[Federal Register Volume 88, Number 70 (Wednesday, April 12, 2023)]
[Notices]
[Pages 21998-21999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07705]


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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: 
Preliminary Affirmative Determination of Circumvention

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that imports of aluminum sheet produced from aluminum alloy 
4017 (4017 aluminum sheet) from the People's Republic of China (China) 
are circumventing the antidumping (AD) and countervailing duty (CVD) 
orders on Common Alloy Aluminum Sheet (CAAS) from China.

DATES: Applicable April 12, 2023.

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 February 6 and 8, 2019, respectively, Commerce published the CVD 
and AD orders on imports of CAAS from China.\1\ On July 7, 2022, the 
Aluminum Association Common Alloy Aluminum Sheet Trade Enforcement 
Working Group and its individual members (collectively, the domestic 
industry) \2\ requested that Commerce initiate a circumvention inquiry 
with regard to 4017 aluminum sheet that is exported to the United 
States from China.\3\ In its Circumvention Request, the domestic 
industry alleged that 4017 aluminum sheet constitutes merchandise 
altered in form or appearance in such minor respects that it should be 
included within the scope of the Orders, pursuant to section 781(c) of 
the Tariff Act of 1930, as amended, (the Act) and 19 CFR 351.226(j).\4\ 
The domestic industry requested that Commerce conduct this 
circumvention inquiry on a country-wide basis.\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); 
and Common Alloy Aluminum Sheet from the People's Republic of China: 
Antidumping Duty Order, 84 FR 2813 (February 8, 2019) (collectively, 
Orders).
    \2\ The individual members of 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.
    \3\ See Domestic Industry's Letter, ``Request for Circumvention 
Ruling Pursuant to Section 781(C) of the Tariff Act of 1930, as 
amended,'' dated July 7, 2020 (Circumvention Request).
    \4\ Id.
    \5\ Id. at 20.
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    On August 26, 2022, Commerce published in the Federal Register the 
notice of initiation of this circumvention inquiry.\6\ In the 
Initiation Notice, Commerce initiated the circumvention inquiry on the 
basis of the minor alterations allegation, pursuant to section 781(c) 
of the Act and 19 CFR 351.226(j).\7\ Commerce initiated the inquiry on 
a country-wide basis.\8\ For a complete description of events that 
followed the initiation of this inquiry, see the Preliminary Decision 
Memorandum.\9\
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    \6\ See 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, 87 FR 52509 (August 
26, 2022) (Initiation Notice), and accompanying Initiation Decision 
Memorandum.
    \7\ Id.
    \8\ Id.
    \9\ See Memorandum, ``Common Alloy Aluminum Sheet from the 
People's Republic of China: Preliminary Affirmative Determination of 
Circumvention for 4017 Aluminum Sheet,'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Orders

    The merchandise covered by the Orders is common alloy aluminum 
sheet from China. For a complete description of the scope of the 
Orders, see the Preliminary Decision Memorandum.

Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers aluminum sheet produced from 
aluminum alloy 4017 produced in China and exported to the United 
States. A complete description of the merchandise subject to the 
circumvention inquiry is contained in the Preliminary Decision 
Memorandum.

Methodology

    Commerce is conducting this circumvention inquiry pursuant to 
section 781(c) of the Act and 19 CFR 351.226(j). For a complete 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Preliminary Affirmative Determination of Circumvention

    As detailed in the Preliminary Decision Memorandum, we 
preliminarily determine that 4017 aluminum sheet produced in China and 
exported to the United States constitutes merchandise altered in form 
or appearance in such minor respects that it should be included within 
the scope of the Orders, pursuant to section 781(c) of the Act and 19 
CFR 351.226(j). We also preliminarily determine that this affirmative 
circumvention finding should be applied on a country-wide basis.

Use of Adverse Facts Available

    Pursuant to section 776(a) of the Act, if the necessary information 
is not available on the record, or an interested party withholds 
requested information, fails to provide requested information by the 
deadline or in the form and manner requested, or significantly impedes 
a proceeding, Commerce shall use the facts otherwise available in 
reaching the applicable determination. Moreover, pursuant to section 
776(b) of the Act, Commerce may use inferences adverse to the interests 
of an interested party in selecting from among the facts otherwise 
available if the party fails to cooperate by not acting to the best of 
its ability to provide requested information.
    Commerce requested quantity and value (Q&V) information from eleven 
companies including Chalco Ruimin Co Ltd (Chalco Ruimin); Chalc-Swa 
Cold Rolling Co. Ltd (Chalc-Swa Cold Rolling); Jiangsu Alcha Aluminum 
Co Ltd (Jiangsu Alcha); Nanjie Resources Co Limited (Nanjie Resources); 
and Yantai Jintai International Trade Co.,

[[Page 21999]]

Ltd. (Yantai Jintai).\10\ Commerce also requested information in a 
circumvention questionnaire from Zhengzhou Mingtai Aluminum Industry 
Co., Ltd. and Henan Mingtai Aluminum Industry Co., Ltd. (collectively, 
Mingtai),\11\ the producer/exporter that accounted for the substantial 
majority of entries of inquiry merchandise during the relevant period. 
In the Q&V questionnaire and circumvention questionnaire,\12\ Commerce 
explained that failure to respond may result in the presumption that 
the company failed to cooperate by not acting to the best of its 
ability to comply with the request for information, and Commerce may 
use an inference that is adverse to the company's interests in 
selecting from the facts otherwise available, in accordance with 
section 776(b) of the Act. Chalco Ruimin, Chalc-Swa Cold Rolling, 
Jiangsu Alcha, Nanjie Resources, and Yantai Jintai failed to respond to 
Commerce's quantity and value questionnaire, and Mingtai failed to 
respond to Commerce's circumvention questionnaire.
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    \10\ See Memorandum, ``Notification of Issuance of Quantity and 
Value Questionnaires to Certain Chinese Companies,'' dated September 
28, 2022 (Notification of Q&V Memorandum).
    \11\ Mingtai was the sole mandatory respondent selected for 
individual examination; see Memorandum, ``Respondent Selection,'' 
dated December 1, 2022.
    \12\ See Notification of Q&V Memorandum at Attachment 1; see 
also Commerce's Letter, ``Circumvention Inquiry,'' dated January 19, 
2023, at 3.
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    Therefore, we preliminarily find that necessary information is not 
available on the record and that Chalco Ruimin, Chalc-Swa Cold Rolling, 
Jiangsu Alcha, Nanjie Resources, Yantai Jintai, and Mingtai failed to 
provide requested information by the deadline or in the form and manner 
requested, and significantly impeded this inquiry pursuant to sections 
776(a)(1) and (2)(A)-(C) of the Act. Moreover, we find that these 
companies failed to cooperate by not acting to the best of their 
ability to provide the requested information because they did not 
provide a timely response to Commerce's questionnaires. Consequently, 
for this preliminary determination we are relying on adverse inferences 
with respect to Chalco Ruimin, Chalc-Swa Cold Rolling, Jiangsu Alcha, 
Nanjie Resources, Yantai Jintai, and Mingtai in selecting from among 
the facts otherwise available on the record, pursuant to section 776(b) 
of the Act.
    For details regarding the adverse facts available used in this 
preliminary determination, see the Preliminary Decision Memorandum.

Suspension of Liquidation

    In accordance with 19 CFR 351.226(l)(2), we will direct U.S. 
Customs and Border Protection (CBP) to continue the suspension of 
liquidation of previously suspended entries and to suspend liquidation 
of all entries of 4017 aluminum sheet produced in and exported from 
China that are entered, or withdrawn from warehouse, for consumption on 
or after August 26, 2022 (i.e., the date of the publication of the 
Initiation Notice).\13\ Pursuant to 19 CFR 351.226(l)(2), we will also 
instruct CBP to require AD and CVD cash deposit rates in effect for 
CAAS for each unliquidated entry of 4017 aluminum sheet produced in and 
exported from China that have been entered, or withdrawn from 
warehouse, for consumption on or after August 26, 2022.\14\ These 
suspension of liquidation instructions and cash deposit requirements 
will remain in effect until further notice.
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    \13\ See Initiation Notice.
    \14\ See Orders.
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Public Comments

    Pursuant to 19 CFR 351.226(f)(4), interested parties may submit 
case briefs or other written comments within 14 days of the date of 
publication of this notice; seven days thereafter, interested parties 
may submit rebuttal comments. In accordance with 19 CFR 351.226(f)(4), 
no new factual information will be accepted in the comments or rebuttal 
comments.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance within 30 days after the date of publication 
of this notice. Requests should contain: (1) the party's name, address, 
and telephone number; (2) the number of participants; (3) whether any 
participant is a foreign national; and (4) a list of the issues to be 
discussed. If a request for a hearing is made, parties will be notified 
of the date and time for the hearing at a later date. Parties should 
confirm by telephone the date, time, and location of the hearing two 
days before the scheduled date of the hearing.
    All submissions must be filed electronically and received 
successfully in their entirety via ACCESS by 5:00 p.m. Eastern Time on 
the date that they are due. Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information, until further notice.\15\
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    \15\ 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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Notification to Interested Parties

    This determination is published in accordance with section 781(c) 
of the Act and 19 CFR 351.226(g)(1).

    Dated: April 6, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework: Minor Alterations
VI. Use of Facts Available and Adverse Inferences
VII. Circumvention Analysis
VIII. Preliminary Affirmative Determination of Circumvention
IX. Country-Wide Determination
X. Recommendation

[FR Doc. 2023-07705 Filed 4-11-23; 8:45 am]
BILLING CODE 3510-DS-P