Notice2024-11598
Aluminum Extrusions From the United Arab Emirates: Preliminary Affirmative Determination of Critical Circumstances, in Part, in the Less-Than-Fair Value Investigation
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 28, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that critical circumstances exist regarding certain imports of aluminum extrusions from the United Arab Emirates (UAE).
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 103 (Tuesday, May 28, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 103 (Tuesday, May 28, 2024)]
[Notices]
[Pages 46057-46060]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-11598]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-520-810]
Aluminum Extrusions From the United Arab Emirates: Preliminary
Affirmative Determination of Critical Circumstances, in Part, in the
Less-Than-Fair Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that critical circumstances exist regarding certain imports
of aluminum extrusions from the United Arab Emirates (UAE).
DATES: Applicable May 28, 2024.
FOR FURTHER INFORMATION CONTACT: Jinny Ahn or John K. Drury at (202)
482-0339 and (202) 482-0195, respectively, AD/CVD Operations, Office
VI, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On October 24, 2023, Commerce initiated a less than fair value
(LTFV) investigation concerning aluminum
[[Page 46058]]
extrusions from the UAE.\1\ On April 19, 2024, the U.S. Aluminum
Extruders Coalition and the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union (collectively, the petitioners) filed a timely
critical circumstances allegation, pursuant to section 703(e)(1) of the
Tariff Act of 1930, as amended, (the Act) and 19 CFR 351.206, alleging
that critical circumstances exist with respect to aluminum extrusions
from the UAE.\2\ Commerce published its preliminary LTFV determination
on May 7, 2024.\3\
---------------------------------------------------------------------------
\1\ See Aluminum Extrusions from the People's Republic of China,
Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy,
the Republic of Korea, Malaysia, Mexico, Taiwan, Thailand, the
Republic of Turkey, the United Arab Emirates, and the Socialist
Republic of Vietnam: Initiation of Less-Than-Fair-Value
Investigations, 88 FR 74421 (October 31, 2023) (Initiation Notice).
\2\ See Petitioners' Letter, ``Critical Circumstances
Allegation,'' dated April 19, 2024 (Critical Circumstances
Allegation).
\3\ See Aluminum Extrusions from the United Arab Emirates:
Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures, 89 FR 38090 (May 7, 2024) (Preliminary
Determination) and accompanying Preliminary Decision Memorandum
(PDM).
---------------------------------------------------------------------------
In accordance with 19 CFR 351.206(c)(1) and (c)(2)(ii), when a
critical circumstances allegation is filed 30 days or more before the
scheduled date of the final determination, but later than 20 days
before the scheduled date of the preliminary determination, Commerce
will make a preliminary finding whether there is a reasonable basis to
believe or suspect that critical circumstances exist and will issue a
preliminary critical circumstances determination within 30 days after
the allegation is filed.
Legal Framework
Section 733(e)(1) of the Act provides that Commerce, upon receipt
of a timely allegation of critical circumstances, will determine
whether there is a reasonable basis to believe or suspect that: (A)(i)
there is a history of dumping and material injury by reason of dumped
imports in the United States or elsewhere of the subject merchandise,
or (ii) the person by whom, or for whose account, the merchandise was
imported knew or should have known that the exporter was selling the
subject merchandise at less than its fair value and that there was
likely to be material injury by reason of such sales; and (B) there
have been massive imports of the subject merchandise over a relatively
short period.
Further, 19 CFR 351.206(h)(1) provides that, in determining whether
imports of the subject merchandise have been ``massive,'' Commerce will
normally examine: (i) the volume and value of the imports; (ii)
seasonal trends; and (iii) the share of domestic consumption accounted
for by the imports. In addition, 19 CFR 351.206(h)(2) provides that,
``{i{time} n general, unless the imports during the `relatively short
period' . . . have increased by at least 15 percent over the imports
during an immediately preceding period of comparable duration, the
Secretary will not consider the imports massive.'' Section 351.206(i)
of Commerce's regulations defines ``relatively short period'' generally
as the period starting on the date the proceeding begins (i.e., the
date the petition is filed) and ending at least three months later.
This section of the regulations further provides that, if Commerce
``finds that importers, or exporters or producers, had reason to
believe, at some time prior to the beginning of the proceeding, that a
proceeding was likely,'' Commerce may consider a period of not less
than three months from that earlier time.
Critical Circumstances Allegation
In their allegation, the petitioners state that based on the
dumping margins calculated in the petition (i.e., 42.29 percent),
importers knew, or should have known, that imports of aluminum
extrusions from the UAE were being sold at LTFV because this margin
exceeds the 25 and 15 percent thresholds established for export price
(EP).\4\ Additionally, the petitioners contend that the U.S.
International Trade Commission's (ITC's) affirmative determination that
there is a reasonable indication that an industry in the United States
is materially injured by reason of imports of aluminum extrusions from
the UAE is sufficient to impute knowledge of the likelihood of material
injury.\5\
---------------------------------------------------------------------------
\4\ See Initiation Notice, 88 FR at 77426.
\5\ See Aluminum Extrusions from China, Colombia, Dominican
Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South
Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam,
88 FR 82913 (November 27, 2023) (ITC Preliminary Determination).
---------------------------------------------------------------------------
Finally, as part of their allegation and pursuant to 19 CFR
351.206(h)(2), the petitioners provided monthly import data for the
Harmonized Tariff Schedule of the United States (HTSUS) subheadings
included in the scope of the investigation for the period between May
2023 and February 2024 as evidence of massive imports of aluminum
extrusions from the UAE during a relatively short period.\6\
---------------------------------------------------------------------------
\6\ See Critical Circumstances Allegation at 7.
---------------------------------------------------------------------------
Analysis
Generally, when determining whether critical circumstances exist
pursuant to the statutory criteria, Commerce examines record evidence,
including: (1) the evidence presented in the petitioners' allegation;
(2) import statistics released by the ITC; and (3) shipment information
submitted to Commerce by the respondents selected for individual
examination.\7\ Consistent with Commerce's practice, here we examined
record information obtained since the initiation of this investigation,
as well as the ITC's preliminary injury determination.\8\
---------------------------------------------------------------------------
\7\ See, e.g., Notice of Final Determination of Sales at Less
Than Fair Value and Affirmative Final Determination of Critical
Circumstances: Circular Welded Carbon Quality Steel Pipe from the
People's Republic of China, 73 FR 31970, 31972-73 (June 5, 2008);
see also Final Determination of Sales at Less Than Fair Value and
Affirmative Determination of Critical Circumstances: Small Diameter
Graphite Electrodes from the People's Republic of China, 74 FR 2049,
2052-53 (January 14, 2009).
\8\ See, e.g., Critical Circumstances Allegation; Preliminary
Determination; and ITC Preliminary Determination.
---------------------------------------------------------------------------
Section 733(e)(1)(A)(i) of the Act: History of Dumping and Material
Injury by Reason of Dumped Imports in the United States or Elsewhere of
the Subject Merchandise
In determining whether there is a history of dumping pursuant to
section 733(e)(1)(A)(i) of the Act, Commerce generally considers
current or previous antidumping duty (AD) orders on subject merchandise
from the country in question in the United States and current orders in
any other country with regard to imports of subject merchandise.\9\
There are no current or previous AD orders on aluminum extrusions from
the UAE in the United States, and Commerce is not aware of the
existence of any active AD orders on aluminum extrusions from the UAE
in other countries. Therefore, Commerce preliminarily finds that there
is no history of injurious dumping of aluminum extrusions from the UAE;
thus, this criterion is not met.
---------------------------------------------------------------------------
\9\ See, e.g., Certain Oil Country Tubular Goods from the
People's Republic of China: Notice of Preliminary Determination of
Sales at Less Than Fair Value, Affirmative Preliminary Determination
of Critical Circumstances and Postponement of Final Determination,
74 FR 59117, 59120 (November 17, 2009), unchanged in Certain Oil
Country Tubular Goods from the People's Republic of China: Final
Determination of Sales at Less Than Fair Value, Affirmative Final
Determination of Critical Circumstances and Final Determination of
Targeted Dumping, 75 FR 20335 (April 19, 2010).
---------------------------------------------------------------------------
[[Page 46059]]
Section 733(e)(1)(A)(ii): The Importer Knew or Should Have Known That
the Exporter Was Selling at Less Than Fair Value and That There Was
Likely To Be Material Injury
In determining whether importers knew or should have known that
exporters were selling subject merchandise at LTFV and that there was
likely to be material injury by reason of such sales, Commerce must
rely on the facts before it at the time the determination is made.
Commerce generally bases its decision with respect to knowledge on the
margins calculated in the preliminary determination and the ITC's
preliminary injury determination.\10\
---------------------------------------------------------------------------
\10\ See, e.g., Granular Polytetrafluoroethylene Resin from
India: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, Preliminary Affirmative Determination of Critical
Circumstances, Postponement of Final Determination, and Extension of
Provisional Measures, 86 FR 49299 (September 2, 2021), and
accompanying PDM at 15, unchanged in Granular
Polytetrafluoroethylene Resin From India: Final Determination of
Sales at Less Than Fair Value and Final Affirmative Determination of
Critical Circumstances, 87 FR 3772 (January 25, 2022). See also Oil
Country Tubular Goods from Mexico: Preliminary Affirmative
Determinations of Sales at Less Than Fair Value and Critical
Circumstances, Postponement of Final Determination, and Extension of
Provisional Measures, 87 FR 28808 (May 11, 2022) and accompanying
PDM at 11, unchanged in Oil Country Tubular Goods from Mexico: Final
Affirmative Determinations of Sales at Less Than Fair Value and
Critical Circumstances, 87 FR 59041 (September 29, 2022).
---------------------------------------------------------------------------
Commerce normally considers margins of 25 percent or more for EP
sales and 15 percent or more for constructed export price sales
sufficient to impute importer knowledge of sales at LTFV.\11\ In this
investigation, we preliminarily calculated a weighted-average dumping
margin of 9.13 percent for Gulf Extrusions LLC/Automotive Precision
Technology (APT)-Sole Proprietorship LLC (Gulfex),\12\ 9.17 percent for
OSE Industries LLC (OSE), and 9.15 percent for all other UAE exporters/
producers.\13\ Additionally, we preliminarily assigned a dumping margin
of 42.29 percent to various companies based on total adverse facts
available (AFA).\14\
---------------------------------------------------------------------------
\11\ See, e.g., Carbon and Alloy Steel Wire Rod from Germany,
Mexico, Moldova, Trinidad and Tobago, and Ukraine: Preliminary
Determination of Critical Circumstances, 67 FR 6224, 6225 (February
11, 2002) (Steel Wire Rod Preliminary), unchanged in Notice of Final
Determination of Sales at Less Than Fair Value: Carbon and Certain
Alloy Steel Wire Rod from Moldova, 67 FR 55790 (August 30, 2002)
(Steel Wire Rod Final).
\12\ As explained in the PDM, based on the record information,
Commerce preliminarily determined that Gulf Extrusions LLC and a
non-selected respondent, Automotive Precision Technology LLC, are
affiliated within the meaning of section 771(33)(F) of the Act and
should be treated as a single entity pursuant to 19 CFR 351.401(f)
for this preliminary determination. See PDM; see also Memorandum,
``Preliminary Collapsing Memorandum for Gulf Extrusions LLC and
Automotive Precision Technology--Sole Proprietorship LLC,'' dated
May 1, 2024.
\13\ See Preliminary Determination, 89 FR at 38091.
\14\ Id. The companies to which we assigned the rate of 42.29
percent are Al Buraq Trading & Enterprises, Co. (Al Buraq), Al Hamad
Industrial Co., LLC (Al Hamad), Al Jaber Aluminium Extrusions, LLC
(Al Jaber), Aluminum Products Co. (APC), Arabian Extrusions Factory
(Arabian Extrusions), Emirates Extrusion Factory, LLC (Emirates
Extrusion), Taweelah Aluminium Extrusion Co. (Taweelah), and White
Aluminum Extrusions, LLC (White Aluminum). See also Preliminary
Determination PDM at 6.
---------------------------------------------------------------------------
Based on these dumping margins, we preliminarily find no reasonable
basis to believe or suspect that importers of subject merchandise from
Gulfex, OSE, or producers/importers of subject merchandise from the UAE
other than Gulfex, OSE, Al Buraq, Al Hamad, Al Jaber, APC, Arabian
Extrusions, Emirates Extrusion, Taweelah, and White Aluminum knew or
should have known that the exporters were selling subject merchandise
at LTFV. Because this criterion is not met for these companies, we
preliminarily determine that critical circumstances do not exist for
these companies.
However, given the preliminary dumping margins for Al Buraq, Al
Hamad, Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, Taweelah,
and White Aluminum exceed the threshold sufficient to impute knowledge
of dumping, we preliminarily find that there is a reasonable basis to
believe or suspect that these producers/exporters of subject
merchandise knew, or should have known, that the exporters were selling
subject merchandise at LTFV.
In determining whether an importer knew or should have known that
there was likely to be material injury caused by reason of such
imports, Commerce normally will look to the preliminary injury
determination of the ITC.\15\ If the ITC finds a reasonable indication
of present material injury to the relevant U.S. industry, Commerce will
determine that a reasonable basis exists to impute importer knowledge
that material injury is likely by reason of such imports.\16\ Here, the
ITC preliminarily found that there is ``reasonable indication'' of
material injury to the domestic industry because of the imported
subject merchandise from the UAE. Thus, Commerce determines that
importers knew, or should have known, that there was likely to be
material injury by reason of sales of aluminum extrusions by Al Buraq,
Al Hamad, Al Jaber, APC, Arabian Extrusions, Emirates Extrusion,
Taweelah, and White Aluminum.\17\
---------------------------------------------------------------------------
\15\ See, e.g., Certain Potassium Phosphate Salts from the
People's Republic of China: Preliminary Affirmative Determination of
Critical Circumstances in the Antidumping Duty Investigation, 75 FR
24572, 24573 (May 5, 2010).
\16\ See, e.g., Steel Wire Rod Preliminary, 67 FR at 6225,
unchanged in Steel Wire Rod Final.
\17\ See ITC Preliminary Determination.
---------------------------------------------------------------------------
Section 733(e)(1)(B): Whether There Have Been Massive Imports of the
Subject Merchandise Over a Relatively Short Period
In determining whether there have been ``massive imports'' over a
``relatively short period,'' pursuant to section 733(e)(1)(B) of the
Act and 19 CFR 351.206(h), Commerce normally compares the import
volumes of the subject merchandise for at least three months
immediately preceding the filing of the petition (i.e., the ``base
period'') to a comparable period of at least three months following the
filing of the petition (i.e., the ``comparison period''). The
regulations also provide, however, that if Commerce finds that
importers, or exporters or producers, had reason to believe, at some
time prior to the beginning of the proceeding, that a proceeding was
likely, Commerce may consider a period of not less than three months
from that earlier time.\18\ Pursuant to 19 CFR 351.206(h)(2), imports
must increase by at least 15 percent during the ``relatively short
period'' to be considered ``massive.''
---------------------------------------------------------------------------
\18\ See 19 CFR 351.206(i).
---------------------------------------------------------------------------
As discussed above, we preliminarily find that for Gulfex, OSE, and
producers/importers of subject merchandise from the UAE other than
Gulfex, OSE, Al Buraq, Al Hamad, Al Jaber, APC, Arabian Extrusions,
Emirates Extrusion, Taweelah, and White Aluminum, pursuant to section
733(e)(1) of the Act there is not a reasonable basis to believe or
suspect that: (A)(i) there is a history of dumping and material injury
by reason of dumped imports in the United States or elsewhere of the
subject merchandise, or (ii) the person by whom, or for whose account,
the merchandise was imported knew or should have known that the
exporter was selling the subject merchandise at less than its fair
value and that there was likely to be material injury by reason of such
sales; thus, whether there was a massive increase in imports from these
companies between the base and comparison periods is moot.
However, as explained in the Preliminary Determination, we
preliminarily applied total AFA to Al Buraq, Al Hamad, Al Jaber, APC,
Arabian Extrusions, Emirates Extrusion, Taweelah, and White Aluminum
because they failed to cooperate in this
[[Page 46060]]
proceeding.\19\ Specifically, we determined that the use of facts
available is warranted, pursuant to sections 776(a)(1) and (a)(2)(A)-
(C) of the Act, because Al Buraq, Al Hamad, Al Jaber, APC, Arabian
Extrusions, Emirates Extrusion, Taweelah, and White Aluminum did not
respond to our quantity and value (Q&V) questionnaire, despite
confirmation that the questionnaire was successfully delivered to
them.\20\ Further, we determined these companies withheld information
requested by Commerce, failed to provide information in a timely
manner, and significantly impeded this proceeding by not submitting the
requested Q&V information.\21\ We also determined that an adverse
inference is warranted pursuant to section 776(b) of the Act because
these companies were not cooperative.\22\ Thus, for Al Buraq, Al Hamad,
Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, Taweelah, and
White Aluminum, we preliminarily determine, as AFA and in accordance
with section 776(b) of the Act, there was a massive surge in imports
between the base and comparison periods.
---------------------------------------------------------------------------
\19\ See Preliminary Determination PDM at 6.
\20\ See Preliminary Determination PDM at 6-7; see also
Memorandum, ``Issuance of the Quantity and Value Questionnaire,''
dated November 6, 2023.
\21\ See Preliminary Determination PDM at 7.
\22\ Id. at 6-7.
---------------------------------------------------------------------------
Preliminary Affirmative Determination of Critical Circumstances, in
Part
Based on the criteria and findings discussed above, we
preliminarily determine that critical circumstances exist with respect
to imports of aluminum extrusions from the UAE from Al Buraq, Al Hamad,
Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, Taweelah, and
White Aluminum. Further, we preliminarily determine that critical
circumstances do not exist with respect to imports of aluminum
extrusions from the UAE produced or exported by Gulfex, OSE, and
producers/importers of subject merchandise from the UAE other than
Gulfex, OSE, Al Buraq, Al Hamad, Al Jaber, APC, Arabian Extrusions,
Emirates Extrusion, Taweelah, or White Aluminum.
Final Critical Circumstances Determination
We will make a final determination concerning critical
circumstances in the final LTFV determination, which is currently
scheduled for September 19, 2024.
Public Comment
In the Preliminary Determination, Commerce stated that case briefs
or other written comments may be submitted to the Assistant Secretary
for Enforcement and Compliance and set a deadline for case briefs or
other written comments on non-scope issues as no later than seven days
after the date on which the final verification report is issued.\23\
Rebuttal briefs, limited to issues raised in case briefs, may be
submitted no later than five days after the deadline for case
briefs.\24\ All comments regarding this preliminary critical
circumstances determination are subject to the same request for public
executive summaries in case and rebuttal briefs, as noted in the
Preliminary Determination.\25\
---------------------------------------------------------------------------
\23\ See Preliminary Determination, 89 FR at 38091-92.
\24\ See 19 CFR 351.309(d)(1).
\25\ See Preliminary Determination, 89 FR at 38092.
---------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for Al Buraq,
Al Hamad, Al Jaber, APC, Arabian Extrusions, Emirates Extrusion,
Taweelah, and White Aluminum, we will direct U.S. Customs and Border
Protection (CBP) to suspend liquidation of any unliquidated entries of
subject merchandise from the UAE entered, or withdrawn from warehouse
for consumption, on or after February 7, 2024, which is 90 days prior
to the date of publication of the Preliminary Determination in the
Federal Register. For such entries, CBP shall require a cash deposit
equal to the estimated weighted-average dumping margin established in
the Preliminary Determination. This suspension of liquidation will
remain in effect until further notice.
U.S. International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, we will notify the
ITC of this preliminary determination of critical circumstances.
This determination is issued and published pursuant to section
733(f) and 777(i) of the Act and 19 CFR 351.206(c)(2)(ii).
Dated: May 20, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2024-11598 Filed 5-24-24; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on May 28, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.