AD: Mexico Gray Portland Cement and Clinker
The International Trade Administration (ITA) has issued a notice announcing that, along with the U.S. Trade Representative (USTR), it has entered into an agreement with the Secretaria de Economia of Mexico (SE) pertaining to imports of gray portland cement and clinker from Mexico (Mexican cement).
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The agreement is scheduled to become effective April 3, 2006, provided certain specified events have occurred, and will expire on March 31, 2009, at which time the ITA will revoke the AD duty order on Mexican cement, effective April 1, 2009, if all the terms of the agreement are complied with by interested parties.
New AD cash deposit rate for CEMEX & GCCC effective April 3, 2006. The ITA will issue instructions to U.S. Customs and Border Protection (CBP) to change the estimated AD duty deposit rate for CEMEX S.A. de C.V. (CEMEX) and GCC Cemento, S.A. de C.V. (GCCC) to $3.00 per metric ton as of April 3, 2006 (from $26.28 per metric ton). (The ITA intends to publish a notice in the Federal Register within 10 days of April 3, 2006 amending the final results of the 14th AD duty administrative review and announcing the new deposit rate. See ITT's Online Archives or 01/23/06 news, 06012335, for BP summary of the final results of this AD duty administrative review.)
Three Year Sub-Regional Export System to be Established
According to the ITA, the agreement provides a system whereby, for the three-year period beginning on April 3, 2006, Mexican exporters of subject merchandise will be subject to specific sub-regional export limits as follows:
Licenses from Mexico, license numbers from ITA must be obtained. Mexican exporters will be required to obtain, prior to entry, an export license issued by the Government of Mexico. Importers of Mexican Cement will be required to apply for an import license number issued by the ITA. The ITA states that it will establish an automatic import licensing system for Mexican cement.
Export license and import license number must be provided to CBP. Both a copy of the export license and the import license number must be provided to CBP when the importer files Customs Form 7501.
Three export limit periods. Under the agreement, exports of Mexican cement will be administered in three "export limit periods" which cover the following time periods: (1) the first export limit period will begin April 3, 2006 and end on March 31, 2007, (2) the second export limit period will begin on April 1, 2007 and end on March 31, 2008, and (3) the third export limit period will begin on April 1, 2008 and end on March 31, 2009.
Sub-regional export limits for first export limit period. The ITA states that SE will ensure that no Mexican cement is exported (based on the date of export) from Mexico to the U.S. in a quantity that exceeds the following export limits for the first export limit period (i.e., 04/03/06 - 03/31/07):
| Sub-region | Limit |
|---|---|
| Alabama/Mississippi | 55,000 metric tons |
| Arizona | 1,250,000 metric tons |
| California | 150,000 metric tons |
| Florida | 200,000 metric tons |
| New Mexico/El Paso | 725,000 metric tons |
| New Orleans | 280,000 metric tons |
| Texas | 215,000 metric tons |
| Rest of U.S. | 125,000 metric tons |
| Total | 3,000,000 metric tons |
(See ITA notice for details of future export limit increases/decreases, carry over, carry back, etc.)
Agreement Settles/Suspends Litigation, ITA Compromises Certain AD Claims
Agreement provides for settlement or suspension of ongoing NAFTA & WTO litigation, etc. Under its terms, the agreement settles or suspends the North American Free Trade Agreement (NAFTA) litigation of the 6th and 8th-14th AD duty administrative reviews for Mexican cement, as well as the 2000 sunset review, and two challenges involving the International Trade Commission (ITC). In addition, a challenge before the World Trade Organization (WTO) is suspended.
ITA compromises claims for duties with respect to entries not currently in litigation. The parties requesting the 15th AD duty administrative review of subject merchandise (for the time period 08/01/04 - 07/31/05) have requested rescission of that review. The ITA has agreed to compromise its claims for duties with respect to entries of Mexican cement covered by both that review period as well as entries of subject merchandise that entered the U.S. from August 1, 2005 through April 2, 2006.
Liquidation of Certain CEMEX and GCCC Entries of Mexican Cement
Liquidation of certain CEMEX and GCCC entries. The ITA has issued instructions to CBP to liquidate entries of Mexican Cement produced by CEMEX or GCCC that were imported by CEMEX Cement, Gulf Coast Portland Cement, and GCC Rio Grande (listed on CBP Form 4811 designating SunTrust Bank as the agent), at the rate of $0.10 per metric ton, and to refund to the Escrow Accounts the deposits of estimated duties in excess of that rate, with all accrued interest thereon.
Liquidation of certain CEMEX and GCCC entries between August 1, 2004 and April 2, 2006. The ITA, CEMEX Cement, Gulf Coast Portland Cement, and GCC Rio Grande have entered into settlement agreements that take effect on April 3, 2006, providing for the liquidation of all entries of Mexican Cement produced by CEMEX and GCCC entered from August 1, 2004, through April 2, 2006, at the rate of $0.10 per metric ton.
-the ITA intends to publish various notices detailing certain aspects of this agreement in the Federal Register within 10 days of April 3, 2006.
ITA Contact - Sally Gannon (202) 482-0162
ITA Notice (FR Pub 03/14/06) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-3531.pdf