Notice2023-14875
Common Alloy Aluminum Sheet From the People's Republic of China: Initiation of Circumvention Inquiry of the Antidumping and Countervailing Duty Orders; Aluminum Sheet Further Processed in the Republic of Korea
Primary source
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Published
July 13, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from the Aluminum Association Common Alloy Aluminum Sheet Trade Enforcement Working Group and its individual members (the domestic industry), the U.S. Department of Commerce (Commerce) is initiating a company-specific circumvention inquiry to determine whether imports of common alloy aluminum sheet (CAAS) from the Republic of Korea (Korea) produced by Gwangyang Aluminum Industries Co., Ltd. (Gwangyang Aluminum), which is completed or assembled using non-subject flat rolled aluminum having a thickness greater than 6.3 millimeters (mm) produced by Henan Mingtai Aluminum Industry Co., Ltd. (Henan Mingtai) or Zhengzhou Mingtai Industry Co., Ltd. (Zhengzhou Mingtai) in the People's Republic of China (China), is circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on CAAS from China.
Full Text
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<title>Federal Register, Volume 88 Issue 133 (Thursday, July 13, 2023)</title>
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[Federal Register Volume 88, Number 133 (Thursday, July 13, 2023)]
[Notices]
[Pages 44779-44781]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14875]
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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; Aluminum Sheet Further Processed in the
Republic of Korea
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from the Aluminum Association Common
Alloy Aluminum Sheet Trade Enforcement Working Group and its individual
members (the domestic industry), the U.S. Department of Commerce
(Commerce) is initiating a company-specific circumvention inquiry to
determine whether imports of common alloy aluminum sheet (CAAS) from
the Republic of Korea (Korea) produced by Gwangyang Aluminum Industries
Co., Ltd. (Gwangyang Aluminum), which is completed or assembled using
non-subject flat rolled aluminum having a thickness greater than 6.3
millimeters (mm) produced by Henan Mingtai Aluminum Industry Co., Ltd.
(Henan Mingtai) or Zhengzhou Mingtai Industry Co., Ltd. (Zhengzhou
Mingtai) in the People's Republic of China (China), is circumventing
the antidumping duty (AD) and countervailing duty (CVD) orders on CAAS
from China.
DATES: Applicable July 13, 2023.
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 May 23, 2023, the domestic industry \1\ filed a circumvention
inquiry
[[Page 44780]]
request alleging that CAAS from Korea produced by Gwangyang Aluminum,
assembled or completed using flat rolled aluminum having a thickness
greater than 6.3 mm (aluminum plated) produced by Henan Mingtai \2\ in
China, is circumventing the AD and CVD orders on CAAS from China \3\
and, accordingly, should be included in the scope of the Orders.\4\ The
domestic industry alleges that the further processing in Korea is minor
or insignificant and otherwise meets the circumvention criteria set
forth in section 781(b) of the Tariff Act of 1930, as amended (the
Act), and 19 CFR 351.226(i).
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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\ Commerce previously determined that Henan Mingtai and
Zhengzhou Mingtai are a single entity. See Antidumping Duty
Investigation of Common Alloy Aluminum Sheet from the People's
Republic of China: Affirmative Preliminary Determination of Sales at
Less-Than-Fair Value, Preliminary Affirmative Determination of
Critical Circumstances, and Postponement of Final Determination, 83
FR 29088 (June 2022, 2018), and accompanying Preliminary Decision
Memorandum at 19, unchanged at Antidumping Duty Investigation of
Common Alloy Aluminum Sheet from the People's Republic of China:
Affirmative Final Determination of Sales at Less-Than-Fair Value, 83
FR 57421 (November 15, 2018). Accordingly, for the purposes of this
circumvention inquiry, we will consider aluminum plate produced by
Henan Mingtai and Zhengzhou Mingtai (collectively, Mingtai).
\3\ See Common Alloy Aluminum Sheet from the People's Republic
of China: Countervailing Duty Order, 84 FR 2157 (February 6, 2019);
and Common Alloy Aluminum Sheet from the People's Republic of China:
Antidumping Duty Order, 84 FR 2813 (February 8, 2019) (collectively,
Orders).
\4\ Id.
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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. A full description of the scope
of the Orders is provided in the Initiation Checklist.\5\
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\5\ See Checklist, ``Common Alloy Aluminum Sheet from the
People's Republic of China,'' dated concurrently with, and hereby
adopted by, this notice (Initiation Checklist).
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers CAAS from Korea produced by
Gwangyang Aluminum, assembled or completed using flat rolled aluminum
having a thickness greater than 6.3 mm produced by Mingtai in China,
and exported to the United States.
Statutory and Regulatory Framework
Section 351.226(d) 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(b) of the Act
(merchandise completed or assembled in other foreign countries).
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an AD or CVD order when merchandise of the same class
or kind subject to the order is completed or assembled in a foreign
country other than the country to which the order applies. In
conducting circumvention inquiries, under section 781(b)(1) of the Act,
Commerce relies on the following criteria: (A) merchandise imported
into the United States is of the same class or kind as any merchandise
produced in a foreign country that is the subject of an antidumping or
countervailing duty order or finding; (B) before importation into the
United States, such imported merchandise is completed or assembled in
another foreign country from merchandise which is subject to the order
or merchandise which is produced in the foreign country that is subject
to the order; (C) the process of assembly or completion in the foreign
country referred to in section (B) is minor or insignificant; (D) the
value of the merchandise produced in the foreign country to which the
AD or CVD order applies is a significant portion of the total value of
the merchandise exported to the United States; and (E) the
administering authority determines that action is appropriate to
prevent evasion of such order or finding.
In determining whether or not the process of assembly or completion
in a third country is minor or insignificant under section 781(b)(1)(C)
of the Act, section 781(b)(2) of the Act directs Commerce to consider:
(A) the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
third country is minor or insignificant.\6\ Accordingly, it is
Commerce's practice to evaluate each of these five factors as they
exist in the third country, depending on the totality of the
circumstances of the particular circumvention inquiry.\7\
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\6\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994),
at 893.
\7\ See Uncovered Innerspring Units from the People's Republic
of China: Final Affirmative Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and
accompanying Issues and Decision Memorandum at 4.
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In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in a third country within the scope of an AD
and/or CVD order. Specifically, Commerce shall take into account such
factors as: (A) the pattern of trade, including sourcing patterns; (B)
whether the manufacturer or exporter of the merchandise is affiliated
with the person who, in the third country, uses the merchandise to
complete or assemble the merchandise which is subsequently imported
into the United States; and (C) whether imports of the merchandise into
the third country have increased after the initiation of the
investigation that resulted in the issuance of such order or finding.
Analysis
Based on our analysis of the domestic industry's circumvention
request, we determine that the domestic industry satisfied the criteria
under 19 CFR 351.226(c); thus, pursuant to 19 CFR 351.226(d)(1)(ii), we
have accepted the request and are initiating the requested
circumvention inquiry.\8\
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\8\ See Initiation Checklist.
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The domestic industry requests that Commerce initiate this inquiry
on a company-specific basis, with respect to Gwangyang Aluminum only.
The information provided by the domestic industry is centered on
Gwangyang Aluminum and does not warrant initiating this circumvention
inquiry on a country-wide basis. Therefore, Commerce is initiating this
circumvention inquiry with respect to Gwangyang Aluminum.
Commerce intends to establish a schedule for questionnaires and
[[Page 44781]]
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 will notify U.S. Customs
and Border Protection (CBP) of its initiation of the requested
circumvention inquiry and direct CBP to continue the suspension of
liquidation of entries of products subject to the circumvention inquiry
that were already subject to the suspension of liquidation under the
Orders and to apply the cash deposit rates that would be applicable if
the products were determined to be covered by the scope of the Orders.
Should Commerce issue a preliminary or final circumvention
determination, 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 section 781(b) 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 CAAS from
Korea produced by Gwangyang Aluminum, assembled or completed using
aluminum plate produced by Mingtai in China, and exported to the United
States, is circumventing the Orders. We included a description of the
products that are subject to the circumvention inquiry, and an
explanation of the reasons for Commerce's decision to initiate this
inquiry, in the accompanying Initiation Checklist.\9\ In accordance
with 19 CFR 351.226(e)(1), Commerce intends to issue its preliminary
determination in this circumvention proceeding no later than 150 days
from the date of publication of this notice in the Federal Register.
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\9\ Id.
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This notice is published in accordance with section 781(b) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: July 7, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-14875 Filed 7-12-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on July 13, 2023.
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