In 2018, imports of reinforcing bars from Mexico were valued at an estimated $51 million. The inquiry was initiated in response to requests from US domestic producers of rebar: Nucor Corporation, Gerdau Ameristeel US Inc., Commercial Metals Company, Cascade Steel Rolling Mills, Inc., Byer Steel Group, Inc., and Steel Dynamics, Inc.

If the DOC preliminarily determines that circumvention is occurring, it will instruct Customs and Border Protection to begin collecting cash deposits on rebar from Mexico that is subject to the inquiry. These duties will be imposed on future imports, and on any unliquidated entries since the date on which Commerce initiated this circumvention inquiry.

According to the US Department of Commerce, Deacero’s exports of the product with actual diameters less than 4.75 mm both produced or exported by Deacero S.A.P.I. de C.V are “circumventing the antidumping (AD) duty order on wire rod from Mexico.”

As a result of Deacero’s circumvention practices, the DOC said it is conducting an “anti-circumvention inquiry.”

“We preliminarily determine … that wire rod with an actual diameter less than 4.75 mm produced and/or exported by Deacero, constitutes merchandise altered in form or appearance in minor respects that should be considered subject to the order,” the preliminary inquiry decision said. “Therefore, we preliminarily determine that it is appropriate … to suspend any entries of wire rod with an actual diameter less than 4.75 mm produced and/or exported by Deacero,” the notice added.

Since the DOC made a “preliminary affirmative finding of circumvention order,” Deacero’s wire rod exports to the US will be directed to the US Customs and Border Protection (CBP), which will “suspend liquidation of entries” of the product.