[Federal Register Volume 76, Number 34 (Friday, February 18, 2011)]
[Notices]
[Pages 9547-9549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3746]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-836]
Light-Walled Rectangular Pipe and Tube From Mexico; Final Results
of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: February 18, 2011.
SUMMARY: On September 13, 2010, the Department of Commerce (the
Department) published the preliminary results of the administrative
review of the antidumping duty order on light-walled rectangular pipe
and tube from Mexico. This first administrative review covers nine
manufacturers/exporters and has a period of review (POR) from January
30, 2008, through July 31, 2009. On January 6, 2011, the Department
published a notice in which it extended the time limit for completion
of the final results of the review until no later than February 10,
2011.
Based on our analysis of the comments received on the preliminary
results, we have made changes to the margin calculations for two
companies and, as a result, the final results of review differ from the
preliminary results for all companies. The final dumping margins for
all companies are listed below in the section entitled ``Final Results
of Review.''
FOR FURTHER INFORMATION CONTACT: John Drury/Brian Davis (Regiopytsa) or
Edythe Artman (Maquilacero), AD/CVD Operations, Office 7, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC
20230; telephone: (202) 482-0195, (202) 482-7924, or (202) 482-3931,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 13, 2010, the Department published the preliminary
results of the administrative review of the antidumping duty order on
light-walled rectangular pipe and tube from Mexico. See Light-Walled
Rectangular Pipe and Tube From Mexico: Preliminary Results of
Antidumping Duty Administrative Review, 75 FR 55559 (September 13,
2010) (Preliminary Results). This first administrative review of the
order covers sales of subject merchandise, as described in the ``Scope
of the Order'' section below, made during the POR from January 30,
2008, through July 31, 2009. Although we named nine companies in the
notice of initiation for this review,\1\ we only examined the
individual sales of two companies--Maquilacero S.A. de C.V.
(Maquilacero) and Regiomontana de Perfiles y Tubos S.A. de C.V.
(Regiopytsa). See ``Antidumping Duty Administrative Review of Light-
Walled Rectangular Pipe and Tube from Mexico: Respondent Selection
Memorandum'' from Ericka Ukrow, International Trade Compliance Analyst,
AD/CVD Operations, Office 7, to Richard O. Weible, Director, AD/CVD
Operations, Office 7, dated October 15, 2009 (Respondent Selection
Memorandum).
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\1\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews and Request for Revocation in Part, 74 FR
48224, 48225 (September 22, 2009).
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We invited parties to comment on the Preliminary Results (75 at
55567) and received case and rebuttal briefs from the respondent
companies, companies not selected for individual examination, and the
domestic interested parties.\2\ None of the parties requested a hearing
on the issues raised in comments.
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\2\ These parties identified themselves as Atlas Tube, Bull
Moose Tube Company, and Searing Industries, Inc., in their August
28, 2009, request for an administrative review.
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On January 6, 2011, the Department published a notice in which it
extended the limit for completion of the final results of review until
no later than February 10, 2011. See Light-Walled Rectangular Pipe and
Tube From Mexico: Extension of Time Limit for Final Results of
Antidumping Duty Administrative Review, 76 FR 774 (January 6, 2011).
Period of Review
The POR is from January 30, 2008, through July 31, 2009.
Scope of the Order
The merchandise that is the subject of this order is certain welded
carbon-quality light-walled steel pipe and tube,
[[Page 9548]]
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 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 this order is currently classified under the Harmonized Tariff
Schedule of the United States (HTSUS) subheadings 7306.61.50.00 and
7306.61.70.60. While HTSUS subheadings are provided for convenience and
Customs purposes, our written description of the scope of this order is
dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this antidumping duty administrative review are addressed in the
``Issues and Decision Memorandum for the Final Results of the
Antidumping Duty Administrative Review of Light-Walled Rectangular Pipe
and Tube from Mexico'' from Christian Marsh, Deputy Assistant Secretary
for Antidumping and Countervailing Duty Operations, to Ronald K.
Lorentzen, Deputy Assistant Secretary for Import Administration, dated
February 10, 2011 (Decision Memorandum), which is hereby adopted by
this notice. A list of all issues, which parties have raised and to
which we have responded, is in the Decision Memorandum and attached to
this notice as an appendix. The Decision Memorandum, which is a public
document, contains a complete discussion of the issues raised in the
review and their corresponding recommendations and is on file in the
Central Records Unit (CRU) of the main Department of Commerce building,
Room 7046. In addition, a complete version of the memorandum can be
accessed on the Internet at http://ia.ita.doc.gov/frn/index.html. The
paper copy and electronic version of the Decision Memorandum are
identical in content.
Rates for Non-Selected Companies
For reasons set forth in our Respondent Selection Memorandum, we
selected two companies, Maquilacero and Regiopytsa, for individual
examination of their sales of the subject merchandise to the United
States during the POR as permitted under section 777A(c)(2) of the
Tariff Act of 1930, as amended (the Act). For the final results, we
have not changed the basis of the rate we applied to companies not
selected for individual examination. In the Preliminary Results, we
assigned the simple-average margin of the selected companies because
Regiopytsa's public quantity-and-value sales information was indexed
(as permitted under 19 CFR 351.304(c)), thereby making it impossible
for us to calculate a weighted-average margin of the selected
companies. See Preliminary Results, 75 FR at 55567. Thus, for the final
results, we have continued to take the simple average of the revised
margins for Maquilacero and Regiopytsa and applied this rate to the
companies not selected for individual examination.
Changes Since the Preliminary Results
Based on our analysis of the comments received, we have made
revisions that have changed the results for all companies subject to
this review (i.e., including the companies named in the initiation
notice but not selected for examination of individual sales). Where the
revisions required corrections or modifications to programming language
or draft instructions to U.S. Customs and Border Protection (CBP), any
such changes have been detailed in company-specific analysis memoranda
and cost-adjustment memoranda for Maquilacero and Regiopytsa; all
memoranda are dated concurrently with this notice and are on file in
the CRU.
For Maquilacero, we have made the following revisions:
(1) We have adjusted the calculation of general and administrative
(G&A) expenses by disallowing an offset, which Maquilacero claimed for
revenue earned from a special project. We have also removed labor
expenses, related to the special project, from the calculation of
variable overhead expenses as a result of the offset disallowance. For
a discussion of these adjustments, see Comment 3 of the Decision
Memorandum.
(2) We have revised the draft liquidation instructions in order to
clarify that, for the gap period (i.e., July 28, 2008, through August
4, 2008), the CBP should terminate the suspension of liquidation of any
entries and liquidate the entries without regard to antidumping duties.
(We have similarly revised the draft liquidations instructions for
Regiopytsa and the companies not selected for individual examination.)
See Comment 4 of the Decision Memorandum.
(3) We have corrected the margin-calculation program so that
domestic inland freight and domestic brokerage and handling expenses
are converted from Mexican pesos to U.S.-dollar amounts before being
deducted from U.S. price. See Comment 5 of the Decision Memorandum.
For Regiopytsa, we have made the following changes:
(1) We have revised our calculation to follow the Department's
practice of basing the universe of sales on the entry date of export-
price sales, where this information has been made available to the
record. See Comment 2 of the Decision Memorandum.
(2) We have revised our calculation to follow the Department's
practice of capping sales-related revenues (in this case interest and
insurance revenues) to offset directly associated sales expenses. See
Comment 6 of the Decision Memorandum.
(3) We have modified the margin program to ensure that, for
products not produced in all six quarters, the total costs of
manufacturing reflect quarterly values for scrap cost, scrap revenue,
and the reconciliation adjustment, rather than values from the earliest
quarter of production. See Comment 7 of the Decision Memorandum.
Final Results of the Review
We determine that the following weighted-average or, if
appropriate, simple-average dumping margins exist on light-walled
rectangular pipe and tube from Mexico for the period January 30, 2008,
through July 31, 2009:
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\3\ On August 18, 2009, the Department determined that Ternium
Mexico, S.A. de C.V., is the successor-in-interest to Hylsa S.A. de
C.V. and should be treated as such for antidumping duty cash-deposit
purposes. See Final Results of Antidumping Duty Changed
Circumstances Review: Light-Walled Rectangular Pipe and Tube From
Mexico, 74 FR 41680 (August 18, 2009).
[[Page 9549]]
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Percentage
Manufacturer or exporter margin
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Maquilacero S.A. de C.V.................................... 3.11
Regiomontana de Perfiles y Tubos S.A. de C.V............... 9.15
Galvak S.A. de C.V......................................... 6.13
Hylsa S.A. de C.V.......................................... 6.13
Industrias Monterrey S.A. de C.V........................... 6.13
Nacional de Acero S.A. de C.V.............................. 6.13
Perfiles y Herrajes LM S.A. de C.V......................... 6.13
Productos Laminados de Monterrey S.A. de C.V............... 6.13
Ternium Mexico S.A. de C.V.\3\............................. 6.13
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Assessment Rates
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. In accordance with 19 CFR
351.212(b)(1), the Department normally calculates an assessment rate
for each importer of the subject merchandise covered by the review.
Because both Maquilacero and Regiopytsa reported the entered value for
all U.S. sales, we have calculated importer-specific, ad valorem duty
assessment rates based on the ratio of each importer's total amount of
antidumping duties calculated for the examined sales to the total
entered value of the sales for that importer. Where an assessment rate
is above de minimis (de minimis being less than 0.5 percent in a
review), we will instruct CBP to assess duties on all entries of
subject merchandise for that importer during the period from August 5,
2008, through July 31, 2009. For entries made during the provisional-
measures period (i.e., January 30, 2008, through July 27, 2008), we
will instruct CBP to liquidate the entries at the proper assessment
rates for Maquilacero and Regiopytsa, pursuant to section 737(a) of the
Act.
For the companies not selected for individual examination, we will
instruct CBP to apply the rates listed above and to the entries of
subject merchandise produced and/or exported by such companies and
entered during the period from August 5, 2008, through July 31, 2009.
The rates were obtained by averaging the cash-deposit rates calculated
for the companies selected for individual examination. For entries made
during the provisional-measures period, we will instruct CBP to apply
the lower of the rates calculated or assigned to the companies as a
result of our preliminary and final determinations for the less-than-
fair-value (LTFV) investigation, if the lower rate is above de minimis.
If the lower is below de minimis, we will instruct CBP to liquidate the
entries without assessment of antidumping duties. If a firm was not
assigned a company-specific rate as a result of our investigation, then
we will instruct CBP to apply the rate of 3.76 percent, the all-others
rate established by our amended final determination for the
investigation, as this rate was lower than the all-others rate
calculated for the preliminary determination. See Notice of Amended
Final Determination of Sales at Less Than Fair Value: Light-Walled
Rectangular Pipe and Tube From Mexico, 73 FR 45400, 45401 (August 5,
2008) (Amended Final Determination).
For any entries of subject merchandise made during the period from
July 28, 2008, through August 4, 2008, we will instruct CBP to
terminate the suspension of liquidation and to liquidate these entries
without regard to antidumping duties.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment
Notice). This clarification will apply to entries of subject
merchandise during the POR produced by companies included in these
final results of review for which these companies did not know that the
merchandise it sold to an intermediary 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. For a full discussion of this
clarification, see Assessment Notice.
Pursuant to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate
without regard to antidumping duties any entries for which the
assessment rate is de minimis. The Department intends to issue
assessment instructions directly to CBP 15 days after the publication
of these final results of review.
Cash-Deposit Requirements
The following cash-deposit requirements will be effective upon
publication of these final results of review for all shipments of the
subject merchandise entered or withdrawn from warehouse for consumption
on or after the date of publication, consistent with section 751(a)(1)
of the Act: (1) The cash-deposit rates for the reviewed companies will
be the rates listed above; (2) if the exporter is not a firm covered in
this review but that was covered in the less-than-fair-value (LTFV)
investigation, the cash-deposit rate will continue to be the company-
specific rate established in the investigation; (3) if the exporter is
not a firm covered in this review or the investigation but the
manufacturer is, the cash-deposit rate will be the rate established for
the manufacturer in the LTFV investigation; and (4) the cash-deposit
rate for all other manufacturers or exporters will continue to be 3.76
percent, the all-others rate published in the amended final
determination of the LTFV investigation. See Amended Final
Determination.
These deposit requirements shall remain in effect until further
notice.
Notifications to Interested Parties
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 the Department's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of doubled antidumping duties.
This notice also serves as a reminder to parties subject to
administrative protective orders (APOs) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the return or 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.
This notice is issued and published in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: February 10, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Appendix
1. Offsetting of Negative Margins
2. Inclusion of Sales Entered After Review Period
3. Revenue Offset to General and Administrative Expenses for a
Special Project
4. Clarification to Draft Liquidation Instructions for First Review
Period
5. Clerical Errors
A. Currency Conversion of Movement Expenses
B. Capping of Sales-Related Revenues
C. Indexing of the Department's Cost Adjustment and Scrap Cost
and Revenue on a Quarterly Basis
[FR Doc. 2011-3746 Filed 2-17-11; 8:45 am]
BILLING CODE 3510-DS-P