[Federal Register Volume 86, Number 19 (Monday, February 1, 2021)]
[Notices]
[Pages 7710-7713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02079]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-853]


Standard Steel Welded Wire Mesh From Mexico: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and, Extension of Provisional 
Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that standard steel welded wire mesh (wire mesh) from Mexico is being, 
or is likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation (POI) is April 1, 2019, through 
March 31, 2020. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable February 1, 2021.

FOR FURTHER INFORMATION CONTACT: Alice Maldonado or Melissa Kinter, 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) 482-4682 or (202) 
482-1413, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 27, 
2020.\1\ On November 18, 2020, Commerce postponed the preliminary 
determination of this investigation, and the revised deadline is now 
January 26, 2021.\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 included 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 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 the 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 Less-Than-Fair-Value Investigation, 85 FR 45167 (July 27, 2020) 
(Initiation Notice).
    \2\ See Standard Steel Welded Wire Mesh from Mexico: 
Postponement of Preliminary Detremination in the Less-Than-Fair 
Value Investigation, 85 FR 73459 (November 18, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation 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 products covered by this investigation are 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.\6\ 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.
    \6\ See Preliminary Decision Memorandum.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated constructed export 
prices in accordance with section 772(b) of the Act. Normal value is 
calculated in accordance with section 773 of the Act. Furthermore, 
pursuant to section 776(a) and (b) of the Act, Commerce has 
preliminarily relied upon facts otherwise available with adverse 
inferences for Deacero S.A.P.I. de C.V. (Deacero). For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that, in 
the preliminary determination, Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-

[[Page 7711]]

average dumping margins established for exporters and producers 
individually investigated, excluding any zero and de minimis margins, 
and any margins determined entirely under section 776 of the Act.
    In this investigation, Commerce preliminarily assigned a rate based 
entirely on adverse facts available (AFA) to Deacero. Therefore, the 
only rate that is not zero, de minimis or based entirely on adverse 
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 
weighted-average dumping margins exist:
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    \7\ In the companion countervailing duty (CVD) investigation, 
Commerce calculated a 1.02 percent export subsidy rate for Aceromex 
and for all other producers and exporters under the program ``Eighth 
Rule Permit Program.'' See Standard Steel Welded Wire Mesh from 
Mexico: Preliminary Affirmative Countervailing Duty Determination, 
85 FR 78124 (December 3, 2020), and accompanying Preliminary 
Decision Memorandum at 14-18. Because we determined the LTFV all-
others rate based on Aceromex's estimated weighted-average dumping 
margin, the export subsidy offset for all other producers and 
exporters is the lesser of the export subsidy rate for Aceromex and 
the export subsidy rate for all other producers and exporters in the 
CVD preliminary determination (i.e., 1.02 percent). The cash deposit 
rate for Deacero is equal to the petition rate (152.68 percent) 
adjusted for the lowest rate of export subsidies found for any 
company in the most recently-completed segment in the companion 
countervailing duty proceeding (i.e., 1.02 percent related to the 
Eighth Rule Permit Program).

------------------------------------------------------------------------
                                             Estimated     Cash deposit
                                             weighted-    rate (adjusted
            Exporter/producer                 average       for subsidy
                                          dumping margin    offset(s))
                                             (percent)     (percent) \7\
------------------------------------------------------------------------
Aceromex, S.A. de C.V...................           23.67           22.65
Deacero S.A.P.I. de C.V.................        * 152.68          151.66
All Others..............................           23.67           22.65
------------------------------------------------------------------------
* AFA

Suspension of Liquidation

    In accordance with section 733(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 Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) The cash deposit rate for the respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination; (2) if the 
exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin.
    Commerce normally adjusts cash deposits for estimated antidumping 
duties by the amount of export subsidies countervailed in a companion 
countervailing duty (CVD) proceeding, when CVD provisional measures are 
in effect. Accordingly, where Commerce preliminarily made an 
affirmative determination for countervailable export subsidies, 
Commerce has offset the estimated weighted-average dumping margin by 
the appropriate CVD rate. Any such adjusted cash deposit rate may be 
found in the Preliminary Determination section above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting estimated 
antidumping duty cash deposits unadjusted for countervailed export 
subsidies at the time that the provisional CVD measures expire. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Disclosure

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

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

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 notified to 
interested parties 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\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\9\ 
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).
    \9\ See 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

[[Page 7712]]

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. Parties should 
confirm by telephone the date, time, and location of the hearing two 
days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On January 13, 2021, and January 21, 2021 pursuant to 19 CFR 
351.210(e), Insteel Industries Inc., Mid South Wire Company, National 
Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh Corp. (the 
petitioners) and Aceromex requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\10\ In accordance with section 735(a)(2)(A) of 
the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.
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    \10\ See Petitioners' Letter, ``Standard Steel Welded Wire Mesh 
from Mexico--Petitioners' Request for Postponement of Final 
Antidumping Determination,'' dated January 13, 2021; see also 
Aceromex's Letter, ``Standard Steel Welded Wire Mesh from Mexico: 
Aceromex's Request to Extend the Due Date for the Final 
Determination,'' dated January 21, 2021.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
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 in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: January 26, 2020.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is 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'

[[Page 7713]]

    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''
    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)
------------------------------------------------------------------------
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. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Application of Facts Available, Use of Adverse Inferenes, and 
Calculation of All-Others Rate
VII. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Constructed Export Price
XI. Normal Value
    A. Home Market Viability
    B. Affiliated-Party Transactions and Arm's Length Test
    C. Level of Trade
    D. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
XII. Currency Conversion
XIII. Recommendation

[FR Doc. 2021-02079 Filed 1-29-21; 8:45 am]
BILLING CODE 3510-DS-P