Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, and Preliminary Affirmative Determination of Critical Circumstances
The U.S. Department of Commerce (Commerce) preliminarily determines that disposable aluminum containers, pans, trays, and lids (aluminum containers) from the People's Republic o...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) preliminarily determines that disposable aluminum containers, pans, trays, and lids (aluminum containers) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2023, through March 31, 2024. Interested parties are invited to comment on this preliminary determination.
DATES:
Applicable December 30, 2024.
FOR FURTHER INFORMATION CONTACT:
Matthew Palmer or Kate Fracke, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1678 or (202) 482-3299, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on June 12, 2024.[1]
On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days.[2]
On October 8, 2024, Commerce postponed the preliminary determination.[3]
The deadline for the preliminary determination is now December 19, 2024.
For a complete description of the events that followed the initiation of this investigation,
see
the Preliminary Decision Memorandum.[4]
A list of topics included 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
https://access.trade.gov.
In addition, a complete version of the Preliminary Decision Memorandum can be found at
https://access.trade.gov/public/FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this investigation are aluminum containers 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,[5]
the
Initiation Notice
set aside a period of time for parties to raise issues regarding product coverage (
i.e.,
scope).[6]
No interested party commented on the scope of the investigation as it appeared in the
Initiation Notice.
As a result, Commerce is not preliminarily modifying the scope language as it appeared in the
Initiation Notice. See
the scope in Appendix I to this notice.
Methodology
Commerce is conducting this investigation in accordance with section 731 of the Act. Pursuant to sections 776(a) and (b) of the Act, we have
( printed page 106434)
preliminarily relied upon facts otherwise available with adverse inferences (AFA) for the China-wide entity, including each of the companies selected for individual examination that later withdrew their participation: Ungar Automation Technology Co., Ltd.; Able Packaging Jiangsu Co., Ltd.; and Henan Aluminium Corporation (Henan Aluminum). For a full description of the methodology underlying Commerce's preliminary determination,
see
the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206, Commerce preliminarily determines that critical circumstances exist with respect to imports of aluminum containers from China for the separate-rate companies and the China-wide entity. For a full description of the methodology and results of Commerce's critical circumstances analysis,
see
the Preliminary Decision Memorandum.
Combination Rates
In the
Initiation Notice,[7]
Commerce stated that it would calculate producer/exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.[8]
In this investigation, we calculated producer/exporter combination rates for respondents eligible for separate rates.
Separate Rates
We have preliminarily granted a separate rate to certain separate rate respondents that we did not select for individual examination.[9]
In calculating the rate for non-individually examined separate rate respondents in a non-market economy LTFV investigation, Commerce normally looks to section 735(c)(5)(A) of the Act, which pertains to the calculation of the all-others rate in a market economy LTFV investigation, for guidance. Pursuant to section 735(c)(5)(A) of the Act, normally this rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for those companies individually-examined, excluding any dumping margins that are zero,
de minimis,
or based entirely under section 776 of the Act.
Because each company selected for individual examination in this investigation subsequently notified Commerce of its withdrawal from participation, the estimated weighted-average dumping margins in this preliminary determination are based entirely under section 776 of the Act. In investigations where no estimated weighted-average dumping margins other than zero,
de minimis,
or those determined entirely under section 776 of the Act have been established for individually-examined entities, in accordance with section 735(c)(5)(B) of the Act, Commerce typically calculates a simple average of the margins alleged in the petition and applies the results to the entities not individually examined but found eligible for a separate rate.[10]
In this investigation, the simple average of the rates in the Petition is 193.90 percent.
11See
the table below in the “Preliminary Determination” section of this notice.
Preliminary Determination
Commerce preliminarily determines that the following estimated weighted-average dumping margins exist:
Producer
Exporter
Estimated
weighted-
average
dumping
margin
(percent)
DongTai Subcompany of Shanghai Dragon Aluminium Foil Products Co., Ltd
DongTai Subcompany of Shanghai Dragon Aluminium Foil Products Co., Ltd
193.90
Suzhou Spk Aluminium Foil Co., Ltd
Suzhou Spk Aluminium Foil Co., Ltd
193.90
Nantong Hongtu Health Technology Co., Ltd
Uniriver Industries Co., Ltd
193.90
Wohler (Qingdao) Co., Ltd
Wohler (Qingdao) Co., Ltd
193.90
Yuyao Rhea Alumium Foil Products Co., Ltd
Yuyao Rhea Alumium Foil Products Co., Ltd
193.90
Yuyao Smallcap Household Products Co., Ltd
Yuyao Smallcap Household Products Co., Ltd
193.90
Zhangjiagang Auto Well Co., Ltd
Zhangjiagang Kangyuan International Trading Co., Ltd
193.90
Jiangsu Greensource Health Aluminum Foil Technology Co., Ltd
Zhangjiagang Kangyuan International Trading Co., Ltd
193.90
Zhejiang Zhongjin Aluminum Industry Co., Ltd
Zhejiang Zhongjin Aluminum Industry Co., Ltd
193.90
Henan Vino Aluminium Foil Co., Ltd
Zhengzhou Eming Aluminium Industry Co., Ltd
193.90
China-wide Entity *
287.80
* Rate based on facts available with adverse inferences.
( printed page 106435)
Suspension of Liquidation
In accordance with section 733(d)(2) and (e)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of subject merchandise, as described in Appendix I, entered, or withdrawn from warehouse, for consumption on or after the dates discussed below. Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the weighted average amount by which normal value exceeds U.S. price, as indicated in the chart above as follows: (1) for the producer/exporter combinations listed in the table above, the cash deposit rate is equal to the estimated weighted-average dumping margin listed for that combination in the table; (2) for all combinations of China producers/exporters of merchandise under consideration that have not established eligibility for their own separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the China-wide entity; and (3) for all third-county exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the China producer/exporter combination (or the China-wide entity) that supplied that third-country exporter.
Section 733(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 from the non-selected companies eligible for a separate rate and the China-wide entity.[12]
In accordance with section 733(e)(2)(A) of the Act, the suspension of liquidation shall apply to all unliquidated entries of merchandise from the non-selected companies eligible for a separate rate and the China-wide entity that were entered, or withdrawn from warehouse, for consumption on or after the date that is 90 days before the publication of this notice in the
Federal Register
.
To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic subsidy pass-through and export subsidies determined in a companion countervailing duty (CVD) proceeding when CVD provisional measures are in effect. Commerce determined in the preliminary determination of the companion CVD investigation that the mandatory respondent (
i.e.,
Henan Aluminum) and the non-selected respondents (
i.e.,
the “All Others” companies) did not benefit from export subsidies.[13]
Thus, we have not adjusted the cash deposit rates to account for export subsidies. Furthermore, because no respondent cooperated in this proceeding, we do not have any information to conclude whether any respondent is entitled to an adjustment for domestic subsidies passed-through. These suspension of liquidation instructions will remain in effect until further notice.
Disclosure
Normally, Commerce discloses to interested parties the calculations performed in connection with a preliminary determination 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, because Commerce preliminarily applied AFA to the mandatory respondents in this investigation in accordance with section 776 of the Act, and the applied AFA rate is based solely on the Petition, and the rate assigned to the separate rate companies was a simple average of the Petition rates, there are no calculations to disclose.
Verification
Because the mandatory respondents in this investigation did not provide information requested by Commerce and Commerce preliminarily determines each of the mandatory respondents to have been uncooperative, verification will not be conducted.
Public Comment
Pursuant to 19 CFR 351.309(c)(1)(i), interested parties may submit a case brief no later than 30 days after the date of publication of this notice. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.[14]
Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.[15]
As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.[16]
Further, we request that interested parties limit their public executive summary of each issue to no more than 450 words, not including citations. We intend to use the public executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).[17]
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, filed electronically via ACCESS. Requests should contain: (1) the party's name, address, and telephone number; (2) the number of participants and whether any participant is a foreign national; and (3) a list of issues to be discussed. Issues raised in the hearing will be limited to those raised in the respective briefs. An electronically filed hearing request must be received successfully in its entirety by Commerce's electronic records system, ACCESS, by 5 p.m. Eastern Time within 30 days after the date of publication of this notice
U.S. International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, Commerce will notify the ITC
( printed page 106436)
of its preliminary determination of sales at LTFV. 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 whether imports of subject merchandise are materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This preliminary determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: December 19, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is disposable aluminum containers, pans, trays, and lids produced primarily from flat-rolled aluminum. The subject merchandise includes disposable aluminum containers, pans, trays, and lids regardless of shape or size and whether or not wrinkled or smooth.
The term “disposable” is used to identify an aluminum article that is designed to be used once, or for a limited number of times, and then recycled or otherwise disposed.
“Containers, pans, and trays” are receptacles for holding goods.
The subject disposable aluminum lids are intended to be used in combination with disposable containers produced from aluminum or other materials (
e.g.,
paper or plastic). Where a disposable aluminum lid is imported with a non-aluminum container, only the disposable aluminum lid is included in the scope.
Disposable aluminum containers, pans, trays, and lids are also included within the scope regardless of whether the surface has been embossed, printed, coated (including with a non-stick substance), or decorated, and regardless of the style of the edges. The inclusion of a non-aluminum lid or dome sold or packaged with an otherwise in-scope article does not remove the article from the scope, however, only the disposable aluminum container, pan, tray, and lid is covered by the scope definition.
Disposable aluminum containers, pans, trays, and lids are typically used in food-related applications, including but not limited to food preparation, packaging, baking, barbequing, reheating, takeout, or storage, but also have other uses. Regardless of end use, disposable aluminum containers, pans, trays, and lids that meet the scope definition and are not otherwise excluded are subject merchandise.
Excluded from the scope are disposable aluminum casks, drums, cans, boxes and similar containers (including disposable aluminum cups and bottles) properly classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 7612.90. However, aluminum containers, pans, trays, and lids that would otherwise be covered by the scope are not excluded based solely on the fact that they are being classified under HTSUS subheading 7612.90.5000 due to the thickness of aluminum being less than 0.04 mm or greater than 0.22 mm.
The flat-rolled aluminum used to produce the subject articles may be made to ASTM specifications ASTM B479 or ASTM B209-14, but can also be made to other specifications. Regardless of the specification, however, all disposable aluminum containers, pans, trays, and lids meeting the scope description are included in the scope.
Disposable aluminum containers, pans, trays, and lids are currently classifiable under HTSUS subheading 7615.10.7125. Further, merchandise that falls within the scope of this proceeding may also be entered into the United States under HTSUS subheadings 7612.90.1090, 7615.10.3015, 7615.10.3025, 7615.10.7130, 7615.10.7155, 7615.10.7180, 7615.10.9100, and 8309.90.0000. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Single Entity Analysis
V. Discussion of the Methodology
VI. Critical Circumstances
VII. Adjustment Under Section 777(A)(f) of the Act
VIII. Adjustment to Cash Deposit Rates for Export Subsidies
IX. Recommendation
Footnotes
1.
See Disposable Aluminum Containers, Pans, Trays, and Lids from the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation,89 FR 49837 (June 12, 2024) (
Initiation Notice).
3.
See Aluminum Containers, Pans, Trays, and Lids from the People's Republic of China: Postponement of Preliminary Determination in the Less-Than-Fair Value Investigation,89 FR 81425 (October 8, 2024).
4.
See
Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination in the Less-Than-Fair-Value Investigation of Disposable Aluminum Containers, Pans, Trays, and Lids from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
8.
See
Enforcement and Compliance's Policy Bulletin No. 05.1, regarding, “Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,” (April 5, 2005) (Policy Bulletin 05.1), available on Commerce's website at
enforcement.trade.gov/policy/bull05-1.pdf.
10.
See Certain Pea Protein from the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Critical Circumstances Determination,89 FR 55559 (July 5, 2024).
13.
See Disposable Aluminum Containers, Pans, Trays, and Lids from the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, and Alignment of Final Determination With Final Antidumping Duty Determination,89 FR 85495-85497 (October 28, 2024).
14.
See 19 CFR 351.309(d);
see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,88 FR 67069, 67077 (September 29, 2023) (
APO and Service Final Rule).
Use this for formal legal and research references to the published document.
89 FR 106433
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, and Preliminary Affirmative Determination of Critical Circumstances,” thefederalregister.org (December 30, 2024), https://thefederalregister.org/documents/2024-31082/disposable-aluminum-containers-pans-trays-and-lids-from-the-people-s-republic-of-china-preliminary-affirmative-determina.