Notice2025-03834

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

Primary source

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Published
March 11, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

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.

Full Text

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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:

------------------------------------------------------------------------
                                                        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

[[Page 11705]]

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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Indexed from Federal Register on March 11, 2025.

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