Aluminum Extrusions from the People's Republic of China: Initiation of Antidumping Duty Investigation, 22109-22114 [2010-9743]
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Federal Register / Vol. 75, No. 80 / Tuesday, April 27, 2010 / Notices
22109
Period to be
reviewed
Samin Chemical Co., Ltd.
Shaanxi Maxsun Trading Co., Ltd.
Shijiazhuang Green Ccarbon Products Co., Ltd.
Showa Denko K.K.
Sinochem Qingdao Company, Ltd.
Tianjin Tiancheng Pharmaceutical Company.
Yuki Gosei Kogyo Co., Ltd.
Countervailing Duty Proceedings
None.
Suspension Agreements
None.
During any administrative review
covering all or part of a period falling
between the first and second or third
and fourth anniversary of the
publication of an antidumping duty
order under 19 CFR 351.211 or a
determination under 19 CFR
351.218(f)(4) to continue an order or
suspended investigation (after sunset
review), the Secretary, if requested by a
domestic interested party within 30
days of the date of publication of the
notice of initiation of the review, will
determine, consistent with FAG Italia v.
United States, 291 F.3d 806 (Fed. Cir.
2002), as appropriate, whether
antidumping duties have been absorbed
by an exporter or producer subject to the
review if the subject merchandise is
sold in the United States through an
importer that is affiliated with such
exporter or producer. The request must
include the name(s) of the exporter or
producer for which the inquiry is
requested.
For the first administrative review of
any order, there will be no assessment
of antidumping or countervailing duties
on entries of subject merchandise
entered, or withdrawn from warehouse,
for consumption during the relevant
provisional-measures ‘‘gap’’ period, of
the order, if such a gap period is
applicable to the POR.
Interested parties must submit
applications for disclosure under
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3 If
one of the above-named companies does not
qualify for a separate rate, all other exporters of
Certain Tissue Paper Products from the People’s
Republic of China (‘‘PRC’’) who have not qualified
for a separate rate are deemed to be covered by this
review as part of the single PRC entity of which the
named exporters are a part.
4 If the above-named company does not qualify
for a separate rate, all other exporters of Circular
Welded Austenitic Stainless Pressure Pipe from the
PRC who have not qualified for a separate rate are
deemed to be covered by this review as part of the
single PRC entity of which the named exporters are
a part.
5 If one of the above-named companies does not
qualify for a separate rate, all other exporters of
Glycine from the PRC who have not qualified for
a separate rate are deemed to be covered by this
review as part of the single PRC entity of which the
named exporters are a part.
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administrative protective orders in
accordance with 19 CFR 351.305. On
January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures (73 FR 3634). Those
procedures apply to administrative
reviews included in this notice of
initiation. Parties wishing to participate
in any of these administrative reviews
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of separate letters of
appearance as discussed at 19 CFR
351.103(d)).
These initiations and this notice are
in accordance with section 751(a) of the
Tariff Act of 1930, as amended (19
U.S.C. 1765(a)), and 19 CFR
351.221(c)(1)(i).
Dated: April 19, 2010.
John M. Andersen,
Acting Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations.
[FR Doc. 2010–9491 Filed 4–23–10; 4:15 pm]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–967]
Aluminum Extrusions from the
People’s Republic of China: Initiation
of Antidumping Duty Investigation
EFFECTIVE DATE:
April 27, 2010.
John
Hollwitz, Andrea Staebler Berton or
Charles Riggle, AD/CVD Operations,
Office 8, (202) 482–2336, (202) 482–
4037 or (202) 482–0650, respectively;
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION: On March
31, 2010, the Department of Commerce
FOR FURTHER INFORMATION CONTACT:
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(the ‘‘Department’’) received a petition
concerning imports of aluminum
extrusions from the People’s Republic of
China (‘‘PRC’’) filed in proper form by
the Aluminum Extrusions Fair Trade
Committee,1 and the United Steel, Paper
and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service
Workers International Union
(collectively, ‘‘Petitioners’’). See
Petitions for the Imposition of
Antidumping and Countervailing
Duties: Aluminum Extrusions from the
People’s Republic of China dated March
31, 2010 (‘‘Petition’’). On April 6 and
April 7, 2010, the Department issued
requests for information and
clarification of certain areas of the
Petition. Petitioners timely filed
additional information on April 9,
2010,2 and on April 19, 2010.3 On April
14, 2010, the Department asked
Petitioners additional questions
regarding the re–bracketing of certain
information. Petitioners responded to
the Department’s questions in the
Second Supplement to the AD Petition,
dated April 15, 2010 (‘‘Second
Supplement to the AD Petition’’).
The period of investigation (‘‘POI’’) is
July 1, 2009, through December 31,
2009. See 19 CFR 351.204(b)(1).
In accordance with section 732(b) of
the Tariff Act of 1930, (‘‘the Act’’),
Petitioners allege that imports of
1 The Aluminum Extrusions fair Trade Committee
is comprised of Aerolite Extrusion Company,
Alexandria Extrusion Company, Benada Aluminum
of Florida, Inc., William L. Bonnell Company, Inc.,
Frontier Aluminum Corporation, Futura Industries
Corporation, Hydro Aluminum North America, Inc.,
Kaiser Aluminum Corporation, Profile Extrusions
Company, Sapa Extrusions, Inc. and Western
Extrusions Corporation.
2 See Aluminum Extrusions from the People’s
Republic of China: Petitioner’s Response to the
Department’s April 6, 2010, Request for
Clarification of Certain Items Contained in the
Petition, dated April 9, 2010 (‘‘Supplement to
General Issues Petition’’).
3 See Aluminum Extrusions from the People’s
Republic of China: Petitioner’s Response to the
Department’s April 7, 2010, Request for
Clarification of Certain Items Contained in the
Petition, dated April 19, 2010 (‘‘Supplement to the
AD Petition’’).
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Federal Register / Vol. 75, No. 80 / Tuesday, April 27, 2010 / Notices
aluminum extrusions from the PRC are
being, or are likely to be, sold in the
United States at less than fair value,
within the meaning of section 731 of the
Act, and that such imports are
materially injuring, or threatening
material injury to, an industry in the
United States.
The Department finds that Petitioners
filed the Petition on behalf of the
domestic industry because Petitioners
are an interested party, as defined in
section 771(9)(C), (D), and (F) of the Act,
and have demonstrated sufficient
industry support with respect to the
antidumping duty investigation that
Petitioners are requesting the
Department to initiate (see
‘‘Determination of Industry Support for
the Petition’’ section below).
Scope of the Investigation
The products covered by this
investigation are aluminum extrusions
from the PRC. For a full description of
the scope of the investigation, please see
‘‘Scope of Investigation,’’ in Appendix I
of this notice.
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Comments on Scope of the Investigation
During our review of the Petition, we
discussed the scope with Petitioners to
ensure that it is an accurate reflection of
the products for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
regulations (Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR
27296, 27323 (May 19, 1997)), we are
setting aside a period for interested
parties to raise issues regarding product
coverage. The Department encourages
interested parties to submit such
comments by Monday, May 10, 2010,
which is twenty calendar days from the
signature date of this notice. Comments
should be addressed to Import
Administration’s APO/Dockets Unit,
Room 1870, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230.
The period of scope consultations is
intended to provide the Department
with ample opportunity to consider all
comments and to consult with parties
prior to the issuance of the preliminary
determination.
Comments on Product Characteristics
for Antidumping Duty Questionnaires
We are requesting comments from
interested parties regarding the
appropriate physical characteristics of
aluminum extrusions to be reported in
response to the Department’s
antidumping questionnaires. This
information will be used to identify the
key physical characteristics of the
merchandise under consideration in
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order to more accurately report the
relevant factors and costs of production,
as well as to develop appropriate
product comparison criteria.
Interested parties may provide
information or comments that they
believe are relevant to the development
of an accurate listing of physical
characteristics. Specifically, they may
provide comments as to which
characteristics are appropriate to use as:
1) general product characteristics; and
2) the product comparison criteria. We
note that it is not always appropriate to
use all product characteristics as
product comparison criteria. We base
product comparison criteria on
meaningful commercial differences
among products. In other words, while
there may be some physical product
characteristics utilized by
manufacturers to describe aluminum
extrusions, it may be that only a select
few product characteristics take into
account commercially meaningful
physical characteristics. In addition,
interested parties may comment on the
order in which the physical
characteristics should be used in
product matching. Generally, the
Department attempts to list the most
important physical characteristics first
and the least important characteristics
last.
In order to consider the suggestions of
interested parties in developing and
issuing the antidumping duty
questionnaires, we must receive
comments at the above–referenced
address by May 10, 2010. Additionally,
rebuttal comments must be received by
May 17, 2010.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) at least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A); or (ii) determine
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industry support using a statistically
valid sampling method to poll the
industry.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The U.S.
International Trade Commission (‘‘ITC’’),
which is responsible for determining
whether ‘‘the domestic industry’’ has
been injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product (see section
771(10) of the Act), they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law. See USEC, Inc. v.
United States, 132 F. Supp. 2d 1, 8 (CIT
2001), citing Algoma Steel Corp., Ltd. v.
United States, 688 F. Supp. 639, 644
(CIT 1988), aff’d 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, Petitioners do not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
the information submitted on the
record, we have determined that
aluminum extrusions constitute a single
domestic like product and we have
analyzed industry support in terms of
that domestic like product. For a
discussion of the domestic like product
analysis in this case, see Antidumping
Duty Investigation Initiation Checklist:
Aluminum Extrusions from the People’s
Republic of China (‘‘Checklist’’), at
Attachment II, Industry Support, on file
in the Central Records Unit, Room 1117
of the main Department of Commerce
building.
In determining whether Petitioners
have standing under section
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732(c)(4)(A) of the Act, we considered
the industry support data contained in
the Petition with reference to the
domestic like product as defined in the
‘‘Scope of Investigations’’ section above.
To establish industry support,
Petitioners provided their production of
the domestic like product in 2009. See
Volume I of the Petition at Exhibit I–3.
In addition Petitioners provided letters
of support from ten additional
companies that produce the domestic
like product. See id. Petitioners
compared their production and the
production of the supporters of the
Petition to the estimated total
production of the domestic like product
for the entire domestic industry. See
Volume I of the Petition at 3–4 and
Exhibits I–3 and I–4. Petitioners
estimated total industry production of
the domestic like product for 2009 using
industry wide shipment data from the
Aluminum Association, which
according to Petitioners is ‘‘an
independent and authoritative source
for aluminum industry data.’’ See
Volume I of the Petition, at 3. We have
relied upon data Petitioners provided
for purposes of measuring industry
support. For further discussion, see
Checklist at Attachment II.
Our review of the data provided in the
Petition, supplemental submissions, and
other information readily available to
the Department indicates that
Petitioners have established industry
support. First, the Petition established
support from domestic producers (or
workers) accounting for more than 50
percent of the total production of the
domestic like product and, as such, the
Department is not required to take
further action in order to evaluate
industry support (e.g., polling). See
Section 732(c)(4)(D) of the Act, and
Checklist at Attachment 2. Second, the
domestic producers (or workers) have
met the statutory criteria for industry
support under section 732(c)(4)(A)(i) of
the Act because the domestic producers
(or workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product. See Checklist at Attachment II.
Finally, the domestic producers (or
workers) have met the statutory criteria
for industry support under section
732(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who
support the Petition account for more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
Petition. Accordingly, the Department
determines that the Petition was filed on
behalf of the domestic industry within
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the meaning of section 732(b)(1) of the
Act. See id.
The Department finds that Petitioners
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(C), (D), and (F) of the Act and it
has demonstrated sufficient industry
support with respect to the antidumping
duty investigation that it is requesting
the Department initiate. See id.
Allegations and Evidence of Material
Injury and Causation
Petitioners alleged that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (‘‘NV’’). In addition, Petitioners
alleged that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.
Petitioners contended that the
industry’s injured condition is
illustrated by reduced market share,
increased raw material cost, declining
capacity, production, shipments,
underselling and price depression or
suppression, reduced employment,
hours worked, and wages paid, declines
in financial performance, lost sales and
revenue, and an increase in import
penetration. See Volume I of the
Petition, at 16, 19–27, 30–33, and
Exhibits I–10 through I–15, III–33; and
Supplement to AD/CVD Petitions, dated
April 9, 2010, at 8–9, and Attachment 4.
We have assessed the allegations and
supporting evidence regarding material
injury, threat of material injury, and
causation, and have determined that
these allegations are properly supported
by adequate evidence and meet the
statutory requirements for initiation. See
Checklist at Attachment III.
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at less than fair value
upon which the Department based its
decision to initiate this investigation of
imports of aluminum extrusions from
the PRC. The sources of data for the
deductions and adjustments relating to
the U.S. price and the factors of
production are also discussed in the
initiation checklist. See Checklist.
U.S. Price
Petitioners calculated export price
(‘‘EP’’) based on documentation of offers
for
sale obtained from a confidential
source. See Checklist; see also Volume
II of the Petition, at 1 and Exhibits II–
1 and II–2. Based on the terms of sale,
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22111
Petitioners adjusted the export price for
brokerage and handling and foreign
domestic inland freight. See Checklist;
see also Volume II of the Petition, at 1–
2 and Exhibits II–2 and II–3.
Normal Value
Petitioners claim the PRC is a non–
market economy (‘‘NME’’) country and
that no determination to the contrary
has been made by the Department. See
Volume II of the Petition, at 2. In
accordance with section 771(18)(C)(i) of
the Act, the presumption of NME status
remains in effect until revoked by the
Department. The presumption of NME
status for the PRC has not been revoked
by the Department and, therefore,
remains in effect for purposes of the
initiation of this investigation.
Accordingly, the NV of the product for
the PRC investigation is appropriately
based on factors of production valued in
a surrogate market–economy country in
accordance with section 773(c) of the
Act. In the course of this investigation,
all parties, including the public, will
have the opportunity to provide relevant
information related to the issue of the
PRC’s NME status and the granting of
separate rates to individual exporters.
Petitioners contend that India is the
appropriate surrogate country for the
PRC because: 1) it is at a level of
economic development comparable to
that of the PRC and 2) it is a significant
producer and exporter of comparable
merchandise. See Volume II of the
Petition, at 3–5, and Exhibits II–4 and
II–16. Based on the information
provided by Petitioners, we believe that
it is appropriate to use India as a
surrogate country for initiation
purposes. After initiation of the
investigation, interested parties will
have the opportunity to submit
comments regarding surrogate country
selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value factors of
production within 40 days after the date
of publication of the preliminary
determination.
Petitioners calculated NV and the
dumping margins using the
Department’s NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. In calculating NV,
Petitioners based the quantity of each of
the inputs used to manufacture
aluminum extrusions in the PRC on
product–specific production costs and/
or consumption rates of an aluminum
extrusions producer in the United States
(‘‘Surrogate Domestic Producer’’) for
identical or similar merchandise during
the POI. See Volume II of the Petition,
at 5–8 and Exhibits II–2, II–6, II–7 and
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II–9. Petitioners state that the actual
usage rates of the foreign manufacturers
of aluminum extrusions are not
reasonably available; however,
Petitioners note that according to the
information available, the production of
aluminum extrusions relies on similar
production methods to the Surrogate
Domestic Producer. See Volume II of the
Petition, at 5 and Exhibit II–8.
As noted above, Petitioners
determined the consumption quantities
of all raw materials based on the
production experience of the Surrogate
Domestic Producer. Petitioners valued
most of the factors of production based
on reasonably available, public
surrogate country data, specifically,
Indian import statistics from the Global
Trade Atlas (‘‘GTA’’). See Volume II of
the Petition, at 6–8; see also Second
Supplement to the AD Petition, at
Exhibit S–2. Petitioners excluded from
these import statistics imports from
countries previously determined by the
Department to be NME countries.
Petitioners also excluded import
statistics from Indonesia, the Republic
of Korea, and Thailand, as the
Department has previously excluded
prices from these countries because they
maintain broadly available, non–
industry-specific export subsidies. See
Second Supplement to the AD Petition,
at Exhibit S–2. Petitioners valued
certain other factors of production using
price data obtained from the Bombay
Metal Exchange, as published by
Reuters India. See Volume II of the
Petition, at 7, and Second Supplement
to the AD Petition, at Exhibit S–1. In
addition, Petitioners made currency
conversions, where necessary, based on
the POI–average rupee/U.S. dollar
exchange rate, as reported on the
Department’s web site. See Volume II of
the Petition, at 7 and Exhibit II–11.
Petitioners determined labor costs using
the labor consumption, in hours,
derived from the Surrogate Domestic
Producer’s experience. See Volume II of
the Petition, at 7 and Exhibits II–6 and
II–9. Petitioners valued labor costs using
the Department’s NME Wage Rate for
the PRC at https://ia.ita.doc.gov/wages/
07wages/final/final–2009–2007–
wages.html. See Volume II of the
Petition, at 7 and Exhibit II–13. For
purposes of initiation, the Department
determines that the surrogate values
used by Petitioners are reasonably
available and, thus, acceptable for
purposes of initiation.
Petitioners determined electricity
costs using the electricity consumption,
in kilowatt hours, derived from the
Surrogate Domestic Producer’s
experience. See Volume II of the
Petition, at 7 and Exhibit II–14; see also
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Supplement to the AD Petition at
Exhibit S–3. Petitioners valued
electricity using the Indian electricity
rate reported by the Central Electric
Authority of the Government of India.
See Supplement to the AD Petition, at
7 and Exhibit S–3. Petitioners
determined natural gas costs using the
natural gas consumption, in million
British thermal units (‘‘mmBtu’’),
derived from the Surrogate Domestic
Producer’s experience. See Volume II of
the Petition, at 8, and Exhibit II–6 and
II–9. Petitioners valued natural gas
using the same methodology the
Department used in the recent initiation
of Certain Coated Paper Suitable for
High–Quality Print Graphics Using
Sheet–Fed Presses from Indonesia and
the People’s Republic of China, which
was based on Indian import statistics.
See Volume II of the Petition, at 8 and
Exhibit II–15.
Petitioners determined packing costs
using data from the GTA, derived from
the Surrogate Domestic Producer’s
experience. See Volume II of the
Petition, at Exhibit II–6; see also
Supplement to the AD Petition, at 4 and
Exhibits S–4 and S–6.
Petitioners based factory overhead,
selling, general and administrative
expenses, and profit on data from Jindal
Aluminium, Ltd., a producer of
aluminum extrusions, for the 2008 2009
fiscal year. See Volume II of the
Petition, at 8 and Exhibit II–16.
Fair–Value Comparisons
Based on the data provided by
Petitioners, there is reason to believe
that imports of aluminum extrusions
from the PRC are being, or are likely to
be, sold in the United States at less than
fair value. Based on a comparison of
U.S. prices and NV calculated in
accordance with section 773(c) of the
Act, as described above, the estimated
dumping margins for aluminum
extrusions from the PRC range from
32.57 percent to 33.32 percent. See
Checklist and Second Supplement to
the AD Petition at Exhibit S–2.
Initiation of Antidumping Investigation
Based upon the examination of the
Petition on aluminum extrusions from
the PRC, the Department finds the
Petition meets the requirements of
section 732 of the Act. Therefore, we are
initiating an antidumping duty
investigation to determine whether
imports of aluminum extrusions from
the PRC are being, or are likely to be,
sold in the United States at less than fair
value. In accordance with section
733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will
make our preliminary determinations no
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later than 140 days after the date of this
initiation.
Targeted Dumping Allegations
On December 10, 2008, the
Department issued an interim final rule
for the purpose of withdrawing 19 CFR
351.414(f) and (g), the regulatory
provisions governing the targeted
dumping analysis in antidumping duty
investigations, and the corresponding
regulation governing the deadline for
targeted dumping allegations, 19 CFR
351.301(d)(5). See Withdrawal of the
Regulatory Provisions Governing
Targeted Dumping in Antidumping
Duty Investigations, 73 FR 74930
(December 10, 2008). The Department
stated that ‘‘withdrawal will allow the
Department to exercise the discretion
intended by the statute and, thereby,
develop a practice that will allow
interested parties to pursue all statutory
avenues of relief in this area.’’ Id. at
74931.
In order to accomplish this objective,
if any interested party wishes to make
a targeted dumping allegation in this
investigation pursuant to section
777A(d)(1)(B) of the Act, such allegation
is due no later than 45 days before the
scheduled date of the preliminary
determination.
Respondent Selection
For this investigation, the Department
will request quantity and value
information from known exporters and
producers identified with complete
contact information in the Petition. The
quantity and value data received from
NME exporters/producers will be used
as the basis to select the mandatory
respondents.
The Department requires that the
respondents submit a response to both
the quantity and value questionnaire
and the separate–rate application by the
respective deadlines in order to receive
consideration for separate–rate status.
See Circular Welded Austenitic
Stainless Pressure Pipe from the
People’s Republic of China: Initiation of
Antidumping Duty Investigation, 73 FR
10221, 10225 (February 26, 2008);
Initiation of Antidumping Duty
Investigation: Certain Artist Canvas
From the People’s Republic of China, 70
FR 21996, 21999 (April 28, 2005). On
the date of the publication of this
initiation notice in the Federal Register,
the Department will post the quantity
and value questionnaire along with the
filing instructions on the Import
Administration web site at https://
ia.ita.doc.gov/ia–highlights-and–
news.html, and a response to the
quantity and value questionnaire is due
no later than May 11, 2010. Also, the
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Department will send the quantity and
value questionnaire to those PRC
companies identified in the Petition in
Volume I of the Petition, at Exhibit I–8.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Instructions for filing such applications
may be found on the Department’s web
site at https://ia.ita.doc.gov/apo.
mstockstill on DSKH9S0YB1PROD with NOTICES
Separate Rates Application
In order to obtain separate–rate status
in NME investigations, exporters and
producers must submit a separate–rate
status application. See Policy Bulletin
05.1: Separate–Rates Practice and
Application of Combination Rates in
Antidumping Investigations involving
Non–Market Economy Countries, dated
April 5, 2005 (‘‘Policy Bulletin’’),
available on the Department’s web site
at https://ia.ita.doc.gov/policy/bull05–
1.pdf. Based on our experience in
processing the separate–rate
applications in previous antidumping
duty investigations, we have modified
the application for this investigation to
make it more administrable and easier
for applicants to complete. See, e.g.,
Initiation of Antidumping Duty
Investigation: Certain New Pneumatic
Off–the-Road Tires From the People’s
Republic of China, 72 FR 43591, 43594–
95 (August 6, 2007). The specific
requirements for submitting the
separate–rate application in this
investigation are outlined in detail in
the application itself, which will be
available on the Department’s web site
at https://ia.ita.doc.gov/ia–highlightsand–news.html on the date of
publication of this initiation notice in
the Federal Register. The separate–rate
application will be due 60 days after
publication of this initiation notice. For
exporters and producers who submit a
separate–rate status application and
subsequently are selected as mandatory
respondents, these exporters and
producers will no longer be eligible for
consideration for separate rate status
unless they respond to all parts of the
questionnaire as mandatory
respondents. As noted in the
‘‘Respondent Selection’’ section above,
the Department requires that
respondents submit a response to both
the quantity and value questionnaire
and the separate rate application by the
respective deadlines in order to receive
consideration for separate–rate status.
Use of Combination Rates in an NME
Investigation
The Department will calculate
combination rates for certain
respondents that are eligible for a
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16:09 Apr 26, 2010
Jkt 220001
separate rate in this investigation. The
Policy Bulletin states:
{}hile continuing the practice of
assigning separate rates only to
exporters, all separate rates that the
Department will now assign in its
NME investigations will be specific
to those producers that supplied the
exporter during the period of
investigation. Note, however, that
one rate is calculated for the
exporter and all of the producers
which supplied subject
merchandise to it during the period
of investigation. This practice
applies both to mandatory
respondents receiving an
individually calculated separate
rate as well as the pool of non–
investigated firms receiving the
weighted–average of the
individually calculated rates. This
practice is referred to as the
application of ‘‘combination rates’’
because such rates apply to specific
combinations of exporters and one
or more producers. The cash–
deposit rate assigned to an exporter
will apply only to merchandise
both exported by the firm in
question and produced by a firm
that supplied the exporter during
the period of investigation.
See Policy Bulletin at 6 (emphasis
added).
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions
of the Petition have been provided to
the representatives of the Government of
the PRC. Because of the large number of
producers/exporters identified in the
Petition, the Department considers the
service of the public version of the
Petition to the foreign producers/
exporters satisfied by the delivery of the
public version to the Government of the
PRC, consistent with 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiations, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
no later than May 17, 2010, whether
there is a reasonable indication that
imports of aluminum extrusions from
the PRC are materially injuring, or
threatening material injury to a U.S.
industry. A negative ITC determination
will result in the investigation being
terminated; otherwise, this investigation
will proceed according to statutory and
regulatory time limits.
PO 00000
Frm 00019
Fmt 4703
Sfmt 4703
22113
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: April 20, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
Attachment I
Scope of the Investigations
The merchandise covered by these
investigations is aluminum extrusions
which are shapes and forms, produced
by an extrusion process, made from
aluminum alloys having metallic
elements corresponding to the alloy
series designations published by The
Aluminum Association commencing
with the numbers 1, 3, and 6 (or
proprietary equivalents or other
certifying body equivalents).
Specifically, the subject merchandise
made from aluminum alloy with an
Aluminum Association series
designation commencing with the
number 1 contains not less than 99
percent aluminum by weight. The
subject merchandise made from
aluminum alloy with an Aluminum
Association series designation
commencing with the number 3
contains manganese as the major
alloying element, with manganese
accounting for not more than 3.0
percent of total materials by weight. The
subject merchandise made from an
aluminum alloy with an Aluminum
Association series designation
commencing with the number 6
contains magnesium and silicon as the
major alloying elements, with
magnesium accounting for at least 0.1
percent but not more than 2.0 percent of
total materials by weight, and silicon
accounting for at least 0.1 percent but
not more than 3.0 percent of total
materials by weight. The subject
aluminum extrusions are properly
identified by a four–digit alloy series
without either a decimal point or
leading letter. Illustrative examples from
among the approximately 160 registered
alloys that may characterize the subject
merchandise are as follows: 1350, 3003,
and 6060.
Aluminum extrusions are produced and
imported in a wide variety of shapes
and forms, including, but not limited to,
hollow profiles, other solid profiles,
pipes, tubes, bars, and rods. Aluminum
extrusions that are drawn subsequent to
extrusion (‘‘drawn aluminum’’) are also
included in the scope.
Aluminum extrusions are produced and
imported with a variety of finishes (both
coatings and surface treatments), and
types of fabrication. The types of
coatings and treatments applied to
subject aluminum extrusions include,
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mstockstill on DSKH9S0YB1PROD with NOTICES
but are not limited to, extrusions that
are mill finished (i.e., without any
coating or further finishing), brushed,
buffed, polished, anodized (including
bright–dip anodized), liquid painted, or
powder coated. Aluminum extrusions
may also be fabricated, i.e., prepared for
assembly. Such operations would
include, but are not limited to,
extrusions that are cut–to-length,
machined, drilled, punched, notched,
bent, stretched, knurled, swedged,
mitered, chamfered, threaded, and spun.
The subject merchandise includes
aluminum extrusions that are finished
(coated, painted, etc.), fabricated, or any
combination thereof.
Subject aluminum extrusions may be
described at the time of importation as
parts for final finished products that are
assembled after importation, including,
but not limited to, window frames, door
frames, solar panels, curtain walls, or
furniture. Such parts that otherwise
meet the definition of aluminum
extrusions are included in the scope.
The scope includes aluminum
extrusions that are attached (e.g., by
welding or fasteners) to form
subassemblies, i.e., partially assembled
merchandise.
Subject extrusions may be identified
with reference to their end use, such as
heat sinks, door thresholds, or carpet
trim. Such goods are subject
merchandise if they otherwise meet the
scope definition, regardless of whether
they are finished products and ready for
use at the time of importation.
The following aluminum extrusion
products are excluded: aluminum
extrusions made from aluminum alloy
with an Aluminum Association series
designations commencing with the
number 2 and containing in excess of
1.5 percent copper by weight; aluminum
extrusions made from aluminum alloy
with an Aluminum Association series
designation commencing with the
number 5 and containing in excess of
1.0 percent magnesium by weight; and
aluminum extrusions made from
aluminum alloy with an Aluminum
Association series designation
commencing with the number 7 and
containing in excess of 2.0 percent zinc
by weight.
The scope also excludes finished
merchandise containing aluminum
extrusions as parts that are fully and
permanently assembled and completed
at the time of entry, such as finished
windows with glass, doors, picture
frames, and solar panels. The scope also
excludes finished goods containing
aluminum extrusions that are entered
unassembled in a ‘‘kit.’’ A kit is
understood to mean a packaged
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16:09 Apr 26, 2010
Jkt 220001
combination of parts that contains, at
the time of importation, all of the
necessary parts to fully assemble a final
finished good.
The scope also excludes aluminum
alloy sheet or plates produced by other
than the extrusion process, such as
aluminum products produced by a
method of casting. Cast aluminum
products are properly identified by four
digits with a decimal point between the
third and fourth digit. A letter may also
precede the four digits. The following
Aluminum Association designations are
representative of aluminum alloys for
casting: 208.0, 295.0, 308.0, 355.0,
C355.0, 356.0, A356.0, A357.0, 360.0,
366.0, 380.0, A380.0, 413.0, 443.0,
514.0, 518.1, and 712.0. The scope also
excludes pure, unwrought aluminum in
any form.
Imports of the subject merchandise are
provided for under the following
categories of the Harmonized Tariff
Schedule of the United States (‘‘HTS’’):
7604.21.0000, 7604.29.1000,
7604.29.3010, 7604.29.3050,
7604.29.5030, 7604.29.5060,
7608.20.0030, and 7608.20.0090. The
subject merchandise entered as parts of
other aluminum products may be
classifiable under the following
additional Chapter 76 subheadings:
7610.10, 7610.90, 7615.19, 7615.20, and
7616.99 as well as under other HTS
chapters. While HTS subheadings are
provided for convenience and customs
purposes, the written description of the
scope in this proceeding is dispositive.
[FR Doc. 2010–9743 Filed 4–26–10; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
(C–570–968)
Aluminum Extrusions from the
People’s Republic of China: Initiation
of Countervailing Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
EFFECTIVE DATE:
April 28, 2010.
FOR FURTHER INFORMATION CONTACT:
Patricia Tran and Brandon Farlander,
AD/CVD Operations, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–1503 and (202)
482–0182, respectively.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
The Petition
On March 31, 2010, the Department of
Commerce (‘‘Department’’) received a
countervailing duty (‘‘CVD’’) petition
concerning imports of certain aluminum
extrusions from the People’s Republic of
China (‘‘PRC’’) filed in proper form by
the Aluminum Extrusions Fair Trade
Committee1 and the United Steel, Paper
and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service
Workers International Union
(collectively, ‘‘Petitioners’’). See The
Petitions for the Imposition of
Antidumping and Countervailing Duties
Against Aluminum Extrusions from the
People’s Republic of China, dated
March 31, 2010 (the Petition). On April
6, 2010, the Department issued requests
to Petitioners for additional information
and for clarification of certain areas of
the Petition. Based on the Department’s
requests, Petitioners filed a supplement
to the Petition, regarding general issues,
on April 9, 2010 (‘‘Supplement to the
AD/CVD Petitions’’).
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(‘‘Act’’), Petitioners allege that
producers/exporters of aluminum
extrusions from the PRC received
countervailable subsidies within the
meaning of sections 701 and 771(5) of
the Act, and that imports from these
producers/exporters materially injure,
and threaten further material injury to,
an industry in the United States.
The Department finds that Petitioners
filed the Petition on behalf of the
domestic industry because Petitioners
are interested parties, as defined in
section 771(9)(C),(D), and (F) of the Act,
and have demonstrated sufficient
industry support with respect to the
investigation that they request the
Department to initiate (see
‘‘Determination of Industry Support for
the Petition’’ below).
Period of Investigation
The period of investigation is January
1, 2009, through December 31, 2009.
Scope of Investigation
The products covered by this
investigation are aluminum extrusions
from the PRC. For a full description of
the scope of the investigation, please see
the ‘‘Scope of the Investigation’’ in
Appendix I of this notice.
1 The individual members of the Aluminum
Extrusions Fair Trade Committee are Aerolite
Extrusion Company, Alexandria Extrusion
Company, Benada Aluminum of Florida, Inc.,
William L. Bonnell Company, Inc., Frontier
Aluminum Corporation, Futura Industries
Corporation, Hydro Aluminum North America, Inc.,
Kaiser Aluminum Corporation, Profile Extrusion
Company, Sapa Extrusions, Inc., and Western
Extrusions Corporation.
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Agencies
[Federal Register Volume 75, Number 80 (Tuesday, April 27, 2010)]
[Notices]
[Pages 22109-22114]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9743]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-967]
Aluminum Extrusions from the People's Republic of China:
Initiation of Antidumping Duty Investigation
EFFECTIVE DATE: April 27, 2010.
FOR FURTHER INFORMATION CONTACT: John Hollwitz, Andrea Staebler Berton
or Charles Riggle, AD/CVD Operations, Office 8, (202) 482-2336, (202)
482-4037 or (202) 482-0650, respectively; Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION: On March 31, 2010, the Department of
Commerce (the ``Department'') received a petition concerning imports of
aluminum extrusions from the People's Republic of China (``PRC'') filed
in proper form by the Aluminum Extrusions Fair Trade Committee,\1\ and
the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union
(collectively, ``Petitioners''). See Petitions for the Imposition of
Antidumping and Countervailing Duties: Aluminum Extrusions from the
People's Republic of China dated March 31, 2010 (``Petition''). On
April 6 and April 7, 2010, the Department issued requests for
information and clarification of certain areas of the Petition.
Petitioners timely filed additional information on April 9, 2010,\2\
and on April 19, 2010.\3\ On April 14, 2010, the Department asked
Petitioners additional questions regarding the re-bracketing of certain
information. Petitioners responded to the Department's questions in the
Second Supplement to the AD Petition, dated April 15, 2010 (``Second
Supplement to the AD Petition'').
---------------------------------------------------------------------------
\1\ The Aluminum Extrusions fair Trade Committee is comprised of
Aerolite Extrusion Company, Alexandria Extrusion Company, Benada
Aluminum of Florida, Inc., William L. Bonnell Company, Inc.,
Frontier Aluminum Corporation, Futura Industries Corporation, Hydro
Aluminum North America, Inc., Kaiser Aluminum Corporation, Profile
Extrusions Company, Sapa Extrusions, Inc. and Western Extrusions
Corporation.
\2\ See Aluminum Extrusions from the People's Republic of China:
Petitioner's Response to the Department's April 6, 2010, Request for
Clarification of Certain Items Contained in the Petition, dated
April 9, 2010 (``Supplement to General Issues Petition'').
\3\ See Aluminum Extrusions from the People's Republic of China:
Petitioner's Response to the Department's April 7, 2010, Request for
Clarification of Certain Items Contained in the Petition, dated
April 19, 2010 (``Supplement to the AD Petition'').
---------------------------------------------------------------------------
The period of investigation (``POI'') is July 1, 2009, through
December 31, 2009. See 19 CFR 351.204(b)(1).
In accordance with section 732(b) of the Tariff Act of 1930, (``the
Act''), Petitioners allege that imports of
[[Page 22110]]
aluminum extrusions from the PRC are being, or are likely to be, sold
in the United States at less than fair value, within the meaning of
section 731 of the Act, and that such imports are materially injuring,
or threatening material injury to, an industry in the United States.
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because Petitioners are an interested party,
as defined in section 771(9)(C), (D), and (F) of the Act, and have
demonstrated sufficient industry support with respect to the
antidumping duty investigation that Petitioners are requesting the
Department to initiate (see ``Determination of Industry Support for the
Petition'' section below).
Scope of the Investigation
The products covered by this investigation are aluminum extrusions
from the PRC. For a full description of the scope of the investigation,
please see ``Scope of Investigation,'' in Appendix I of this notice.
Comments on Scope of the Investigation
During our review of the Petition, we discussed the scope with
Petitioners to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the regulations (Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)),
we are setting aside a period for interested parties to raise issues
regarding product coverage. The Department encourages interested
parties to submit such comments by Monday, May 10, 2010, which is
twenty calendar days from the signature date of this notice. Comments
should be addressed to Import Administration's APO/Dockets Unit, Room
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue,
NW, Washington, DC 20230. The period of scope consultations is intended
to provide the Department with ample opportunity to consider all
comments and to consult with parties prior to the issuance of the
preliminary determination.
Comments on Product Characteristics for Antidumping Duty Questionnaires
We are requesting comments from interested parties regarding the
appropriate physical characteristics of aluminum extrusions to be
reported in response to the Department's antidumping questionnaires.
This information will be used to identify the key physical
characteristics of the merchandise under consideration in order to more
accurately report the relevant factors and costs of production, as well
as to develop appropriate product comparison criteria.
Interested parties may provide information or comments that they
believe are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: 1) general product
characteristics; and 2) the product comparison criteria. We note that
it is not always appropriate to use all product characteristics as
product comparison criteria. We base product comparison criteria on
meaningful commercial differences among products. In other words, while
there may be some physical product characteristics utilized by
manufacturers to describe aluminum extrusions, it may be that only a
select few product characteristics take into account commercially
meaningful physical characteristics. In addition, interested parties
may comment on the order in which the physical characteristics should
be used in product matching. Generally, the Department attempts to list
the most important physical characteristics first and the least
important characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping duty questionnaires, we must
receive comments at the above-referenced address by May 10, 2010.
Additionally, rebuttal comments must be received by May 17, 2010.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission
(``ITC''), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product (see section 771(10) of the Act),
they do so for different purposes and pursuant to a separate and
distinct authority. In addition, the Department's determination is
subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law. See USEC,
Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001), citing Algoma
Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that aluminum extrusions constitute a
single domestic like product and we have analyzed industry support in
terms of that domestic like product. For a discussion of the domestic
like product analysis in this case, see Antidumping Duty Investigation
Initiation Checklist: Aluminum Extrusions from the People's Republic of
China (``Checklist''), at Attachment II, Industry Support, on file in
the Central Records Unit, Room 1117 of the main Department of Commerce
building.
In determining whether Petitioners have standing under section
[[Page 22111]]
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigations'' section above. To
establish industry support, Petitioners provided their production of
the domestic like product in 2009. See Volume I of the Petition at
Exhibit I-3. In addition Petitioners provided letters of support from
ten additional companies that produce the domestic like product. See
id. Petitioners compared their production and the production of the
supporters of the Petition to the estimated total production of the
domestic like product for the entire domestic industry. See Volume I of
the Petition at 3-4 and Exhibits I-3 and I-4. Petitioners estimated
total industry production of the domestic like product for 2009 using
industry wide shipment data from the Aluminum Association, which
according to Petitioners is ``an independent and authoritative source
for aluminum industry data.'' See Volume I of the Petition, at 3. We
have relied upon data Petitioners provided for purposes of measuring
industry support. For further discussion, see Checklist at Attachment
II.
Our review of the data provided in the Petition, supplemental
submissions, and other information readily available to the Department
indicates that Petitioners have established industry support. First,
the Petition established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, the Department is not required to
take further action in order to evaluate industry support (e.g.,
polling). See Section 732(c)(4)(D) of the Act, and Checklist at
Attachment 2. Second, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petition account for at least 25 percent of the total production of the
domestic like product. See Checklist at Attachment II. Finally, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 732(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the Petition account for
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition. Accordingly, the Department determines
that the Petition was filed on behalf of the domestic industry within
the meaning of section 732(b)(1) of the Act. See id.
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C), (D), and (F) of the Act and it has demonstrated
sufficient industry support with respect to the antidumping duty
investigation that it is requesting the Department initiate. See id.
Allegations and Evidence of Material Injury and Causation
Petitioners alleged that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than normal value (``NV''). In addition, Petitioners
alleged that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.
Petitioners contended that the industry's injured condition is
illustrated by reduced market share, increased raw material cost,
declining capacity, production, shipments, underselling and price
depression or suppression, reduced employment, hours worked, and wages
paid, declines in financial performance, lost sales and revenue, and an
increase in import penetration. See Volume I of the Petition, at 16,
19-27, 30-33, and Exhibits I-10 through I-15, III-33; and Supplement to
AD/CVD Petitions, dated April 9, 2010, at 8-9, and Attachment 4. We
have assessed the allegations and supporting evidence regarding
material injury, threat of material injury, and causation, and have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation. See
Checklist at Attachment III.
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate this investigation of imports of aluminum extrusions from the
PRC. The sources of data for the deductions and adjustments relating to
the U.S. price and the factors of production are also discussed in the
initiation checklist. See Checklist.
U.S. Price
Petitioners calculated export price (``EP'') based on documentation
of offers for
sale obtained from a confidential source. See Checklist; see also
Volume II of the Petition, at 1 and Exhibits II-1 and II-2. Based on
the terms of sale, Petitioners adjusted the export price for brokerage
and handling and foreign domestic inland freight. See Checklist; see
also Volume II of the Petition, at 1-2 and Exhibits II-2 and II-3.
Normal Value
Petitioners claim the PRC is a non-market economy (``NME'') country
and that no determination to the contrary has been made by the
Department. See Volume II of the Petition, at 2. In accordance with
section 771(18)(C)(i) of the Act, the presumption of NME status remains
in effect until revoked by the Department. The presumption of NME
status for the PRC has not been revoked by the Department and,
therefore, remains in effect for purposes of the initiation of this
investigation. Accordingly, the NV of the product for the PRC
investigation is appropriately based on factors of production valued in
a surrogate market-economy country in accordance with section 773(c) of
the Act. In the course of this investigation, all parties, including
the public, will have the opportunity to provide relevant information
related to the issue of the PRC's NME status and the granting of
separate rates to individual exporters.
Petitioners contend that India is the appropriate surrogate country
for the PRC because: 1) it is at a level of economic development
comparable to that of the PRC and 2) it is a significant producer and
exporter of comparable merchandise. See Volume II of the Petition, at
3-5, and Exhibits II-4 and II-16. Based on the information provided by
Petitioners, we believe that it is appropriate to use India as a
surrogate country for initiation purposes. After initiation of the
investigation, interested parties will have the opportunity to submit
comments regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value factors of production within 40 days
after the date of publication of the preliminary determination.
Petitioners calculated NV and the dumping margins using the
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. In calculating NV, Petitioners based the quantity
of each of the inputs used to manufacture aluminum extrusions in the
PRC on product-specific production costs and/or consumption rates of an
aluminum extrusions producer in the United States (``Surrogate Domestic
Producer'') for identical or similar merchandise during the POI. See
Volume II of the Petition, at 5-8 and Exhibits II-2, II-6, II-7 and
[[Page 22112]]
II-9. Petitioners state that the actual usage rates of the foreign
manufacturers of aluminum extrusions are not reasonably available;
however, Petitioners note that according to the information available,
the production of aluminum extrusions relies on similar production
methods to the Surrogate Domestic Producer. See Volume II of the
Petition, at 5 and Exhibit II-8.
As noted above, Petitioners determined the consumption quantities
of all raw materials based on the production experience of the
Surrogate Domestic Producer. Petitioners valued most of the factors of
production based on reasonably available, public surrogate country
data, specifically, Indian import statistics from the Global Trade
Atlas (``GTA''). See Volume II of the Petition, at 6-8; see also Second
Supplement to the AD Petition, at Exhibit S-2. Petitioners excluded
from these import statistics imports from countries previously
determined by the Department to be NME countries. Petitioners also
excluded import statistics from Indonesia, the Republic of Korea, and
Thailand, as the Department has previously excluded prices from these
countries because they maintain broadly available, non-industry-
specific export subsidies. See Second Supplement to the AD Petition, at
Exhibit S-2. Petitioners valued certain other factors of production
using price data obtained from the Bombay Metal Exchange, as published
by Reuters India. See Volume II of the Petition, at 7, and Second
Supplement to the AD Petition, at Exhibit S-1. In addition, Petitioners
made currency conversions, where necessary, based on the POI-average
rupee/U.S. dollar exchange rate, as reported on the Department's web
site. See Volume II of the Petition, at 7 and Exhibit II-11.
Petitioners determined labor costs using the labor consumption, in
hours, derived from the Surrogate Domestic Producer's experience. See
Volume II of the Petition, at 7 and Exhibits II-6 and II-9. Petitioners
valued labor costs using the Department's NME Wage Rate for the PRC at
https://ia.ita.doc.gov/wages/07wages/final/final-2009-2007-wages.html.
See Volume II of the Petition, at 7 and Exhibit II-13. For purposes of
initiation, the Department determines that the surrogate values used by
Petitioners are reasonably available and, thus, acceptable for purposes
of initiation.
Petitioners determined electricity costs using the electricity
consumption, in kilowatt hours, derived from the Surrogate Domestic
Producer's experience. See Volume II of the Petition, at 7 and Exhibit
II-14; see also Supplement to the AD Petition at Exhibit S-3.
Petitioners valued electricity using the Indian electricity rate
reported by the Central Electric Authority of the Government of India.
See Supplement to the AD Petition, at 7 and Exhibit S-3. Petitioners
determined natural gas costs using the natural gas consumption, in
million British thermal units (``mmBtu''), derived from the Surrogate
Domestic Producer's experience. See Volume II of the Petition, at 8,
and Exhibit II-6 and II-9. Petitioners valued natural gas using the
same methodology the Department used in the recent initiation of
Certain Coated Paper Suitable for High-Quality Print Graphics Using
Sheet-Fed Presses from Indonesia and the People's Republic of China,
which was based on Indian import statistics. See Volume II of the
Petition, at 8 and Exhibit II-15.
Petitioners determined packing costs using data from the GTA,
derived from the Surrogate Domestic Producer's experience. See Volume
II of the Petition, at Exhibit II-6; see also Supplement to the AD
Petition, at 4 and Exhibits S-4 and S-6.
Petitioners based factory overhead, selling, general and
administrative expenses, and profit on data from Jindal Aluminium,
Ltd., a producer of aluminum extrusions, for the 2008 2009 fiscal year.
See Volume II of the Petition, at 8 and Exhibit II-16.
Fair-Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of aluminum extrusions from the PRC are being, or
are likely to be, sold in the United States at less than fair value.
Based on a comparison of U.S. prices and NV calculated in accordance
with section 773(c) of the Act, as described above, the estimated
dumping margins for aluminum extrusions from the PRC range from 32.57
percent to 33.32 percent. See Checklist and Second Supplement to the AD
Petition at Exhibit S-2.
Initiation of Antidumping Investigation
Based upon the examination of the Petition on aluminum extrusions
from the PRC, the Department finds the Petition meets the requirements
of section 732 of the Act. Therefore, we are initiating an antidumping
duty investigation to determine whether imports of aluminum extrusions
from the PRC are being, or are likely to be, sold in the United States
at less than fair value. In accordance with section 733(b)(1)(A) of the
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determinations no later than 140 days after the date of
this initiation.
Targeted Dumping Allegations
On December 10, 2008, the Department issued an interim final rule
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the
regulatory provisions governing the targeted dumping analysis in
antidumping duty investigations, and the corresponding regulation
governing the deadline for targeted dumping allegations, 19 CFR
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930
(December 10, 2008). The Department stated that ``withdrawal will allow
the Department to exercise the discretion intended by the statute and,
thereby, develop a practice that will allow interested parties to
pursue all statutory avenues of relief in this area.'' Id. at 74931.
In order to accomplish this objective, if any interested party
wishes to make a targeted dumping allegation in this investigation
pursuant to section 777A(d)(1)(B) of the Act, such allegation is due no
later than 45 days before the scheduled date of the preliminary
determination.
Respondent Selection
For this investigation, the Department will request quantity and
value information from known exporters and producers identified with
complete contact information in the Petition. The quantity and value
data received from NME exporters/producers will be used as the basis to
select the mandatory respondents.
The Department requires that the respondents submit a response to
both the quantity and value questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. See Circular Welded Austenitic
Stainless Pressure Pipe from the People's Republic of China: Initiation
of Antidumping Duty Investigation, 73 FR 10221, 10225 (February 26,
2008); Initiation of Antidumping Duty Investigation: Certain Artist
Canvas From the People's Republic of China, 70 FR 21996, 21999 (April
28, 2005). On the date of the publication of this initiation notice in
the Federal Register, the Department will post the quantity and value
questionnaire along with the filing instructions on the Import
Administration web site at https://ia.ita.doc.gov/ia-highlights-and-news.html, and a response to the quantity and value questionnaire is
due no later than May 11, 2010. Also, the
[[Page 22113]]
Department will send the quantity and value questionnaire to those PRC
companies identified in the Petition in Volume I of the Petition, at
Exhibit I-8.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Department's web site at https://ia.ita.doc.gov/apo.
Separate Rates Application
In order to obtain separate-rate status in NME investigations,
exporters and producers must submit a separate-rate status application.
See Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries, dated April 5, 2005 (``Policy Bulletin''), available
on the Department's web site at https://ia.ita.doc.gov/policy/bull05-1.pdf. Based on our experience in processing the separate-rate
applications in previous antidumping duty investigations, we have
modified the application for this investigation to make it more
administrable and easier for applicants to complete. See, e.g.,
Initiation of Antidumping Duty Investigation: Certain New Pneumatic
Off-the-Road Tires From the People's Republic of China, 72 FR 43591,
43594-95 (August 6, 2007). The specific requirements for submitting the
separate-rate application in this investigation are outlined in detail
in the application itself, which will be available on the Department's
web site at https://ia.ita.doc.gov/ia-highlights-and-news.html on the
date of publication of this initiation notice in the Federal Register.
The separate-rate application will be due 60 days after publication of
this initiation notice. For exporters and producers who submit a
separate-rate status application and subsequently are selected as
mandatory respondents, these exporters and producers will no longer be
eligible for consideration for separate rate status unless they respond
to all parts of the questionnaire as mandatory respondents. As noted in
the ``Respondent Selection'' section above, the Department requires
that respondents submit a response to both the quantity and value
questionnaire and the separate rate application by the respective
deadlines in order to receive consideration for separate-rate status.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Policy Bulletin states:
{{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME investigations will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period of
investigation. This practice applies both to mandatory respondents
receiving an individually calculated separate rate as well as the pool
of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.
See Policy Bulletin at 6 (emphasis added).
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petition have been
provided to the representatives of the Government of the PRC. Because
of the large number of producers/exporters identified in the Petition,
the Department considers the service of the public version of the
Petition to the foreign producers/exporters satisfied by the delivery
of the public version to the Government of the PRC, consistent with 19
CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiations, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, no later than May 17, 2010,
whether there is a reasonable indication that imports of aluminum
extrusions from the PRC are materially injuring, or threatening
material injury to a U.S. industry. A negative ITC determination will
result in the investigation being terminated; otherwise, this
investigation will proceed according to statutory and regulatory time
limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: April 20, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Attachment I
Scope of the Investigations
The merchandise covered by these investigations is aluminum extrusions
which are shapes and forms, produced by an extrusion process, made from
aluminum alloys having metallic elements corresponding to the alloy
series designations published by The Aluminum Association commencing
with the numbers 1, 3, and 6 (or proprietary equivalents or other
certifying body equivalents). Specifically, the subject merchandise
made from aluminum alloy with an Aluminum Association series
designation commencing with the number 1 contains not less than 99
percent aluminum by weight. The subject merchandise made from aluminum
alloy with an Aluminum Association series designation commencing with
the number 3 contains manganese as the major alloying element, with
manganese accounting for not more than 3.0 percent of total materials
by weight. The subject merchandise made from an aluminum alloy with an
Aluminum Association series designation commencing with the number 6
contains magnesium and silicon as the major alloying elements, with
magnesium accounting for at least 0.1 percent but not more than 2.0
percent of total materials by weight, and silicon accounting for at
least 0.1 percent but not more than 3.0 percent of total materials by
weight. The subject aluminum extrusions are properly identified by a
four-digit alloy series without either a decimal point or leading
letter. Illustrative examples from among the approximately 160
registered alloys that may characterize the subject merchandise are as
follows: 1350, 3003, and 6060.
Aluminum extrusions are produced and imported in a wide variety of
shapes and forms, including, but not limited to, hollow profiles, other
solid profiles, pipes, tubes, bars, and rods. Aluminum extrusions that
are drawn subsequent to extrusion (``drawn aluminum'') are also
included in the scope.
Aluminum extrusions are produced and imported with a variety of
finishes (both coatings and surface treatments), and types of
fabrication. The types of coatings and treatments applied to subject
aluminum extrusions include,
[[Page 22114]]
but are not limited to, extrusions that are mill finished (i.e.,
without any coating or further finishing), brushed, buffed, polished,
anodized (including bright-dip anodized), liquid painted, or powder
coated. Aluminum extrusions may also be fabricated, i.e., prepared for
assembly. Such operations would include, but are not limited to,
extrusions that are cut-to-length, machined, drilled, punched, notched,
bent, stretched, knurled, swedged, mitered, chamfered, threaded, and
spun. The subject merchandise includes aluminum extrusions that are
finished (coated, painted, etc.), fabricated, or any combination
thereof.
Subject aluminum extrusions may be described at the time of importation
as parts for final finished products that are assembled after
importation, including, but not limited to, window frames, door frames,
solar panels, curtain walls, or furniture. Such parts that otherwise
meet the definition of aluminum extrusions are included in the scope.
The scope includes aluminum extrusions that are attached (e.g., by
welding or fasteners) to form subassemblies, i.e., partially assembled
merchandise.
Subject extrusions may be identified with reference to their end use,
such as heat sinks, door thresholds, or carpet trim. Such goods are
subject merchandise if they otherwise meet the scope definition,
regardless of whether they are finished products and ready for use at
the time of importation.
The following aluminum extrusion products are excluded: aluminum
extrusions made from aluminum alloy with an Aluminum Association series
designations commencing with the number 2 and containing in excess of
1.5 percent copper by weight; aluminum extrusions made from aluminum
alloy with an Aluminum Association series designation commencing with
the number 5 and containing in excess of 1.0 percent magnesium by
weight; and aluminum extrusions made from aluminum alloy with an
Aluminum Association series designation commencing with the number 7
and containing in excess of 2.0 percent zinc by weight.
The scope also excludes finished merchandise containing aluminum
extrusions as parts that are fully and permanently assembled and
completed at the time of entry, such as finished windows with glass,
doors, picture frames, and solar panels. The scope also excludes
finished goods containing aluminum extrusions that are entered
unassembled in a ``kit.'' A kit is understood to mean a packaged
combination of parts that contains, at the time of importation, all of
the necessary parts to fully assemble a final finished good.
The scope also excludes aluminum alloy sheet or plates produced by
other than the extrusion process, such as aluminum products produced by
a method of casting. Cast aluminum products are properly identified by
four digits with a decimal point between the third and fourth digit. A
letter may also precede the four digits. The following Aluminum
Association designations are representative of aluminum alloys for
casting: 208.0, 295.0, 308.0, 355.0, C355.0, 356.0, A356.0, A357.0,
360.0, 366.0, 380.0, A380.0, 413.0, 443.0, 514.0, 518.1, and 712.0. The
scope also excludes pure, unwrought aluminum in any form.
Imports of the subject merchandise are provided for under the following
categories of the Harmonized Tariff Schedule of the United States
(``HTS''): 7604.21.0000, 7604.29.1000, 7604.29.3010, 7604.29.3050,
7604.29.5030, 7604.29.5060, 7608.20.0030, and 7608.20.0090. The subject
merchandise entered as parts of other aluminum products may be
classifiable under the following additional Chapter 76 subheadings:
7610.10, 7610.90, 7615.19, 7615.20, and 7616.99 as well as under other
HTS chapters. While HTS subheadings are provided for convenience and
customs purposes, the written description of the scope in this
proceeding is dispositive.
[FR Doc. 2010-9743 Filed 4-26-10; 8:45 am]
BILLING CODE 3510-DS-S