[Federal Register Volume 86, Number 15 (Tuesday, January 26, 2021)]
[Notices]
[Pages 7067-7069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01640]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-847]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico: Preliminary Results of Antidumping Duty Administrative Review; 
2018-2019

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that the producers/exporters of heavy walled rectangular welded carbon 
steel pipes and tubes (HWR pipes and tubes) from Mexico subject to this 
administrative review made sales of subject merchandise at less than 
normal value (NV) during the period of review (POR) September 1, 2018 
through August 31, 2019. We invite all interested parties to comment on 
these preliminary results.

DATES: Applicable January 26, 2021.

FOR FURTHER INFORMATION CONTACT: David Goldberger or David Crespo, 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) 482-4136 or (202) 
482-3693, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On November 12, 2019, based on timely requests for review, in 
accordance with 19 CFR 351.221(c)(1)(i), we initiated an administrative 
review on HWR pipes and tubes from Mexico.\1\ This review covers 11 
producers and 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), for individual 
examination. The producers and/or exporters not selected for individual 
examination are listed in the ``Preliminary Results of the Review'' 
section of this notice.
---------------------------------------------------------------------------

    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 84 FR 61011 (November 12, 2019).
---------------------------------------------------------------------------

    On April 21, 2020, pursuant to section 751(a)(3)(A) of the Tariff 
Act of 1930, as amended (the Act), and 19 CFR 351.213(h)(2), Commerce 
extended the time limit for issuing the preliminary results of this 
administrative review to September 29, 2020.\2\ On April 24, 2020, 
Commerce tolled all deadlines in administrative reviews by 50 days, 
thereby extending the deadline for issuing the preliminary results of 
this administrative review to November 18, 2020.\3\ On July 21, 2020, 
Commerce again tolled all deadlines for preliminary and final results 
in administrative reviews by an additional 60 days.\4\ Therefore, the 
deadline for the preliminary results of this administrative review is 
January 19, 2021.
---------------------------------------------------------------------------

    \2\ See Memorandum, ``Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes from Mexico: Extension of Deadline for 
Preliminary Results of the 3rd Antidumping Duty Administrative 
Review,'' dated April 21, 2020.
    \3\ 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.
    \4\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews,''dated July 21, 2020.
---------------------------------------------------------------------------

Scope of the Order

    The products covered by the order are heavy walled rectangular 
welded steel

[[Page 7068]]

pipes and tubes from Mexico.\5\ Products subject to the order are 
currently classified under the Harmonized Tariff Schedule of the United 
States (HTSUS) item number 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.
---------------------------------------------------------------------------

    \5\ For a complete description of the scope of the Order, see 
Memorandum, ``Decision Memorandum for the Preliminary Results of the 
2018-2019 Administrative Review of the Antidumping Duty Order on 
Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes from 
Mexico,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this review in accordance with sections 
751(a)(1)(B) and (2) of the Act. Export price and constructed export 
price are calculated in accordance with section 772 of the Act. NV is 
calculated in accordance with section 773 of the Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. 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 https://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. A list of the topics discussed in the Preliminary Decision 
Memorandum is attached as an appendix to this notice.

Rate for Non-Selected Respondents

    The Act and Commerce's regulations do not address the establishment 
of a rate to be applied to companies not selected for individual 
examination when Commerce limits its examination in an administrative 
review pursuant to section 777A(c)(2) of the Act. Generally, Commerce 
looks to section 735(c)(5) of the Act, which provides instructions for 
calculating the all-others rate in a market economy investigation, for 
guidance when calculating the rate for companies which were not 
selected for individual examination in an administrative review. Under 
section 735(c)(5)(A) of the Act, the all-others rate is normally ``an 
amount equal to the weighted-average of the estimated weighted-average 
dumping margins established for exporters and producers individually 
investigated, excluding any zero or de minimis margins, and any margins 
determined entirely {on the basis of facts available{time} .''
    In this review, we have preliminarily calculated a weighted-average 
dumping margin for these companies using the calculated rates of the 
mandatory respondents, Maquilacero and Prolamsa, which are not zero, de 
minimis, or determined entirely on the basis of facts available.\6\
---------------------------------------------------------------------------

    \6\ See section 735(c)(5)(A) of the Act.
---------------------------------------------------------------------------

Preliminary Results of the Review

    As a result of this review, we preliminarily determine that the 
following weighted-average dumping margins exist for the period 
September 1, 2018 through August 31, 2019:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                     Producers/exporters                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Maquilacero S.A. de C.V.....................................        0.00
Productos Laminados de Monterrey S.A. de C.V................        1.75
------------------------------------------------------------------------
   Review-Specific Average Rate Applicable to the Following Companies:
------------------------------------------------------------------------
Arco Metal S.A. de C.V......................................        1.75
Forza Steel S.A. de C.V.....................................        1.75
Industrias Monterrey, S.A. de C.V...........................        1.75
Perfiles y Herrajes LM S.A. de C.V..........................        1.75
PYTCO S.A. de C.V...........................................        1.75
Regiomontana de Perfiles y Tubos S.A. de C.V................        1.75
Ternium S.A. de C.V.........................................        1.75
Tuberia Nacional, S.A. de C.V...............................        1.75
Tuberias Procarsa S.A. de C.V...............................        1.75
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose the calculations performed in 
connection with these preliminary results to interested parties within 
five days after the date of publication of this notice.\7\
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.224(b).
---------------------------------------------------------------------------

Verification

    On February 19, 2020, Commerce received a request from the 
petitioners \8\ to conduct verification of the responses in this 
administrative review.\9\ Commerce is currently unable to conduct on-
site verification of the information relied upon for the final results 
of this review. 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.
---------------------------------------------------------------------------

    \8\ The petitioners are Independence Tube Corporation and 
Southland Tube, Incorporated; Nucor Companies; Atlas Tube, a 
division of Zekelman Industries; and Searing Industries.
    \9\ See Petitioners' Letter, ``Heavy Walled Rectangular Welded 
Carbon Steel Pipes and Tubes from Mexico: Request for 
Verification,'' dated February 19, 2020.
---------------------------------------------------------------------------

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. A timeline for the 
submission of case briefs and written comments will be provided to 
interested parties at a later date. Rebuttal briefs, limited to issues 
raised in the case briefs, may be filed no later than seven days after 
the deadline for filing case briefs.\10\ Parties who submit case briefs 
or rebuttal briefs in this proceeding 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.\11\ Case and rebuttal briefs 
should be filed using ACCESS.\12\
---------------------------------------------------------------------------

    \10\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
    \12\ See 19 CFR 351.303.
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically via ACCESS within 30 days after the date of 
publication of this notice.\13\ Hearing requests should contain: (1) 
The party's name, address, and telephone number; (2) the number of 
participants; and (3) a list of issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, Commerce intends to hold 
the hearing at a date and time to be determined.\14\ Parties should 
confirm the date, time, and location of the hearing two days before the 
scheduled date.
---------------------------------------------------------------------------

    \13\ See 19 CFR 351.310(c).
    \14\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------

    An electronically-filed document must be received successfully in 
its entirety by ACCESS by 5:00 p.m. Eastern Time on the established 
deadline.

Final Results

    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis of issues raised in any 
written briefs, not later than 120 days after the date of

[[Page 7069]]

publication of this notice, unless otherwise extended.\15\
---------------------------------------------------------------------------

    \15\ See section 751(a)(3)(A) of the Act.
---------------------------------------------------------------------------

Assessment Rates

    Upon completion of the administrative review, Commerce shall 
determine, and U.S. Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries.\16\
---------------------------------------------------------------------------

    \16\ See 19 CFR 351.212(b).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.212(b)(1), where Maquilacero and Prolamsa 
reported the entered value of their U.S. sales, we calculated importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the examined sales to the total 
entered value of the sales for which entered value was reported. Where 
Prolamsa did not report entered value, we calculated the entered value 
in order to determine 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.
    For the companies which were not selected for individual review, we 
will assign an assessment rate based on the weighted average \17\ of 
the cash deposit rates calculated for Maquilacero and Prolamsa, 
excluding any which are zero, de minimis, or determined entirely on 
adverse facts available. 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.\18\
---------------------------------------------------------------------------

    \17\ This rate was calculated as discussed in footnote 6, above.
    \18\ See section 751(a)(2)(C) of the Act.
---------------------------------------------------------------------------

    Commerce's ``automatic assessment'' practice will apply to entries 
of subject merchandise during the POR produced by Maquilacero or 
Prolamsa 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 intermediate company(ies) 
involved in the transaction.\19\
---------------------------------------------------------------------------

    \19\ For a full discussion of this practice, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 
68 FR 23954 (May 6, 2003).
---------------------------------------------------------------------------

    Commerce intends to issue assessment instructions to CBP no earlier 
than 41 days after the date of publication of the final results of this 
review in the Federal Register, in accordance with 19 CFR 356.8(a).

Cash Deposit Requirements

    The following 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 the companies 
listed above will be equal to the weighted-average dumping margin 
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 reviewed or investigated companies not covered in 
this review, the cash deposit rate will continue to be the company-
specific cash deposit rate published for the most recently completed 
segment in which the company was reviewed; (3) if the exporter is not a 
firm covered in this review, a prior 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 of this proceeding for the producer of the 
merchandise; and (4) the cash deposit rate for all other producers or 
exporters will continue to be 4.91 percent, the all-others rate 
established in the LTFV investigation.\20\ These deposit requirements, 
when imposed, shall remain in effect until further notice.
---------------------------------------------------------------------------

    \20\ 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, 62867 (September 13, 
2016).
---------------------------------------------------------------------------

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) 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 doubled antidumping duties.

Notification to Interested Parties

    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

    Dated: January 15, 2021.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Discussion of the Methodology
V. Currency Conversion
VI. Recommendation

[FR Doc. 2021-01640 Filed 1-25-21; 8:45 am]
BILLING CODE 3510-DS-P