81 FR 79444 - Aluminum Extrusions From the People's Republic of China: Affirmative Preliminary Determination of Circumvention of the Antidumping and Countervailing Duty Orders and Intent To Rescind Minor Alterations Anti-Circumvention Inquiry

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 219 (November 14, 2016)

The Department of Commerce (the Department) preliminarily determines that heat-treated extruded aluminum products that meet the chemical specifications for 5050-grade aluminum alloy, regardless of producer, exporter, or importer, constitute later-developed merchandise, and are circumventing the antidumping (AD) and countervailing duty (CVD) orders on aluminum extrusions from the People's Republic of China (PRC). The Department also preliminarily intends to rescind its minor alterations anti-circumvention.

[Federal Register Volume 81, Number 219 (Monday, November 14, 2016)]
[Notices]
[Pages 79444-79446]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27346]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-967, C-570-968]


Aluminum Extrusions From the People's Republic of China: 
Affirmative Preliminary Determination of Circumvention of the 
Antidumping and Countervailing Duty Orders and Intent To Rescind Minor 
Alterations Anti-Circumvention Inquiry

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

[[Page 79445]]

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that heat-treated extruded aluminum products that meet the 
chemical specifications for 5050-grade aluminum alloy, regardless of 
producer, exporter, or importer, constitute later-developed 
merchandise, and are circumventing the antidumping (AD) and 
countervailing duty (CVD) orders on aluminum extrusions from the 
People's Republic of China (PRC). The Department also preliminarily 
intends to rescind its minor alterations anti-circumvention.

DATES: Effective November 14, 2016.

FOR FURTHER INFORMATION CONTACT: Scott Hoefke or Erin Kearney, AD/CVD 
Operations, Office VI, Enforcement & Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC, 20230; telephone: (202) 482-
4947 or (202) 482-0167, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Based on a request from Aluminum Extrusions Fair Trade Committee 
(Petitioner),\1\ on March 21, 2016, the Department initiated its anti-
circumvention inquiry \2\ pursuant to sections 781(c) and (d) of the 
Tariff Act of 1930, as amended (the Act) to determine whether extruded 
aluminum products that meet the chemical specifications for 5050-grade 
aluminum alloy, which are heat-treated, and are exported by China 
Zhongwang Holdings Ltd. and its affiliates (collectively, Zhongwang), 
are circumventing the AD and CVD orders on aluminum extrusions from the 
PRC.\3\ We also indicated in our Initiation Notice that we intended to 
consider whether the inquiry should apply to all such imports of 
extruded aluminum products, regardless of producer, exporter, or 
importer, from the PRC. During the course of the proceeding, the 
Department issued a questionnaire to Zhongwang, who did not respond, 
and also received additional factual information and comments from 
Petitioner and Endura Products Inc., a domestic interested party.
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    \1\ See Letter to the Secretary from Petitioner, ``Aluminum 
Extrusions from the People's Republic of China: Resubmission of 
Circumvention Inquiry Request Pursuant to the Department's 
Request,'' dated December 30, 2015.
    \2\ See Aluminum Extrusions from the People's Republic of China: 
Initiation of Anti-Circumvention Inquiry, 81 FR 15039 (March 21, 
2016) (Initiation Notice).
    \3\ See Aluminum Extrusions from the People's Republic of China: 
Antidumping Duty Order, 76 FR 30650 (May 26, 2011) and Aluminum 
Extrusions from the People's Republic of China: Countervailing Duty 
Order, 76 FR 30653 (May 26, 2011) (collectively, the Orders).
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Scope of the Orders

    The merchandise covered by the Orders are aluminum extrusions from 
the People's Republic of China. The merchandise subject to the orders 
are currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS): 8481.90.9060, 8481.90.9085, 9031.90.9195, 
8424.90.9080, 9405.99.4020, 9031.90.90.95, 7616.10.90.90, 7609.00.00, 
7610.10.00, 7610.90.00, 7615.10.30, 7615.10.71, 7615.10.91, 7615.19.10, 
7615.19.30, 7615.19.50, 7615.19.70, 7615.19.90, 7615.20.00, 7616.99.10, 
7616.99.50, 8479.89.98, 8479.90.94, 8513.90.20, 9403.10.00, 9403.20.00, 
7604.21.00.00, 7604.29.10.00, 7604.29.30.10, 7604.29.30.50, 
7604.29.50.30, 7604.29.50.60, 7608.20.00.30, 7608.20.00.90, 
8302.10.30.00, 8302.10.60.30, 8302.10.60.60, 8302.10.60.90, 
8302.20.00.00, 8302.30.30.10, 8302.30.30.60, 8302.41.30.00, 
8302.41.60.15, 8302.41.60.45, 8302.41.60.50, 8302.41.60.80, 
8302.42.30.10, 8302.42.30.15, 8302.42.30.65, 8302.49.60.35, 
8302.49.60.45, 8302.49.60.55, 8302.49.60.85, 8302.50.00.00, 
8302.60.90.00, 8305.10.00.50, 8306.30.00.00, 8414.59.60.90, 
8415.90.80.45, 8418.99.80.05, 8418.99.80.50, 8418.99.80.60, 
8419.90.10.00, 8422.90.06.40, 8473.30.20.00, 8473.30.51.00, 
8479.90.85.00, 8486.90.00.00, 8487.90.00.80, 8503.00.95.20, 
8508.70.00.00, 8515.90.20.00, 8516.90.50.00, 8516.90.80.50, 
8517.70.00.00, 8529.90.73.00, 8529.90.97.60, 8536.90.80.85, 
8538.10.00.00, 8543.90.88.80, 8708.29.50.60, 8708.80.65.90, 
8803.30.00.60, 9013.90.50.00, 9013.90.90.00, 9401.90.50.81, 
9403.90.10.40, 9403.90.10.50, 9403.90.10.85, 9403.90.25.40, 
9403.90.25.80, 9403.90.40.05, 9403.90.40.10, 9403.90.40.60, 
9403.90.50.05, 9403.90.50.10, 9403.90.50.80, 9403.90.60.05, 
9403.90.60.10, 9403.90.60.80, 9403.90.70.05, 9403.90.70.10, 
9403.90.70.80, 9403.90.80.10, 9403.90.80.15, 9403.90.80.20, 
9403.90.80.41, 9403.90.80.51, 9403.90.80.61, 9506.11.40.80, 
9506.51.40.00, 9506.51.60.00, 9506.59.40.40, 9506.70.20.90, 
9506.91.00.10, 9506.91.00.20, 9506.91.00.30, 9506.99.05.10, 
9506.99.05.20, 9506.99.05.30, 9506.99.15.00, 9506.99.20.00, 
9506.99.25.80, 9506.99.28.00, 9506.99.55.00, 9506.99.60.80, 
9507.30.20.00, 9507.30.40.00, 9507.30.60.00, 9507.90.60.00, and 
9603.90.80.50.
    Products subject to these orders may also enter under HTSUS: 
7610.10, 7610.90, 7615.19, 7615.20, and 7616.99 as well as under other 
HTSUS chapters. Subject merchandise may also enter under HTSUS numbers: 
8418.99.80.50 and 8418.99.80.60. While HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
scope of these Orders is dispositive.\4\
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    \4\ A full description of the scope of the Orders is contained 
in the memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, titled 
``Anti-Circumvention Inquiry Regarding the Antidumping Duty and 
Countervailing Duty Orders on Aluminum Extrusions from the People's 
Republic of China: Preliminary Determination Decision Memorandum'' 
(Preliminary Decision Memorandum), dated concurrently with, and 
adopted by, this notice.
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Merchandise Subject to the Anti-Circumvention Inquiry

    The products covered by this inquiry are heat-treated extruded 
aluminum products that meet the chemical specifications for 5050-grade 
aluminum alloy (inquiry merchandise), regardless of producer, exporter, 
or importer, from the PRC.

Methodology

    The Department has conducted this circumvention inquiry in 
accordance with section 781(d) of the Act and 19 CFR 351.225(j). For a 
full description of the methodology underlying our conclusions, 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 
http://access.trade.gov and is available to all parties in the Central 
Records Unit, room B8024 of the main Department of Commerce building. 
In addition, the signed Preliminary Decision Memorandum can be accessed 
directly at http://enforcement.trade.gov/frn/index.html. The signed and 
electronic versions of the Preliminary Decision Memorandum are 
identical in content. A list of topics discussed in the Preliminary 
Decision Memorandum is attached as an Appendix to this notice.

Affirmative Preliminary Determination of Circumvention

    Based on our analysis, as detailed in the Preliminary Decision 
Memorandum,

[[Page 79446]]

we preliminarily find that all imports from the PRC of heat-treated 
extruded aluminum products that meet the chemical specifications for 
5050-grade aluminum alloy, regardless of producer, exporter, or 
importer, constitute later-developed merchandise that is circumventing, 
and should be included within, the scope of the Orders.\5\ In addition, 
if in our final determination we affirm our preliminary determination 
pursuant to section 781(d) of the Act, the Department intends to 
rescind its minor alterations anti-circumvention inquiry pursuant to 
section 781(c) of the Act.
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    \5\ See section 781(d) of the Act and 19 CFR 351.225(i).
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Suspension of Liquidation

    In accordance with 19 CFR 351.225(l)(2), the Department will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of 
inquiry merchandise from the PRC (regardless of producer, exporter, or 
importer), entered, or withdrawn from warehouse, for consumption, on or 
after March 21, 2016, the date of publication of the initiation of this 
inquiry. The Department will also instruct CBP to require a cash 
deposit of estimated duties at the rate applicable to the exporter, on 
all unliquidated entries of inquiry merchandise entered, or withdrawn 
from warehouse, for consumption on or after March 21, 2016.

Intent To Consider Certification Requirement

    In light of the Department's preliminary finding of circumvention, 
the Department intends to consider whether to require importers of 
certain aluminum extrusions who claim their merchandise is not subject 
to the Orders to maintain a certification certifying that their 
aluminum extrusions were not produced from heat-treated 5050 grade 
aluminum alloy. The Department intends to invite comments on this 
issue.

Notification to the International Trade Commission

    As discussed in the Preliminary Decision Memorandum, because the 
Department has preliminarily determined, for purposes of sections 
781(d)(1) and (e) of the Act, that the inquiry merchandise does not 
incorporate a significant technological advance or significant 
alteration of an earlier product, the Department is not notifying the 
ITC of its preliminary determination.

Public Comment

    The Department may solicit new factual information in this inquiry. 
Additionally, should a party seek to submit new factual information, 
the Department intends to consider requests to accept new factual 
information on a case-by-case basis.
    The Department will invite comments on this preliminary 
determination and issue a memorandum establishing a briefing schedule. 
Interested parties may submit case briefs and rebuttal briefs within 
the designated timeframe outlined in the memorandum. Rebuttals to case 
briefs are limited to issues raised in the case briefs. Parties who 
submit case or rebuttal briefs are requested to submit with the 
argument: (a) A statement of the issue, (b) a brief summary of the 
argument, and (c) a table of authorities. Parties submitting briefs 
should do so using the Department's electronic filing system, ACCESS.
    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, filed electronically using 
ACCESS. A written request for a hearing must be received successfully 
in its entirety by the Department's electronic records system, ACCESS, 
by 5:00 p.m. Eastern Time, within 30 days after the date of publication 
of this notice.\6\ Hearing requests should contain the party's name, 
address, and telephone number, the number of participants, and a list 
of the issues parties intend to present at the hearing. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a time and location to be determined.
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    \6\ See 19 CFR 351.310(c).
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Final Determination

    Pursuant to section 781(f) of the Act, the final determination with 
respect to this anti-circumvention inquiry, including the results of 
the Department's analysis of any written comments, will be issued no 
later than January 9, 2017, unless extended.\7\
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    \7\ This date reflect the next business day after the 300 day 
deadline of January 8, 2017. See Notice of Clarification: 
Application of ``Next Business Day'' Rule for Administrative 
Determination Deadlines Pursuant to the Tariff Act of 1930, As 
Amended, 70 FR 24533 (May 10, 2005).
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    This preliminary affirmative anti-circumvention determination is 
published in accordance with section 781(d) of the Act and 19 CFR 
351.225.

    Dated: November 3, 2016.
Paul Piquado,
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 Anti-Circumvention Inquiry
V. Later-Developed Merchandise Anti-Circumvention Inquiry
VI. Use of Facts Available with an Adverse Inference
VII. Analysis
    A. Commercial Availability
    B. Same General Physical Characteristics
    C. Expectations of the Ultimate Purchasers and Use of 
Merchandise
    D. Advertisement, Display, and Channels of Trade
    E. Additional Analysis
VIII. Preliminary Determination
IX. Intent to Rescind Minor Alterations Anti-Circumvention Inquiry
X. Intent To Consider Certification Requirement
XI. Recommendation

[FR Doc. 2016-27346 Filed 11-10-16; 8:45 am]
 BILLING CODE 3510-DS-P