83 FR 17651 - Common Alloy Aluminum Sheet From the People's Republic of China: Preliminary Affirmative Countervailing Duty (CVD) Determination, Alignment of Final CVD Determination With Final Antidumping Duty Determination, and Preliminary CVD Determination of Critical Circumstances

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 78 (April 23, 2018)

Page Range17651-17653
FR Document2018-08391

The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of common alloy aluminum sheet (common alloy sheet) from the People's Republic of China (China). The period of investigation is January 1, 2016, through December 31, 2016. Interested parties are invited to comment on this preliminary determination.

Federal Register, Volume 83 Issue 78 (Monday, April 23, 2018)
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17651-17653]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08391]


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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 Affirmative Countervailing Duty (CVD) Determination, 
Alignment of Final CVD Determination With Final Antidumping Duty 
Determination, and Preliminary CVD Determination of Critical 
Circumstances

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 (common alloy sheet) from the 
People's Republic of China (China). The period of investigation is 
January 1, 2016, through December 31, 2016. Interested parties are 
invited to comment on this preliminary determination.

DATES: Applicable April 23, 2018.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, Lana Nigro, or John 
Anwesen, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3813, (202) 482-1779, or 
(202) 482-0131, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on December 4, 
2017.\1\ On January 19, 2018, Commerce postponed the preliminary 
determination of this investigation until April 16, 2018.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to 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 
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 Commerce building. In addition, a 
complete version of the Preliminary Decision Memorandum can be accessed 
directly at http://enforcement.trade.gov/frn/. The signed and 
electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Initiation of Less-Than-Fair-Value and Countervailing Duty 
Investigation, 82 FR 57214 (December 4, 2017) (Initiation Notice).
    \2\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Postponement of Preliminary Determination in the 
Countervailing Duty Investigation, 83 FR 2768 (January 19, 2018); 
see also Commerce memorandum, ``Countervailing Duty Investigation of 
Common Alloy Aluminum Sheet from the People's Republic of China: 
Correction of the Preliminary Determination Deadline,'' dated April 
9, 2018.
    \3\ See Decision Memorandum for the Preliminary Affirmative 
Determination: Countervailing Duty Investigation of Common Alloy 
Aluminum Sheet from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is common alloy sheet 
from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Commerce intends to issue its preliminary 
decision regarding comments concerning the scope of the antidumping 
duty (AD) and CVD investigations in the preliminary determination of 
the companion AD investigation.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.

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[[Page 17652]]

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\ In making these findings, we relied, in part, on facts 
available and, because one or more respondents did not act to the best 
of their ability to respond to Commerce's requests for information, we 
drew an adverse inference where appropriate in selecting from among the 
facts otherwise available.\7\ For further information, see ``Use of 
Facts Otherwise Available and Adverse Inferences'' in the Preliminary 
Decision Memorandum.
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    \6\ 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(5A) of the Act regarding specificity.
    \7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to imports of common alloy sheet from China for Chalco Ruimin Co., 
Ltd.; Chalco-SWA Cold Rolling Co., Ltd., and all other exporters or 
producers not individually examined. Commerce preliminarily determines 
that critical circumstances do not exist with respect to Yong Jie New 
Material Co., Ltd.; Henan Mingtai Industrial Co., Ltd.; and Zhengzhou 
Mingtai Industry Co., Ltd. For a full description of the methodology 
and results of Commerce's analysis, see the Preliminary Decision 
Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final determination in this investigation with the final 
determination in the companion AD investigation of common alloy sheet 
from China. Consequently, the final CVD determination will be issued on 
the same date as the final AD determination, which is currently 
scheduled to be issued no later than August 29, 2018, unless postponed.

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act. Notwithstanding the language of section 705(c)(5)(A)(i) 
of the Act, we have not calculated the ``all-others'' rate by weight-
averaging the rates of the two individually investigated respondents, 
because doing so risks disclosure of proprietary information. 
Therefore, for the ``all-others'' rate, we calculated a simple average 
of the two responding companies' rates.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found Henan Gongdian Thermal Co., Ltd. to be cross-
owned with Henan Mingtai Industrial Co., Ltd. and Zhengzhou Mingtai 
Industry Co., Ltd.
    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Yong Jie New Material: Zhejiang Yongjie Aluminum Co., Ltd.; Zhejiang 
Nanjie Industry Co., Ltd; Zhejiang Yongjie Holding Co., Ltd; and 
Nanjie Resources Co., Ltd.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Chalco Ruimin Co., Ltd..................................          113.30
Chalco-SWA Cold Rolling Co., Ltd........................          113.30
Henan Mingtai Industrial Co., Ltd./Zhengzhou Mingtai               34.99
 Industry Co., Ltd \8\..................................
Yong Jie New Material Co., Ltd \9\......................           31.20
All-Others..............................................           33.10
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by Chalco Ruimin Co., Ltd.; 
Chalco-SWA Cold Rolling Co., Ltd., and all other exporters or producers 
not individually examined. In accordance with section 703(e)(2)(A) of 
the Act, the suspension of liquidation shall apply to unliquidated 
entries of merchandise from the exporters/producers identified in this 
paragraph that were entered, or withdrawn from warehouse, for 
consumption on or after the date which is 90 days before the 
publication of this notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    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, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the

[[Page 17653]]

number of participants, and a list of the issues to be discussed. If a 
request for a hearing is made, Commerce intends to hold the hearing at 
the U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230, at a time and date to be determined. Parties 
should confirm by telephone the date, time, and location of the hearing 
two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

     Dated: April 16, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

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

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Preliminary Determination of Critical Circumstances
VII. Application of the CVD Law to Imports From China
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Use of Facts Otherwise Available and Adverse Inferences
XI. Analysis of Programs
XII. ITC Notification
XIII. Disclosure and Public Comment
XIV. Verification
XV. Conclusion

[FR Doc. 2018-08391 Filed 4-20-18; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable April 23, 2018.
ContactYasmin Bordas, Lana Nigro, or John Anwesen, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3813, (202) 482-1779, or (202) 482-0131, respectively.
FR Citation83 FR 17651 

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