[Federal Register Volume 85, Number 233 (Thursday, December 3, 2020)]
[Notices]
[Pages 78124-78126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26628]



[[Page 78124]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-854]


Standard Steel Welded Wire Mesh From Mexico: Preliminary 
Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of standard steel welded wire mesh (wire mesh) from Mexico. 
The period of investigation is January 1, 2019 through December 31, 
2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable December 3, 2020.

FOR FURTHER INFORMATION CONTACT: Ian Hamilton, 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) 482-4798.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
initiated this investigation on July 20, 2020.\1\ On September 9, 2020, 
Commerce postponed the preliminary determination of this investigation 
and the revised deadline is now November 27, 2020.\2\ For a complete 
description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary 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 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \1\ See Standard Steel Welded Wire Mesh from Mexico: Initiation 
of Countervailing Duty Investigation, 85 FR 45181 (July 27, 2020).
    \2\ See Standard Steel Welded Wire Mesh from Mexico: 
Postponement of Preliminary Determination in the Countervailing Duty 
Investigation, 85 FR 55640 (September 9, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Countervailing Duty Determination of Standard Steel 
Welded Wire Mesh from Mexico,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is wire mesh from Mexico. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage and 
rebuttal comments submitted on the record for this investigation, see 
the Preliminary Decision Memorandum. Commerce has not modified the 
scope language as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily 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\
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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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondent 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Date of Final Determination

    Section 705(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
Commerce will issue the final determination within 75 days after the 
date of its preliminary determination, unless the final determination 
is postponed or aligned with the final determination of a companion AD 
investigation of wire mesh. Accordingly, Commerce intends to make its 
final determination no later than February 10, 2021, unless postponed.

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act. In this investigation, Commerce preliminarily assigned 
a rate based entirely on facts available to Deacero S.A.P.I. de C.V. 
Therefore, the only rate that is not zero, de minimis, or based 
entirely on facts otherwise available is the rate calculated for 
Aceromex S.A. De C.V. (Aceromex). Consequently, the rate calculated for 
Aceromex is also assigned as the rate for all other producers and 
exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Aceromex S.A. De C.V....................................            1.02
Deacero S.A.P.I. de C.V.................................          102.09
All Others..............................................            1.02
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

[[Page 78125]]

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than seven days after 
the deadline date for case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
investigation are encouraged to submit with each argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020) 
(Temporary Rule); and Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19; Extension of Effective Period, 85 FR 
41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number; the number of 
participants; whether any participant is a foreign national; and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined.\9\ Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
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    \9\ See 19 CFR 351.310(c).
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    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\10\
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    \10\ See Temporary Rule, 85 FR 41363.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: November 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers uncoated standard welded 
steel reinforcement wire mesh (wire mesh) produced from smooth or 
deformed wire. Subject wire mesh is produced in square and 
rectangular grids of uniformly spaced steel wires that are welded at 
all intersections. Sizes are specified by combining the spacing of 
the wires in inches or millimeters and the wire cross-sectional area 
in hundredths of square inch or millimeters squared. Subject wire 
mesh may be packaged and sold in rolls or in sheets.
    Subject wire mesh is currently produced to ASTM specification 
A1064/A1064M, which covers carbon-steel wire and welded wire 
reinforcement, smooth and deformed, for concrete in the following 
seven styles:

1. 6 x 6 W1.4/W1.4 or D1.4/D1.4
2. 6 x 6 W2.1/W2.1 or D2.1/D2.1
3. 6 x 6 W2.9/W2.9 or D2.9/D2.9
4. 6 x 6 W4/W4 or D4/D4
5. 6 x 12 W4/W4 or D4/D4
6. 4 x 4 W2.9/W2.9 or D2.9/D2.9
7. 4 x 4 W4/W4 or D4/D4

    The first number in the style denotes the nominal spacing 
between the longitudinal wires and the second number denotes the 
nominal spacing between the transverse wires. In the first style 
listed above, for example, ``6 x 6'' denotes a grid size of six 
inches by six inches. ``W'' denotes the use of smooth wire, and 
``D'' denotes the use of deformed wire in making the mesh. The 
number following the W or D denotes the nominal cross-sectional area 
of the transverse and longitudinal wires in hundredths of a square 
inch (i.e., W1.4 or D1.4 is .014 square inches).
    Smooth wire is wire that has a uniform cross-sectional diameter 
throughout the length of the wire.
    Deformed wire is wire with indentations or raised transverse 
ribs, which results in wire that does not have a uniform cross-
sectional diameter throughout the length of the wire.
    Rolls of subject wire mesh are produced in the following styles 
and nominal width and length combinations:

Style: 6 x 6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Roll Sizes:
    5' x 50'
    5' x 150'
    6' x 150'
    5' x 200'
    7' x 200'
    7.5' x 200'
Style: 6 x 6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Roll Sizes: 5' x 150'
Style: 6 x 6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Roll Sizes:
    5' x 150'
    7' x 200'
    All rolled wire mesh is included in scope regardless of length.
    Sheets of subject wire mesh are produced in the following styles 
and nominal width and length combinations:

Style: 6 x 6 W1.4/W1.4 or D1.4/D1.4 (i.e., 10 gauge)
Sheet Size:
    3'6'' x 7'
    4' x 7'
    4' x 7'6''
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 15'
    8' x 20'
Style: 6 x 6 W2.1/W2.1 or D2.1/D2.1 (i.e., 8 gauge)
Sheet Size:
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 15'
    8' x 20'
Style: 6 x 6 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
Sheet Size:
    3'6'' x 20'
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 15'
    8' x 20'
Style: 6 x 12 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size: 8' x 20'
    Style: 4 x 4 W2.9/W2.9 or D2.9/D2.9 (i.e., 6 gauge)
    Sheet Size:
    5' x 10'
    7' x 20'
    7'6'' x 20'
    8' x 12'6''
    8' x 12'8'
    8' x 15'
    8' x 20'
Style: 4 x 4 W4/W4 or D4/D4 (i.e., 4 gauge)
Sheet Size:
    5' x 10'
    8' x 12'6''

[[Page 78126]]

    8' x 12'8''
    8' x 15'
    8' x 20'

    Any product imported, sold, or invoiced in one of these size 
combinations is within the scope.
    ASTM specification A1064/A1064M provides for permissible 
variations in wire gauges, the spacing between transverse and 
longitudinal wires, and the length and width combinations. To the 
extent a roll or sheet of welded wire mesh falls within these 
permissible variations, it is within this scope.
    ASTM specification A1064/A1064M also defines permissible 
oversteeling, which is the use of a heavier gauge wire with a larger 
cross-sectional area than nominally specified. It also permits a 
wire diameter tolerance of <plus-minus> 0.003 inches for products up 
to W5/D5 and <plus-minus> 0.004 for sizes over W5/D5. A producer may 
oversteel by increasing smooth or deformed wire diameter up to two 
whole number size increments on Table 1 of A1064. Subject wire mesh 
has the following actual wire diameter ranges, which account for 
both oversteeling and diameter tolerance:

------------------------------------------------------------------------
                                        Maximum
              W/D No.                oversteeling      Diameter range
                                          No.              (inch)
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1.4 (i.e., 10 gauge)..............             3.4  0.093 to 0.211.
2.1 (i.e., 8 gauge)...............             4.1  0.161 to 0.231.
2.9 (i.e., 6 gauge)...............             4.9  0.189 to 0.253.
4.0 (i.e., 4 gauge)...............             6.0  0.223 to 0.280.
------------------------------------------------------------------------

    To the extent a roll or sheet of welded wire mesh falls within 
the permissible variations provided above, it is within this scope.
    In addition to the tolerances permitted in ASTM specification 
A1064/A1064M, wire mesh within this scope includes combinations 
where:
    1. A width and/or length combination varies by <plus-minus> one 
grid size in any direction, i.e., <plus-minus> 6 inches in length or 
width where the wire mesh's grid size is ``6 x 6''; and/or
    2. The center-to-center spacing between individual wires may 
vary by up to one quarter of an inch from the nominal grid size 
specified.
    Length is measured from the ends of any wire and width is 
measured between the center-line of end longitudinal wires.
    Additionally, although the subject wire mesh typically meets 
ASTM A1064/A1064M, the failure to include certifications, test 
reports or other documentation establishing that the product meets 
this specification does not remove the product from the scope. Wire 
mesh made to comparable foreign specifications (e.g., DIN, JIS, 
etc.) or proprietary specifications is included in the scope.
    Excluded from the scope is wire mesh that is galvanized (i.e., 
coated with zinc) or coated with an epoxy coating. In order to be 
excluded as galvanized, the excluded welded wire mesh must have a 
zinc coating thickness meeting the requirements of ASTM 
specification A641/A641M. Epoxy coating is a mix of epoxy resin and 
hardener that can be applied to the surface of steel wire.
    Merchandise subject to this investigation are classified under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
7314.20.0000 and 7314.39.0000. While HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Injury Test
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Recommendation

[FR Doc. 2020-26628 Filed 12-2-20; 8:45 am]
BILLING CODE 3510-DS-P