Notice2022-18472
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
Primary source
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Published
August 26, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a circumvention inquiry request from the Aluminum Association Common Alloy Aluminum Sheet Working Group and its individual members, the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of aluminum sheet produced from aluminum alloy 4017 are circumventing the antidumping (AD) and countervailing duty (CVD) orders on common alloy aluminum sheet (CAAS) from the People's Republic of China (China).
Full Text
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<title>Federal Register, Volume 87 Issue 165 (Friday, August 26, 2022)</title>
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[Federal Register Volume 87, Number 165 (Friday, August 26, 2022)]
[Notices]
[Pages 52509-52510]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18472]
[[Page 52509]]
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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:
Initiation of Circumvention Inquiry of the Antidumping and
Countervailing Duty Orders--4017 Aluminum Sheet
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a circumvention inquiry request from the
Aluminum Association Common Alloy Aluminum Sheet Working Group and its
individual members, the U.S. Department of Commerce (Commerce) is
initiating a country-wide circumvention inquiry to determine whether
imports of aluminum sheet produced from aluminum alloy 4017 are
circumventing the antidumping (AD) and countervailing duty (CVD) orders
on common alloy aluminum sheet (CAAS) from the People's Republic of
China (China).
DATES: Applicable August 26, 2022.
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 July 7, 2022, the Aluminum Association Common Alloy Aluminum
Sheet Working Group and its individual members (collectively, the
domestic industry),\1\ requested that Commerce initiate a circumvention
inquiry with regard to aluminum sheet produced from aluminum alloy 4017
(4017 aluminum sheet) in, and exported from, China.\2\ The domestic
industry alleges that 4017 aluminum sheet constitutes merchandise
altered in form or appearance in minor respects, and therefore should
be included within the scope of the Orders \3\ pursuant to section
781(c) of the Tariff Act of 1930, as amended (the Act).\4\
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\1\ The individual members of the 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.
\2\ See Domestic Industry's Letter, ``Common Alloy Aluminum
Sheet from China--Domestic Industry request for Circumvention Ruling
Pursuant to Section 781(c) of the tariff Act of 1930, as Amended,''
dated July 7, 2022 (Circumvention Allegation).
\3\ See Common Alloy Aluminum Sheet from the People's Republic
of China: Antidumping Duty Order, 84 FR 2813 (February 8, 2019); and
Common Alloy Aluminum Sheet from the People's Republic of China:
Countervailing Duty Order, 84 FR 2157 (February 6, 2019)
(collectively, Orders).
\4\ See 19 CFR 351.226(j).
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On August 4, 2022, we extended the deadline to issue a decision
regarding whether to initiate this circumvention inquiry by 15 days, in
accordance with the 19 CFR 351.226(d)(1), to August 22, 2022.\5\
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\5\ See Memorandum, ``Common Alloy Aluminum Sheet from the
People's Republic of China (A-570-073, C-570-074): Extension of Time
to Determine Whether to Initiate Circumvention Inquiry,'' dated
August 4, 2022.
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Scope of the Orders
The merchandise covered by the Orders 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. For a complete description of
the scope of the Orders, see the appendix to this notice.
Merchandise Subject to the Circumvention Inquiry
The merchandise subject to the circumvention inquiry is 4017
aluminum sheet, having a thickness of 6.3 mm or less, but greater that
0.2 mm, in coils or cut-to-length, regardless of width. According to
the Domestic Industry, such 4017 aluminum sheet is a not clad aluminum
sheet product whose chemical content has been modified from in-scope
CAAS. All 4017 aluminum sheet that meets the scope description with
respect to physical characteristics (other than principle alloying
element) is subject to this inquiry. The subject 4017 aluminum sheet is
currently classifiable under Harmonized Tariff Schedule of the United
States subheading 7607.12.3096.
Statutory and Regulatory Framework
Section 351.226(d)(1)(ii) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' The domestic
industry alleged circumvention pursuant to section 781(c) of the Act
(merchandise altered in form or appearance in minor respects).
In accordance with 19 CFR 351.226(m)(2), for companion antidumping
and countervailing duty proceedings, ``the Secretary will initiate and
conduct a single inquiry with respect to the product at issue for both
orders only on the record of the antidumping proceeding.'' Further,
once ``the Secretary issues a final circumvention determination on the
record of the antidumping duty proceeding, the Secretary will include a
copy of that determination on the record of the countervailing duty
proceeding.'' Accordingly, once Commerce concludes this circumvention
inquiry, Commerce intends to place its final circumvention
determination on the record of the companion CVD proceeding.
Section 781(c)(1) of the Act provides that the class or kind of
merchandise subject to an AD or CVD order shall include articles that
have been ``altered in form or appearance in minor respects . . .
whether or not included in the same tariff classification.'' Section
781(c)(2) of the Act provides an exception that section 781(c)(1) of
the Act ``shall not apply with respect to altered merchandise if the
administering authority determines that it would be unnecessary to
consider the altered merchandise within the scope of the
{order{time} .'' Concerning the allegation of minor alteration under
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider
criteria including, but not limited to: (1) overall physical
characteristics of the merchandise; (2) expectations of ultimate users;
(3) use of the merchandise; (4) channels of marketing; and (5) cost of
any modification relative to the value of the imported products.
Analysis
After analyzing the record evidence and the domestic industry's
allegation, we determine that the circumvention request satisfies the
requirements of 19 CFR 351.226(c) and that there is sufficient
information to warrant initiation of a circumvention inquiry based on
minor alterations, pursuant to section 781(c) of the Act and 19 CFR
351.226(j). For a full discussion of the basis for our decision to
initiate a circumvention inquiry, see the Initiation Decision
Memorandum.\6\
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\6\ See Memorandum, ``Common Alloy Aluminum Sheet from the
People's Republic of China: Decision Memorandum for Initiation of
Circumvention Inquiry on the Antidumping and Countervailing Duty
Orders,'' dated concurrently with and hereby adopted by this notice
(Initiation Decision Memorandum). This memorandum is a public
document and is available electronically online via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized
Electronic Service System (ACCESS) at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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As explained in the Initiation Decision Memorandum, the information
provided by the domestic industry also warrants initiating this
circumvention inquiry on a country-wide basis.\7\ Commerce has taken
this approach in prior circumvention inquiries, when the facts
warranted initiation on a country-wide basis.\8\
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\7\ See Initiation Decision Memorandum at 8.
\8\ See, e.g., Aluminum Extrusions from the People's Republic of
China: Affirmative Final Determination of Circumvention of the
Antidumping and Countervailing Duty Orders and Rescission of Minor
Alterations Anti-Circumvention Inquiry, 82 FR 4630 (July 26, 2017),
and accompanying Issues And Decision Memorandum, at Comment 4.
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Commerce intends to establish a schedule for questionnaires and
comments on the issues related to this inquiry. A company's failure to
respond completely to Commerce's requests for information may result in
the application of partial or total facts available, pursuant to
section 776(a) of the Act, which may include adverse inferences,
pursuant to section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify U.S.
Customs and Border Protection (CBP) of this initiation and direct CBP
to continue the suspension of liquidation of entries of products
subject to this circumvention inquiry that were already subject to the
suspension of liquidation under the Orders and to apply the cash
deposit requirement at the rates that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue preliminary or final circumvention
determinations, Commerce will follow the suspension of liquidation
rules under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and sections 781(c) and (d) of
the Act, Commerce determines that the domestic industry's request for a
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c).
Accordingly, Commerce is notifying all interested parties of the
initiation of this circumvention inquiry to determine whether 4017
aluminum alloy produced in, and exported from, China is circumventing
the Orders. In addition, we have included a description of the products
that are the subject to this inquiry and an explanation of Commerce's
decision to initiate this inquiry as provided in the accompanying
Initiation Decision Memorandum.\9\ In accordance with 19 CFR
351.226(e)(1), Commerce intends to issue its preliminary circumvention
determination no later than 150 days from the date of publication of
the notice of initiation of this circumvention inquiry in the Federal
Register.
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\9\ See Initiation Decision Memorandum.
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This notice is published in accordance with section 781(c) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: August 22, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Orders
The merchandise covered by the Orders 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 Orders 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 Orders if performed in the country
of manufacture of the common alloy sheet.
Excluded from the scope of the Orders 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 the Orders 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 the Orders is dispositive.
[FR Doc. 2022-18472 Filed 8-25-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 26, 2022.
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