[Federal Register Volume 87, Number 165 (Friday, August 26, 2022)]
[Notices]
[Pages 52509-52510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18472]



[[Page 52509]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-073, C-570-074]


Common Alloy Aluminum Sheet From the People's Republic of China: 
Initiation of Circumvention Inquiry of the Antidumping and 
Countervailing Duty Orders--4017 Aluminum Sheet

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

SUMMARY: In response to a circumvention inquiry request from the 
Aluminum Association Common Alloy Aluminum Sheet Working Group and its 
individual members, the U.S. Department of Commerce (Commerce) is 
initiating a country-wide circumvention inquiry to determine whether 
imports of aluminum sheet produced from aluminum alloy 4017 are 
circumventing the antidumping (AD) and countervailing duty (CVD) orders 
on common alloy aluminum sheet (CAAS) from the People's Republic of 
China (China).

DATES: Applicable August 26, 2022.

FOR FURTHER INFORMATION CONTACT: Frank Schmitt, 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) 482-4880.

SUPPLEMENTARY INFORMATION:

Background

    On July 7, 2022, the Aluminum Association Common Alloy Aluminum 
Sheet Working Group and its individual members (collectively, the 
domestic industry),\1\ requested that Commerce initiate a circumvention 
inquiry with regard to aluminum sheet produced from aluminum alloy 4017 
(4017 aluminum sheet) in, and exported from, China.\2\ The domestic 
industry alleges that 4017 aluminum sheet constitutes merchandise 
altered in form or appearance in minor respects, and therefore should 
be included within the scope of the Orders \3\ pursuant to section 
781(c) of the Tariff Act of 1930, as amended (the Act).\4\
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    \1\ The individual members of the Aluminum Association Common 
Alloy Aluminum Sheet Trade Enforcement Working Group are Arconic 
Corporation; Commonwealth Rolled Products, Inc.; Constellium Rolled 
Products Ravenswood, LLC; Jupiter Aluminum Corporation; JW Aluminum 
Company; and Novelis Corporation.
    \2\ See Domestic Industry's Letter, ``Common Alloy Aluminum 
Sheet from China--Domestic Industry request for Circumvention Ruling 
Pursuant to Section 781(c) of the tariff Act of 1930, as Amended,'' 
dated July 7, 2022 (Circumvention Allegation).
    \3\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Antidumping Duty Order, 84 FR 2813 (February 8, 2019); and 
Common Alloy Aluminum Sheet from the People's Republic of China: 
Countervailing Duty Order, 84 FR 2157 (February 6, 2019) 
(collectively, Orders).
    \4\ See 19 CFR 351.226(j).
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    On August 4, 2022, we extended the deadline to issue a decision 
regarding whether to initiate this circumvention inquiry by 15 days, in 
accordance with the 19 CFR 351.226(d)(1), to August 22, 2022.\5\
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    \5\ See Memorandum, ``Common Alloy Aluminum Sheet from the 
People's Republic of China (A-570-073, C-570-074): Extension of Time 
to Determine Whether to Initiate Circumvention Inquiry,'' dated 
August 4, 2022.
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Scope of the Orders

    The merchandise covered by the Orders 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. For a complete description of 
the scope of the Orders, see the appendix to this notice.

Merchandise Subject to the Circumvention Inquiry

    The merchandise subject to the circumvention inquiry is 4017 
aluminum sheet, having a thickness of 6.3 mm or less, but greater that 
0.2 mm, in coils or cut-to-length, regardless of width. According to 
the Domestic Industry, such 4017 aluminum sheet is a not clad aluminum 
sheet product whose chemical content has been modified from in-scope 
CAAS. All 4017 aluminum sheet that meets the scope description with 
respect to physical characteristics (other than principle alloying 
element) is subject to this inquiry. The subject 4017 aluminum sheet is 
currently classifiable under Harmonized Tariff Schedule of the United 
States subheading 7607.12.3096.

Statutory and Regulatory Framework

    Section 351.226(d)(1)(ii) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested party supporting these allegations.'' The domestic 
industry alleged circumvention pursuant to section 781(c) of the Act 
(merchandise altered in form or appearance in minor respects).
    In accordance with 19 CFR 351.226(m)(2), for companion antidumping 
and countervailing duty proceedings, ``the Secretary will initiate and 
conduct a single inquiry with respect to the product at issue for both 
orders only on the record of the antidumping proceeding.'' Further, 
once ``the Secretary issues a final circumvention determination on the 
record of the antidumping duty proceeding, the Secretary will include a 
copy of that determination on the record of the countervailing duty 
proceeding.'' Accordingly, once Commerce concludes this circumvention 
inquiry, Commerce intends to place its final circumvention 
determination on the record of the companion CVD proceeding.
    Section 781(c)(1) of the Act provides that the class or kind of 
merchandise subject to an AD or CVD order shall include articles that 
have been ``altered in form or appearance in minor respects . . . 
whether or not included in the same tariff classification.'' Section 
781(c)(2) of the Act provides an exception that section 781(c)(1) of 
the Act ``shall not apply with respect to altered merchandise if the 
administering authority determines that it would be unnecessary to 
consider the altered merchandise within the scope of the 
{order{time} .'' Concerning the allegation of minor alteration under 
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider 
criteria including, but not limited to: (1) overall physical 
characteristics of the merchandise; (2) expectations of ultimate users; 
(3) use of the merchandise; (4) channels of marketing; and (5) cost of 
any modification relative to the value of the imported products.

Analysis

    After analyzing the record evidence and the domestic industry's 
allegation, we determine that the circumvention request satisfies the 
requirements of 19 CFR 351.226(c) and that there is sufficient 
information to warrant initiation of a circumvention inquiry based on 
minor alterations, pursuant to section 781(c) of the Act and 19 CFR 
351.226(j). For a full discussion of the basis for our decision to 
initiate a circumvention inquiry, see the Initiation Decision 
Memorandum.\6\
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    \6\ See Memorandum, ``Common Alloy Aluminum Sheet from the 
People's Republic of China: Decision Memorandum for Initiation of 
Circumvention Inquiry on the Antidumping and Countervailing Duty 
Orders,'' dated concurrently with and hereby adopted by this notice 
(Initiation Decision Memorandum). This memorandum is a public 
document and is available electronically online via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized 
Electronic Service System (ACCESS) at https://access.trade.gov/public/FRNoticesListLayout.aspx.

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[[Page 52510]]

    As explained in the Initiation Decision Memorandum, the information 
provided by the domestic industry also warrants initiating this 
circumvention inquiry on a country-wide basis.\7\ Commerce has taken 
this approach in prior circumvention inquiries, when the facts 
warranted initiation on a country-wide basis.\8\
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    \7\ See Initiation Decision Memorandum at 8.
    \8\ See, e.g., Aluminum Extrusions from the People's Republic of 
China: Affirmative Final Determination of Circumvention of the 
Antidumping and Countervailing Duty Orders and Rescission of Minor 
Alterations Anti-Circumvention Inquiry, 82 FR 4630 (July 26, 2017), 
and accompanying Issues And Decision Memorandum, at Comment 4.
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    Commerce intends to establish a schedule for questionnaires and 
comments on the issues related to this inquiry. A company's failure to 
respond completely to Commerce's requests for information may result in 
the application of partial or total facts available, pursuant to 
section 776(a) of the Act, which may include adverse inferences, 
pursuant to section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify U.S. 
Customs and Border Protection (CBP) of this initiation and direct CBP 
to continue the suspension of liquidation of entries of products 
subject to this circumvention inquiry that were already subject to the 
suspension of liquidation under the Orders and to apply the cash 
deposit requirement at the rates that would be applicable if the 
products were determined to be covered by the scope of the Orders. 
Should Commerce issue preliminary or final circumvention 
determinations, Commerce will follow the suspension of liquidation 
rules under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and sections 781(c) and (d) of 
the Act, Commerce determines that the domestic industry's request for a 
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). 
Accordingly, Commerce is notifying all interested parties of the 
initiation of this circumvention inquiry to determine whether 4017 
aluminum alloy produced in, and exported from, China is circumventing 
the Orders. In addition, we have included a description of the products 
that are the subject to this inquiry and an explanation of Commerce's 
decision to initiate this inquiry as provided in the accompanying 
Initiation Decision Memorandum.\9\ In accordance with 19 CFR 
351.226(e)(1), Commerce intends to issue its preliminary circumvention 
determination no later than 150 days from the date of publication of 
the notice of initiation of this circumvention inquiry in the Federal 
Register.
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    \9\ See Initiation Decision Memorandum.
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    This notice is published in accordance with section 781(c) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: August 22, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Orders

    The merchandise covered by the Orders 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 Orders 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 Orders if performed in the country 
of manufacture of the common alloy sheet.
    Excluded from the scope of the Orders 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 the Orders 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 Orders is dispositive.

[FR Doc. 2022-18472 Filed 8-25-22; 8:45 am]
BILLING CODE 3510-DS-P