[Federal Register Volume 85, Number 20 (Thursday, January 30, 2020)]
[Notices]
[Pages 5381-5384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01723]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-851]
Certain Fabricated Structural Steel From Mexico: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain fabricated structural steel (fabricated structural steel)
from Mexico. The period of investigation is January 1, 2018 through
December 31, 2018.
DATES: Applicable January 30, 2020.
FOR FURTHER INFORMATION CONTACT: Maliha Khan, AD/CVD Operations, Office
IV, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-0895.
SUPPLEMENTARY INFORMATION:
Background
On July 12, 2019, Commerce published the Preliminary
Determination.\1\ The petitioner in this investigation is the American
Institute of Steel Construction Full Member Subgroup. In addition to
the Government of Mexico (GOM), the mandatory respondents in this
investigation are Building Systems de Mexico, S.A. de C.V. (BSM) and
Corey S.A. de C.V. (Corey).
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\1\ See Certain Fabricated Structural Steel from Mexico:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination with Final Antidumping Duty
Determination, 84 FR 33227 (July 12, 2019). (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, are discussed in the
Issues and Decision Memorandum, which is hereby adopted by this
notice.\2\ 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 https://access.trade.gov and
is available 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/index.html. The signed Issues and Decision
Memorandum and the electronic version of the Issues and Decision
Memorandum are identical in content.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Certain Fabricated Structural Steel from Mexico,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation is fabricated structural
steel from Mexico. For a complete description of the scope of the
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce addressed these comments in the
Preliminary Determination, wherein Commerce preliminarily modified the
scope language.
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Certain Fabricated Structural Steel from Canada, Mexico,
and the People's Republic of China: Initiation of Less-Than-Fair-
Value Investigations, 84 FR 7330, 7331 (March 4, 2019) (Initiation
Notice).
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In addition, certain interested parties commented on Commerce's
preliminary scope decisions. For a summary of the product coverage
comments and rebuttal comments submitted to the record for this final
determination, and accompanying discussion and analysis of all comments
timely received, see the Final Scope Decision Memorandum.\5\ Based on
the comments received, Commerce is modifying the scope language as it
appeared in the Preliminary Determination. See the revised scope in
Appendix I to this notice.
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\5\ See Memorandum, ``Fabricated Structural Steel from Canada,
Mexico, and the People's Republic of China: Final Scope Decision
Memorandum,'' dated concurrently with, and hereby adopted by, this
notice (Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised is attached to this notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\6\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Use of Adverse Facts Available (AFA)
For purposes of this final determination, we relied on facts
available, and because certain respondents did not act to the best of
their ability in responding to Commerce's requests for information, we
drew an adverse inference, where appropriate, in selecting from among
the facts otherwise available in accordance with sections 776(a) and
(b) of the Act.\7\ A full discussion of our decision to rely on adverse
facts available is presented in the ``Use of Facts Otherwise Available
and Adverse Inferences'' section of the Issues and Decision Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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[[Page 5382]]
Verification
As provided in section 782(i) of the Act, in August 2019, Commerce
verified the subsidy information reported by BSM, Corey, and the GOM.
We used standard verification procedures, including an examination of
relevant accounting records and original source documents provided by
the respondents.\8\
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\8\ See Memoranda, ``Countervailing Duty Investigation of
Certain Fabricated Structural Steel from Mexico: Verification of the
Questionnaire Responses of Building Systems de Mexico S.A. de
C.V.,'' dated September 6, 2019; ``Countervailing Duty Investigation
of Certain Fabricated Structural Steel from Mexico: Verification of
the Questionnaire Responses of Corey S.A. de C.V.,'' dated September
26, 2019; and ``Countervailing Duty Investigation of Certain
Fabricated Structural Steel from Mexico: Verification of the
Questionnaire Responses of the Government of Mexico,'' dated
September 10, 2019.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to Commerce's application of adverse
facts available to certain companies. For a discussion of these
changes, see the Issues and Decision Memorandum.
Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated individual estimated countervailable subsidy rates for BSM
and Corey and established subsidy rates for the 5 companies that failed
to respond to Commerce's quantity and value questionnaire by applying
AFA. Section 705(c)(5)(A)(i) of the Act states that, for companies not
individually investigated, Commerce will determine an all-others rate
equal to the weighted-average countervailable subsidy rates established
for exporters and producers individually examined, excluding any zero
and de minimis countervailable subsidy rates, and any rates determined
entirely under section 776 of the Act.
In this investigation, Commerce has found a de minimis rate for
mandatory respondent BSM. Therefore, the only rate that is not zero, de
minimis or based entirely on facts otherwise available for exporters or
producers individually examined is the rate calculated for Corey.
Consequently, the rate calculated for Corey is also assigned as the
rate for all other producers and exporters.
Commerce determines the total estimated net countervailable subsidy
rates to be the following:
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\9\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Corey: Inversiones de Jalisco, S.A. de C.V.; Aceros Corey, S.A.P.I.
de C.V.; Industrias Recal, S.A. de C.V.; 6190, S.A. de C.V;
Servicios Integrales Corey, S.A. de C.V.; Servicios T[eacute]cnicos
Corey, S.A. de C.V.; Estructuras de Acero CVGS, S.A. de C.V.; and
Operadora Industrial El Salto, S.A. de C.V. See Preliminary Decision
Memorandum at 15.
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Subsidy rate
Company (percent)
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Building Systems de Mexico, S.A. de C.V................. 0.01
Corey S.A. de C.V.\9\................................... 13.62
Acero Technologia, S.A. de C.V.......................... 68.87
Construcciones Industriales Tapia S.A. de C.V........... 68.87
Estructuras Metalicas la Popular S.A. de C.V./MSCI...... 68.87
Operadora CICSA, S. A. de C. V. Swecomex--Guadalajara... 68.87
Preacero Pellizzari Mexico S.A. de C.V.................. 68.87
All Others.............................................. 13.62
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Disclosure
Commerce intends to disclose the calculations performed in
connection with this final determination within five days of the date
of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise, as described in the scope of the investigation
section, that was entered or withdrawn from warehouse for consumption
on or after July 12, 2019, the date of publication of the Preliminary
Determination in the Federal Register. In accordance with section
703(d) of the Act, we issued instructions to CBP to discontinue the
suspension of liquidation for countervailing duty (CVD) purposes for
subject merchandise entered, or withdrawn from warehouse, on or after
November 9, 2019 but to continue the suspension of liquidation of all
entries from July 12, 2019 through November 8, 2019.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and will
require a cash deposit of estimated countervailing duties for such
entries of subject merchandise in the amounts indicated above. If the
ITC determines that material injury, or threat of material injury, does
not exist, this proceeding will be terminated and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports of fabricated
structural steel from China no later than 45 days after our final
determination. If the ITC determines that material injury or threat of
material injury does not exist, the proceeding will be terminated and
all cash deposits will be refunded. If the ITC determines that such
injury does exist, Commerce will issue a CVD order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event the ITC issues a final negative injury determination,
this notice serves as the only reminder to parties subject to an APO of
their responsibility concerning the destruction of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written 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 subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: January 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is carbon and alloy
fabricated structural steel. Fabricated structural steel is made
from steel in which: (1) Iron predominates, by weight, over each of
the other contained elements; and (2) the carbon content is two
percent or less by weight.
[[Page 5383]]
Fabricated structural steel products are steel products that have
been fabricated for erection or assembly into structures, including,
but not limited to, buildings (commercial, office, institutional,
and multi-family residential); industrial and utility projects;
parking decks; arenas and convention centers; medical facilities;
and ports, transportation and infrastructure facilities. Fabricated
structural steel is manufactured from carbon and alloy (including
stainless) steel products such as angles, columns, beams, girders,
plates, flange shapes (including manufactured structural shapes
utilizing welded plates as a substitute for rolled wide flange
sections), channels, hollow structural section (HSS) shapes, base
plates, and plate-work components. Fabrication includes, but is not
limited to cutting, drilling, welding, joining, bolting, bending,
punching, pressure fitting, molding, grooving, adhesion, beveling,
and riveting and may include items such as fasteners, nuts, bolts,
rivets, screws, hinges, or joints.
The inclusion, attachment, joining, or assembly of non-steel
components with fabricated structural steel does not remove the
fabricated structural steel from the scope.
Fabricated structural steel is covered by the scope of the
investigation regardless of whether it is painted, varnished, or
coated with plastics or other metallic or non-metallic substances
and regardless of whether it is assembled or partially assembled,
such as into modules, modularized construction units, or sub-
assemblies of fabricated structural steel.
Subject merchandise includes fabricated structural steel that
has been assembled or further processed in the subject country or a
third country, including but not limited to painting, varnishing,
trimming, cutting, drilling, welding, joining, bolting, punching,
bending, beveling, riveting, galvanizing, coating, and/or slitting
or any other processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the fabricated structural steel.
All products that meet the written physical description of the
merchandise covered by the investigation are within the scope of the
investigation unless specifically excluded or covered by the scope
of an existing countervailing duty order.
Specifically excluded from the scope of the investigation are:
1. Fabricated steel concrete reinforcing bar (rebar) if: (i) It
is a unitary piece of fabricated rebar, not joined, welded, or
otherwise connected with any other steel product or part; or (ii) it
is joined, welded, or otherwise connected only to other rebar.
2. Fabricated structural steel for bridges and bridge sections
that meets American Association of State and Highway and
Transportation Officials (AASHTO) bridge construction requirements
or any state or local derivatives of the AASHTO bridge construction
requirements.
3. Pre-engineered metal building systems, which are defined as
complete metal buildings that integrate steel framing, roofing and
walls to form one, pre-engineered building system, that meet Metal
Building Manufacturers Association guide specifications. Pre-
engineered metal building systems are typically limited in height to
no more than 60 feet or two stories.
4. Steel roof and floor decking systems that meet Steel Deck
Institute standards.
5. Open web steel bar joists and joist girders that meet Steel
Joist Institute specifications.
6. Also excluded from the scope of the investigation is
scaffolding, and parts and accessories thereof, that comply with
ANSI/ASSE A10.8--2011--Scaffolding Safety Requirements, and/or
Occupational Safety and Health Administration regulations at 29 CFR
part 1926 subpart L--Scaffolds. The outside diameter of the scaffold
tubing covered by this exclusion ranges from 25mm to 150mm.
7. Excluded from the scope of the investigation are access
flooring systems panels and accessories, where such panels have a
total thickness ranging from 0.75 inches to 1.75 inches and consist
of concrete, wood, other non-steel materials, or hollow space
permanently attached to a top and bottom layer of galvanized or
painted steel sheet or formed coil steel, the whole of which has
been formed into a square or rectangle having a measurement of 24
inches on each side 0.1 inch; 24 inches by 30 inches
0.1 inch; or 24 by 36 inches 0.1 inch.
8. Excluded from the investigation are the following types of
steel poles, segments of steel poles, and steel components of those
poles:
Steel Electric Transmission Poles, or segments of such
poles, that meet (1) the American Society of Civil Engineers
(ASCE)--Design of Steel Transmission Pole Structures, ASCE/SEI 48 or
(2) the USDA RUS bulletin 1724E-214 Guide specification for standard
class Steel Transmission Poles. The exclusion for steel electric
transmission poles also encompasses the following components
thereof: Transmission arms which attach to poles; pole bases; angles
that do not exceed 8 x 8 x 0.75;
steel vangs, steel brackets, steel flanges, and steel caps; safety
climbing cables; ladders; and steel templates.
Steel Electric Substation Poles, or segments of such
poles, that meet the American Society of Civil Engineers (ASCE)--
Manuals and Reports on Engineering Practice No. 113. The exclusion
for steel electric substation poles also encompasses the following
components thereof: Substation dead end poles; substation bus
stands; substation mast poles, arms, and cross-arms; steel brackets,
steel flanges, and steel caps; pole bases; safety climbing cables;
ladders; and steel templates.
Steel Electric Distribution Poles, or segments of such
poles, that meet (1) American Society of Civil Engineers (ASCE)--
Design of Steel Transmission Pole Structures, ASCE/SEI 48, (2) USDA
RUS bulletin 1724E-204 Guide specification for steel single pole and
H-frame structures, or (3) ANSI 05.1 height and class requirements
for steel poles. The exclusion for steel electric distribution poles
also encompasses the following components thereof: Distribution arms
and cross-arms; pole bases; angles that do not exceed 8 x
8 x 0.75; steel vangs, steel brackets, steel
flanges, and steel caps; safety climbing cables; ladders; and steel
templates.
Steel Traffic Signal Poles, Steel Roadway Lighting
Poles, Steel Parking Lot Lighting Poles, and Steel Sports Lighting
Poles, or segments of such poles, that meet (1) the American
Association of State Highway and Transportation Officials (AASHTO)--
Specifications for Structural Supports for Highway Signs,
Luminaires, and Traffic Signals, (2) any state or local derivatives
of the AASHTO highway sign, luminaries, and traffic signals
requirements, or (3) American National Standard Institute (ANSI)
C136--American National Standard for Roadway and Area Lighting
Equipment standards. The exclusion for steel traffic signal poles,
steel roadway lighting poles, steel parking lot lighting poles, and
steel sports lighting poles also encompasses the following
components thereof: Luminaire arms; hand hole rims; hand hole
covers; base plates that connect to either the shaft or the arms;
mast arm clamps; mast arm tie rods; transformer base boxes; formed
full base covers that hide anchor bolts; step lugs; internal cable
guides; lighting cross arms; lighting service platforms; angles that
do not exceed 8 x 8 x 0.75;
stainless steel hand hole door hinges and wind restraints; steel
brackets, steel flanges, and steel caps; safety climbing cables;
ladders; and steel templates.
Communication Poles, or segments of such poles, that
meet (1) Telecommunications Industry Association (TIA) ANSI/TIA-222
Structural Standards for Steel Antenna Towers and Antenna Supporting
Structures, or (2) American Association of State Highway and
Transportation Officials (AASHTO)--Specifications for Structural
Supports for Highway Signs, Luminaires, and Traffic Signals. The
exclusion for communication poles also encompasses the following
components thereof: Luminaire arms; hand hole rims; hand hole
covers; base plate that connects the pole to the foundation or arm
to the pole; safety climbing cables; ladders; service ground
platforms; step lugs; pole steps; steel brackets, steel flanges, and
steel caps; angles that do not exceed 8 x 8 x
0.75; coax, and safety brackets; subcomponent kits for
antenna mounts weighing 80 lbs. or less; service platforms; ice
bridges; stainless steel hand hole door hinges and wind restraints;
and steel templates.
OEM Round or Polygonal Tapered Steel Poles, segments or
shaft components of such poles, that meet the (1) ASCE 48 or AASHTO,
(2) ANSI/TIA 222, (3) ANSI 05.1, (4) RUS bulletin 1724E-204, or (5)
RUS bulletin 1724E-214. The exclusion for OEM round or polygonal
tapered steel poles also encompasses the following components
thereof: Subcomponent kits for antenna mounts weighing 80 lbs. or
less; mounts and platforms; steel brackets, steel flanges, and steel
caps; angles that do not exceed 8 x 8 x
0.75; bridge kits; safety climbing cables; ladders; and
steel templates.
The inclusion or attachment of one or more of the above-
referenced steel poles in a structure containing fabricated
structural steel does not remove the fabricated
[[Page 5384]]
structural steel from the scope of the investigation. No language
included in this exclusion should be read or understood to have
applicability to any other aspect of this scope or to have
applicability to or to exclude any product, part, or component other
than those specifically identified in the exclusion.
9. Also excluded from the scope of the investigation are
Shuttering, Formworks, Propping and Shoring and parts and
accessories thereof that comply with ANSI/ASSE A10.9--Safety
Requirements for Concrete and Masonry Work and ACI-347--Recommended
Practice for Concrete Formwork. For Shoring and propping made from
tube, the outside diameter of the tubing covered by this exclusion
ranges from 48mm to 250mm. For Shuttering and Formworks, the panel
sizes covered by this exclusion range from 25mm X 600mm to 3000mm X
3000mm.
10. Also excluded from the scope of the investigation are
consumer items for do-it-yourself assembly that are prepackaged for
retail sale. For the purposes of this exclusion, prepackaged for
retail sale means that, at the time of importation, all components
necessary to assemble the merchandise, including all steel
components, all accessory parts (e.g., screws, bolts, washers,
nails), and instructions providing guidance on the assembly of the
finished merchandise or directions on where to find such
instructions, are enclosed in retail packaging, such that an end-
use, retail consumer could assemble the completed product with no
additional components. The items may enter the United States in one
or in multiple retail packages as long as all of the components are
imported together.
The products subject to the investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheadings: 7308.90.3000, 7308.90.6000, and
7308.90.9590.
The products subject to the investigation may also enter under
the following HTSUS subheadings: 7216.91.0010, 7216.91.0090,
7216.99.0010, 7216.99.0090, 7222.40.6000, 7228.70.6000,
7301.10.0000, 7301.20.1000, 7301.20.5000, 7308.40.0000,
7308.90.9530, and 9406.90.0030.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of the
investigation is dispositive.
Appendix II
List of Topics Discussed in the Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
Comment 1: Eighth Rule
Comment 2: Calculation of Total Adverse Facts Available Rate
Comment 3: Application of Adverse Facts Available to BSM
Comment 4: Application of Adverse Facts Available to Certain
Companies
Comment 5: Modification of Corey's Denominators
IX. Recommendation
[FR Doc. 2020-01723 Filed 1-29-20; 8:45 am]
BILLING CODE 3510-DS-P