[Federal Register Volume 87, Number 72 (Thursday, April 14, 2022)]
[Notices]
[Pages 22186-22188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08010]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-847]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico: Final Results of Antidumping Duty Administrative Review; 2019-
2020

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

SUMMARY: The Department of Commerce (Commerce) finds 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, 2019, 
through August 31, 2020.

DATES: Applicable April 14, 2022.

FOR FURTHER INFORMATION CONTACT: 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) 482-3693.

SUPPLEMENTARY INFORMATION:

Background

    Commerce selected two companies, Maquilacero S.A. de C.V. 
(Maquilacero) and Productos Laminados de Monterrey S.A. de C.V. 
(Prolamsa) (collectively, the

[[Page 22187]]

respondents), for individual examination.\1\
---------------------------------------------------------------------------

    \1\ Commerce initiated this review covering 11 companies. In the 
Preliminary Results, we rescinded the review, in part, for nine of 
these companies. See Heavy Walled Rectangular Welded Carbon Steel 
Pipes and Tubes from Mexico: Preliminary Results and Partial 
Recission of Antidumping Duty Administrative Review; 2019-2020, 86 
FR 56689 (October 12, 2021) (Preliminary Results). As a result, 
these final results cover only Maquilacero and Prolamsa.
---------------------------------------------------------------------------

    On October 12, 2021, Commerce published the Preliminary Results and 
invited interested parties to comment.\2\ On November 12, 2021, 
Maquilacero, Nucor Tubular Products, Incorporated (Nucor), and Prolamsa 
filed case briefs.\3\ On November 24, 2021, Nucor, Maquilacero, and 
Prolamsa filed rebuttal briefs.\4\ For a description of the events that 
occurred since the Preliminary Results, see the Issues and Decision 
Memorandum.\5\
---------------------------------------------------------------------------

    \2\ See Preliminary Results.
    \3\ See Maquilacero's Letter, ``Maquilacero S.A. de C.V.'s Case 
Brief,'' dated November 12, 2021; see also Nucor's Letter, ``Nucor 
Tubular's Case Brief,'' dated November 12, 2021; and Prolamsa's 
Letter, ``Case Brief and Request to Participate in Heading, if 
Held,'' dated November 11, 2021.
    \4\ See Nucor's Letter, ``Nucor Tubular's Rebuttal Brief,'' 
dated November 24, 2021; see also Maquilacero's Letter, 
``Maquilacero S.A. de C.V.'s Rebuttal Brief,'' dated November 24, 
2021; and Prolamsa's Letter, ``Rebuttal Brief,'' dated November 26, 
2021.
    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of Antidumping Duty Administrative Review: Heavy 
Walled Rectangular Welded Carbon Steel Pipes and Tubes from Mexico; 
2019-2020,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

    Commerce conducted this administrative review in accordance with 
section 751 of the Tariff Act of 1930, as amended (the Act).

Scope of the Order

    The products covered by the order are heavy walled rectangular 
welded steel pipes and tubes from Mexico.\6\ 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.
---------------------------------------------------------------------------

    \6\ For a complete description of the scope of the order, see 
Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes from 
Mexico: Preliminary Results of Antidumping Duty Administrative 
Review; 2019-2020, 86 FR 56689 (October 12, 2021) (Preliminary 
Results), and accompanying Preliminary Decision Memorandum.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs are listed in the 
appendix to this notice and addressed in the Issues and Decision 
Memorandum. The Issues and 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 http://access.trade.gov. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

    Based on a review of the record and comments received from 
interested parties regarding our Preliminary Results, we made certain 
changes to the weighted-average dumping margin calculations for 
Maquilacero and Prolamsa for the final results.\7\
---------------------------------------------------------------------------

    \7\ See Issues and Decision Memorandum at 2-3.
---------------------------------------------------------------------------

Final Results of the Review

    We are assigning the following weighted-average dumping margins to 
the firms listed below for the period September 1, 2019, through August 
31, 2020:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                     Producers/exporters                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Maquilacero S.A. de C.V.....................................        0.52
Productos Laminados de Monterrey S.A. de C.V................        1.37
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose the calculations performed in 
connection with these final results to interested parties within five 
days of the date of publication of this notice, in accordance with 19 
CFR 351.224(b).

Assessment Rates

    Pursuant to section 751(a)(2)(C) of the Act, and 19 CFR 
351.212(b)(1), Commerce has determined, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries of subject merchandise in accordance with the final results of 
this review.
    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. 
Because Prolamsa did not report the actual entered value for its sales, 
we calculated the entered value in order to calculate the assessment 
rate. Where either a 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. 
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.\8\
---------------------------------------------------------------------------

    \8\ See section 751(a)(2)(C) of the Act.
---------------------------------------------------------------------------

    Commerce's ``reseller policy'' 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.\9\
---------------------------------------------------------------------------

    \9\ For a full discussion of this practice, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 
68 FR 23954 (May 6, 2003).
---------------------------------------------------------------------------

    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.\10\
---------------------------------------------------------------------------

    \10\ See section 751(a)(2)(C) of the Act.
---------------------------------------------------------------------------

    We intend to issue liquidation 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 cash 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

[[Page 22188]]

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.\11\ These 
deposit requirements, when imposed, shall remain in effect until 
further notice.
---------------------------------------------------------------------------

    \11\ 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 serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 double antidumping duties.

Administrative Protective Order

    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(a)(3), which continues to govern 
business proprietary information in this segment of the proceeding. 
Timely written 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.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(5).

    Dated: April 8, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Margin Calculations
IV. Discussion of the Issues
    Comment 1: Whether Non-Prime Merchandise is Within the Scope of 
the Order
    Comment 2: Treatment of Maquilacero's Further-Processed 
Downstream Sales
    Comment 3: Treatment of Abinsa S.A. de C.V.'s (Abinsa's) General 
and Administrative (G&A) Expenses
    Comment 4: Allocation of Maquilacero's Selling, General, and 
Administrative (SG&A) Expenses
    Comment 5: Treatment of Maquilacero's Non-Prime Products
    Comment 6: Adjustment to Maquilacero's Costs for Purchases From 
Affiliated Supplier
    Comment 7: Adjustment to Maquilacero's Costs for Variances and 
Discounts
    Comment 8: Adjustment to Maquilacero's Scrap Offset
    Comment 9: Level of Trade (LOT) for Prolamsa's Home Market Sales
    Comment 10: Inclusion of Non-Prime Costs of U.S. Products
    Comment 11: Treatment of Prolamsa's Home Market Downstream Sales
    Comment 12: Adjustment to Prolamsa's Costs for Purchases From 
Affiliated Supplier
V. Recommendation

[FR Doc. 2022-08010 Filed 4-13-22; 8:45 am]
BILLING CODE 3510-DS-P