Light-Walled Rectangular Pipe and Tube From Mexico: Preliminary Results and Intent To Rescind, in Part, of Antidumping Duty Administrative Review; 2022-2023

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Federal RegisterSep 13, 2024
89 Fed. Reg. 74916 (Sep. 13, 2024)
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    Department of Commerce International Trade Administration
  • [A-201-836]
  • AGENCY:

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

    SUMMARY:

    The U.S. Department of Commerce (Commerce) is conducting an administrative review of the antidumping duty order on light-walled rectangular pipe and tube (LWRPT) from Mexico. We preliminarily determine that Maquilacero S.A. de C.V. (Maquilacero)/Tecnicas de Fluidos S.A. de C.V. (TEFLU) and Perfiles LM, S.A. de C.V. (Perfiles) made sales of subject merchandise at less than normal value during the period of review (POR) August 1, 2022, through July 31, 2023. Interested parties are invited to comment on these preliminary results.

    DATES:

    Applicable September 13, 2024.

    FOR FURTHER INFORMATION CONTACT:

    John Conniff or Charles Doss, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1009 or (202) 482-4474, respectively.

    SUPPLEMENTARY INFORMATION:

    Background

    On August 5, 2008, Commerce published in the Federal Register the antidumping duty order on LWRPT from Mexico. On October 18, 2023, in accordance with 19 CFR 351.221(c)(1)(i), Commerce published a notice of initiation for this administrative review. On April 16, 2024, we extended the deadline for the preliminary results to August 30, 2024. On July 22, 2024, Commerce tolled the deadline in this administrative proceeding by seven days. The deadline for the preliminary results is now September 6, 2024. For a complete description of the events that followed the initiation of this administrative review, see the Preliminary Decision Memorandum.

    See Light-Walled Rectangular Pipe and Tube from Mexico, the People's Republic of China and Republic of Korea: Antidumping Duty Orders; Light-Walled Rectangular Pipe and Tube from the Republic of Korea: Notice of Amended Final Determination of Sales at Less Than Fair Value,73 FR 45403 (August 5, 2008) ( Order).

    See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 88 FR 71829 (October 18, 2023) ( Initiation Notice).

    See Memorandum, “Extension of Deadline for Preliminary Results of Antidumping Duty Administrative Review,” dated April 16, 2024.

    See Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.

    See Memorandum, “Decision Memorandum for the Preliminary Results of the Administrative Review of the Antidumping Duty Order on Light-Walled Rectangular Pipe and Tube from Mexico; 2022-2023,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).

    Scope of the Order

    The products covered by the Order are light-walled rectangular pipe and tube from Mexico. For a complete description of the scope, see the Preliminary Decision Memorandum.

    Methodology

    Commerce is conducting this review in accordance with section 751(a)(2) of the Tariff Act of 1930, as amended (the Act). We calculated export price in accordance with section 772 of the Act. We calculated normal value in accordance with section 773 of the Act. For a full description of the methodology underlying these preliminary results, see the Preliminary Decision Memorandum. A list of topics discussed in the Preliminary Decision Memorandum is included as an appendix to this notice. 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.

    Intent To Rescind, In Part

    Pursuant to 19 CFR 351.213(d)(3), it is Commerce's practice to rescind an administrative review of an antidumping duty order where it determines that there were no suspended entries of subject merchandise during the POR. Normally, upon completion of an administrative review, the suspended entries are liquidated at the antidumping duty assessment rate for the review period. Therefore, for an administrative review to be conducted, there must be a suspended entry that Commerce can instruct U.S. Customs and Border Protection (CBP) to liquidate at the calculated antidumping duty assessment rate for the review period.

    See, e.g., Certain Carbon and Alloy Steel Cut-to Length Plate from the Federal Republic of Germany: Recission of Antidumping Administrative Review; 2020-2021,88 FR 4157 (January 24, 2023).

    See19 CFR 351.212(b)(1).

    See, e.g., Shanghai Sunbeauty Trading Co. v. United States, 380 F. Supp. 3d 1328, 1335-36 (CIT 2019), at 12 (referring to section 751(a) of the Act, the U.S. Court of International Trade (CIT) held that: “While the statute does not explicitly require that an entry be suspended as a prerequisite for establishing entitlement to a review, it does explicitly state the determined rate will be used as the liquidation rate for the reviewed entries. This result can only obtain if the liquidation of entries has been suspended. . . ;” see also Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2018-2019,86 FR 36102 (July 8, 2021), and accompanying IDM at Comment 4; and Solid Fertilizer Grade Ammonium Nitrate from the Russian Federation: Notice of Rescission of Antidumping Duty Administrative Review,77 FR 65532 (October 29, 2012) (noting that “for an administrative review to be conducted, there must be a reviewable, suspended entry to be liquidated at the newly calculated assessment rate”).

    As discussed in greater detail in the Preliminary Decision Memorandum, the POR entry totals reflected in the data query provided by U.S. Customs Border Protection (CBP) in the Attachment of the CBP Data Memorandum reflected no POR entries of subject merchandise from: (1) Arco Metal S.A. de C.V.; (2) Fabricaciones y Servicios de Mexico; (3) Galvak, S.A. de C.V.; (4) Grupo Estructuras y Perfiles; (5) Industrias Monterrey S.A. de C.V.; (6) Internacional de Aceros, S.A. de C.V.; (7) PEASA-Productos Especializados de Acero; (8) Talleres Acero Rey S.A. de C.V.; (9) Tuberias Aspe S.A. de C.V.; (10) Tuberia Laguna, S.A. de C.V.; and (11) Tuberias y Derivados S.A. de C.V.

    See Memorandum, “Release of Customs and Border Protection Data,” dated October 20, 2023 (CBP Data Memorandum).

    In the absence of any suspended entries of subject merchandise from these companies during the POR, Commerce hereby notifies all interested parties of its intent to rescind this administrative review with respect to these companies. Commerce is providing interested parties with an opportunity to submit comments on this preliminary decision, including factual information. Comments, including factual information, from interested parties are due to Commerce no later than 5:00 p.m. Eastern Time (ET) on September 13, 2024. Rebuttal comments, including rebuttal factual information, are due seven days thereafter, by 5:00 p.m. ET on September 20, 2024. All submissions must be filed electronically at https://access.trade.gov in accordance with 19 CFR 351.303.

    Rate for Non-Examined Companies

    For the rate for companies not selected for individual examination in an administrative review, generally, Commerce looks to section 735(c)(5) of the Act, which provides instructions for calculating the all-others rate in a less-than-fair-value investigation. Under section 735(c)(5)(A) of the Act, the all-others rate is normally “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 {on the basis of facts available}.” In this administrative review, we calculated weighted-average dumping margins for Perfiles and Maquilacero/TEFLU that are not zero, de minimis, or based entirely on total facts available. For the respondents that were not selected for individual examination in this administrative review, we have assigned to them the simple average of the weighted-average dumping margins calculated for Perfiles and Maquilacero/TEFLU, consistent with the guidance in section 735(c)(5)(B) of the Act.

    See Preliminary Decision Memorandum at “Companies Not Selected For Individual Examination;” see also Memorandum, “Calculation of Non-Selected Rate in Preliminary Results,” dated concurrently with this notice; and 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, 53663 (September 1, 2010).

    Preliminary Results of the Review

    Commerce preliminarily determines the following estimated weighted-average dumping margins exist for the POR:

    Producer/exporter Weighted- average dumping margin (percent)
    Maquilacero S.A. de C.V./Tecnicas de Fluidos S.A. de C.V. 20.30
    Perfiles LM, S.A. de C.V 6.66
    Aceros Cuatro Caminos S.A. de C.V./Productos Laminados de Monterrey S.A. de C.V. 13.73
    Nacional de Acero S.A. de C.V 13.73
    Regiomontana de Perfiles y Tubos S. de R.L. de C.V 13.73
    Ternium Mexico S.A. de C.V 13.73

    Commerce has previously found Maquilacero and TEFLU to comprise a single entity. See, e.g., Light-Walled Rectangular Pipe and Tube from Mexico: Final Results of Antidumping Duty Administrative Review; 2018-2019,86 FR 33646 (June 25, 2021), and accompanying Issues and Decision Memorandum (IDM) at Comment 9.

    Commerce has previously found Aceros Cuatro Caminos S.A. de C.V./Productos Laminados de Monterrey S.A. de C.V. to comprise a single entity. See, e.g., Light-Walled Rectangular Pipe and Tube from Mexico: Final Results of Antidumping Duty Administrative Review; 2015-2016,83 FR 10664 (March 12, 2018).