[Federal Register Volume 77, Number 58 (Monday, March 26, 2012)]
[Notices]
[Pages 17427-17430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7213]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-840]


Notice of Final Determination of Sales at Less Than Fair Value: 
Galvanized Steel Wire From Mexico

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: March 26, 2012.

SUMMARY: On November 4, 2011, the Department of Commerce (the 
Department) published its preliminary determination in the 
investigation of sales at less than fair value of galvanized steel wire 
(galvanized wire) from Mexico.\1\
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    \1\ See Galvanized Steel Wire from Mexico: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 76 FR 68422 (November 4, 2011) (Preliminary 
Determination).
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    The Department has determined that galvanized wire from Mexico is 
being, or is likely to be, sold in the United States at less than fair 
value, as provided in section 735 of the Tariff Act of 1930, as amended 
(the Act). The final margins of sales at less than fair value are 
listed below in the section entitled ``Final Determination of 
Investigation.''

FOR FURTHER INFORMATION CONTACT: Patrick Edwards or Ericka Ukrow, AD/
CVD Operations, Office 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
8029 or (202) 482-0405, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The preliminary determination in this investigation was published 
on November 4, 2011. See Preliminary Determination. We invited parties 
to comment on the Preliminary Determination. On November 8, 2011, we 
received timely-filed allegations from Deacero S.A. de C.V. (Deacero) 
that the Department made several ministerial errors in calculating its 
dumping margin for the preliminary determination.\2\
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    \2\ See Letter from Deacero, regarding ``Galvanized Steel Wire 
from Mexico,'' dated November 8, 2011. Petitioners did not comment 
on Deacero's ministerial error allegations.
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    On November 10 and 23, 2011, the Department issued Deacero 
supplemental questionnaires.
    On December 5, 2011, the Department released its memorandum 
addressing Deacero's ministerial error allegations, finding that no 
amendment to the preliminary determination was warranted. See 
Ministerial Error Memorandum.\3\
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    \3\ See Memorandum to Richard O. Weible, Director, Office 7, 
from Patrick Edwards and Ericka Ukrow, Case Analysts, through 
Angelica Mendoza, Program Manager, Office 7, entitled ``Ministerial 
Error Allegation in the Preliminary Determination of the Antidumping 
Duty Investigation of Galvanized Steel Wire from Mexico: Deacero 
S.A. de C.V.,'' dated December 5, 2011 (Ministerial Error 
Memorandum).
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    On December 5, 2011, Deacero submitted its response to the November 
23, 2011, questionnaire.\4\ Also on December 5, 2011, Petitioners \5\ 
and respondent Aceros Camesa S.A. de C.V. (Camesa) timely filed a 
request for a public hearing.\6\
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    \4\ See Deacero's Fourth Supplemental Questionnaire Response, 
dated December 8, 2011.
    \5\ The Petitioners in this investigation are Davis Wire 
Corporation, Johnston Wire Technologies, Inc., Mid-South Wire 
Company, Inc., National Standard, LLC, and Oklahoma Steel & Wire 
Company, Inc. (collectively, Petitioners).
    \6\ Deacero, also on December 5, 2011, requested to participate 
in a hearing in the event that another party requested a hearing.
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    We conducted cost and sales verifications of the responses 
submitted by Deacero and Camesa (collectively, respondents).\7\ All 
verification reports

[[Page 17428]]

are on file and available electronically via Import Administration's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (IA ACCESS). Access to IA ACCESS is available in the Central 
Records Unit (CRU), room 7046 of the main Department of Commerce 
building.
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    \7\ See Memorandum to the File from Christopher J. Zimpo and 
Frederick W. Mines, Case Accountants, through Theresa C. Deeley, 
Lead Accountant, and Neal M. Halper, Director, Office of Accounting, 
entitled ``Verification of the Cost of Production and Constructed 
Value Data Submitted by Deacero S.A. de C.V. in the Antidumping Duty 
Investigation of Galvanized Steel Wire from Mexico,'' dated January 
13, 2012 (Deacero Cost Verification Report); Memorandum to the File 
from Frederick W. Mines and Christopher J. Zimpo, Case Accountants, 
through Theresa C. Deeley, Lead Accountant, and Neal M. Halper, 
Director, Office of Accounting, entitled ``Verification of the Cost 
Response of Aceros Camesa S.A. de C.V. in the Antidumping Duty 
Investigation of Galvanized Steel Wire from Mexico,'' dated January 
13, 2012 (Camesa Cost Verification Report); Memorandum to the File 
from Christopher J. Zimpo and Frederick W. Mines, Case Accountants, 
through Theresa C. Deeley, Lead Accountant, and Neal M. Halper, 
Director, Office of Accounting, entitled ``Verification of the 
Further Manufacturing Data Submitted by Deacero S.A. de C.V. for 
Deacero USA Inc. and Stay-Tuff Fence Manufacturing, Inc. in the 
Antidumping Duty Investigation of Galvanized Steel Wire from 
Mexico,'' dated January 27, 2012 (Deacero Further-Manufacturing 
Verification Report); Memorandum to the File from Patrick Edwards, 
Case Analyst, through Angelica Mendoza, Program Manager, Office 7, 
entitled ``Verification of the Sales Responses of Aceros Camesa, 
S.A. de C.V. in the Antidumping Duty Investigation on Galvanized 
Steel Wire from Mexico,'' dated February 13, 2012 (Camesa 
Verification Report); Memorandum to the File from Ericka Ukrow and 
Patrick Edwards, Case Analysts, through Angelica L. Mendoza, Program 
Manager, Office 7, entitled ``Verification of the Sales Response of 
Deacero USA Inc. (Deacero USA) and Stay-Tuff Fence Manufacturing, 
Inc. (Stay-Tuff) in the Antidumping Duty Investigation of Galvanized 
Steel Wire from Mexico,'' dated February 15, 2012 (Deacero CEP 
Verification Report); Memorandum to the File from Patrick Edwards 
and Ericka Ukrow, Case Analysts, through Angelica Mendoza, Program 
Manager, Office 7, entitled ``Verification of the Sales Responses of 
Deacero S.A. de C.V. in the Antidumping Duty Investigation of 
Galvanized Steel Wire from Mexico,'' dated February 16, 2012 
(Deacero Verification Report); and Memorandum to the File from 
Ericka Ukrow and Patrick Edwards, Case Analysts, through Angelica L. 
Mendoza, Program Manager, entitled ``Verification of Sales Response 
of Aceros Camesa S.A. de C.V. (Camesa) and WireCo World Group, Inc. 
(WireCo) in the Antidumping Duty Investigation of Galvanized Steel 
Wire from Mexico,'' dated February 16, 2012 (Camesa CEP Verification 
Report).
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    Based on the Department's findings at verification, as well as the 
minor corrections presented by Deacero and Camesa at the start of their 
respective verifications, we requested respondents to submit revised 
sales databases.\8\ On February 27, 2012, as requested, Deacero and 
Camesa submitted their revised sales databases.
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    \8\ See Letters from Angelica L. Mendoza, Program Manager, 
Office 7, to Deacero S.A. de C.V., dated February 21, 2012, and 
February 22, 2012; Letter from Angelica L. Mendoza, Program Manager, 
Office 7, to Aceros Camesa S.A. de C.V., dated February 21, 2012.
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    Subsequent to the release of the verification reports in this 
investigation, parties timely filed case and rebuttal briefs. We 
received a case brief from Petitioners, Deacero, and Camesa on February 
23, 2012; Petitioners and Deacero filed rebuttal briefs on February 28, 
2012. No public hearing was held because all requests for a hearing 
were withdrawn.
    On March 2, 2012, at the Department's request, respondents in the 
companion galvanized wire investigations involving the People's 
Republic of China (both antidumping and countervailing duty) filed on 
the record of this investigation certain scope comments that were 
raised in those proceedings' case and rebuttal briefs. We allowed a 
period of time for parties in the instant proceeding to comment on 
those submissions, and we received no comments.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this antidumping investigation are addressed in the ``Issues and 
Decision Memorandum for the Final Determination of the Antidumping Duty 
Investigation of Galvanized Steel Wire from Mexico'' (Decision 
Memorandum) from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Paul Piquado, 
Assistant Secretary for Import Administration, dated March 19, 2012, 
which is hereby adopted by this notice. A list of the issues which 
parties have raised and to which we have responded, all of which are in 
the Decision Memorandum, is attached to this notice as an appendix. 
Parties can find a complete discussion of all issues raised in this 
investigation and the corresponding recommendations in the Decision 
Memorandum which is on file and available electronically via IA ACCESS, 
which is accessible in the CRU, room 7046 of the main Department of 
Commerce building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/. The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Scope of Investigation

    The scope of this investigation covers galvanized steel wire which 
is a cold-drawn carbon quality steel product in coils, of circular or 
approximately circular, solid cross section with any actual diameter of 
0.5842 mm (0.0230 inch) or more, plated or coated with zinc (whether by 
hot-dipping or electroplating).
    Steel products to be included in the scope of this investigation, 
regardless of Harmonized Tariff Schedule of the United States (HTSUS) 
definitions, are products in which: (1) Iron predominates, by weight, 
over each of the other contained elements; (2) the carbon content is 
two percent or less, by weight; and (3) none of the elements listed 
below exceeds the quantity, by weight, respectively indicated:

--1.80 percent of manganese, or
--1.50 percent of silicon, or
--1.00 percent of copper, or
--0.50 percent of aluminum, or
--1.25 percent of chromium, or
--0.30 percent of cobalt, or
--0.40 percent of lead, or
--1.25 percent of nickel, or
--0.30 percent of tungsten, or
--0.02 percent of boron, or
--0.10 percent of molybdenum, or
--0.10 percent of niobium, or
--0.41 percent of titanium, or
--0.15 percent of vanadium, or
--0.15 percent of zirconium.

    Specifically excluded from the scope of this investigation is 
galvanized steel wire in coils of 15 feet or less which is pre-packed 
in individual retail packages. The products subject to this 
investigation are currently classified in subheadings 7217.20.30, 
7217.20.45, and 7217.90.10 of the HTSUS which cover galvanized wire of 
all diameters and all carbon content. Galvanized wire is reported under 
statistical reporting numbers 7217.20.3000, 7217.20.4510, 7217.20.4520, 
7217.20.4530, 7217.20.4540, 7217.20.4550, 7217.20.4560, 7217.20.4570, 
7217.20.4580, and 7217.90.1000. These products may also enter under 
HTSUS subheadings 7229.20.0015, 7229.20.0090, 7229.90.5008, 
7229.90.5016, 7229.90.5031, and 7229.90.5051. Although the HTSUS 
subheadings are provided for convenience and Customs purposes, the 
written description of the merchandise is dispositive.

Scope Comments

    In their case and rebuttal briefs, Petitioners, respondents, and 
other interested parties provided comments on the scope and merchandise 
that is to be covered under the scope. We have discussed these comments 
fully in the Decision Memorandum. See Decision Memorandum at Comments 3 
and 4. As a result of considering these comments, we have clarified the 
scope language to include not only circular cross section material, but 
also out-of-round material that meets the circular tolerances. Id. at 
Comment 3. We have also included an additional HTSUS subheading as part 
of the scope description. Id. at Comment 4. In addition, and as 
referenced in the ``Background'' section above, certain parties in the 
companion galvanized wire antidumping duty investigation involving the 
People's Republic of China provided scope comments. These comments have 
been addressed in the Notice of Final Determination of Sales at Less 
than Fair Value: Galvanized Steel Wire from the People's Republic of 
China, signed concurrently with this notice, and the accompanying 
Issues and Decision Memorandum at Comment 3.
    In addition, in the Preliminary Determination, we responded to 
scope comments provided by Tree Island Wire (USA), Inc. and Preferred 
Wire Products, Inc., and we preliminarily determined that galvanized 
wire with a diameter less than one millimeter is subject to the scope 
of the investigation. No additional comments were made on this issue in 
the case or rebuttal briefs. For the final, we have made no changes on 
this determination from the Preliminary Determination and continue to 
find, specifically, that galvanized wire with a diameter less than one 
millimeter but equal to or greater than 0.5842 millimeters is covered 
by the scope. See Preliminary Determination, 76 FR at 68425.

Period of Investigation

    The period of investigation (POI) is January 1, 2010, to December 
31, 2010.

[[Page 17429]]

This period corresponds to the four most recent fiscal quarters prior 
to the month of the filing of the Petition. See 19 CFR 351.204(b)(1).

Verification

    As provided in section 782(i) of the Act and noted above, we 
verified the information submitted by the respondents for use in our 
final determination. We used standard verification procedures, 
including examination of relevant accounting and production records, 
and original source documents provided by the respondents.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we have made certain changes to the margin calculation 
for both Deacero and Camesa. For a discussion of these changes, see 
Decision Memorandum at Comments 1, 2, 7, 8, 9, and 11.\9\ Additionally, 
subsequent to the Preliminary Determination, the Department revised its 
margin calculation program to ensure that it accurately reflected the 
methodological choices made in that determination. These revisions to 
the programming, had they been included in the preliminary 
determination, would not have altered the weighted average dumping 
margins calculated there. See Decision Memorandum at Comment 10; see 
also, Deacero Analysis Memo and Camesa Analysis Memo at Attachments I-
VIII.
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    \9\ See also Memorandum from Ericka Ukrow to The File, entitled 
``Galvanized Steel Wire from Mexico--Final Determination of Sales at 
Less Than Fair Value Analysis Memorandum for Deacero S.A. de C.V.,'' 
dated March 19, 2012 (Deacero Analysis Memo), and Memorandum from 
Patrick Edwards to The File, entitled ``Galvanized Steel Wire from 
Mexico--Final Determination of Sales at Less Than Fair Value 
Analysis Memorandum for Aceros Camesa S.A. de C.V.,'' dated March 
19, 2012 (Camesa Analysis Memo); Memorandum from Christopher J. 
Zimpo to Neal M. Halper, entitled ``Cost of Production, Constructed 
Value, and Further Manufacturing Cost Calculation Adjustments for 
the Final Determination: Deacero S.A. de C.V.,'' dated March 19, 
2012 (Deacero Cost Memo).
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All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``all 
others'' rate shall be 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 under section 776 
of the Act. Deacero and Camesa are the only respondents selected for 
individual examination in this investigation and, for each company, the 
Department has calculated a company-specific rate that is not zero or 
de minimis. Therefore, for purposes of determining the ``all others'' 
rate, and pursuant to section 735(c)(5)(A) of the Act, we are using the 
weighted average of the dumping margins calculated for Deacero and 
Camesa for the ``all others'' rate, as referenced in the ``Continuation 
of Suspension of Liquidation'' section below, i.e., 22.43 percent, as 
indicated in the ``Final Determination of Investigation'' section 
below.\10\
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    \10\ When there are only two relevant weighted-average dumping 
margins available to determine the ``all-others'' rate, the 
Department may use a simple average so as to avoid disclosure of 
business proprietary information. See Seamless Refined Copper Pipe 
and Tube From Mexico: Final Determination of Sales at Less Than Fair 
Value, 75 FR 60723, 60724 (October 1, 2010). However, in this final 
determination, the Department has determined an ``all-others'' rate 
using Deacero's and Camesa's ranged, public U.S. sales quantities, 
which also avoids disclosure of business proprietary information. 
See Ball Bearings and Parts Thereof From France, Germany, Italy, 
Japan, and the United Kingdom: Final Results of Antidumping Duty 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661 (September 
1, 2010), and accompanying Issues and Decision Memorandum at Comment 
1.
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Final Determination of Investigation

    We determine that the following weighted-average dumping margins 
exist for the period January 1, 2010, through December 31, 2010:

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                                                               Weighted-
                                                                Average
                  Manufacturer or exporter                      margin
                                                               (percent)
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Deacero S.A. de C.V.........................................       20.89
Aceros Camesa S.A. de C.V...................................       37.69
All-Others..................................................       22.43
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Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act and 19 CFR 
351.211(b)(1), we will instruct U.S. Customs and Border Protection 
(CBP) to continue to suspend liquidation of all entries of subject 
merchandise from Mexico entered, or withdrawn from warehouse, for 
consumption on or after November 4, 2011, the date of the publication 
of the Preliminary Determination, for all producers/exporters. We will 
instruct CBP to require a cash deposit or the posting of a bond equal 
to the weighted-average margin, as indicated in the chart above, as 
follows: (1) The rate for the respondents will be the rates we have 
determined in this final determination; (2) if the exporter is not a 
firm identified in this investigation but the producer is, the rate 
will be the rate established for the producer of the subject 
merchandise; (3) the rate for all other producers or exporters will be 
22.43 percent. These suspension-of-liquidation instructions will remain 
in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our final determination. As our 
final determination is affirmative and in accordance with section 
735(b)(2) of the Act, the ITC will determine, within 45 days, whether 
the domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports or sales (or the 
likelihood of sales) for importation of the subject merchandise. If the 
ITC determines that material injury or threat of material injury does 
not exist, the proceeding will be terminated and all securities posted 
will be refunded or canceled. If the ITC determines that such injury 
does exist, the Department will issue an antidumping duty order 
directing CBP to assess antidumping 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.

Notification Regarding APO

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation.
    This determination is issued and published pursuant to sections 
735(d) and 777(i)(1) of the Act.

     Dated: March 19, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix

Deacero S.A. de C.V. (Deacero)
    Comment 1: Conversion of U.S. Packing Expenses from Mexican 
Pesos to U.S. Dollars
    Comment 2: Correction of Ministerial Errors

[[Page 17430]]

    Comment 3: Whether Oval Galvanized Steel Wire is Outside the 
Scope of the Investigation
    Comment 4: Whether PVC-Coated Galvanized Steel Wire is Outside 
the Scope of the Investigation
    Comment 5: Whether To Apply Adverse Facts Available to Deacero's 
Inland Freight Expenses for Certain Home Market Sales
    Comment 6: Whether To Apply Adverse Facts Available to Deacero's 
U.S. Repacking Expenses
    Comment 7: Deacero's Reporting of Costs for Further 
Manufacturing
    Comment 8: Deacero's Reporting of Inland Freight Charges for 
Certain U.S. Sales
    Comment 9: Deacero's Reporting of Cost of Production and 
Constructed Value
Aceros Camesa S.A. de C.V. (Camesa)
    Comment 10: Whether the Department Used an Average-to-Average 
Comparison Methodology
    Comment 11: Whether the U.S. Inventory Carrying Costs Were 
Calculated Properly

[FR Doc. 2012-7213 Filed 3-23-12; 8:45 am]
BILLING CODE 3510-DS-P