[Federal Register Volume 87, Number 5 (Friday, January 7, 2022)]
[Notices]
[Pages 932-934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00074]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-845]


Agreement Suspending the Antidumping Duty Investigation on Sugar 
From Mexico; Preliminary Results of the 2019-2020 Administrative Review

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that the respondents selected for individual examination, respectively, 
Impulsora Azucarera Del Tr[oacute]pico, 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 Antidumping Duty Investigation on Sugar from Mexico, as 
amended (AD Agreement). Commerce also preliminarily determines that the 
AD Agreement continues to meet its statutory requirements under 
sections 734(c) and (d) of the Tariff Act of 1930, as amended (the 
Act). However, Commerce intends to address certain issues identified in 
this review by further discussing these issues with the signatory 
Mexican producers/exporters and the Government of Mexico (GOM), as 
appropriate. We may request consultations pursuant to the AD Agreement, 
as necessary, to resolve these issues.

DATES: Applicable January 7, 2022.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or Jesse Montoya, 
Enforcement & Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401

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Constitution Avenue NW, Washington, DC 20230, telephone: (202) 482-0162 
or (202) 482-8211, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 19, 2014, Commerce signed the AD Agreement with a 
representative of Mexican producers/exporters accounting for 
substantially all imports of sugar from Mexico, under section 734(c) of 
the Act, which suspended the antidumping duty (AD) investigation on 
sugar from Mexico.\1\ On January 15, 2020, the AD Agreement was 
amended.\2\
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    \1\ See Sugar from Mexico: Suspension of Antidumping 
Investigation, 79 FR 78039 (December 29, 2014) (AD Agreement).
    \2\ See Sugar from Mexico: Amendment to the Agreement Suspending 
the Antidumping Duty Investigation, 85 FR 3620 (January 22, 2020) 
(AD Amendment) (collectively, as integrated into the AD Agreement, 
amended AD Agreement).
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    On December 17, 2020, the American Sugar Coalition (ASC) and its 
members (petitioners) \3\ filed a timely request for an administrative 
review of the AD Agreement.\4\ On February 4, 2021, Commerce initiated 
an administrative review for the period December 1, 2019, through 
November 30, 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 alphabetical order: Impulsora Del Tropico and 
Ingenio Huixtla.\6\
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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 AD Agreement

    The product covered by this AD 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 AD 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 AD Agreement, 
see Memorandum, ``Issues and Decision Memorandum for the Preliminary 
Results of the 2019-2020 Administrative Review of the Agreement 
Suspending the Antidumping 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.'' In this case, Commerce and 
Mexican producers/exporters accounting for substantially all imports of 
sugar from Mexico, signed the AD Agreement, which suspended the 
underlying antidumping duty investigation, on December 19, 2014, and 
was subsequently amended on January 15, 2020. Pursuant to the AD 
Agreement, each signatory producer/exporter individually agrees that it 
will not sell subject merchandise at prices less than the reference 
prices established in Appendix I to the AD Agreement.\9\ Each signatory 
producer/exporter also individually agrees that for each entry the 
amount by which the estimated normal value exceeds the export price (or 
the constructed export price) will not exceed 15 percent of the 
weighted average amount by which the estimated normal value exceeded 
the export price (or constructed export price) for all less-than-fair-
value entries of the producer/exporter examined during the course of 
the investigation.\10\ The signatory producers/exporters also 
individually agree to provide documentation upon request from Commerce 
\11\ and provide certifications each quarter \12\ to allow Commerce to 
monitor the AD Agreement. In addition, the signatory producers/
exporters agree to incorporate into their sales contracts with 
Intermediary Customers \13\ the obligation that such customers will 
abide by the terms of the AD Agreement.\14\ Lastly, the signatory 
producers/exporters agree to ensure that Other Sugar \15\ is tested for 
polarity by a laboratory approved by CBP upon entry into the United 
States and that the importers of record report the polarity test 
results for each entry to Commerce within 30 days of entry.\16\
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    \9\ See amended AD Agreement at Section VI and Appendix I.
    \10\ Id. at Section VI.
    \11\ Id. at Sections VII.B.1, VII.B.2, and VII.B.4.
    \12\ Id. at Section VII.C.4.
    \13\ ``Intermediary Customer'' is defined in Section II.N of the 
AD Agreement.
    \14\ See AD Amendment at Section VII.C.5.
    \15\ ``Other Sugar'' is defined Section II.F of the AD 
Amendment.
    \16\ See AD Amendment at Section VII.C.6.
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    After reviewing the information received to date from the 
respondent companies in their questionnaire and supplemental 
questionnaire responses, we preliminarily determine that the 
respondents have adhered to the terms of the AD Agreement and that the 
AD Agreement is functioning as intended. Further, we preliminarily 
determine that the AD Agreement continues to meet the statutory 
requirements under sections 734(c) and (d) of the Act. However, 
Commerce is exploring additional measures to help prevent reporting and 
recordkeeping issues with regard to certain transactions that may serve 
to diminish the effective monitoring and enforcement of the AD 
Agreement. Commerce intends to address certain issues identified in 
this review by discussing these issues with the signatory Mexican 
producers/exporters and the GOM, as appropriate. We may request 
consultations pursuant to the AD 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.\17\
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    \17\ See Preliminary Decision Memorandum at 6 and footnote 47.
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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

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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 a questionnaire in lieu of on-site 
verification to each of the respondents in the review.\18\ Any issues 
that arose are addressed in the Preliminary Decision Memorandum and in 
the accompanying proprietary memorandum for each respondent.
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    \18\ See Commerce's Letter, ``Administrative Review of the 
Agreement Suspending the Antidumping Duty Investigation on Sugar 
from Mexico: In Lieu of On-Site Verification Questionnaire,'' dated 
November 23, 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.\19\ 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.\20\
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    \19\ 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).
    \20\ 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.\21\ 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.\22\ 
Parties should confirm by telephone the date, time, and location of the 
hearing two days before the scheduled date.
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    \21\ See 19 CFR 351.310(c).
    \22\ 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. 2022-00074 Filed 1-6-22; 8:45 am]
BILLING CODE 3510-DS-P