83 FR 45211 - Light-Walled Rectangular Pipe and Tube From Mexico: Preliminary Results of Antidumping Duty Administrative Review; 2016-2017

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 173 (September 6, 2018)

The Department of Commerce (Commerce) preliminarily determines that Maquilacero S.A. de C.V. (Maquilacero) and Regiomontana de Perfiles y Tubos S.A. de C.V. (Regiopytsa) made sales of subject merchandise at less than normal value during the period of review (POR) August 1, 2016, through July 31, 2017. Interested parties are invited to comment on these preliminary results.

[Federal Register Volume 83, Number 173 (Thursday, September 6, 2018)]
[Notices]
[Pages 45211-45213]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19337]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-836]


Light-Walled Rectangular Pipe and Tube From Mexico: Preliminary 
Results of Antidumping Duty Administrative Review; 2016-2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Maquilacero S.A. de C.V. (Maquilacero) and Regiomontana de 
Perfiles y Tubos S.A. de C.V. (Regiopytsa) made sales of subject 
merchandise at less than normal value during the period of review (POR) 
August 1, 2016, through July 31, 2017. Interested parties are invited 
to comment on these preliminary results.

DATES: Applicable September 6, 2018.

FOR FURTHER INFORMATION CONTACT: Madeline Heeren or Kent Boydston, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-9179 or (202) 
482-5649, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On October 16, 2017, we published the notice of initiation for this 
administrative review.\1\ For a complete description of the events that 
followed the initiation of the review, see the Preliminary Decision 
Memorandum.\2\ Commerce exercised its discretion to toll deadlines for 
the duration of the closure of the Federal Government from January 20 
through 22, 2018,\3\ moving the deadline for the preliminary results to 
May 6, 2018.\4\ On April 5, 2018, we extended the time limit for 
completion of the preliminary results of the review to no later than 
August 31, 2018.\5\ A list of topics included in the Preliminary 
Decision Memorandum is included in the Appendix to this notice.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 48051 (October 16, 2017) (Initiation 
Notice).
    \2\ See Memorandum, ``Decision Memorandum for Preliminary 
Results of Antidumping Duty Administrative Review: Light-Walled 
Rectangular Pipe and Tube from Mexico; 2016-2017'', dated 
concurrently with this notice.
    \3\ If the new deadline falls on a non-business day, in 
accordance with Commerce's practice, the deadline will become the 
next business day.
    \4\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days. The new deadline falls on Sunday, May 6, 2018. 
The next business day is Monday, May 7, 2018.
    \5\ See Memorandum, ``Light-Walled Rectangular Pipe and Tube 
form Mexico: Extension of Deadline for Preliminary Results of 
Antidumping Duty Administrative Review; 2016/2017,'' dated April 5, 
2018.
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    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 and 
to all parties in the Central Records Unit, located in room B8094 of 
the main Department of Commerce building. 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.

Scope of the Order

    The scope of this order covers certain welded carbon-quality light-
walled steel pipe and tube, of rectangular (including square) cross 
section, having a wall thickness of less than 4 mm. The term carbon-
quality steel includes both carbon steel and alloy steel which contains 
only small amounts of alloying elements. Specifically, the term carbon-
quality includes products in which none of the elements listed below 
exceeds the quantity by weight respectively indicated; 1.80 percent of 
manganese, or 2.25 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 0.10 percent of molybdenum, or 0.10 percent of 
niobium, or 0.15 percent of vanadium, or 0.15 percent of zirconium.
    The description of carbon-quality is intended to identify carbon-
quality products within the scope. The welded-carbon quality 
rectangular pipe and tube subject to the order is currently classified 
under the Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings 7306.61.50.00 and 7306.61.70.60. This tariff classification 
is provided for convenience and Customs purposes; however, the written 
description of the scope of the order is dispositive.

Methodology

    Commerce is conducting this review in accordance with sections 
751(a)(1)(B) and (2) of the Tariff Act of 1930, as amended (the Act). 
Export price was calculated in accordance with section 772 of the Act. 
Normal value was calculated in accordance with section 773 of the Act. 
For a full description of the methodology underlying our conclusions, 
see the Preliminary Decision Memorandum.

Preliminary Results of Review

    We preliminarily determine that, for the period August 1, 2016, 
through July 31, 2017, the following weighted-average dumping margins 
exist:

------------------------------------------------------------------------
                                                             Weighted-
                    Producer/Exporter                     average margin
                                                             (percent)
------------------------------------------------------------------------
Maquilacero S.A. de C.V.................................            4.48
Perfiles y Herrajes LM, S.A. de C.V.\6\.................           10.80
Productos Laminados de Monterrey S.A. de C.V............           10.80
Regiomontana de Perfiles y Tubos S.A. de C.V............           16.23
------------------------------------------------------------------------

Disclosure and Public Comment

    We will disclose to parties to the proceeding any calculations 
performed in connection with these preliminary results of review within 
five days after the date of publication of this notice.\7\ Interested 
parties may submit case briefs not later than 30 days after the date of 
publication of this notice in the Federal Register.\8\ Rebuttal briefs, 
limited to issues raised in the case briefs, may be filed not later 
than five days after the date for filing case briefs.\9\ Parties who 
submit case or rebuttal briefs in this proceeding are encouraged to 
submit with each argument: (1) A statement of

[[Page 45212]]

the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\10\ Case and rebuttal briefs should be filed using 
ACCESS.\11\
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    \6\ See Light-Walled Rectangular Pipe and Tube from Mexico: 
Initiation and Expedited Preliminary Results of Changed 
Circumstances Review, 82 FR 54322 (November 17, 2017) and 
accompanying Preliminary Decision Memorandum, unchanged in Light-
Walled Rectangular Pipe and Tube from Mexico: Final Results of 
Changed Circumstances Review, 83 FR 13475 (March 29, 2018) (Commerce 
determined that Perfiles LM, S.A. de C.V. is the successor-in-
interest to Perfiles y Herrajes).
    \7\ See 19 CFR 351.224(b)
    \8\ See 19 CFR 351.309(c)(1)(ii).
    \9\ See 19 CFR 351.309(d)(1).
    \10\ See 19 CFR 351.309(c)(2) and (d)(2).
    \11\ See 19 CFR 351.303.
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    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance within 30 days of the date of publication of this 
notice.\12\ Requests should contain: (1) The party's name, address and 
telephone number; (2) the number of participants; and (3) a list of 
issues parties intend to discuss. Issues raised in the hearing will be 
limited to those raised in the respective case and rebuttal briefs. If 
a request for a hearing is made, we intend to hold the hearing at the 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230, at a date and time to be determined.\13\ Parties should 
confirm by telephone the date, time, and location of the hearing two 
days before the scheduled date.
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    \12\ See 19 CFR 351.310(c)
    \13\ See 19 CFR 351.310(d).
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    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of all issues raised in the case and rebuttal briefs, within 120 days 
of publication of these preliminary results in the Federal Register, 
pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results, Commerce will determine, and 
U.S. Customs and Border Protection (CBP) shall assess, antidumping 
duties on all appropriate entries covered by this review.\14\ If a 
respondent's weighted-average dumping margin is not zero or de minimis 
in the final results of this review and the respondent reported 
reliable entered values, we will calculate importer-specific ad valorem 
assessment rates for the merchandise based on the ratio of the total 
amount of dumping calculated for the examined sales made during the 
period of review to each importer to the total entered value of those 
same sales in accordance with 19 CFR 351.212(b)(1). If the respondent 
has not reported reliable entered values, we will calculate a per-unit 
assessment rate for each importer by dividing the total amount of 
dumping for the examined sales made during the period of review to that 
importer by the total sales quantity associated with those 
transactions. Where an importer-specific ad valorem assessment rate is 
zero or de minimis, we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties in accordance with 19 CFR 
351.106(c)(2). If the respondent's weighted-average dumping margin is 
zero or de minimis in the final results of review, we will instruct CBP 
not to assess duties on any of its entries in accordance with the Final 
Modification for Reviews, i.e., `` {w{time} here the weighted-average 
margin of dumping for the exporter is determined to be zero or de 
minimis, no antidumping duties will be assessed.'' \15\
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    \14\ See 19 CFR 351.212(b)(1).
    \15\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8102 (February 14, 
2012) (Final Modification for Reviews).
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    Regarding entries of subject merchandise during the period of 
review that were produced by Maquilacero and Regiopytsa and for which 
they did not know that the merchandise was destined for the United 
States, we will instruct CBP to liquidate un-reviewed entries at the 
all-others rate of 3.76 percent, as established in the less-than-fair-
value investigation of the order, if there is no rate for the 
intermediate company(ies) involved in the transaction.\16\ For a full 
discussion of this matter, see Assessment Policy Notice.\17\
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    \16\ See Certain Steel Nails from the Republic of Korea, 
Malaysia, the Sultanate of Oman, Taiwan, and the Socialist Republic 
of Vietnam: Antidumping Duty Orders, 80 FR 39994 (July 13, 2015).
    \17\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment Policy Notice).
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    For the firms covered by this review, we intend to issue 
liquidation instructions to CBP 15 days after publication of the final 
results of this review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review 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 Maquilacero and 
Regiopytsa and other companies listed above will be equal to the 
weighted-average dumping margin established in the final results of 
this administrative review; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recently completed 
segment of this proceeding in which they were reviewed; (3) if the 
exporter is not a firm covered in this review, a prior review, or in 
the investigation but the producer is, the cash deposit rate will be 
the 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 
the all-others rate of 3.76 percent. These cash deposit requirements, 
when imposed, shall remain in effect until further notice.

Notification to Importers

    This notice also serves as a 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 the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

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)(4).

    Dated: August 29, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Companies Not Selected for Individual Examination
5. Discussion of the Methodology
6. Date of Sale
7. Comparisons to Normal Value
    A. Determination of Comparison Method
    B. Results of the Differential Pricing Analysis
8. Product Comparisons
9. Export Price
10. Normal Value
    A. Home Market Viability as Comparison Market
    B. Level of Trade
    C. Sales to Affiliates
    D. Cost of Production
    1. Calculation of Cost of Production
    2. Test of Comparison Market Sales Prices
    3. Results of the Cost of Production Test
    E. Calculation of Normal Value Based on Comparison Market Prices
    F. Price-to-Constructed Value Comparison
11. Currency Conversion

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12. Recommendation

[FR Doc. 2018-19337 Filed 9-5-18; 8:45 am]
 BILLING CODE 3510-DS-P