[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33650-33652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13551]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-074]
Common Alloy Aluminum Sheet From the People's Republic of China:
Preliminary Results of Countervailing Duty Administrative Review,
Rescission of Review, in Part, and Intent To Rescind, in Part; 2018-
2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of common alloy aluminum sheet (aluminum sheet) from the
People's Republic of China (China). The period of review (POR) is April
23, 2018, through December 31, 2019.
DATES: Applicable June 25, 2021.
FOR FURTHER INFORMATION CONTACT: John McGowan or Natasia Harrison, 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) 482-3019 or (202)
482-1240, respectively.
SUPPLEMENTARY INFORMATION:
Background
On April 8, 2020, Commerce published a notice of initiation of an
administrative review of the countervailing duty (CVD) order \1\ on
aluminum sheet from China.\2\ On April 24, 2020, Commerce tolled all
deadlines in administrative reviews by 50 days.\3\ On July 21, 2020,
Commerce tolled all deadlines in administrative reviews by an
additional 60 days.\4\ On January 25, 2021, Commerce extended the
deadline for the preliminary results of this review until June 18,
2021.\5\
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\1\ See Common Alloy Aluminum Sheet from the People's Republic
of China: Countervailing Duty Order, 84 FR 2157 (February 6, 2019)
(Order).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 85 FR 19730 (April 8, 2020).
\3\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Administrative Reviews in Response to
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
\4\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
\5\ See Memorandum, ``Common Alloy Aluminum Sheet from the
People's Republic of China: Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review; 4/23/2018-12/
31/2019,'' dated January 25, 2021.
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Based on timely withdrawal of requests for administrative review,
Commerce intends to partially rescind the administrative review of two
entities.\6\ Therefore, concurrently with these preliminary results, we
are rescinding the review with respect to these companies.
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\6\ See Texarkana Aluminum, Inc.'s Letter, ``Common Alloy
Aluminum Sheet (CAAS) from China, Antidumping (AD) & Countervailing
Duty (CVD) Administrative Reviews,'' dated April 9, 2020; and
Domestic Industry's Letter, ``1st Administrative Review of the
Countervailing Duty Order on Common Alloy Aluminum Sheet from the
People's Republic of China--Domestic Industry's Withdrawal of
Certain Requests for Administrative Reviews,'' dated August 19,
2020.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\7\
A list of topics discussed in the Preliminary Decision Memorandum is
included at Appendix I of 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 System (ACCESS). ACCESS is available to
registered users at http://access.trade.gov. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/.
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\7\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Countervailing Duty Administrative Review of Common
Alloy Aluminum Sheet from the People's Republic of China; 2018-
2019,'' dated concurrently, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Order
The merchandise covered by the Order is aluminum sheet form China.
For a complete description of the scope of the Order, see Appendix II.
Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if the party or parties
that requested a review withdraw the request within 90 days of the
publication date of the notice of initiation of the requested review.
As noted above, all requests for administrative review were timely
withdrawn for certain companies. Therefore, in accordance with 19 CFR
351.213(d)(1), we are rescinding this administrative review with
respect to: Luoyang Longding Aluminium Industries Co., Ltd. and
Multipanel UK Ltd.
Intent To Rescind Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(3), we intend to rescind this review
following
[[Page 33651]]
the publication of the final results on the basis of no reviewable
suspended entries of subject merchandise, according to the U.S. Customs
and Border Protection (CBP) data, with respect to Teknik Aluminyum
Sanayi A.S. and Companhia Brasileira De Aluminio, which filed no
shipment letters,\8\ and with respect three additional companies (i.e.,
Choil Aluminum Co., Ltd; PMS Metal Profil Aluminyum San. Ve Tic. A.S.
Demirtas Organize Sanayi Bolgesi; and United Metal Coating LLC). See
the Preliminary Decision Memorandum for a full discussion.
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\8\ See Memorandum, ``Common Alloy Aluminum Sheet from the
People's Republic of China: Release of U.S. Customs and Border
Protection Data,'' dated April 16, 2020; see also Memorandum,
``Common Alloy Aluminum Sheet from the People's Republic of China;
No Shipment Inquiry for Teknik Aluminyum Sanayi A.S. and Companhia
Brasileira de Aluminio during the period 04/23/2018 through 12/31/
2019,'' dated June 11, 2021.
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Methodology
Commerce is conducting this administrative review in accordance
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the
Act). For each of the subsidy programs found countervailable, we
preliminarily find that there is a subsidy, i.e., a financial
contribution from an ``authority'' that confers a benefit to the
recipient, and that the subsidy is specific.\9\ For a full description
of the methodology underlying our preliminary conclusions, including
our reliance, in part, on adverse facts available (AFA) pursuant to
sections 776(a) and (b) of the Act, see the Preliminary Decision
Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5)(A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that the Government of China
did not act to the best of its ability to respond to Commerce's request
for information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available. For further
information, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum.
Preliminary Rate for Non-Selected Companies Under Review
There is one company for which a review was requested, that had
reviewable entries, and that was not selected for individual
examination as a mandatory respondent or found to be cross-owned with a
mandatory respondent. Because the rate calculated for the mandatory
respondent, Jiangsu Alcha Aluminum Co., Ltd. (Jiangsu Alcha),\10\ is
above de minimis and is not based entirely on facts available, we
applied the subsidy rate calculated for Jiangsu Alcha to this non-
selected company. This methodology to establish the subsidy rate for
the non-selected company is consistent with our practice and with
section 705(c)(5)(A) of the Act.\11\
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\10\ Jiangsu Alcha and its cross owned companies include Alcha
International Holdings Limited; Baotou Alcha Aluminum Co., Ltd.; and
Jiangsu Alcha New Energy Materials Co., Ltd.
\11\ The petitioners initially requested a review and did not
subsequently withdraw its request for review of one company: Yinbang
Clad Material Co., Ltd.
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Preliminary Results of Review
In accordance with 19 CFR 351.221(b)(4)(i), we calculated a
countervailable subsidy rate for the mandatory respondent Jiangsu
Alcha. We determined the countervailable subsidy rate for Mingtai
Industrial Co., Ltd./Zhengzhou Mingtai Industry Co. and Yong Jie New
Material Co., Ltd. based entirely on AFA, in accordance with section
776 of the Act. Therefore, the only rate that is not zero, de minimis,
or based entirely on facts otherwise available is the rate calculated
for Jiangsu Alcha. Consequently, as discussed above, we are assigning
to all other producers and exporters subject to this review but not
selected for individual examination (i.e., non-selected companies) the
rate calculated for Jiangsu Alcha.
Commerce preliminarily determines that, during the POR, the
following countervailable subsidy rates exist:
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Subsidy rate-- Subsidy rate--
2018 (percent 2019 (percent
Company ad valorem) ad valorem)
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Mingtai Industrial Co., Ltd./Zhengzhou * 275.98 * 275.98
Mingtai Industry Co.12.................
Jiangsu Alcha Aluminum Co., Ltd.13...... 36.76 30.64
Yong Jie New Material Co., Ltd.14....... * 275.98 * 275.98
Yinbang Clad Material Co., Ltd.15....... 36.76 30.64
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* Rate based on AFA.
Assessment Rate
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\12\ This rate applies to Mingtai Industrial Co., Ltd./Zhengzhou
Mingtai Industry Co. and their cross-owned company: Henan Gongdian
Thermal Co., Ltd. In the CVD investigation of aluminum sheet from
China, we made this cross-ownership finding. See Common Alloy
Aluminum Sheet from the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination, Alignment of Final
CVD Determination With Final Antidumping Duty Determination, and
Preliminary CVD Determination of Critical Circumstances, 83 FR 17651
(April 23, 2018), and accompanying Preliminary Decision Memorandum,
unchanged in Countervailing Duty Investigation of Common Alloy
Aluminum Sheet from the People's Republic of China: Final
Affirmative Determination, 83 FR 57427 (November 15, 2018), and
accompanying Issues and Decision Memorandum (collectively, Aluminum
Sheet from China Investigation). Accordingly, the subject
merchandise that was produced/exported by these companies entered
under a single CBP case number during the period of review.
\13\ This rate applies to Jiangsu Alcha and its cross-owned
companies.
\14\ This rate applies to Yong Jie New Material Co., Ltd. and
its cross-owned companies: Nanjie Resources Co., Ltd.; Shejiang
Nanjie Industry Co., Ltd, Zhejiang Yongjie Aluminum Co., Ltd. also
known as Zhejiang Yong Jie Aluminum Co., Ltd., and Zhejiang Yongjie
Holding Co., Ltd. In the Aluminum Sheet from China Investigation, we
made this cross-ownership finding. Accordingly, the subject
merchandise that was produced/exported by these companies entered
under a single CBP case number during the POR.
\15\ Yinbang Clad Material Co., Ltd. was not individually
examined during the POR and, therefore, has received the non-
selected company rate.
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Consistent with section 751(a)(2)(C) of the Act, upon issuance of
the final results, Commerce shall determine, and CBP shall assess,
countervailing duties on all appropriate entries covered by this
review. We intend to issue assessment instructions to CBP no earlier
than 35 days after the date of publication of the final results of this
review in the Federal Register. If a timely summons is filed at the
U.S. Court of International Trade, the assessment instructions will
direct CBP not to liquidate relevant entries until the time for parties
to file a request for a statutory injunction has expired (i.e., within
90 days of publication).
For the two companies for which this review is rescinded with these
preliminary results, Commerce will
[[Page 33652]]
instruct CBP to assess countervailing duties on all appropriate entries
at a rate equal to the cash deposit of estimated countervailing duties
required at the time of entry, or withdrawal from warehouse, for
consumption, during the period April 23, 2018, through December 31,
2018, in accordance with 19 CFR 351.212(c)(1)(i). Commerce intends to
issue appropriate assessment instructions directly to CBP no later than
35 days after publication of this notice in the Federal Register.
Cash Deposit Rate
Pursuant to section 751(a)(1) of the Act, Commerce intends to
instruct CBP to collect cash deposits of estimated countervailing
duties in the amount indicated above for 2019 with regard to shipments
of subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the date of publication of the final results of
this review. For all non-reviewed firms, we will instruct CBP to
continue to collect cash deposits of estimated countervailing duties at
the most recent company-specific or all-others rate applicable to the
company, as appropriate. These cash deposit instructions, when imposed,
shall remain in effect until further notice.
Disclosure and Public Comment
We will disclose to parties to this proceeding the calculations
performed in reaching the preliminary results within five days of the
date of publication of these preliminary results.\16\ Interested
parties may submit written comments (case briefs) within 30 days of
publication of the preliminary results and rebuttal comments (rebuttal
briefs) within seven days after the time limit for filing case
briefs.\17\ Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be
limited to issues raised in the case briefs. Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who submit arguments are requested to
submit with the argument: (1) A statement of the issue; (2) a brief
summary of the argument; and (3) a table of authorities.\18\ Note that
Commerce has modified certain of its requirements for serving documents
containing business proprietary information.\19\
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\16\ See 19 CFR 224(b).
\17\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1).
\18\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
\19\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Interested parties who wish to request a hearing must do so within
30 days of publication of these preliminary results by submitting a
written request to the Assistant Secretary for Enforcement and
Compliance using Enforcement and Compliance's ACCESS system.\20\
Requests should contain the party's name, address, and telephone
number, the number of participants, whether any participant is a
foreign national, and a list of the issues to be discussed. If a
request for a hearing is made, Commerce will inform parties of the
scheduled date of the hearing.\21\ Issues addressed during the hearing
will be limited to those raised in the briefs.\22\ Parties should
confirm by telephone the date, time, and location of the hearing two
days before the scheduled date. Parties are reminded that all briefs
and hearing requests must be filed electronically using ACCESS and
received successfully in their entirety by 5 p.m. Eastern Time on the
due date.
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\20\ See 19 CFR 351.310(c).
\21\ See 19 CFR 351.310.
\22\ See 19 CFR 351.310(c).
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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 the issues raised in the case briefs, within 120 days of publication
of these preliminary results in the Federal Register, pursuant to
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
Notification to Interested Parties
These preliminary results are issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.213
and 19 CFR 351.221(b)(4).
Dated: June 17, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Rescission of Administrative Review, In Part
IV. Intent To Rescind Review, In Part
V. Non-Selected Companies Under Review
VI. Scope of the Order
VII. Diversification of China's Economy
VIII. Subsidies Valuation
IX. Unequityworthiness
X. Interest Rates, Discount Rates, and Benchmarks
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Analysis of Programs
XIII. Recommendation
Appendix II--Scope of the Order
The merchandise covered by the Order is aluminum common alloy
sheet (common alloy sheet), which is a flat-rolled aluminum product
having a thickness of 6.3 mm or less, but greater than 0.2 mm, in
coils or cut-to-length, regardless of width. Common alloy sheet
within the scope of the Order includes both not clad aluminum sheet,
as well as multi-alloy, clad aluminum sheet. With respect to not
clad aluminum sheet, common alloy sheet is manufactured from a 1XXX-
, 3XXX-, or 5XXX-series alloy as designated by the Aluminum
Association. With respect to multi-alloy, clad aluminum sheet,
common alloy sheet is produced from a 3XXX-series core, to which
cladding layers are applied to either one or both sides of the core.
Common alloy sheet may be made to ASTM specification B209-14,
but can also be made to other specifications. Regardless of
specification, however, all common alloy sheet meeting the scope
description is included in the scope. Subject merchandise includes
common alloy sheet that has been further processed in a third
country, including but not limited to annealing, tempering,
painting, varnishing, trimming, cutting, punching, and/or slitting,
or any other processing that would not otherwise remove the
merchandise from the scope of the Order if performed in the country
of manufacture of the common alloy sheet.
Excluded from the scope of the Order is aluminum can stock,
which is suitable for use in the manufacture of aluminum beverage
cans, lids of such cans, or tabs used to open such cans. Aluminum
can stock is produced to gauges that range from 0.200 mm to 0.292
mm, and has an H-19, H-41, H-48, or H-391 temper. In addition,
aluminum can stock has a lubricant applied to the flat surfaces of
the can stock to facilitate its movement through machines used in
the manufacture of beverage cans. Aluminum can stock is properly
classified under Harmonized Tariff Schedule of the United States
(HTSUS) subheadings 7606.12.3045 and 7606.12.3055.
Where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set for the above.
Common alloy sheet is currently classifiable under HTSUS
subheadings 7606.11.3060, 7606.11.6000, 7606.12.3090, 7606.12.6000,
7606.91.3090, 7606.91.6080, 7606.92.3090, and 7606.92.6080. Further,
merchandise that falls within the scope of these investigations may
also be entered into the United States under HTSUS subheadings
7606.11.3030, 7606.12.3030, 7606.91.3060, 7606.91.6040,
7606.92.3060, 7606.92.6040, 7607.11.9090. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of the Order is dispositive.
[FR Doc. 2021-13551 Filed 6-24-21; 8:45 am]
BILLING CODE 3510-DS-P