Aluminum Extrusions From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Intent to Rescind, in Part; 2018
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies have been provided to producers and exporters of aluminum extrusions from the Peopl...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies have been provided to producers and exporters of aluminum extrusions from the People's Republic of China (China) for the period of review (POR) January 1, 2018 through December 31, 2018. Interested parties are invited to comment on these preliminary results.
DATES:
Applicable August 5, 2020.
FOR FURTHER INFORMATION CONTACT:
Davina Friedmann, 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) 482-0698.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the notice of initiation of this administrative review on July 15, 2019, covering 257 companies, based on requests from the Aluminum Extrusions Fair Trade Committee (petitioner) and Endura Products Inc. (Endura).[1]
On October 15, 2019, the petitioner and Endura withdrew their requests for review for all but the following nine companies: (1) Activa International Inc. (Activa); (2) Changzhou Tenglong Auto Parts Co. Ltd. (Changzhou Tenglong); (3) CRRC Changzhou Auto Parts Co. Ltd. (CRRC); (4) Dongguan Aoda Aluminum Co. Ltd. (Dongguan Aoda); (5) Guangdong Xingfa Aluminum Co., Ltd. (Guangdong Xingfa); (6) Precision Metal Works Ltd. (Precision Metal); (7) Shenyang Yuanda Aluminum Industry Engineering Co. Ltd. (Shenyang Yuanda); (8) Summit Heat Sinks Metal Co, Ltd. (Summit); and (9) Wenzhou Yongtai Electric Co. Ltd. (Wenzhou Yongtai).[2]
Between January 27, 2020 and February 6, 2020, Commerce extended the deadline for the preliminary results.[3]
On April 24, 2020, Commerce tolled all deadlines in administrative reviews by 50 days, thereby extending the deadline for these results until July 20, 2020.[4]
For a complete description of the events that followed the initiation of this review,
see
the Preliminary Decision Memorandum, which is dated concurrently with, and hereby adopted by, this notice.[5]
A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix I to this notice. The Preliminary Decision Memorandum is a public
( printed page 47350)
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; this memorandum is available to all parties in the Central Records Unit, room B8024 of the main Department of 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.
Scope of the Order
The merchandise covered by the order is aluminum extrusions which are shapes and forms, produced by an extrusion process, made from aluminum alloys having metallic elements corresponding to the alloy series designations published by the Aluminum Association commencing with the numbers 1, 3, and 6 (or proprietary equivalents or other certifying body equivalents). For a complete description of the scope of the order
see
the Preliminary Decision Memorandum.
The subject merchandise entered as parts of other aluminum products may be classifiable under the following additional Chapter 76 subheadings: 7610.10, 7610.90, 7615.19, 7615.20, and 7616.99, as well as under other HTSUS chapters. In addition, fin evaporator coils may be classifiable 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 this order is dispositive.[6]
Methodology
Commerce is conducting this review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For purposes of this review, Commerce preliminarily finds that all programs previously countervailed in prior segments of this proceeding, remain countervailable—that is, they provide a financial contribution within the meaning of sections 771(5)(B)(i) and (D) of the Act, confer a benefit within the meaning of section 771(5)(B) of the Act, and are specific within the meaning of 771(5A) of the Act.
For a full description of the methodology underlying our preliminary conclusions, including our reliance on adverse facts available pursuant to sections 776(a) and (b) of the Act,
see
the Preliminary Decision Memorandum. As explained in the Preliminary Decision Memorandum, Commerce relied on adverse facts available because the Government of China (GOC) and seven of the nine companies that remain under review (
i.e.,
Activa, CRRC, Guangdong Xingfa, Precision Metal, Shenyang Yuanda, Summit, Wenzhou Yongtai) did not act to the best of their ability in responding to Commerce's requests for information, and consequently, we have drawn 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.
For the other two companies (
i.e.,
Changzhou Tenglong and Dongguan Aoda), we preliminarily assigned a rate based on the average of the most recently determined rates in a prior segment of this proceeding that are not zero,
de minimis,
or based entirely on facts available.[8]
For further information,
see
“Non-Selected Company Rates” in the Preliminary Decision Memorandum.
Intent to Rescind Review, In Part
For those companies named in the
Initiation Notice
for which all review requests have been timely withdrawn,[9]
we intend to rescind this administrative review in accordance with 19 CFR 351.213(d)(1). These companies are listed at Appendix II to this notice. For these companies, Commerce intends to assess duties at rates equal to the cash deposits of estimated countervailing duties required at the time of entry, or withdrawn from warehouse, for consumption, during the POR, in accordance with 19 CFR 351.212(c)(2).
Preliminary Results
Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: [10]
( printed page 47351)
Company
Subsidy rate
ad valorem
(percent)
Activa International Inc
242.15
Changzhou Tenglong Auto Parts Co. Ltd
16.08
CRRC Changzhou Auto Parts Co. Ltd
242.15
Dongguan Aoda Aluminum Co. Ltd
16.08
Guangdong Xingfa Aluminum Co., Ltd
242.15
Precision Metal Works Ltd
242.15
Shenyang Yuanda Aluminum Industry Engineering Co. Ltd
242.15
Summit Heat Sinks Metal Co, Ltd
242.15
Wenzhou Yongtai Electric Co. Ltd
242.15
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily assigned subsidy rates in the amounts shown above for the producer/exporters shown above. Upon completion of the administrative review, consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), Commerce shall determine, and U.S. Customs and Border Protection (CBP) shall assess, countervailing duties on all appropriate entries covered by this review. We intend to issue assessment instructions to CBP 15 days after publication of the final results of this review.
Cash Deposit Requirements
Pursuant to section 751(a)(2)(C) of the Act, Commerce also intends upon publication of the final results to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts indicated above for each company listed on shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this administrative review. For all non-reviewed firms, we intend to instruct CBP 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 requirements, when imposed, shall remain in effect until further notice.
Disclosure
Normally, Commerce discloses to interested parties the calculations performed in connection with the preliminary results of review within five days of its public announcement, or if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). However, we have assigned a net subsidy rate based on total adverse facts available to the seven companies for which requests for review were not withdrawn (each failed to submit a response to Commerce's quantity and value (Q&V) questionnaire), in accordance with section 776 of the Act. For information detailing the derivation of the adverse facts available (AFA) rate applied,
see
AFA Calculation Memorandum.[11]
Public Comment
Interested parties may submit written case briefs no later than 30 days after the date of publication of the preliminary results. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline date for case briefs.[12]
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.[13]
Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until further notice.[14]
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 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 intends to hold the hearing 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. Issues addressed at the hearing will be limited to those raised in the briefs.[15]
All case and rebuttal briefs and hearing requests must be filed electronically and received successfully in their entirety through ACCESS by 5:00 p.m. Eastern Time on the due date.
Unless the deadline is extended pursuant to section 751(a)(3)(A) of the Act, we intend to issue the final results of this administrative review, including the results of our analysis of the issues raised by the parties in their comments, within 120 days after issuance of these preliminary results.
Notification to Interested Parties
These preliminary results are issued and published pursuant to sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4).
Dated: July 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I—List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Intent to Rescind the Review, In Part
V. Non-Selected Company Rates
VI. Use of Adverse Facts Available
VII. Subsidy Programs Subject to Countervailing Duties
VIII.
Ad Valorem
Rate for Non-Cooperative Companies Under Review
IX. Recommendation
Appendix II—List of Companies for Which We Intend to Rescind this Administrative Review
1.
See Initiation of Antidumping and Countervailing Duty Administrative Reviews,84 FR 33739 (July 15, 2019) (
Notice of Initiation); and
Initiation of Antidumping and Countervailing Duty Administrative Reviews,84 FR 47242 (September 9, 2019), which contains corrections to certain company names published in the July 15, 2019
Notice of Initiation
(collectively,
Initiation Notice).
2.
See
Petitioner and Endura's Letter, “Aluminum Extrusions from the People's Republic of China: Partial Withdrawal of Request for Administrative Review,” dated October 15, 2019 (Petitioner and Endura Withdrawal Request).
3.
See
Memoranda, “Aluminum Extrusions from the People's Republic of China: Extension of Deadline for Preliminary Results of Countervailing Duty Administrative Review,” dated January 27, 2020; and “Aluminum Extrusions from the People's Republic of China: Extension of Deadline for Preliminary Results of Countervailing Duty Administrative Review; 2018,” dated February 6, 2020.
4.
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. Commerce's practice dictates that where a deadline falls on a weekend or federal holiday, the appropriate deadline is the next business day.
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). Because the 50-day extension would result in the signature date being on a weekend, the deadline moves to the next business day, Monday, July 20, 2020.
5.
See
Memorandum, “Decision Memorandum for the Preliminary Results of Countervailing Duty Administrative Review and Intent to Rescind, in Part; 2018,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
8.
See Aluminum Extrusions from the People's Republic of China: Final Results and Partial Rescission of Countervailing Duty Administrative Review; 2014,81 FR 92778 (December 20, 2016).
11.
See
Memorandum, “Administrative Review of Countervailing Duty Order on Aluminum Extrusions from the People's Republic of China: AFA Calculation Memorandum for the 2018 Preliminary Results of Review,” dated February 11, 2020.
Use this for formal legal and research references to the published document.
85 FR 47349
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Aluminum Extrusions From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Intent to Rescind, in Part; 2018,” thefederalregister.org (August 5, 2020), https://thefederalregister.org/documents/2020-17071/aluminum-extrusions-from-the-people-s-republic-of-china-preliminary-results-of-countervailing-duty-administrative-review.