Notice2026-16053
Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Initiation of Circumvention Inquiries 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
August 6, 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; Handifoil Corp.; Penny Plate, LLC; Reynolds Consumer Products, LLC; Shah Foil Products, Inc.; Smart USA, Inc.; Trinidad/Benham Corp.; and Wyda Packaging Corp. (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating country-wide circumvention inquiries to determine whether imports of disposable aluminum containers, pans, trays, and lids (aluminum containers) completed in Indonesia and Malaysia (collectively, the third countries) 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 150 (Thursday, August 6, 2026)</title>
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[Federal Register Volume 91, Number 150 (Thursday, August 6, 2026)]
[Notices]
[Pages 50787-50789]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16053]
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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 Inquiries 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;
Handifoil Corp.; Penny Plate, LLC; Reynolds Consumer Products, LLC;
Shah Foil Products, Inc.; Smart USA, Inc.; Trinidad/Benham Corp.; and
Wyda Packaging Corp. (collectively, the requesters), the U.S.
Department of Commerce (Commerce) is initiating country-wide
circumvention inquiries to determine whether imports of disposable
aluminum containers, pans, trays, and lids (aluminum containers)
completed in Indonesia and Malaysia (collectively, the third countries)
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 August 6, 2026.
FOR FURTHER INFORMATION CONTACT: Justin Enck at (202) 482-1614 or
Cassie Graham at (202) 482-2159, Office of Policy, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On July 1, 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
circumvention inquiry requests alleging that aluminum containers
completed in the third countries 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: Initiation of Less-Than-Fair-
Value Investigation, 89 FR 49837 (June 12, 2024); see also
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) (collectively, Orders).
\2\ See Requesters' Letters, ``Request for Circumvention Ruling
Pursuant to Section 781(b), As Amended,'' dated July 1, 2026
(Circumvention Requests).
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On July 7, 2026, we issued supplemental questionnaires to the
requesters.\3\ On July 10, 2026, the requesters filed their responses
to our requests for additional information.\4\
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\3\ See Commerce's Letter, ``Indonesia Circumvention Inquiry
Request Supplemental Questionnaire,'' dated July 7, 2026; see also
Commerce's Letter, ``Malaysia Circumvention Inquiry Request
Supplemental Questionnaire,'' dated July 7, 2026.
\4\ See Requesters' Letters, ``Petitioners' Response to the U.S.
Department of Commerce's Supplemental Questionnaire Dated July 7,
2026,'' dated July 10, 2026.
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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 Checklists.\5\
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\5\ See Checklists, ``Aluminum Containers Completed in Indonesia
Circumvention Initiation Checklist,'' and ``Aluminum Containers
Completed in Malaysia Circumvention Initiation Checklist,'' dated
concurrently with, and hereby adopted by, this notice (collectively,
Circumvention Initiation Checklists), at Attachment I.
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Merchandise Subject to the Circumvention Inquiries
The circumvention inquiries cover aluminum containers assembled and
completed in the third countries using Chinese-origin aluminum foil,
that are subsequently exported from the third countries to the United
States.
Initiation of Circumvention Inquiries
Section 351.226(d) of Commerce's regulations states that if
Commerce
[[Page 50788]]
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.\6\ 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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\6\ 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 determining whether action is needed in order to prevent evasion
of the order under section 781(b)(1)(E) of the Act, section 781(b)(3)
of the Act sets forth 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
requests, 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 inquiries. For a full discussion
of the basis for our decision to initiate the circumvention inquiries,
see the Circumvention Initiation Checklists. As explained in the
Circumvention Initiation Checklists, the information provided by the
requesters warrants initiating the circumvention inquiries on a
country-wide basis. Commerce has taken this approach in prior
circumvention inquiries, where the facts warranted initiation on a
country-wide basis.\7\
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\7\ 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 third countries
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 under administrative order (APO) 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.
Interested parties must submit applications for disclosure under APO in
accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to 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 these
initiations and direct CBP to continue the suspension of liquidation of
entries of products subject to the circumvention inquiries 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
[[Page 50789]]
publication of the notice of initiation of the circumvention inquiries
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 inquiries, but not for such entries
prior to November 4, 2021, the effective date of these provisions in
the Final Rule.\8\ 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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\8\ 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' requests for circumvention
inquiries satisfy the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of the
circumvention inquiries to determine whether aluminum containers from
China, which are completed in and exported from the third countries
using aluminum foil manufactured in China, are circumventing the
Orders. In addition, we have included a description of the products
that are subject to these inquiries, and an explanation of Commerce's
decision to initiate the inquiries is provided in the accompanying
Circumvention Initiation Checklists.\9\
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\9\ See Circumvention Initiation Checklists.
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In accordance with 19 CFR 351.226(e)(1), unless the circumvention
inquiries are rescinded, in whole or in part, or extended, Commerce
intends to issue its preliminary circumvention determinations no later
than 150 days from the date of publication of the notices of initiation
of these circumvention inquiries in the Federal Register. Furthermore,
in accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2),
unless the circumvention inquiries are rescinded, in whole or in part,
or extended, Commerce intends to issue its final determinations within
300 days from the date of publication of the notice of initiation of
the circumvention inquiries 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: July 31, 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. 2026-16053 Filed 8-5-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 6, 2026.
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