[Federal Register Volume 87, Number 5 (Friday, January 7, 2022)]
[Notices]
[Pages 938-940]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00077]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-846]


Agreement Suspending the Countervailing Duty Investigation on 
Sugar From Mexico; Preliminary Results of the 2020 Administrative 
Review

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that the signatory, the Government of Mexico (GOM), and the respondent 
companies selected for individual examination, respectively, Impulsora 
Azucarera Del Tropico, S.A. de C.V. (Impulsora Del Tropico) and its 
affiliate and Ingenio Huixtla SA de C.V. (Ingenio Huixtla) and its 
affiliates are in compliance with the Agreement Suspending the 
Countervailing Duty Investigation on Sugar from Mexico, as amended (CVD 
Agreement), except for certain instances of inconsequential non-
compliance. Commerce also preliminarily determines that the CVD 
Agreement continues to meet its statutory requirements under sections 
704(c) and (d) of the Tariff Act of 1930, as amended (the Act), during 
the POR. However, Commerce intends to address certain issues identified 
in this review by discussing these issues with the GOM and Mexican 
producers/exporters, as appropriate. We may request consultations 
pursuant to the CVD Agreement, as necessary, to resolve these issues.

DATES: Applicable January 7, 2022.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or David Cordell, 
Enforcement & Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, telephone: (202) 482-0162 or (202) 482-0408, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 19, 2014, Commerce signed an agreement under section 
704(c) of the Act, with the GOM, suspending the countervailing duty 
(CVD) investigation on sugar from Mexico.\1\ On January 15, 2020, the 
CVD Agreement was amended.\2\
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    \1\ See Agreement Suspending the Countervailing Duty 
Investigation of Sugar from Mexico, 79 FR 78044 (December 29, 2014) 
(CVD Agreement).
    \2\ See Sugar from Mexico: Amendment to the Agreement Suspending 
the Countervailing Duty Investigation, 85 FR 3613 (January 22, 2020) 
(CVD Amendment) (collectively, as integrated into the CVD Agreement, 
amended CVD Agreement).

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[[Page 939]]

    On December 17, 2020, the American Sugar Coalition (ASC) and its 
members (petitioners) \3\ filed a timely request for an administrative 
review of the CVD Agreement.\4\ On February 4, 2021, Commerce initiated 
an administrative review for the period January 1, 2020, through 
December 31, 2020.\5\
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    \3\ The members of the American Sugar Coalition are as follows: 
American Sugar Cane League; American Sugarbeet Growers Association; 
American Sugar Refining, Inc.; Florida Sugar Cane League; Rio Grande 
Valley Sugar Growers, Inc.; Sugar Cane Growers Cooperative of 
Florida; and the United States Beet Sugar Association.
    \4\ See Petitioners' Letter, ``Sugar from Mexico: Request for 
Administrative Review,'' dated December 17, 2020.
    \5\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 8166 (February 4, 2021).
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    On March 23, 2021, Commerce selected two companies as mandatory 
respondents, listed in alphabetic order: Impulsora Del Tropico and 
Ingenio Huixtla SA de C.V.\6\ In addition, the review covered the GOM, 
which is the signatory to the CVD Agreement.
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    \6\ See Memorandum, ``2019-2020 Administrative Review of the 
Agreement Suspending the Antidumping Duty Investigation on Sugar 
from Mexico As Amended; Respondent Selection,'' dated March 23, 
2021.
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Scope of the CVD Agreement

    The product covered by this CVD Agreement is raw and refined sugar 
of all polarimeter readings derived from sugar cane or sugar beets. 
Merchandise covered by this AD Agreement is typically imported under 
the following headings of the HTSUS: 1701.12.1000, 1701.12.5000, 
1701.13.1000, 1701.13.5000, 1701.14.1020, 1701.14.1040, 1701.14.5000, 
1701.91.1000, 1701.91.3000, 1701.99.1015, 1701.99.1017, 1701.99.1025, 
1701.99.1050, 1701.99.5015, 1701.99.5017, 1701.99.5025, 1701.99.5050, 
and 1702.90.4000.\7\ The tariff classification is provided for 
convenience and customs purposes; however, the written description of 
the scope of this CVD Agreement is dispositive.\8\
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    \7\ Prior to July 1, 2016, merchandise covered by the AD 
Agreement was classified in the HTSUS under subheading 1701.99.1010. 
Prior to January 1, 2020, merchandise covered by the AD Agreement 
was classified in the HTSUS under subheadings 1701.14.1000 and 
1701.99.5010.
    \8\ For a complete description of the Scope of the CVD 
Agreement, see Memorandum, ``Issues and Decision Memorandum for the 
Preliminary Results of the 2020 Administrative Review of the 
Agreement Suspending the Countervailing Duty Investigation on Sugar 
from Mexico, as Amended,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Methodology and Preliminary Results

    Commerce has conducted this review in accordance with section 
751(a)(1)(C) of the Act, which specifies that Commerce shall ``review 
the current status of, and compliance with, any agreement by reason of 
which an investigation was suspended.'' Pursuant to the CVD Agreement, 
the GOM agrees that subject merchandise is subject to export limits.\9\ 
The GOM also agrees to other conditions including limits on exports of 
Refined Sugar \10\ and restrictions on shipping patterns for 
exports.\11\ The CVD Agreement also requires the GOM to issue contract-
specific export licenses,\12\ submit compliance monitoring reports to 
Commerce,\13\ and institute penalties for non-compliance with certain 
key terms of the CVD Agreement and the companion Agreement Suspending 
the Antidumping Duty Investigation on Sugar from Mexico, as amended (AD 
Agreement).\14\
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    \9\ See amended CVD Agreement at Section V.
    \10\ ``Refined Sugar'' is defined in Section II.L of the amended 
CVD Agreement.
    \11\ Id. at Section V.C.
    \12\ Id. at Section VI and Appendix I.
    \13\ Id. at Section VIII.B.1 and Appendix II.
    \14\ Id. at Section VIII.B.4; see also See Sugar from Mexico: 
Suspension of Antidumping Investigation, 79 FR 78039 (December 29, 
2014); and Sugar from Mexico: Amendment to the Agreement Suspending 
the Antidumping Duty Investigation, 85 FR 3620 (January 22, 2020).
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    After reviewing the information received to date from the GOM and 
respondent companies in their questionnaire and supplemental 
questionnaire responses, we preliminarily determine that the GOM and 
respondent companies have adhered to the terms of the CVD Agreement, 
except for certain instances of inconsequential non-compliance by the 
respondent companies, and that the CVD Agreement is functioning as 
intended. Further, we preliminarily determine that the CVD Agreement 
continues to meet the statutory requirements under sections 704(c) and 
(d) of the Act. However, Commerce is exploring additional measures to 
help prevent reporting and recordkeeping issues that may serve to 
diminish the effective monitoring and enforcement of the CVD Agreement. 
Commerce intends to address certain issues identified in this review by 
discussing these issues with the GOM and Mexican producers/exporters, 
as appropriate. We may request consultations pursuant to the CVD 
Agreement, as necessary, to resolve these issues. 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 https://access.trade.gov/public/FRNoticesListLayout.aspx. Commerce is also 
addressing proprietary issues concerning each of the respondents in 
separate memoranda which we incorporate into the Preliminary Decision 
Memorandum.\15\
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    \15\ See Preliminary Decision Memorandum at 9, n. 78 and 12, n. 
87.
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Verification

    As provided in section 782(i)(3)(a) of the Act, Commerce verified 
the information relied upon in making its preliminary results. 
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 review. Accordingly, we chose to verify 
the information relied upon in making the preliminary results through 
alternative means in lieu of an on-site verification. Commerce issued 
questionnaires in lieu of on-site verification to the GOM and each of 
the respondents in the review.\16\ Any issues that arose are addressed 
in the Preliminary Decision Memorandum and in the accompanying 
proprietary memorandum for each respondent.
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    \16\ See Commerce's Letters, ``2020 Administrative Review of the 
Agreement Suspending the Countervailing Duty Investigation on Sugar 
from Mexico: In Lieu of On-Site Verification Questionnaire,'' dated 
November 12, 2021.
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Public Comment

    Case briefs are due 30 days from the publication of these 
preliminary results in the Federal Register. Rebuttal briefs, limited 
to issues raised in case briefs, may be submitted no later than seven 
days after the deadline date for case briefs.
    Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information, until further notice.\17\ Pursuant to 19 CFR

[[Page 940]]

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.\18\
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    \17\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
    \18\ See 19 CFR 351.309(c)(2) and (d)(2).
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    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, filed electronically via 
Commerce's electric records system, ACCESS. An electronically filed 
request must be received successfully in its entirety by 5:00 p.m. 
Eastern Time within 30 days after the date of publication of this 
notice.\19\ 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. If a request for a hearing is made, Commerce 
intends to hold the hearing at a time and date to be determined.\20\ 
Parties should confirm by telephone the date, time, and location of the 
hearing two days before the scheduled date.
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    \19\ See 19 CFR 351.310(c).
    \20\ See 19 CFR 351.310(d).
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    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis of the issues raised in 
any written briefs, not later than 120 days after the date of 
publication of this notice, pursuant to section 751(a)(3)(A) of the 
Act, unless extended.

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.

    Dated: December 30, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2022-00077 Filed 1-6-22; 8:45 am]
BILLING CODE 3510-DS-P