Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) 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.
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<title>Federal Register, Volume 90 Issue 46 (Tuesday, March 11, 2025)</title>
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[Federal Register Volume 90, Number 46 (Tuesday, March 11, 2025)]
[Notices]
[Pages 11703-11705]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03834]
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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: Final Affirmative Countervailing Duty
Determination and Final Affirmative Determination of Critical
Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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.
DATES: Applicable March 11, 2025.
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
On October 28, 2024, Commerce published its Preliminary
Determination in the Federal Register and invited interested parties to
comment.\1\
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\1\ 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
(October 29, 2024) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\2\ The Issues and 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 Issues
and 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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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in 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 (Issues and 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,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. Therefore, we did not make any changes to the scope
of this investigation from the scope published in the Preliminary
Determination, as noted in Appendix I.
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\4\ See Disposable Aluminum Containers, Pans, Trays, and Lids
from the People's Republic of China: Initiation of Countervailing
Duty Investigation, 89 FR 49833, 49834 (June 12, 2024).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by interested parties and addressed in the
Issues and Decision Memorandum, see Appendix II.
Changes Since the Preliminary Determination
Based on Henan Aluminium Corporation (Henan)'s withdrawal from the
investigation, and our review and analysis of comments received by
interested parties, we have made certain changes to the subsidy rate
calculations. Specifically, given that there are no cooperative
respondents following Henan's withdrawal from the investigation, we
relied on facts available with adverse inferences (AFA), based on
section 776 of the Tariff Act of 1920, as amended (the Act), to
calculate the subsidy rate for both mandatory respondents, Henan and
Zhejiang Acumen Technology Living Co., Ltd. (Zhejiang Acumen).
Furthermore, we revised the AFA rate, as the rate in the
Preliminary Determination was, in part, based on calculations for some
of Henan's self-reported programs. As we were unable to verify the
information provided by Henan, we are determining rates for those
programs based on AFA in the final determination.\5\
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\5\ See Issues and Decision Memorandum at Appendix.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy
[[Page 11704]]
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, and that
the subsidy is specific.\6\ For a full description of the methodology
underlying our determination, see the Issues and Decision Memorandum.
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\6\ 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 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.\7\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences'' section in the Issues and Decision
Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Verification
Zhejiang Acumen did not participate in the investigation and Henan
withdrew its participation \8\ following the Preliminary Determination.
Therefore, we were unable to conduct verification of Zhejiang Acumen or
Henan.
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\8\ See Henan's Letter, ``Withdrawal of Participation in the
Investigation,'' dated December 13, 2024.
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Final Affirmative Determination of Critical Circumstances
Commerce preliminarily determined, in accordance with sections
703(e)(1)(A) and (B) of the Act, and 19 CFR 351.206, that critical
circumstances existed with respect to imports of subject merchandise
for Henan, Zhejiang Acumen, and all other producers and/or
exporters.\9\ For this final determination, in accordance with section
705(a)(2) of the Act, Commerce continues to find that critical
circumstances exist with respect to imports of subject merchandise for
Henan, Zhejiang Acumen, and all other producers and/or exporters. For a
full description of the methodology and results of our critical
circumstances analysis, see the Issues and Decision Memorandum.
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\9\ See Preliminary Determination PDM at 4-7.
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All-Others Rate
Pursuant to section 705(c)(5)(A)(ii) of the Act, Commerce may
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually examined when the rates for those exporters and/
or producers were determined entirely under section 776 of the Act. In
this investigation, Commerce determined the subsidy rate for each of
the individually examined respondents based entirely on facts available
under section 776 of the Act. Thus, this is the only rate available in
this proceeding for deriving the all others rate. Consequently,
pursuant to sections 703(d) and 705(c)(5)(A)(ii) of the Act, Commerce
established the all others rate by applying the countervailable subsidy
rate assigned to the mandatory respondents.
Final Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad valorem)
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Henan Aluminium Corporation....................... * 317.85
Zhejiang Acumen Living Technology Co., Ltd........ * 317.85
All Others........................................ 317.85
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed in connection with this final 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).
Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise from China that were entered, or withdrawn from
warehouse, for consumption. Because we preliminarily determined that
critical circumstances existed with respect to Henan, Zhejiang Acumen,
and all other producers and/or exporters, we instructed CBP to suspend
such entries on or after July 30, 2024, which is 90 days prior to the
date of the publication of the Preliminary Determination in the Federal
Register.\10\ In accordance with section 703(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation of all
entries of subject merchandise entered or withdrawn from warehouse, on
or after February 26, 2025, but to continue the suspension of
liquidation of all entries of subject merchandise that were subject to
suspension of liquidation between April 2, 2024, and February 25, 2024.
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\10\ See Preliminary Determination, 89 FR at 85496.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for entries of subject merchandise in the amounts indicated above. If
the ITC determines that material injury, or threat of material injury,
does not exist, this proceeding will be terminated, and all estimated
duties deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of paper plates
from China. Because the final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with whether imports of disposable
aluminum containers from China are materially injuring, or threaten
material injury to, the U.S. industry, material injury, by reason of
imports of paper plates from China no later than 45 days after our
final determination. In addition, we are making available to the ITC
all non-privileged and nonproprietary information related to this
investigation. We will allow the ITC
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access to all privileged and business proprietary information in our
files, provided the ITC confirms that it will not disclose such
information, either publicly or under an administrative protective
order (APO), without the written consent of the Assistant Secretary for
Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Suspension of
Liquidation'' section.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(f) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: March 4, 2025.
Christopher Abbott,
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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Critical Circumstances Determination
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Discussion of the Issues
Comment 1: Application of the Adverse Facts Available (AFA) Rate
to Henan
Comment 2: Calculation of the AFA Rate for the Government of
China's (GOC) Provision of Aluminum Foil For Less Than Adequate
Remuneration (LTAR)
Comment 3: Calculation of the AFA Rate for the GOC's Provision
of Electricity for LTAR
Comment 4: Commerce's Determination of Other Subsidies
VII. Recommendation
[FR Doc. 2025-03834 Filed 3-10-25; 8:45 am]
BILLING CODE 3510-DS-P
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