning the allegation
of minor alteration under section 781(c) of the Act and 19 CFR
351.225(i), Commerce examines such factors as: (1) Overall physical
characteristics; (2) expectations of ultimate users; (3) use of
merchandise; (4) channels of marketing; and (5) cost of any
modification relative to the value of the imported products.\6\
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\5\ See S. Rep. No.71, 100th Cong., 1st Sess. 100 (1987) (``In
applying this provision, the Commerce Department should apply
practical measurements regarding minor alterations, so that
circumvention can be dealt with effectively, even where such
alterations to an article technically transform it into a
differently designated article.'').
\6\ See, e.g., Affirmative Preliminary Determination of
Circumvention of the Antidumping Duty Order on Certain Cut-to-Length
Steel Plate from the People's Republic of China, 74 FR 33991, 33992
(July 14, 2009), unchanged in Affirmative Final Determination of
Circumvention of the Antidumping Duty Order on Certain Cut-to-Length
Carbon Steel Plate from the People's Republic of China, 74 FR 40565
(August 12, 2009).
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Analysis
After analyzing the information in the Circumvention Allegation, we
determine that RTAC has satisfied the criteria listed above to warrant
an initiation of a formal anti-circumvention inquiry, pursuant to
section 781(c) of the Act and 19 CFR 351.225(i), to determine whether
otherwise straight rebar bent at one or both ends produced and/or
exported to the United States by Deacero constitutes merchandise
altered in form or appearance in such minor respects that should be
included within the scope of the Order. For a summary of the
proprietary comments received from interested parties and further
discussion of Commerce's basis for initiating this minor alteration
inquiry,
[[Page 58133]]
see the Initiation Decision Memorandum dated concurrently with this
notice and hereby adopted by this notice.\7\ The Initiation Decision
Memorandum is a business proprietary document, of which a public
version 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 and is available to all parties in the Central Records
Unit, Room B8024 of the main Commerce building. The signed Initiation
Decision Memorandum and the electronic version of the Initiation
Decision Memorandum are identical in content.
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\7\ See Memorandum, ``Initiation of Minor Alteration
Circumvention Inquiry on Hooked or Bent Steel Concrete Reinforcing
Bar,'' dated concurrently with this notice.
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Commerce will not order the suspension of liquidation of entries of
any additional merchandise at this time. However, in accordance with 19
CFR 351.225(l)(2), if Commerce issues a preliminary affirmative
determination, we will then instruct U.S. Customs and Border Protection
to suspend liquidation and require a cash deposit of estimated duties,
at the applicable rate, for each unliquidated entry of the merchandise
at issue, entered or withdrawn from warehouse for consumption on or
after the date of initiation of the inquiry. Following consultation
with interested parties, Commerce will establish a schedule for
questionnaires and comments on the issues related to the Order.
Commerce intends to issue its final determination within 300 days of
the date of publication of this initiation.
This notice is published in accordance with section 781(c) of the
Act and 19 CFR 351.225(i) and (j).
Dated: October 18, 2019.
Carole Showers,
Executive Director, Office of Policy, Policy & Negotiations,
Enforcement & Compliance.
[FR Doc. 2019-23610 Filed 10-29-19; 8:45 am]
BILLING CODE 3510-DS-P