Notice2026-02642
Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
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
February 10, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from the Aluminum Foil Containers Manufacturers Association (AFCMA) and the following individual members of AFCMA, Durable Packaging International; D&W Fine Pack, LLC; Handi- foil Corp.; Penny Plate, LLC; Reynolds Consumer Products, LLC; Shah Foil Products, Inc.; Smart USA, Inc.; and Trinidad/Benham Corp. (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of disposable aluminum containers, pans, trays, and lids (aluminum containers) completed in the United Arab Emirates (the UAE) using aluminum foil manufactured in the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on aluminum containers from China.
Full Text
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<title>Federal Register, Volume 91 Issue 27 (Tuesday, February 10, 2026)</title>
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[Federal Register Volume 91, Number 27 (Tuesday, February 10, 2026)]
[Notices]
[Pages 5908-5910]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02642]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-170, C-570-171]
Disposable Aluminum Containers, Pans, Trays, and Lids From the
People's Republic of China: Initiation of Circumvention Inquiry on the
Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from the Aluminum Foil Containers
Manufacturers Association (AFCMA) and the following individual members
of AFCMA, Durable Packaging International; D&W Fine Pack, LLC; Handi-
foil Corp.; Penny Plate, LLC; Reynolds Consumer Products, LLC; Shah
Foil Products, Inc.; Smart USA, Inc.; and Trinidad/Benham Corp.
(collectively, the requesters), the U.S. Department of Commerce
(Commerce) is initiating a country-wide circumvention inquiry to
determine whether imports of disposable aluminum containers, pans,
trays, and lids (aluminum containers) completed in the United Arab
Emirates (the UAE) using aluminum foil manufactured in the People's
Republic of China (China), are circumventing the antidumping duty (AD)
and countervailing duty (CVD) orders on aluminum containers from China.
DATES: Applicable February 10, 2026.
FOR FURTHER INFORMATION CONTACT: Justin Enck at (202) 482-1614 and
Shawn Gregor at (202) 482-3226, Trade Remedy Counseling and
Initiations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On January 6, 2026, pursuant to section 781(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226(i), the requesters filed
a circumvention inquiry request alleging that aluminum containers
completed in the UAE using aluminum foil manufactured in China are
circumventing the AD and CVD orders on aluminum containers from China
\1\ and, accordingly, should be included within the scope of the
Orders.\2\
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\1\ See Disposable Aluminum Containers, Pans, Trays, and Lids
from the People's Republic of China: Antidumping and Countervailing
Duty Orders, 90 FR 19467 (May 8, 2025); see also Disposable Aluminum
Containers, Pans, Trays, and Lids from the People's Republic of
China: Antidumping and Countervailing Duty Orders; Correction, 90 FR
21751 (May 21, 2025) (collectively, Orders).
\2\ See Requesters' Letter, ``Request for Circumvention Ruling
Pursuant to Section 781(b), As Amended,'' dated January 6, 2026
(Circumvention Request).
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On January 20 and 27, 2026, we issued supplemental questionnaires
to the requesters.\3\ On January 21 and 28, 2026, the requesters filed
their responses to our requests for additional
[[Page 5909]]
information.\4\ On January 26, 2026, Kari-Out LLC dba Kariout Co.
(Kari-Out), a U.S. importer of aluminum containers, filed comments in
opposition to the domestic interested parties' request.\5\ On January
28, 2026, the domestic interested parties also filed rebuttal comments
to Kari-Out's January 26, 2026 comments.\6\
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\3\ See Commerce's Letters, ``United Arab Emirates Circumvention
Inquiry Request Supplemental Questionnaire,'' dated January 20,
2026, and ``United Arab Emirates Circumvention Inquiry Request
Second Supplemental Questionnaire,'' dated January 27, 2026.
\4\ See Requesters' Letters, ``Petitioners' Response to the U.S.
Department of Commerce's January 20, 2026 Supplemental
Questionnaire,'' dated January 21, 2026, and ``Petitioners' Response
to the U.S. Department of Commerce's January 27, 2026 Supplemental
Questionnaire,'' dated January 28, 2026 (Requesters' January 28,
2026, Submission).
\5\ See Kari-Out's Letter, ``Comments and Factual Information
Regarding Circumvention Inquiry Request on the United Arab
Emirates,'' dated January 26, 2026.
\6\ See Requesters' January 28, 2026, Submission.
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Scope of the Orders
The merchandise subject to the Orders is disposable aluminum
containers, pans, trays, and lids produced primarily from flat-rolled
aluminum. The subject merchandise includes aluminum containers
regardless of shape or size and whether or not wrinkled or smooth. For
a full description of the scope of the Orders, see the Circumvention
Initiation Checklist.\7\
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\7\ See Checklist, ``Aluminum Containers Completed in the United
Arab Emirates Circumvention Initiation Checklist,'' dated
concurrently with, and hereby adopted by, this notice (Circumvention
Initiation Checklist), at Attachment I.
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers aluminum containers completed in
the UAE using Chinese-origin aluminum foil that are subsequently
exported from the UAE to the United States.
Initiation of Circumvention Inquiry
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
circumvention inquiry request 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 requesters 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 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 a
circumvention inquiry, 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 AD or CVD order; (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 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.
In determining whether the process of assembly or completion in a
foreign 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
foreign country is minor or insignificant.\8\ Accordingly, Commerce
will evaluate each of these five factors as they exist in the foreign
country, depending on the particular circumvention scenario.
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\8\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at
893.
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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 foreign country within the scope of an AD
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 that was
shipped to the foreign country is affiliated with the person who, in
the foreign 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 foreign country have
increased after the initiation of the investigation that resulted in
the issuance of such order.
Analysis
Based on our analysis of the requesters' circumvention inquiry
request, we determine that they have satisfied the criteria under 19
CFR 351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we are
initiating the requested circumvention inquiry. For a full discussion
of the basis for our decision to initiate the circumvention inquiry,
see the Circumvention Initiation Checklist. As explained in the
Circumvention Initiation Checklist, the information provided by the
requesters warrants initiating the circumvention inquiry on a country-
wide basis. Commerce has taken this approach in prior circumvention
inquiries, where the facts warranted initiation on a country-wide
basis.\9\
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\9\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to
solicit information from certain companies in the UAE concerning their
production of aluminum containers and their shipments thereof to the
United States.
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
each record within five days of the publication of this initiation
notice, which will be available on 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>. Comments regarding the CBP data and respondent
selection should be submitted within seven days after placement of the
CBP data on the record of the relevant inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to
[[Page 5910]]
Commerce's requests for information may result in the application of
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 CBP of the
initiation 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 affirmative preliminary or final
circumvention determinations, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that
Commerce issues affirmative preliminary or final circumvention
determinations that the products are circumventing the Orders, Commerce
will instruct CBP to continue the suspension of liquidation of
previously suspended entries and to apply the applicable cash deposit
rate. Commerce will also instruct CBP to begin the suspension of
liquidation and application of cash deposits for any unliquidated
entries not yet suspended, entered, or withdrawn from warehouse, for
consumption, on or after the date of publication of the notice of
initiation of the circumvention inquiry pursuant to paragraphs
(l)(2)(ii) and (l)(3)(ii). In addition, pursuant to paragraphs
(l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP to begin
the suspension of liquidation and application of cash deposits for any
unliquidated entries not yet suspended, entered, or withdrawn from
warehouse, for consumption, prior to the date of initiation of the
circumvention inquiry, but not for such entries prior to November 4,
2021, the effective date of these provisions in the Final Rule.\10\
These rules will not affect CBP's authority to take any additional
action with respect to the suspension of liquidation or related
measures for these entries, as stated in 19 CFR 351.226(l)(5).
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\10\ See Regulations to Improve Administration and Enforcement
of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345
(September 20, 2021) (Final Rule).
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Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce determines that the requesters' request for this 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 imports of aluminum
containers completed in and exported from the UAE using aluminum foil
manufactured in China are circumventing the Orders. In addition, we
have included a description of the products that are subject to this
inquiry, and an explanation of Commerce's decision to initiate the
inquiry as provided in the accompanying Circumvention Initiation
Checklist.\11\
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\11\ See Circumvention Initiation Checklist.
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In accordance with 19 CFR 351.226(e)(1), unless the circumvention
inquiry is rescinded, in whole or in part, or extended, Commerce
intends to issue its preliminary circumvention determination no later
than 150 days from the date of publication of the notice of initiation
of this circumvention inquiry in the Federal Register. Furthermore, in
accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2),
unless the circumvention inquiry is rescinded, in whole or in part, or
extended, Commerce intends to issue its final determination within 300
days from the date of publication of the notice of initiation of the
circumvention inquiry in the Federal Register.
This notice is published in accordance with section 781(b) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: February 5, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2026-02642 Filed 2-9-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on February 10, 2026.
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