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
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of disposable aluminum containers, pans, trays, and lids (disposable aluminum containers) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 89 Issue 208 (Monday, October 28, 2024)</title>
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[Federal Register Volume 89, Number 208 (Monday, October 28, 2024)]
[Notices]
[Pages 85495-85497]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-25013]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-171]
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
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of disposable aluminum containers, pans, trays,
and lids (disposable aluminum containers) from the People's Republic of
China (China). The period of investigation (POI) is January 1, 2023,
through December 31, 2023. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable October 28, 2024.
FOR FURTHER INFORMATION CONTACT: Brian Warnes, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0028.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on June 12, 2024.\1\ On July 25, 2024, Commerce postponed
the deadline for the preliminary determination until October 15, 2024,
in accordance with section 703(c)(1)(A) of the Act.\2\ On July 26,
2024, Commerce further tolled all deadlines in this proceeding by seven
days.\3\ The deadline for the preliminary determination is now October
21, 2024.
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\1\ See Disposable Aluminum Containers, Pans, Trays, and Lids
from the People's Republic of China: Initiation of Countervailing
Duty Investigation, 89 FR 49833 (June 12,2024) (Initiation Notice).
\2\ See Disposable Aluminum Containers, Pans, Trays, and Lids
from the People's Republic of China: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 89 FR 60355
(July 25, 2024).
\3\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 25, 2024.
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For a complete description of events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\4\ A
list of topics discussed 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty 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).
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Scope of the Investigation
The products covered by this investigation are disposable 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.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 49834.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient,
[[Page 85496]]
and that the subsidy is specific.\7\ For a full description of the
methodology underlying our preliminary determination, see the
Preliminary Decision Memorandum.
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\7\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that certain respondents and
the Government of China did not act to the best of their ability to
respond to Commerce's requests for information, it drew an adverse
inference where appropriate in selecting from among the facts otherwise
available.\8\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences'' section in the Preliminary Decision
Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination Critical Circumstances
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise from Henan Aluminium Corporation (Henan), Zhejiang
Acumen Living Technology Co., Ltd. (Zhejiang Acumen), and all other
exporters/producers of disposable aluminum containers from China. For a
full discussion of our preliminary critical circumstances
determination, see the ``Preliminary Affirmative Determination of
Critical Circumstances'' section of the Preliminary Decision
Memorandum.
Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the concurrent
antidumping duty (AD) investigation of disposable aluminum containers
from China, based on a request made by the Aluminum Foil Container
Manufacturers Association (the petitioner).\9 \Consequently, the final
CVD determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
March 4, 2025, unless postponed.
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\9\ See Petitioner's Letter, ``Petitioner's Request to Align
Final Antidumping and Countervailing Duty Determinations,'' dated
October 11, 2024.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
In this investigation, Commerce preliminarily calculated a total
subsidy rate for Henan that is not zero, de minimis, or based entirely
on the facts otherwise available. The rate determined for the other
mandatory respondent, Zhejiang Acumen, is based entirely under section
776 of the Act. Because Commerce calculated a total countervailable
subsidy rate for Henan that is not zero, de minimis, or based entirely
on the facts otherwise available, and because the only other
respondent, Zhejiang Acumen, is based entirely on the facts otherwise
available, we have preliminarily determined the all-others rate to be
Henan's rate.\10\
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\10\ See Memorandum, ``Calculation of Subsidy Rate for All
Others,'' dated concurrently with this notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate (percent
Company ad valorem)
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Henan Aluminium Corporation.................... 78.12
Zhejiang Acumen Living Technology Co., Ltd..... * 312.91
All Others..................................... 78.12
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this 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 the Federal Register, accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
Section 703(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 all exporters/producers. In accordance with section
703(e)(2)(A) of the Act, the suspension of liquidation shall apply to
unliquidated entries of merchandise from all exporters/producers that
were entered, or withdrawn from warehouse, for consumption on or after
the date which is 90 days before the publication of this notice.
Further, pursuant to 19 CFR 351.205(d), Commerce will instruct U.S.
Customs and Border Protection to require a cash deposit to suspended
entries equal to the rates indicated above.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to
[[Page 85497]]
issues raised in the case briefs, may be filed not later than five days
after the date for filing case briefs.\11\ Interested parties who
submit case or rebuttal briefs in this proceeding must submit: (1) a
table of contents listing each issue; and (2) a table of
authorities.\12\
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\11\ 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).
\12\ See 19 CFR 351.309(c)(2) and (d)(2).
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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.\13\
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).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ See APO and Service Final Rule, 88 FR at 67069.
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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, via ACCESS,
within 30 days after the date of publication of this notice. 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 the issues to be discussed. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, parties will be notified of
the time and date for the hearing.\15\ Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
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\15\ See 19 CFR 351.310(d).
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All submissions, including case and rebuttal briefs, as well as
hearing requests, should be filed using ACCESS. An electronically-filed
document must be received successfully in its entirety by ACCESS by
5:00 p.m. Eastern Time on the established deadline.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its determination. 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 disposable aluminum containers from
China are materially injuring, or threaten material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: October 21, 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.
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 nonaluminum 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. Alignment
IV. Injury Test
V. Preliminary Affirmative Determination of Critical Circumstances
VI. Diversification of China's Economy
VII. Use of Facts Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2024-25013 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P
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