[Federal Register Volume 85, Number 67 (Tuesday, April 7, 2020)]
[Notices]
[Pages 19454-19455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07200]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-846]
Sugar From Mexico: Final Results of the Expedited First Sunset
Review of the Agreement Suspending the Countervailing Duty
Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: As a result of this sunset review, the Department of Commerce
(Commerce) finds that termination of the Agreement Suspending the
Countervailing Duty Investigation on Sugar from Mexico (Agreement) and
the suspended countervailing duty (CVD) investigation would be likely
to lead to the continuation or recurrence of a countervailable subsidy
at the levels indicated in the ``Final Results of Review'' section of
this notice.
DATES: Applicable April 7, 2020.
FOR FURTHER INFORMATION: Sally C. Gannon, Bilateral Agreements, Office
of Policy, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0162.
SUPPLEMENTARY INFORMATION:
Background
On December 3, 2019, Commerce published the notice of initiation of
the first sunset review of the agreement suspending the countervailing
duty investigation on sugar from Mexico, pursuant to section 751(c)(2)
of the Tariff Act of 1930, as amended (the Act).\1\ We received notice
of intent to participate in the review from the following parties, both
domestic interested parties: Imperial Sugar Company and the American
Sugar Coalition (ASC).\2\ Commerce received complete substantive
responses from the domestic interested parties within the 30-day
deadline specified in 19 CFR 351.218(d)(3)(i).\3\ We rejected untimely
submissions filed by Sweetener Users Association (SUA) on January 21,
2020 and January 23, 2020.\4\ We received no substantive responses from
any other interested parties, nor was a hearing requested. As a result,
pursuant to section 751(c)(3)(B) of the Act and 19 CFR
351.218(e)(1)(ii)(B)-(C), Commerce conducted an expedited (120-day)
sunset review of the Agreement and suspended investigation.\5\
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\1\ See Initiation of Five-Year (Sunset) Reviews, 84 FR 58687
(November 1, 2019); see also Initiation of Five-Year (Sunset
Review); Correction, 84 FR 66153 (December 3, 2019).
\2\ See Letter, American Sugar Coalition, ``Sugar from Mexico:
Notice of Intent to Participate'', dated December 18, 2019; Letter,
Imperial Sugar Company, ``Sugar from Mexico, Case Nos. C-201-846 and
A-201-845 (Five-Year Sunset Reviews): Notice of Intent to
Participate'', dated December 18, 2019.
\3\ See Letter, American Sugar Coalition, ``Sugar from Mexico:
Substantive Response to Notice of Initiation of Five-Year (Sunset)
Reviews of the Antidumping and Countervailing Duty Suspension
Agreements,'' dated January 2, 2020; Letter, ``Sugar from Mexico:
Substantive Response of the Imperial Sugar Company to Commerce's
Notice of Initiation of Five-Year (``Sunset'') Reviews'', dated
January 2, 2020.
\4\ See Letter to Wilbur Ross, Secretary of Commerce, from
Sweetener Users Association. re: ``Sugar from Mexico'' (January 21,
2020); Letter to Wilbur Ross, Secretary of Commerce, from Sweetener
Users Association, re: ``Sugar from Mexico'' (January 23, 2020);
Letter, ``Rejection on January 21 and January 23 Filings'', dated
February 5, 2020.
\5\ See Letter, ``Sunset Reviews Initiated on December 2,
2019'', dated January 22, 2020.
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Scope of the Agreement
The merchandise subject to the Agreement is raw and refined sugar
of all polarimeter readings derived from sugar cane or sugar beets. The
chemical sucrose gives sugar its essential character. Sucrose is a
nonreducing disaccharide composed of glucose and fructose linked by a
glycosidic bond via their anomeric carbons. The molecular formula for
sucrose is C12H22O11; the International Union of Pure and Applied
Chemistry (IUPAC) International Chemical Identifier (InChl) for sucrose
is 1S/C12H22O11/c13-l-4-6(16)8(18)9(19)11(21-4)23-12(3-15)10(20)7(17)
5(2-14)22-12/h4-11,13-20H,1-3H2/t4-,5-,6-,7-,8+,9-,10+,11-,12+/m1/s1;
the InChl Key for sucrose is CZMRCDWAGMRECN-UGDNZRGBSA-N; the U.S.
National Institutes of Health PubChem Compound Identifier (CID) for
sucrose is 5988; and the Chemical Abstracts Service (CAS) Number of
sucrose is 57-50-1.
Sugar includes products of all polarimeter readings described in
various forms, such as raw sugar, estandar or standard sugar, high
polarity or semi-refined sugar, special white sugar, refined sugar,
brown sugar, edible molasses, de-sugaring molasses, organic raw sugar,
and organic refined sugar. Other sugar products, such as powdered
sugar, colored sugar, flavored sugar, and liquids and syrups that
contain 95 percent or more sugar by dry weight are also within the
scope of this Agreement. Merchandise covered by this Agreement is
typically imported under the following headings of the HTSUS:
1701.12.1000, 1701.12.5000, 1701.13.1000, 1701.13.5000, 1701.14.1000,
1701.14.5000, 1701.91.1000, 1701.91.3000,
[[Page 19455]]
1701.99.1010, 1701.99.1025, 1701.99.1050, 1701.99.5010, 1701.99.5025,
1701.99.5050, and 1702.90.4000.
The scope of the Agreement excludes sugar imported under the
Refined Sugar Re-Export Programs of the U.S. Department of Agriculture,
sugar products produced in Mexico that contain 95 percent or more sugar
by dry weight that originated outside of Mexico, inedible molasses
(other than inedible desugaring molasses noted above), beverages,
candy, certain specialty sugars, and processed food products that
contain sugar (e.g., cereals). Specialty sugars excluded from the scope
of this Agreement are limited to the following: Caramelized slab sugar
candy, pearl sugar, rock candy, dragees for cooking and baking,
fondant, golden syrup, and sugar decorations.\6\
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\6\ See ``Sugar from Mexico: Suspension of Antidumping
Investigation'', 79 FR 78039 (December 29, 2014).
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Analysis of Comments Received
All issues raised in this review are addressed in the Issues and
Decision Memorandum, which is hereby adopted by this notice. The issues
discussed in the Issues and Decision Memorandum include the likelihood
of continuation or recurrence of a countervailable subsidy and the net
countervailable subsidy likely to prevail if the order were revoked.\7\
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 and
to all parties in the Central Records Unit, Room B8024 of the main
Commerce building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn. The signed and electronic versions of the
Issues and Decision Memorandum are identical in content.
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\7\ See Memorandum, ``Issues and Decision Memorandum for the
Expedited First Sunset Review of the Agreement Suspending the
Countervailing Duty Investigation on Sugar from Mexico,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Final Results of Review
Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce
determines that termination of the Agreement and suspended
countervailing duty investigation on sugar from Mexico is likely to
lead to the continuation or recurrence of a countervailable subsidy at
the rates listed below:
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\8\ Id.
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Net
countervailable
Company subsidy
(percent)
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Fondo de Empresas Expropiadas del Sector Azucarero..... 43.93
Ingenio Tala S.A. de C.V. and certain affiliated sugar 5.78
mills of Grupo Azucarero Mexico S.A. de C.V...........
All Others............................................. \8\ 38.11
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Administrative Protective Order (APO)
This notice serves as the only reminder to parties subject to an
APO of their responsibility concerning the return or destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305. Timely notification of the return or destruction of APO
materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
We are issuing and publishing these final results and notice in
accordance with sections 751(c), 752(c), and 777(i)(1) of the Act and
19 CFR 351.218.
Dated: March 31, 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. Scope of the Orders
IV. History of the Orders
V. Legal Framework
VI. Discussion of the Issues
1. Likelihood of Continuation or Recurrence of a Countervailable
Subsidy
2. Net Countervailable Subsidy Rates Likely to Prevail
3. Nature of the Subsidy
VII. Final Results of Review
VIII. Recommendation
[FR Doc. 2020-07200 Filed 4-6-20; 8:45 am]
BILLING CODE 3510-DS-P