Aluminum Extrusions From the People's Republic of China: Initiation of Anti-Circumvention Inquiry, 15039-15045 [2016-06299]
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Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Notices
Notifications to Importers
This notice serves as a final reminder
to importers of their responsibility
under 19 CFR 351.402(f)(2) to file a
certificate regarding the reimbursement
of antidumping duties prior to
liquidation of the relevant entries
during this review period. Failure to
comply with this requirement could
result in the Secretary’s presumption
that reimbursement of antidumping
duties occurred and the subsequent
assessment of doubled antidumping
duties.
Notification to Interested Parties
This notice also serves as a reminder
to parties subject to administrative
protective orders (APO) of their
responsibility concerning the return or
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3), which
continues to govern business
proprietary information in this segment
of the proceeding. Timely written
notification of the return/destruction of
APO materials, or conversion to judicial
protective order, is hereby requested.
Failure to comply with the regulations
and the terms of an APO is a
sanctionable violation.
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: March 14, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2016–06298 Filed 3–18–16; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–523–812, A–535–903, A–520–807, A–552–
820]
Circular Welded Carbon-Quality Steel
Pipe From the Sultanate of Oman,
Pakistan, the United Arab Emirates,
and the Socialist Republic of Vietnam:
Postponement of Preliminary
Determinations of Antidumping Duty
Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
FOR FURTHER INFORMATION CONTACT:
Katherine Johnson at (202) 482–4929
(the Sultanate of Oman (Oman)), David
Lindgren at (202) 482–3870 (Pakistan),
Dennis McClure at (202) 482–5973 (the
United Arab Emirates (the UAE)), or
Andrew Huston at (202) 482–4261 (the
Socialist Republic of Vietnam
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AGENCY:
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(Vietnam)); AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Postponement of Preliminary
Determinations
On November 17, 2015, the
Department of Commerce (the
Department) initiated antidumping duty
investigations of imports of circular
welded carbon-quality steel pipe (CWP)
from Oman, Pakistan, the UAE and
Vietnam.1 The notice of initiation stated
that we would issue our preliminary
determinations no later than 140 days
after the date of initiation. Currently, the
preliminary determinations in these
investigations are due on April 11,
2016.2
On March 10, 2016, Bull Moose Tube
Company; EXLTUBE; Wheatland Tube,
a division of JMC Steel Group; and
Western Tube and Conduit (hereafter,
the petitioners) made timely requests,
pursuant to section 733(c)(1)(A) of the
Tariff Act of 1930, as amended (the Act),
and 19 CFR 351.205(e), for an extension
of the deadline for the preliminary
determinations in the investigations.3
The petitioners stated that a
postponement of the preliminary
determinations in all four CWP
investigations is necessary to provide
the Department with sufficient time to
reach reasoned preliminary
determinations.
Under section 733(c)(1)(A) of the Act,
if a petitioner makes a timely request for
an extension of the period within which
the preliminary determination must be
made under subsection (b)(1), then the
Department may postpone making the
1 See Circular Welded Carbon-Quality Steel Pipe
From the Sultanate of Oman, Pakistan, the
Philippines, the United Arab Emirates, and the
Socialist Republic of Vietnam: Initiation of LessThan-Fair-Value Investigations, 80 FR 73708
(November 25, 2015).
2 As explained in the memorandum from the
Acting Assistant Secretary for Enforcement &
Compliance, the Department has exercised its
discretion to toll all administrative deadlines due
to the recent closure of the Federal Government.
See Memorandum to the Record from Ron
Lorentzen, Acting A/S for Enforcement &
Compliance, regarding ‘‘Tolling of Administrative
Deadlines As a Result of the Government Closure
During Snowstorm Jonas,’’ dated January 27, 2016.
All deadlines in this segment of the proceeding
have been extended by four business days. The
revised deadline for the preliminary determination
of these investigations is now April 11, 2016.
3 See the petitioners’ letter to the Department
‘‘Circular Welded Carbon-Quality Steel Pipe from
the Sultanate of Oman, Pakistan, the United Arab
Emirates, and the Socialist Republic of Vietnam:
Petitioners’ Request to Extend Preliminary
Determination,’’ dated March 10, 2016.
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15039
preliminary determination under
subsection (b)(1) until not later than the
190th day after the date on which the
administering authority initiated the
investigation. Therefore, for the reasons
stated above, and because there are no
compelling reasons to deny the
petitioners’ requests, the Department is
postponing the preliminary
determinations in these investigations
until May 31, 2016, which is 190 days
from the date on which the Department
initiated these investigations.
The deadline for the final
determinations will continue to be 75
days after the date of the preliminary
determinations, unless extended.
This notice is issued and published
pursuant to section 733(c)(2) of the Act
and 19 CFR 351.205(f)(1).
Dated: March 14, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2016–06300 Filed 3–18–16; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–967/C–570–968]
Aluminum Extrusions From the
People’s Republic of China: Initiation
of Anti-Circumvention Inquiry
Enforcement & Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
the Aluminum Extrusions Fair Trade
Committee (Petitioner), the Department
of Commerce (the Department) is
initiating an anti-circumvention inquiry
pursuant to sections 781(c) and (d) of
the Tariff Act of 1930, as amended, (the
Act) to determine whether extruded
aluminum products that meet the
chemical specifications for 5050-grade
aluminum alloy, which are heat-treated,
and exported by China Zhongwang
Holdings Ltd. and its affiliates
(collectively, Zhongwang) are
circumventing the antidumping duty
(AD) and countervailing duty (CVD)
orders on aluminum extrusions from the
People’s Republic of China (PRC).1
DATE: Effective March 21, 2016.
FOR FURTHER INFORMATION CONTACT:
Scott Hoefke or Robert James, AD/CVD
Operations, Office VI, Enforcement &
AGENCY:
1 See Aluminum Extrusions from the People’s
Republic of China: Antidumping Duty Order, 76 FR
30650 (May 26, 2011) and Aluminum Extrusions
from the People’s Republic of China: Countervailing
Duty Order, 76 FR 30653 (May 26, 2011)
(collectively, the Orders).
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Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Notices
Compliance, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone: (202) 482–4947 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
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Background
In October 2015, Petitioner filed a
joint Scope Clarification and AntiCircumvention Inquiry Request for
certain merchandise from Zhongwang.
At the request of the Department, on
December 30, 2015, Petitioner refiled its
request that the Department conduct an
anti-circumvention inquiry pursuant to
sections 781(c) and (d) of the Act with
respect to extruded aluminum products
that meet the chemical specifications for
5050-grade aluminum alloy, which are
heat-treated, and exported by
Zhongwang.2 In its request, Petitioner
contends that Zhongwang’s 5050-grade
aluminum alloy extrusion products are
circumventing the scope of the Orders,
and requests that the Department
address this alleged circumvention by
initiating both a ‘‘minor alterations’’
anti-circumvention inquiry pursuant to
section 781(c) of the Act, as well as a
‘‘later-developed merchandise’’ anticircumvention inquiry pursuant to
section 781(d) of the Act.3 With this
refiling, we accepted the Petitioner’s
submission and set the deadline for
action as February 22, 2016. On
February 22, 2016, the Department
extended the deadline to initiate 21
days to March 14, 2016.
The scope of the Orders expressly
includes extruded products made of
alloy ‘‘with an Aluminum Association
series designation commencing with the
number 6’’ where ‘‘magnesium
account{s} for at least 0.1 percent but
not more than 2.0 percent of total
materials by weight, and silicon
account{s} for at least 0.1 percent but
not more than 3.0 percent of total
materials by weight.’’ 4 In addition,
expressly excluded from the Orders are
extruded products made of alloy ‘‘with
an {Aluminum Association} series
designation commencing with the
number 5 and containing in excess of
1.0 percent magnesium by weight.’’ 5
Petitioner argues that the scope of the
Orders ‘‘creates an overlap between the
chemical composition standards {in
2 See Letter to the Secretary, Re ‘‘Aluminum
Extrusions from the People’s Republic of China:
Resubmission of Circumvention Inquiry Request
Pursuant to the Department’s Request,’’ dated
December 30, 2015 (Petitioner’s Resubmission of
Circumvention Inquiry).
3 Id. at 39–66.
4 See Orders, 76 FR 30653.
5 Id.
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that} there is a narrow window in which
a 5xxx-series alloy may and does exist
that is comprised of more than one
percent but less than two percent
magnesium by weight{,}’’ and that ‘‘{i}n
order to use 5xxx-series alloy (i.e., 5050
alloy) in an extrusion application, . . .
the metal would have to be heat-treated
to achieve the mechanical properties
that make 6xxx-series alloy so attractive
for extrusion applications{.}’’ 6
Thus, Petitioner maintains that the
aluminum alloy extrusion products at
issue are manipulated in two ways to
evade the scope of the Orders: First, the
billet producer must create a precise
ratio of silicon to magnesium to result
in an alloy that satisfies the chemical
composition limits of a 5050 alloy, but
behaves and is extrudable like an inscope 6xxx-series alloy.7 Second, once
the alloy is subject to a heat-treatment
tempering process, this allows the
extruded alloy to achieve the desired
tensile strength to mimic the
functionality of in-scope 6xxx-series
alloy.8 Petitioner argues that The
Aluminum Association, the certifying
body for the domestic aluminum
industry, does not currently recognize
heat-treatment as a tempering process
for 5050-grade aluminum alloy, which
is historically tempered through strainhardening and/or cold-working
processes.9 Rather, The Aluminum
Association recognizes heat-treatment as
a tempering process for 6xxx-series
alloy.10 In short, Petitioner alleges that
these aluminum alloy products are
subject to chemical and mechanical
manipulation, i.e., tempering, which
results in circumvention of the Orders.
Petitioner provided evidence that was
reasonably available of Zhongwang’s
alleged circumvention of the Orders
through its shipment of such 5050-grade
aluminum alloy extrusion products.11
Petitioner provided Zhongwang’s
financial statements.12 Petitioner points
out that Zhongwang has yet to be
selected for an administrative review for
the Orders, because there were no
reported entries of subject
merchandise.13 Petitioner also points
out that after the imposition of the
Orders, the volume of Zhongwang’s U.S.
exports decreased, but subsequently
rebounded since the ‘‘sudden’’
appearance and timing of its
importation of such 5050-grade
6 Id.
7 Id.
at 42–44.
at 42–45
9 Id. at 46–47.
10 Id. at Exhibit 21.
11 Id. at 41 and 62.
12 Id. at 50 and Exhibit 3.
13 Id. at 50.
8 Id.
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aluminum alloy products.14 Petitioner
argues that these facts taken together
indicate that Zhongwang is engaging in
manipulation to avoid duties.
Scope of Orders
The merchandise covered by the
orders 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 is 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,
but are not limited to, extrusions that
14 Id.
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Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Notices
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 the aluminum
extrusion components that are attached
(e.g., by welding or fasteners) to form
subassemblies, i.e., partially assembled
merchandise unless imported as part of
the finished goods ‘kit’ defined further
below. The scope does not include the
non-aluminum extrusion components of
subassemblies or subject kits.
Subject extrusions may be identified
with reference to their end use, such as
fence posts, electrical conduits, door
thresholds, carpet trim, or heat sinks
(that do not meet the finished heat sink
exclusionary language below). Such
goods are subject merchandise if they
otherwise meet the scope definition,
regardless of whether they are 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 with glass or
vinyl, picture frames with glass pane
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and backing material, and solar panels.
The scope also excludes finished goods
containing aluminum extrusions that
are entered unassembled in a ‘‘finished
goods kit.’’ A finished goods 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 and requires no further
finishing or fabrication, such as cutting
or punching, and is assembled ‘‘as is’’
into a finished product. An imported
product will not be considered a
‘‘finished goods kit’’ and therefore
excluded from the scope of the
investigation merely by including
fasteners such as screws, bolts, etc. in
the packaging with an aluminum
extrusion product.
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.
The scope also excludes collapsible
tubular containers composed of metallic
elements corresponding to alloy code
1080A as designated by The Aluminum
Association where the tubular container
(excluding the nozzle) meets each of the
following dimensional characteristics:
(1) Length of 37 millimeters (‘‘mm’’) or
62 mm, (2) outer diameter of 11.0 mm
or 12.7 mm, and (3) wall thickness not
exceeding 0.13 mm.
Also excluded from the scope of these
orders are finished heat sinks. Finished
heat sinks are fabricated heat sinks
made from aluminum extrusions the
design and production of which are
organized around meeting certain
specified thermal performance
requirements and which have been
fully, albeit not necessarily
individually, tested to comply with
such requirements.
Imports of the subject merchandise
are provided for under the following
categories of the Harmonized Tariff
Schedule of the United States (HTSUS):
7609.00.00, 7610.10.00, 7610.90.00,
7615.10.30, 7615.10.71, 7615.10.91,
7615.19.10, 7615.19.30, 7615.19.50,
7615.19.70, 7615.19.90, 7615.20.00,
7616.99.10, 7616.99.50, 8479.89.98,
8479.90.94, 8513.90.20, 9403.10.00,
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15041
9403.20.00, 7604.21.00.00,
7604.29.10.00, 7604.29.30.10,
7604.29.30.50, 7604.29.50.30,
7604.29.50.60, 7608.20.00.30,
7608.20.00.90, 8302.10.30.00,
8302.10.60.30, 8302.10.60.60,
8302.10.60.90, 8302.20.00.00,
8302.30.30.10, 8302.30.30.60,
8302.41.30.00, 8302.41.60.15,
8302.41.60.45, 8302.41.60.50,
8302.41.60.80, 8302.42.30.1 0,
8302.42.30.15, 8302.42.30.65,
8302.49.60.35, 8302.49.60.45,
8302.49.60.55, 8302.49.60.85,
8302.50.00.00, 8302.60.90.00,
8305.10.00.50, 8306.30.00.00,
8414.59.60.90, 8415.90.80.45,
8418.99.80.05, 8418.99.80.50,
8418.99.80.60, 8419.90.10.00,
8422.90.06.40, 8473.30.20.00,
8473.30.51.00, 8479.90.85.00,
8486.90.00.00, 8487.90.00.80,
8503.00.95.20, 8508.70.00.00,
8515.90.20.00, 8516.90.50.00,
8516.90.80.50, 8517.70.00.00,
8529.90.73.00, 8529.90.97.60,
8536.90.80.85, 8538.10.00.00,
8543.90.88.80, 8708.29.50.60,
8708.80.65.90, 8803.30.00.60,
9013.90.50.00, 9013.90.90.00,
9401.90.50.81, 9403.90.10.40,
9403.90.10.50, 9403.90.10.85,
9403.90.25.40, 9403.90.25.80,
9403.90.40.05, 9403.90.40.10,
9403.90.40.60, 9403.90.50.05,
9403.90.50.10, 9403.90.50.80,
9403.90.60.05, 9403.90.60.10,
9403.90.60.80, 9403.90.70.05,
9403.90.70.10, 9403.90.70.80,
9403.90.80.10, 9403.90.80.15,
9403.90.80.20, 9403.90.80.41,
9403.90.80.51, 9403.90.80.61,
9506.11.40.80, 9506.51.40.00,
9506.51.60.00, 9506.59.40.40,
9506.70.20.90, 9506.91.00.10,
9506.91.00.20, 9506.91.00.30,
9506.99.05.10, 9506.99.05.20,
9506.99.05.30, 9506.99.15.00,
9506.99:20.00, 9506.99.25.80,
9506.99.28.00, 9506.99.55.00,
9506.99.60.80, 9507.30.20.00,
9507.30.40.00, 9507.30.60.00,
9507.90.60.00, and 9603.90.80.50.
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 HTSUS
chapters. In addition, fin evaporator
coils may be classifiable under HTSUS
numbers: 8418.99.80.50 and
8418.99.80.60. While HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the scope of these
orders is dispositive.
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Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Notices
Merchandise Subject to the AntiCircumvention Inquiry
This anti-circumvention inquiry
covers extruded aluminum products
that meet the chemical specifications for
5050-grade aluminum alloy, which are
heat-treated, and exported by
Zhongwang.15 The Department intends
to consider whether the inquiry should
apply to all imports of extruded
aluminum products that meet the
chemical specifications for 5050-grade
aluminum alloy and are heat-treated,
regardless of producer, exporter, or
importer, from the PRC.
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Request for a Minor Alterations AntiCircumvention Inquiry
Section 781(c)(1) of the Act provides
that the Department may find
circumvention of an AD or CVD order
when products which are of the class or
kind of merchandise subject to an AD or
CVD order have been ‘‘altered in form
or appearance in minor respects . . .
whether or not included in the same
tariff classification.’’ Section 781(c)(2) of
the Act provides an exception that
‘‘{p}aragraph 1 shall not apply with
respect to altered merchandise if the
administering authority determines that
it would be unnecessary to consider the
altered merchandise within the scope of
the {AD or CVD} order{.}’’
The Department notes that, while the
statute is silent as to what factors to
consider in determining whether
alterations are properly considered
‘‘minor,’’ the legislative history of this
provision indicates there are certain
factors which should be considered
before reaching an anti-circumvention
determination. In conducting an anticircumvention inquiry under section
781(c) of the Act, the Department has
generally relied upon ‘‘such criteria as
the overall physical characteristics of
the merchandise, the expectations of the
ultimate users, the use of the
merchandise, the channels of marketing
and the cost of any modification relative
to the total value of the imported
product.’’ 16 The Department will
15 Petitioner provided names of known
Zhongwang’s Chinese and U.S. affiliates. Through
the course of inquiry, we intend to examine in
addition to Zhongwang the following affiliated
companies: Dalian Liwan Trade Co., Ltd.; Tianjin
Boruxin Trading Co., Ltd.; and Dragon Luxe
Limited; Pencheng Aluminum Enterprise Inc. USA;
Global Aluminum (USA) Inc.; Signature Aluminum
Canada Inc.; Aluminum Shapes, LLC; Perfectus
Aluminum Inc.; and Perfectus Aluminum
Acquisitions LLC. We also intend to examine
whether any Zhongwang’s affiliates are the
producers of the merchandise at issue.
16 See S. Rep. No. 71, 100th Cong., 1st Sess. 100
(1987) (‘‘In applying this provision, the Commerce
Department should apply practical measurements
regarding minor alterations, so that circumvention
can be dealt with effectively, even where such
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examine these factors in evaluating an
allegation of minor alteration under
section 781(c) of the Act and 19 CFR
351.225(i). Each case is highly
dependent on the facts on the record,
and must be analyzed in light of those
specific facts. Thus, although not
specified in the statute, the Department
has also included additional factors in
its analysis, such as the circumstances
under which the products at issue
entered the United States and the timing
and quantity of said entries during the
circumvention review period.17
As discussed above, Petitioner argues
that the manipulation in chemical
composition and tempering to create an
aluminum extrusions product which
technically meets the scope exclusion
for 5xxx-series but behaves like in-scope
6xxx-series subject merchandise results
in circumvention of the Orders as a
minor alteration of in-scope
merchandise, pursuant to section 781(c)
of the Act.18 Specifically, Petitioner
argues that the products at issue, given
their heat-treatment, would otherwise
be subject 6xxx-series alloy but for the
minor increase in magnesium levels,
which allows for a superficial
designation as a 5050 alloy.19 According
to Petitioner, this would require a shift
in chemistry of a 6063 alloy at the top
end of its magnesium content range (i.e.,
0.45 to 0.90 percent by weight) by
increasing the magnesium content level
by a mere 0.2 percent by weight to
achieve a magnesium content of 1.1
percent by weight, which is within the
low end of the range of the magnesium
content range for 5050 alloy.20
Petitioner states this increase at today’s
magnesium market price would result in
a 4.63 percent increase to the 5050
billet’s overall per pound alloying cost,
which in turn represents a negligible
0.52 percent increase to the overall perpound billet production cost.21
Petitioner states that in Cut-to-Length
Plate from China,22 the Department
alterations to an article technically transform it into
a differently designated article.’’).
17 See, e.g., Brass Sheet and Strip From West
Germany; Negative Preliminary Determination of
Circumvention of Antidumping Duty Order, 55 FR
32655 (August 10, 1990) unchanged in Brass Sheet
and Strip From Germany; Negative Final
Determination of Circumvention of Antidumping
Duty Order, 56 FR 65884 (December 19, 1991), see
also, e.g., Small Diameter Graphite Electrodes From
the People’s Republic of China: Initiation of
Anticircumvention Inquiry, 77 FR 37873 (June 25,
2012).
18 See Petitioner’s Resubmission of
Circumvention Inquiry at 52–53.
19 Id.
20 Id. at 52.
21 Id.
22 See Affirmative Final Determination of
Circumvention of the Antidumping Duty Order on
Certain Cut-to-Length Carbon Steel Plate from the
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found similar minor changes to alloying
elements are not sufficient to remove
what would otherwise be subject
merchandise from the scope.23
Finally, once a precise ratio of silicon
to magnesium is achieved, which falls
within the chemical composition limits
for a 5050 alloy, but is virtually
indistinguishable from the chemical
composition limits for a 6xxx-series
alloy, the product is ready to be heattreated—the same tempering process
used for 6xxx-series alloy, and which is
not recognized by The Aluminum
Association as a tempering process for
5050 alloy—which results in a product
similar to a 6xxx-series aluminum
extrusion product, save for the minor
increase in magnesium.
In its request for a minor alterations
anti-circumvention inquiry, Petitioner
presented the following evidence with
respect to each of the aforementioned
criteria.
A. Overall Physical Characteristics
Petitioner contends that companies
such as Zhongwang have created and
shipped extruded aluminum products
meeting the chemical specifications for
5050-grade aluminum alloy and which
are heat-treated, which results in
aluminum extrusion products whose
chemical and mechanical properties
have been manipulated to be similar to
those of in-scope 6xxx-series alloy
products. Petitioner has provided
information relating to an importer that
has admitted to sourcing 5050-grade
aluminum alloy products for use in
products and applications which have
traditionally used 6xxx-series alloys, as
well as information relating to a
domestic producer that has been asked
to provide price quotes for the
manufacture of products using 5050
alloy which have been made previously
with 6xxx-series alloy. Petitioner also
obtained and tested specimens labeled
as 5050-grade aluminum alloy products,
which demonstrated that the chemical
composition overlapped with 6xxxseries standards, and had been heattreated. While Petitioner did not test
specimens of Zhongwang’s products,
information reasonably available to
Petitioner indicates that the overall
physical characteristics of Zhongwang’s
5050-grade aluminum alloy extrusion
products would be no different from the
tested products, and therefore should be
found similar to products made of series
6xxx aluminum alloys.24
People’s Republic of China, 76 FR 50996 (August
17, 2011) (Cut-to-Length Plate from China).
23 See Petitioner’s Resubmission of
Circumvention Inquiry at 52.
24 See Petitioner’s Resubmission of
Circumvention Inquiry at page 56–58.
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B. Expectations of the Ultimate Users
and Use of the Merchandise
Petitioner alleges that the
expectations of the purchasers and
ultimate use of Zhongwang’s 5050-grade
aluminum alloy extrusion products are
identical to those of products produced
from 6xxx-series alloy.25 Petitioner
states that the specific alloy out of
which the aluminum extrusion is
produced has no apparent bearing or
impact on the ultimate use.26 Petitioner
provided evidence suggesting that the
type of alloy had no bearing on
customers’ selection of aluminum
extrusion products, and that, in some
cases, 5050-grade aluminum alloy
products were used specifically to avoid
antidumping and countervailing
duties.27 Petitioner also provided
information indicating that domestic
producers are competing with Chinesesourced 5050-grade aluminum alloy
products for the same shower enclosure
components designed to be
manufactured in 6463 alloy.28 Petitioner
further contends that, although it does
not have access to Zhongwang’s specific
5050-grade aluminum alloy extrusion
products, evidence confirms that
Zhongwang began importing a large
volume of 5050-grade aluminum alloy
products after the Orders came into
place.29 Further, Petitioner contends
that there is no indication that
Zhongwang’s products are any different
from the 5050-grade aluminum alloy
products which have been competing
directly with the U.S. industry.30
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Channels of Marketing
Petitioner maintains that there is no
difference between the channels of
marketing for aluminum extrusions
made from in-scope alloy, i.e., 6xxxseries aluminum extrusions, and those
of 5050-grade aluminum alloy extrusion
products. For instance, Petitioner
provided evidence showing that such
5050-grade aluminum alloy extruded
products are marketed by Chinese
producers to purchasers in the same
manner that 6xxx-series are marketed,
and such marketing demonstrates to
customers and end-users that these
products are interchangeable with 6xxxseries products.31 Moreover, Petitioner
states that Zhongwang’s Web site
advertises a collection of products in a
single location on its Web site without
25 Id.
D. Cost of Modification
Petitioner indicates that the cost of
the minor alterations to shift the
chemistry of a high-magnesium series
6xxx alloy to one that one could be
designated as 5050 alloy is minimal at
best.33 As discussed above, Petitioner
specifically mentions that one would
need to increase a 6063 alloy’s
maximized magnesium content level by
0.2 percent by weight.34 Petitioner states
that this increase at magnesium’s market
price at the time of filing would result
in a 4.63 percent increase to the 5050
billet’s overall per pound alloying cost
which, Petitioner avers, is insignificant
given the Orders antidumping and
countervailing duties are over 180
percent.35
E. Circumstance Under Which the
Subject Products Entered the United
States
Petitioner argues that at the
completion of the original
investigations, the PRC-wide
antidumping rate was 33.28 percent,
and the PRC-wide countervailing duty
rate was 374.15 percent.36 Petitioner
asserts that these considerable margins
have given Zhongwang tremendous
financial incentive to circumvent the
Orders so as not to incur the costs
associated with the duties levied on the
entries of subject merchandise.37
F. Timing of Entries
Petitioner asserts that the timing of
the entries of Zhongwang’s 5050-grade
aluminum alloy products show
Zhongwang’s attempt to circumvent the
Orders.38 Petitioner supported this
assertion by providing import data
showing Zhongwang’s shipments of
5050-grade aluminum alloy products
began after the imposition of the Orders
in 2011.39
32 Id.
at 58–60.
33 Id.
26 Id.
27 Id.
designation or differentiation between
products crafted or capable of being
crafted of different alloys. This
demonstrates, Petitioner contends, that
Zhongwang’s 5050-grade aluminum
alloy extrusion products are not
marketed any differently from
merchandise produced from in-scope
6xxx-series alloy.32
at 58–60, Exhibit 30, Exhibit 28, and Exhibit
34 Id.
35 Id.
22.
28 Id.
at 59 and Exhibit 28.
29 Id. at 65.
30 Id. at 59.
31 Id. at 60.
VerDate Sep<11>2014
at 60–61 and Exhibit 19.
at 63.
17:46 Mar 18, 2016
36 Id.
37 Id.
at 63–64.
at 64.
38 Id.
39 Id.
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15043
Request for a Later-Developed
Merchandise Anti-Circumvention
Inquiry
Section 781(d)(1) of the Act provides
that the Department may initiate an
anti-circumvention inquiry to determine
whether merchandise developed after
an AD or CVD investigation is initiated
(‘‘later-developed merchandise’’) is
within the scope of the order(s). In
conducting later-developed
merchandise anti-circumvention
inquiries under section 781(d)(1) of the
Act, the Department will evaluate
whether the general physical
characteristics of the merchandise under
consideration are the same as subject
merchandise covered by the order,
whether the expectations of the ultimate
purchasers of the merchandise under
consideration are no different than the
expectations of the ultimate purchases
of subject merchandise, whether the
ultimate use of the subject merchandise
and the merchandise under
consideration are the same, whether the
channels of trade of both products are
the same, whether there are any
differences in the advertisement and
display of both products,40 and if the
merchandise under consideration was
commercially available at the time of
the investigation, i.e., the product was
present in the commercial market or the
product was tested and ready for
commercial production.41
As discussed above, Petitioner argues
that the manipulation in chemical
composition and tempering to create an
aluminum extrusions product which
technically meets the scope exclusion
for 5xxx-series but behaves like in-scope
6xxx-series subject merchandise results
in circumvention of the Orders as laterdeveloped merchandise, pursuant to
section 781(d) of the Act. Specifically,
Petitioner argues that the products
constitute later-developed merchandise
because: (1) While the 5050-grade alloy
designation existed at the time of the
investigation, The Aluminum
Association did not, and still does not,
recognize heat-treatment as a tempering
process for 5050-grade aluminum alloy;
(2) documents from the investigation
indicate that soft alloys, i.e., 1xxx-,
40 See
section 781(d)(1) of the Act.
Later-Developed Merchandise
Anticircumvention Inquiry of the Antidumping
Duty Order on Petroleum Wax Candles from the
People’s Republic of China: Affirmative Preliminary
Determination of Circumvention of the
Antidumping Duty Order, 71 FR 32033, 32035 (June
2, 2006) unchanged in Later-Developed
Merchandise Anticircumvention Inquiry of the
Antidumping Duty Order on Petroleum Wax
Candles from the People’s Republic of China:
Affirmative Final Determination of Circumvention
of the Antidumping Duty Order, 71 FR 59075
(October 6, 2006).
41 See
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3xxx-, and 6xxx-series alloys, were used
in a wide variety of aluminum extrusion
products, while hard alloys—such as
5xxx-series—were extremely limited
and highly specific, appearing primarily
in marine and aerospace applications;
and (3) at the time of the filing of the
petition, The Aluminum Association
recognized only four 5xxx-series alloys
employed in extrusion applications—
which did not include 5050-grade
aluminum alloy.42
As described in the ‘‘Request for a
Minor Alterations Anti-Circumvention
Inquiry’’ section above, Petitioner has
provided evidence and argument
pertaining to the general physical
characteristics of the merchandise under
consideration as being the same as
subject merchandise covered by the
order, whether the expectations of the
ultimate purchasers of the merchandise
under consideration are no different
than the expectations of the ultimate
purchases of subject merchandise, and
whether the ultimate use of the subject
merchandise and the merchandise
under consideration are the same. In the
context of its later-developed
merchandise request, Petitioner has
further provided the following evidence
pertaining to the remaining
aforementioned criteria.
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Advertisement, Display, and Channel
of Trade
Petitioner maintains that the
advertisement, display, and channels of
trade of manipulated 5050-grade
aluminum alloy extruded products are
identical to those of merchandise
produced from in-scope alloys, i.e.,
6xxx-series.43 With respect to
advertisement and display, Petitioner
provided evidence showing that such
5050-grade aluminum alloy extruded
products are advertised by Chinese
producers to purchasers in the same
manner that 6xxx-series are advertised,
which demonstrates to customers and
end-users that these products are
interchangeable with 6xxx-series
products.44 Moreover, Petitioner states
that Zhongwang’s Web site advertises
and displays a collection of products in
a single location on its Web site without
designation or differentiation between
products crafted or capable of being
crafted of different alloys, thus
demonstrating that Zhongwang’s 5050grade aluminum alloy extrusion
products are not advertised or displayed
any differently from merchandise
42 See Petitioner’s Resubmission of
Circumvention Inquiry at 54–55.
43 Id. at 60–62.
44 Id. at 60.
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Jkt 238001
produced from in-scope 6xxx-series
alloy.45
With respect to channels of trade,
Petitioner provided information relating
to a domestic producer that has been
asked to provide price quotes for the
manufacture of products using 5050grade alloy which have been made
previously with 6xxx-series alloy.46 In
addition, Petitioner provided evidence
demonstrating a company’s loss of
business as a result of the replacement
of 6xxx-series alloy in products with
Chinese 5050-grade alloy.47 Petitioner
argues that these 5050-grade aluminum
alloy extrusion products, which caused
lost U.S. business, are likely being sold
in the identical channels of trade as the
original series 6xxx alloy versions.48
With respect to Zhongwang,
Petitioner notes that the importer of
record for nearly all of Zhongwang’s
shipments of aluminum product to the
United States from 2009 to date was the
same, regardless of whether those
shipments were 6xxx-series profiles
prior to the imposition of the orders or
5050-grade products after the
imposition of the orders.49 According to
Petitioner, there is no evidence
reasonably available which indicates
that the channels of trade in which
Zhongwang’s 5050-grade aluminum
alloy extrusion products are sold are
different from those in which similar
6xxx-series products are sold.50
However, the evidence that is
reasonably available, i.e., Zhongwang’s
Web site, shows that Zhongwang
advertises a collection of products
manufactured exclusively from series
6xxx-series alloy and one product
manufactured from 7xxx-series alloy,
but makes no mention of series 5xxx
products.51 Petitioner contends that
given Zhongwang’s importation levels
of 5050-grade aluminum alloy extrusion
products into the United States it would
be advertising these products separately
or at the very least mentioned on its
Web site.52 Petitioner argues that the
silence with which Zhongwang’s Web
site treats 5xxx-series products which it
is manufacturing and shipping to the
United States demonstrates that these
products are interchangeable with 6xxxseries alloy products and intended to
circumvent the orders.53
45 Id.
at 60–61 and Exhibit 19.
at 61, Exhibit 22.
47 Id. at 61, Exhibit 30.
48 Id. at 61.
49 Id. at 61, Exhibit 8.
50 Id. at 61–62.
51 Id. at 62 and Exhibit 19.
52 Id. at 62.
53 Id.
46 Id.
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B. Commercial Availability
Petitioner states that, at the time of
the investigation, series 5050 alloy
existed but was associated with rolling
applications, rather than extrusions.54
Furthermore, Petitioner states that heattreated 5050 alloy extrusions are not
recognized by The Aluminum
Association for the purposes of
aluminum extrusions.55 Additionally,
Petitioner adds that The Aluminum
Association did not recognize heattreating series 5050 alloys at the time of
the Petition, and still does not recognize
doing so to the present day.56 Thus,
Petitioner argues that extruded
aluminum products meeting the
chemical specifications for 5050-grade
aluminum alloy and which are heattreated were not commercially available
at the time of the investigations; they
were developed and made available
after the publication of the Orders.
Conclusion
Based on the information provided by
Petitioner, the Department finds there is
sufficient basis to initiate an anticircumvention inquiry, pursuant to
sections 781(c) and 781(d) of the Act.
The Department will determine whether
the merchandise subject to the inquiry
(identified in the ‘‘Merchandise Subject
to the Anti-Circumvention Inquiry’’
section above) involves either a minor
alteration to subject merchandise in
such minor respects that it should be
subject to the Orders, and/or represents
a later-developed product that can be
considered subject to the Orders.
The Department will not order the
suspension of liquidation of entries of
any additional merchandise at this time.
However, in accordance with 19 CFR
351.225(l)(2), if the Department issues a
preliminary affirmative determination,
we will then instruct U.S. Customs and
Border Protection to suspend
liquidation and require a cash deposit of
estimated duties, at the applicable rate,
for each unliquidated entry of the
merchandise at issue, entered or
withdrawn from warehouse for
consumption on or after the date of
initiation of the inquiry.
In the event we issue a preliminary
affirmative determination of
circumvention pursuant to section
781(d) of the act (later-developed
merchandise), we intend to notify the
International Trade Commission, in
accordance with section 781(e)(1) of the
Act and 19 CFR 351.225(f)(7)(i)(C), if
applicable.
54 Id.
at 54.
Petitioner’s Resubmission of
Circumvention Inquiry at 54.
56 Id. at 54, Exhibit 21, and Exhibit 27.
55 See
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The Department will, following
consultation with interested parties,
establish a schedule for questionnaires
and comments on the issues. The
Department intends to issue its final
determination within 300 days of this
initiation, in accordance with section
781(f) of the Act.
This notice is published in
accordance with sections 781(c) and
781(d) of the Act and 19 CFR 351.225(i)
and (j).
Dated: March 14, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2016–06299 Filed 3–18–16; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Pacific Fishery Management Council;
Public Meetings
National Marine Fisheries
Service, National Oceanic and
Atmospheric Administration,
Commerce.
ACTION: Notice of public meetings.
AGENCY:
The Pacific Fishery
Management Council (Pacific Council)
and its advisory entities will hold
public meetings.
DATES: The Pacific Council and its
advisory entities will meet April 8–14,
2016. The Pacific Council meeting will
begin on Saturday, April 9, 2016 at 8
a.m., reconvening each day through
Thursday, April 14, 2016. All meetings
are open to the public, except a closed
session will be held at 3 p.m. on
Saturday, April 9 to address litigation
and personnel matters. The Pacific
Council will meet as late as necessary
each day to complete its scheduled
business.
SUMMARY:
Meetings of the Council and
its advisory entities will be held at the
Hilton Vancouver Hotel, 301 West Sixth
Street, Vancouver, WA 98660; telephone
360–993–4500; and the Heathman
Lodge, 7801 NE. Greenwood Drive,
Vancouver, WA 98662; phone: (360)
254–3100.
Council address: Pacific Fishery
Management Council, 7700 NE.
Ambassador Place, Suite 101, Portland,
OR 97220. Instructions for attending the
meeting via live stream broadcast are
given under SUPPLEMENTARY
INFORMATION, below.
FOR FURTHER INFORMATION CONTACT: Dr.
Donald O. McIsaac, Executive Director;
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ADDRESSES:
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17:46 Mar 18, 2016
Jkt 238001
telephone: (503) 820–2280 or (866) 806–
7204 toll free; or access the Pacific
Council Web site, https://
www.pcouncil.org for the current
meeting location, proposed agenda, and
meeting briefing materials.
SUPPLEMENTARY INFORMATION: The April
9–14, 2016 meeting of the Pacific
Council will be streamed live on the
Internet. The broadcasts begin at 8 a.m.
Pacific Time (PT) Saturday, April 9,
2016 and continue daily through
Thursday, April 14, 2016. Broadcasts
end daily at 6 p.m. PT or when business
for the day is complete. Only the audio
portion and presentations displayed on
the screen at the Pacific Council
meeting will be broadcast. The audio
portion is listen-only; you will be
unable to speak to the Pacific Council
via the broadcast. To access the meeting
online please use the following link:
https://www.gotomeeting.com/online/
webinar/join-webinar and enter the
April Webinar ID, 105–442–547 and
your email address. You can attend the
webinar online using a computer, tablet,
or smart phone, using the GoToMeeting
application. It is recommended that you
use a computer headset to listen to the
meeting, but you may use your
telephone for the audio portion only of
the meeting. The audio portion may be
attended using a telephone by dialing
the toll number 1–646–307–1720 (not a
toll-free number), audio access code
391–457–815, and enter the audio pin
shown after joining the webinar.
The following items are on the Pacific
Council agenda, but not necessarily in
this order. Agenda items noted as
‘‘(Final Action)’’ refer to actions
requiring the Council to transmit a
proposed fishery management plan,
proposed plan amendment, or proposed
regulations to the Secretary of
Commerce, under Sections 304 or 305 of
the Magnuson-Stevens Fishery
Conservation and Management Act.
Additional detail on agenda items,
Council action, advisory entity meeting
times, and meeting rooms are described
in Agenda Item A.4, Proposed Council
Meeting Agenda, and will be in the
advance April 2016 briefing materials
and posted on the Council Web site at
www.pcouncil.org.
A. Call to Order
1. Opening Remarks
2. Roll Call
3. Executive Director’s Report
4. Approve Agenda
B. Open Comment Period
1. Comments on Non-Agenda Items
C. Administrative Matters
1. Marine Planning Update
2. Comments on Bycatch Strategy and
Bycatch Reduction Plans
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15045
3. Catch Share Program Review:
Comments on National Guidance
and Preliminary Plan for West Coast
Trawl Catch Share Program Review
4. Legislative Matters
5. Electronic Technology Plan Update
6. Membership Appointments and
Council Operating Procedures
7. Future Council Meeting Agenda
and Workload Planning
D. Enforcement Issues
1. Annual U.S. Coast Guard Fishery
Enforcement Plan
2. Final Action on Regulations for
Vessel Movement Monitoring
E. Salmon Management
1. Tentative Adoption of 2016 Ocean
Salmon Management
2. Methodology Review Preliminary
Topic Selection
3. Clarify Council Direction on 2016
Management Measures
4. Final Action on 2016 Salmon
Management Measures
5. Annual Management Schedule
Changes Amendment Scoping
F. Groundfish Management
1. National Marine Fisheries Service
Report
2. Final Action to Implement the 2016
Pacific Whiting Fishery Under the
U.S.-Canada Pacific Whiting
Fishery
3. Final Action to Adopt Biennial
Specifications for 2017–18 Fisheries
4. Final Action to Adopt Fixed Gear
Electronic Monitoring Alternative
and Deem Whiting and Fixed Gear
Electronic Monitoring Regulations
5. Groundfish Essential Fish Habitat
(EFH) and Rockfish Conservation
Area Amendment
6. Preliminary Preferred Management
Measures Alternatives for 2017–18
Fisheries
7. Initial Stock Assessment Plans and
Terms of Reference for Groundfish
and Coastal Pelagic Species
8. Inseason Adjustments (Final
Action)
G. Habitat
1. Current Habitat Issues
H. Coastal Pelagic Species Management
1. Final Action on Sardine
Assessment, Specifications, and
Management Measures
I. Pacific Halibut Management
1. Final Incidental Landing
Restrictions for 2016–17 Salmon
Troll Fishery (Final Action)
Advisory Body Agendas
Advisory body agendas will include
discussions of relevant issues that are
on the Council agenda for this meeting,
and may also include issues that may be
relevant to future Council meetings.
Proposed advisory body agendas for this
meeting will be available on the Council
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]]>Agencies
[Federal Register Volume 81, Number 54 (Monday, March 21, 2016)]
[Notices]
[Pages 15039-15045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06299]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-967/C-570-968]
Aluminum Extrusions From the People's Republic of China:
Initiation of Anti-Circumvention Inquiry
AGENCY: Enforcement & Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from the Aluminum Extrusions Fair
Trade Committee (Petitioner), the Department of Commerce (the
Department) is initiating an anti-circumvention inquiry pursuant to
sections 781(c) and (d) of the Tariff Act of 1930, as amended, (the
Act) to determine whether extruded aluminum products that meet the
chemical specifications for 5050-grade aluminum alloy, which are heat-
treated, and exported by China Zhongwang Holdings Ltd. and its
affiliates (collectively, Zhongwang) are circumventing the antidumping
duty (AD) and countervailing duty (CVD) orders on aluminum extrusions
from the People's Republic of China (PRC).\1\
---------------------------------------------------------------------------
\1\ See Aluminum Extrusions from the People's Republic of China:
Antidumping Duty Order, 76 FR 30650 (May 26, 2011) and Aluminum
Extrusions from the People's Republic of China: Countervailing Duty
Order, 76 FR 30653 (May 26, 2011) (collectively, the Orders).
---------------------------------------------------------------------------
DATE: Effective March 21, 2016.
FOR FURTHER INFORMATION CONTACT: Scott Hoefke or Robert James, AD/CVD
Operations, Office VI, Enforcement &
[[Page 15040]]
Compliance, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230; telephone: (202) 482-4947 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
In October 2015, Petitioner filed a joint Scope Clarification and
Anti-Circumvention Inquiry Request for certain merchandise from
Zhongwang. At the request of the Department, on December 30, 2015,
Petitioner refiled its request that the Department conduct an anti-
circumvention inquiry pursuant to sections 781(c) and (d) of the Act
with respect to extruded aluminum products that meet the chemical
specifications for 5050-grade aluminum alloy, which are heat-treated,
and exported by Zhongwang.\2\ In its request, Petitioner contends that
Zhongwang's 5050-grade aluminum alloy extrusion products are
circumventing the scope of the Orders, and requests that the Department
address this alleged circumvention by initiating both a ``minor
alterations'' anti-circumvention inquiry pursuant to section 781(c) of
the Act, as well as a ``later-developed merchandise'' anti-
circumvention inquiry pursuant to section 781(d) of the Act.\3\ With
this refiling, we accepted the Petitioner's submission and set the
deadline for action as February 22, 2016. On February 22, 2016, the
Department extended the deadline to initiate 21 days to March 14, 2016.
---------------------------------------------------------------------------
\2\ See Letter to the Secretary, Re ``Aluminum Extrusions from
the People's Republic of China: Resubmission of Circumvention
Inquiry Request Pursuant to the Department's Request,'' dated
December 30, 2015 (Petitioner's Resubmission of Circumvention
Inquiry).
\3\ Id. at 39-66.
---------------------------------------------------------------------------
The scope of the Orders expressly includes extruded products made
of alloy ``with an Aluminum Association series designation commencing
with the number 6'' where ``magnesium account{s{time} for at least 0.1
percent but not more than 2.0 percent of total materials by weight, and
silicon account{s{time} for at least 0.1 percent but not more than 3.0
percent of total materials by weight.'' \4\ In addition, expressly
excluded from the Orders are extruded products made of alloy ``with an
{Aluminum Association{time} series designation commencing with the
number 5 and containing in excess of 1.0 percent magnesium by weight.''
\5\ Petitioner argues that the scope of the Orders ``creates an overlap
between the chemical composition standards {in that{time} there is a
narrow window in which a 5xxx-series alloy may and does exist that is
comprised of more than one percent but less than two percent magnesium
by weight{,{time} '' and that ``{i{time} n order to use 5xxx-series
alloy (i.e., 5050 alloy) in an extrusion application, . . . the metal
would have to be heat-treated to achieve the mechanical properties that
make 6xxx-series alloy so attractive for extrusion
applications{.{time} '' \6\
---------------------------------------------------------------------------
\4\ See Orders, 76 FR 30653.
\5\ Id.
\6\ Id.
---------------------------------------------------------------------------
Thus, Petitioner maintains that the aluminum alloy extrusion
products at issue are manipulated in two ways to evade the scope of the
Orders: First, the billet producer must create a precise ratio of
silicon to magnesium to result in an alloy that satisfies the chemical
composition limits of a 5050 alloy, but behaves and is extrudable like
an in-scope 6xxx-series alloy.\7\ Second, once the alloy is subject to
a heat-treatment tempering process, this allows the extruded alloy to
achieve the desired tensile strength to mimic the functionality of in-
scope 6xxx-series alloy.\8\ Petitioner argues that The Aluminum
Association, the certifying body for the domestic aluminum industry,
does not currently recognize heat-treatment as a tempering process for
5050-grade aluminum alloy, which is historically tempered through
strain-hardening and/or cold-working processes.\9\ Rather, The Aluminum
Association recognizes heat-treatment as a tempering process for 6xxx-
series alloy.\10\ In short, Petitioner alleges that these aluminum
alloy products are subject to chemical and mechanical manipulation,
i.e., tempering, which results in circumvention of the Orders.
---------------------------------------------------------------------------
\7\ Id. at 42-44.
\8\ Id. at 42-45
\9\ Id. at 46-47.
\10\ Id. at Exhibit 21.
---------------------------------------------------------------------------
Petitioner provided evidence that was reasonably available of
Zhongwang's alleged circumvention of the Orders through its shipment of
such 5050-grade aluminum alloy extrusion products.\11\ Petitioner
provided Zhongwang's financial statements.\12\ Petitioner points out
that Zhongwang has yet to be selected for an administrative review for
the Orders, because there were no reported entries of subject
merchandise.\13\ Petitioner also points out that after the imposition
of the Orders, the volume of Zhongwang's U.S. exports decreased, but
subsequently rebounded since the ``sudden'' appearance and timing of
its importation of such 5050-grade aluminum alloy products.\14\
Petitioner argues that these facts taken together indicate that
Zhongwang is engaging in manipulation to avoid duties.
---------------------------------------------------------------------------
\11\ Id. at 41 and 62.
\12\ Id. at 50 and Exhibit 3.
\13\ Id. at 50.
\14\ Id. at 50.
---------------------------------------------------------------------------
Scope of Orders
The merchandise covered by the orders 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 is 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, but are not limited to, extrusions that
[[Page 15041]]
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 the aluminum extrusion components that
are attached (e.g., by welding or fasteners) to form subassemblies,
i.e., partially assembled merchandise unless imported as part of the
finished goods `kit' defined further below. The scope does not include
the non-aluminum extrusion components of subassemblies or subject kits.
Subject extrusions may be identified with reference to their end
use, such as fence posts, electrical conduits, door thresholds, carpet
trim, or heat sinks (that do not meet the finished heat sink
exclusionary language below). Such goods are subject merchandise if
they otherwise meet the scope definition, regardless of whether they
are 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 with glass or vinyl, picture frames with glass pane and backing
material, and solar panels. The scope also excludes finished goods
containing aluminum extrusions that are entered unassembled in a
``finished goods kit.'' A finished goods 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 and requires no further finishing or fabrication, such as
cutting or punching, and is assembled ``as is'' into a finished
product. An imported product will not be considered a ``finished goods
kit'' and therefore excluded from the scope of the investigation merely
by including fasteners such as screws, bolts, etc. in the packaging
with an aluminum extrusion product.
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.
The scope also excludes collapsible tubular containers composed of
metallic elements corresponding to alloy code 1080A as designated by
The Aluminum Association where the tubular container (excluding the
nozzle) meets each of the following dimensional characteristics: (1)
Length of 37 millimeters (``mm'') or 62 mm, (2) outer diameter of 11.0
mm or 12.7 mm, and (3) wall thickness not exceeding 0.13 mm.
Also excluded from the scope of these orders are finished heat
sinks. Finished heat sinks are fabricated heat sinks made from aluminum
extrusions the design and production of which are organized around
meeting certain specified thermal performance requirements and which
have been fully, albeit not necessarily individually, tested to comply
with such requirements.
Imports of the subject merchandise are provided for under the
following categories of the Harmonized Tariff Schedule of the United
States (HTSUS): 7609.00.00, 7610.10.00, 7610.90.00, 7615.10.30,
7615.10.71, 7615.10.91, 7615.19.10, 7615.19.30, 7615.19.50, 7615.19.70,
7615.19.90, 7615.20.00, 7616.99.10, 7616.99.50, 8479.89.98, 8479.90.94,
8513.90.20, 9403.10.00, 9403.20.00, 7604.21.00.00, 7604.29.10.00,
7604.29.30.10, 7604.29.30.50, 7604.29.50.30, 7604.29.50.60,
7608.20.00.30, 7608.20.00.90, 8302.10.30.00, 8302.10.60.30,
8302.10.60.60, 8302.10.60.90, 8302.20.00.00, 8302.30.30.10,
8302.30.30.60, 8302.41.30.00, 8302.41.60.15, 8302.41.60.45,
8302.41.60.50, 8302.41.60.80, 8302.42.30.1 0, 8302.42.30.15,
8302.42.30.65, 8302.49.60.35, 8302.49.60.45, 8302.49.60.55,
8302.49.60.85, 8302.50.00.00, 8302.60.90.00, 8305.10.00.50,
8306.30.00.00, 8414.59.60.90, 8415.90.80.45, 8418.99.80.05,
8418.99.80.50, 8418.99.80.60, 8419.90.10.00, 8422.90.06.40,
8473.30.20.00, 8473.30.51.00, 8479.90.85.00, 8486.90.00.00,
8487.90.00.80, 8503.00.95.20, 8508.70.00.00, 8515.90.20.00,
8516.90.50.00, 8516.90.80.50, 8517.70.00.00, 8529.90.73.00,
8529.90.97.60, 8536.90.80.85, 8538.10.00.00, 8543.90.88.80,
8708.29.50.60, 8708.80.65.90, 8803.30.00.60, 9013.90.50.00,
9013.90.90.00, 9401.90.50.81, 9403.90.10.40, 9403.90.10.50,
9403.90.10.85, 9403.90.25.40, 9403.90.25.80, 9403.90.40.05,
9403.90.40.10, 9403.90.40.60, 9403.90.50.05, 9403.90.50.10,
9403.90.50.80, 9403.90.60.05, 9403.90.60.10, 9403.90.60.80,
9403.90.70.05, 9403.90.70.10, 9403.90.70.80, 9403.90.80.10,
9403.90.80.15, 9403.90.80.20, 9403.90.80.41, 9403.90.80.51,
9403.90.80.61, 9506.11.40.80, 9506.51.40.00, 9506.51.60.00,
9506.59.40.40, 9506.70.20.90, 9506.91.00.10, 9506.91.00.20,
9506.91.00.30, 9506.99.05.10, 9506.99.05.20, 9506.99.05.30,
9506.99.15.00, 9506.99:20.00, 9506.99.25.80, 9506.99.28.00,
9506.99.55.00, 9506.99.60.80, 9507.30.20.00, 9507.30.40.00,
9507.30.60.00, 9507.90.60.00, and 9603.90.80.50.
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 HTSUS chapters. In addition, fin evaporator coils may be
classifiable under HTSUS numbers: 8418.99.80.50 and 8418.99.80.60.
While HTSUS subheadings are provided for convenience and customs
purposes, the written description of the scope of these orders is
dispositive.
[[Page 15042]]
Merchandise Subject to the Anti-Circumvention Inquiry
This anti-circumvention inquiry covers extruded aluminum products
that meet the chemical specifications for 5050-grade aluminum alloy,
which are heat-treated, and exported by Zhongwang.\15\ The Department
intends to consider whether the inquiry should apply to all imports of
extruded aluminum products that meet the chemical specifications for
5050-grade aluminum alloy and are heat-treated, regardless of producer,
exporter, or importer, from the PRC.
---------------------------------------------------------------------------
\15\ Petitioner provided names of known Zhongwang's Chinese and
U.S. affiliates. Through the course of inquiry, we intend to examine
in addition to Zhongwang the following affiliated companies: Dalian
Liwan Trade Co., Ltd.; Tianjin Boruxin Trading Co., Ltd.; and Dragon
Luxe Limited; Pencheng Aluminum Enterprise Inc. USA; Global Aluminum
(USA) Inc.; Signature Aluminum Canada Inc.; Aluminum Shapes, LLC;
Perfectus Aluminum Inc.; and Perfectus Aluminum Acquisitions LLC. We
also intend to examine whether any Zhongwang's affiliates are the
producers of the merchandise at issue.
---------------------------------------------------------------------------
Request for a Minor Alterations Anti-Circumvention Inquiry
Section 781(c)(1) of the Act provides that the Department may find
circumvention of an AD or CVD order when products which are of the
class or kind of merchandise subject to an AD or CVD order have been
``altered in form or appearance in minor respects . . . whether or not
included in the same tariff classification.'' Section 781(c)(2) of the
Act provides an exception that ``{p{time} aragraph 1 shall not apply
with respect to altered merchandise if the administering authority
determines that it would be unnecessary to consider the altered
merchandise within the scope of the {AD or CVD{time} order{.{time} ''
The Department notes that, while the statute is silent as to what
factors to consider in determining whether alterations are properly
considered ``minor,'' the legislative history of this provision
indicates there are certain factors which should be considered before
reaching an anti-circumvention determination. In conducting an anti-
circumvention inquiry under section 781(c) of the Act, the Department
has generally relied upon ``such criteria as the overall physical
characteristics of the merchandise, the expectations of the ultimate
users, the use of the merchandise, the channels of marketing and the
cost of any modification relative to the total value of the imported
product.'' \16\ The Department will examine these factors in evaluating
an allegation of minor alteration under section 781(c) of the Act and
19 CFR 351.225(i). Each case is highly dependent on the facts on the
record, and must be analyzed in light of those specific facts. Thus,
although not specified in the statute, the Department has also included
additional factors in its analysis, such as the circumstances under
which the products at issue entered the United States and the timing
and quantity of said entries during the circumvention review
period.\17\
---------------------------------------------------------------------------
\16\ See S. Rep. No. 71, 100th Cong., 1st Sess. 100 (1987) (``In
applying this provision, the Commerce Department should apply
practical measurements regarding minor alterations, so that
circumvention can be dealt with effectively, even where such
alterations to an article technically transform it into a
differently designated article.'').
\17\ See, e.g., Brass Sheet and Strip From West Germany;
Negative Preliminary Determination of Circumvention of Antidumping
Duty Order, 55 FR 32655 (August 10, 1990) unchanged in Brass Sheet
and Strip From Germany; Negative Final Determination of
Circumvention of Antidumping Duty Order, 56 FR 65884 (December 19,
1991), see also, e.g., Small Diameter Graphite Electrodes From the
People's Republic of China: Initiation of Anticircumvention Inquiry,
77 FR 37873 (June 25, 2012).
---------------------------------------------------------------------------
As discussed above, Petitioner argues that the manipulation in
chemical composition and tempering to create an aluminum extrusions
product which technically meets the scope exclusion for 5xxx-series but
behaves like in-scope 6xxx-series subject merchandise results in
circumvention of the Orders as a minor alteration of in-scope
merchandise, pursuant to section 781(c) of the Act.\18\ Specifically,
Petitioner argues that the products at issue, given their heat-
treatment, would otherwise be subject 6xxx-series alloy but for the
minor increase in magnesium levels, which allows for a superficial
designation as a 5050 alloy.\19\ According to Petitioner, this would
require a shift in chemistry of a 6063 alloy at the top end of its
magnesium content range (i.e., 0.45 to 0.90 percent by weight) by
increasing the magnesium content level by a mere 0.2 percent by weight
to achieve a magnesium content of 1.1 percent by weight, which is
within the low end of the range of the magnesium content range for 5050
alloy.\20\ Petitioner states this increase at today's magnesium market
price would result in a 4.63 percent increase to the 5050 billet's
overall per pound alloying cost, which in turn represents a negligible
0.52 percent increase to the overall per-pound billet production
cost.\21\ Petitioner states that in Cut-to-Length Plate from China,\22\
the Department found similar minor changes to alloying elements are not
sufficient to remove what would otherwise be subject merchandise from
the scope.\23\
---------------------------------------------------------------------------
\18\ See Petitioner's Resubmission of Circumvention Inquiry at
52-53.
\19\ Id.
\20\ Id. at 52.
\21\ Id.
\22\ See Affirmative Final Determination of Circumvention of the
Antidumping Duty Order on Certain Cut-to-Length Carbon Steel Plate
from the People's Republic of China, 76 FR 50996 (August 17, 2011)
(Cut-to-Length Plate from China).
\23\ See Petitioner's Resubmission of Circumvention Inquiry at
52.
---------------------------------------------------------------------------
Finally, once a precise ratio of silicon to magnesium is achieved,
which falls within the chemical composition limits for a 5050 alloy,
but is virtually indistinguishable from the chemical composition limits
for a 6xxx-series alloy, the product is ready to be heat-treated--the
same tempering process used for 6xxx-series alloy, and which is not
recognized by The Aluminum Association as a tempering process for 5050
alloy--which results in a product similar to a 6xxx-series aluminum
extrusion product, save for the minor increase in magnesium.
In its request for a minor alterations anti-circumvention inquiry,
Petitioner presented the following evidence with respect to each of the
aforementioned criteria.
A. Overall Physical Characteristics
Petitioner contends that companies such as Zhongwang have created
and shipped extruded aluminum products meeting the chemical
specifications for 5050-grade aluminum alloy and which are heat-
treated, which results in aluminum extrusion products whose chemical
and mechanical properties have been manipulated to be similar to those
of in-scope 6xxx-series alloy products. Petitioner has provided
information relating to an importer that has admitted to sourcing 5050-
grade aluminum alloy products for use in products and applications
which have traditionally used 6xxx-series alloys, as well as
information relating to a domestic producer that has been asked to
provide price quotes for the manufacture of products using 5050 alloy
which have been made previously with 6xxx-series alloy. Petitioner also
obtained and tested specimens labeled as 5050-grade aluminum alloy
products, which demonstrated that the chemical composition overlapped
with 6xxx-series standards, and had been heat-treated. While Petitioner
did not test specimens of Zhongwang's products, information reasonably
available to Petitioner indicates that the overall physical
characteristics of Zhongwang's 5050-grade aluminum alloy extrusion
products would be no different from the tested products, and therefore
should be found similar to products made of series 6xxx aluminum
alloys.\24\
---------------------------------------------------------------------------
\24\ See Petitioner's Resubmission of Circumvention Inquiry at
page 56-58.
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[[Page 15043]]
B. Expectations of the Ultimate Users and Use of the Merchandise
Petitioner alleges that the expectations of the purchasers and
ultimate use of Zhongwang's 5050-grade aluminum alloy extrusion
products are identical to those of products produced from 6xxx-series
alloy.\25\ Petitioner states that the specific alloy out of which the
aluminum extrusion is produced has no apparent bearing or impact on the
ultimate use.\26\ Petitioner provided evidence suggesting that the type
of alloy had no bearing on customers' selection of aluminum extrusion
products, and that, in some cases, 5050-grade aluminum alloy products
were used specifically to avoid antidumping and countervailing
duties.\27\ Petitioner also provided information indicating that
domestic producers are competing with Chinese-sourced 5050-grade
aluminum alloy products for the same shower enclosure components
designed to be manufactured in 6463 alloy.\28\ Petitioner further
contends that, although it does not have access to Zhongwang's specific
5050-grade aluminum alloy extrusion products, evidence confirms that
Zhongwang began importing a large volume of 5050-grade aluminum alloy
products after the Orders came into place.\29\ Further, Petitioner
contends that there is no indication that Zhongwang's products are any
different from the 5050-grade aluminum alloy products which have been
competing directly with the U.S. industry.\30\
---------------------------------------------------------------------------
\25\ Id. at 58-60.
\26\ Id.
\27\ Id. at 58-60, Exhibit 30, Exhibit 28, and Exhibit 22.
\28\ Id. at 59 and Exhibit 28.
\29\ Id. at 65.
\30\ Id. at 59.
---------------------------------------------------------------------------
C. Channels of Marketing
Petitioner maintains that there is no difference between the
channels of marketing for aluminum extrusions made from in-scope alloy,
i.e., 6xxx-series aluminum extrusions, and those of 5050-grade aluminum
alloy extrusion products. For instance, Petitioner provided evidence
showing that such 5050-grade aluminum alloy extruded products are
marketed by Chinese producers to purchasers in the same manner that
6xxx-series are marketed, and such marketing demonstrates to customers
and end-users that these products are interchangeable with 6xxx-series
products.\31\ Moreover, Petitioner states that Zhongwang's Web site
advertises a collection of products in a single location on its Web
site without designation or differentiation between products crafted or
capable of being crafted of different alloys. This demonstrates,
Petitioner contends, that Zhongwang's 5050-grade aluminum alloy
extrusion products are not marketed any differently from merchandise
produced from in-scope 6xxx-series alloy.\32\
---------------------------------------------------------------------------
\31\ Id. at 60.
\32\ Id. at 60-61 and Exhibit 19.
---------------------------------------------------------------------------
D. Cost of Modification
Petitioner indicates that the cost of the minor alterations to
shift the chemistry of a high-magnesium series 6xxx alloy to one that
one could be designated as 5050 alloy is minimal at best.\33\ As
discussed above, Petitioner specifically mentions that one would need
to increase a 6063 alloy's maximized magnesium content level by 0.2
percent by weight.\34\ Petitioner states that this increase at
magnesium's market price at the time of filing would result in a 4.63
percent increase to the 5050 billet's overall per pound alloying cost
which, Petitioner avers, is insignificant given the Orders antidumping
and countervailing duties are over 180 percent.\35\
---------------------------------------------------------------------------
\33\ Id. at 63.
\34\ Id.
\35\ Id.
---------------------------------------------------------------------------
E. Circumstance Under Which the Subject Products Entered the United
States
Petitioner argues that at the completion of the original
investigations, the PRC-wide antidumping rate was 33.28 percent, and
the PRC-wide countervailing duty rate was 374.15 percent.\36\
Petitioner asserts that these considerable margins have given Zhongwang
tremendous financial incentive to circumvent the Orders so as not to
incur the costs associated with the duties levied on the entries of
subject merchandise.\37\
---------------------------------------------------------------------------
\36\ Id. at 63-64.
\37\ Id. at 64.
---------------------------------------------------------------------------
F. Timing of Entries
Petitioner asserts that the timing of the entries of Zhongwang's
5050-grade aluminum alloy products show Zhongwang's attempt to
circumvent the Orders.\38\ Petitioner supported this assertion by
providing import data showing Zhongwang's shipments of 5050-grade
aluminum alloy products began after the imposition of the Orders in
2011.\39\
---------------------------------------------------------------------------
\38\ Id.
\39\ Id. at 65.
---------------------------------------------------------------------------
Request for a Later-Developed Merchandise Anti-Circumvention Inquiry
Section 781(d)(1) of the Act provides that the Department may
initiate an anti-circumvention inquiry to determine whether merchandise
developed after an AD or CVD investigation is initiated (``later-
developed merchandise'') is within the scope of the order(s). In
conducting later-developed merchandise anti-circumvention inquiries
under section 781(d)(1) of the Act, the Department will evaluate
whether the general physical characteristics of the merchandise under
consideration are the same as subject merchandise covered by the order,
whether the expectations of the ultimate purchasers of the merchandise
under consideration are no different than the expectations of the
ultimate purchases of subject merchandise, whether the ultimate use of
the subject merchandise and the merchandise under consideration are the
same, whether the channels of trade of both products are the same,
whether there are any differences in the advertisement and display of
both products,\40\ and if the merchandise under consideration was
commercially available at the time of the investigation, i.e., the
product was present in the commercial market or the product was tested
and ready for commercial production.\41\
---------------------------------------------------------------------------
\40\ See section 781(d)(1) of the Act.
\41\ See Later-Developed Merchandise Anticircumvention Inquiry
of the Antidumping Duty Order on Petroleum Wax Candles from the
People's Republic of China: Affirmative Preliminary Determination of
Circumvention of the Antidumping Duty Order, 71 FR 32033, 32035
(June 2, 2006) unchanged in Later-Developed Merchandise
Anticircumvention Inquiry of the Antidumping Duty Order on Petroleum
Wax Candles from the People's Republic of China: Affirmative Final
Determination of Circumvention of the Antidumping Duty Order, 71 FR
59075 (October 6, 2006).
---------------------------------------------------------------------------
As discussed above, Petitioner argues that the manipulation in
chemical composition and tempering to create an aluminum extrusions
product which technically meets the scope exclusion for 5xxx-series but
behaves like in-scope 6xxx-series subject merchandise results in
circumvention of the Orders as later-developed merchandise, pursuant to
section 781(d) of the Act. Specifically, Petitioner argues that the
products constitute later-developed merchandise because: (1) While the
5050-grade alloy designation existed at the time of the investigation,
The Aluminum Association did not, and still does not, recognize heat-
treatment as a tempering process for 5050-grade aluminum alloy; (2)
documents from the investigation indicate that soft alloys, i.e., 1xxx-
,
[[Page 15044]]
3xxx-, and 6xxx-series alloys, were used in a wide variety of aluminum
extrusion products, while hard alloys--such as 5xxx-series--were
extremely limited and highly specific, appearing primarily in marine
and aerospace applications; and (3) at the time of the filing of the
petition, The Aluminum Association recognized only four 5xxx-series
alloys employed in extrusion applications--which did not include 5050-
grade aluminum alloy.\42\
---------------------------------------------------------------------------
\42\ See Petitioner's Resubmission of Circumvention Inquiry at
54-55.
---------------------------------------------------------------------------
As described in the ``Request for a Minor Alterations Anti-
Circumvention Inquiry'' section above, Petitioner has provided evidence
and argument pertaining to the general physical characteristics of the
merchandise under consideration as being the same as subject
merchandise covered by the order, whether the expectations of the
ultimate purchasers of the merchandise under consideration are no
different than the expectations of the ultimate purchases of subject
merchandise, and whether the ultimate use of the subject merchandise
and the merchandise under consideration are the same. In the context of
its later-developed merchandise request, Petitioner has further
provided the following evidence pertaining to the remaining
aforementioned criteria.
A. Advertisement, Display, and Channel of Trade
Petitioner maintains that the advertisement, display, and channels
of trade of manipulated 5050-grade aluminum alloy extruded products are
identical to those of merchandise produced from in-scope alloys, i.e.,
6xxx-series.\43\ With respect to advertisement and display, Petitioner
provided evidence showing that such 5050-grade aluminum alloy extruded
products are advertised by Chinese producers to purchasers in the same
manner that 6xxx-series are advertised, which demonstrates to customers
and end-users that these products are interchangeable with 6xxx-series
products.\44\ Moreover, Petitioner states that Zhongwang's Web site
advertises and displays a collection of products in a single location
on its Web site without designation or differentiation between products
crafted or capable of being crafted of different alloys, thus
demonstrating that Zhongwang's 5050-grade aluminum alloy extrusion
products are not advertised or displayed any differently from
merchandise produced from in-scope 6xxx-series alloy.\45\
---------------------------------------------------------------------------
\43\ Id. at 60-62.
\44\ Id. at 60.
\45\ Id. at 60-61 and Exhibit 19.
---------------------------------------------------------------------------
With respect to channels of trade, Petitioner provided information
relating to a domestic producer that has been asked to provide price
quotes for the manufacture of products using 5050-grade alloy which
have been made previously with 6xxx-series alloy.\46\ In addition,
Petitioner provided evidence demonstrating a company's loss of business
as a result of the replacement of 6xxx-series alloy in products with
Chinese 5050-grade alloy.\47\ Petitioner argues that these 5050-grade
aluminum alloy extrusion products, which caused lost U.S. business, are
likely being sold in the identical channels of trade as the original
series 6xxx alloy versions.\48\
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\46\ Id. at 61, Exhibit 22.
\47\ Id. at 61, Exhibit 30.
\48\ Id. at 61.
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With respect to Zhongwang, Petitioner notes that the importer of
record for nearly all of Zhongwang's shipments of aluminum product to
the United States from 2009 to date was the same, regardless of whether
those shipments were 6xxx-series profiles prior to the imposition of
the orders or 5050-grade products after the imposition of the
orders.\49\ According to Petitioner, there is no evidence reasonably
available which indicates that the channels of trade in which
Zhongwang's 5050-grade aluminum alloy extrusion products are sold are
different from those in which similar 6xxx-series products are
sold.\50\ However, the evidence that is reasonably available, i.e.,
Zhongwang's Web site, shows that Zhongwang advertises a collection of
products manufactured exclusively from series 6xxx-series alloy and one
product manufactured from 7xxx-series alloy, but makes no mention of
series 5xxx products.\51\ Petitioner contends that given Zhongwang's
importation levels of 5050-grade aluminum alloy extrusion products into
the United States it would be advertising these products separately or
at the very least mentioned on its Web site.\52\ Petitioner argues that
the silence with which Zhongwang's Web site treats 5xxx-series products
which it is manufacturing and shipping to the United States
demonstrates that these products are interchangeable with 6xxx-series
alloy products and intended to circumvent the orders.\53\
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\49\ Id. at 61, Exhibit 8.
\50\ Id. at 61-62.
\51\ Id. at 62 and Exhibit 19.
\52\ Id. at 62.
\53\ Id.
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B. Commercial Availability
Petitioner states that, at the time of the investigation, series
5050 alloy existed but was associated with rolling applications, rather
than extrusions.\54\ Furthermore, Petitioner states that heat-treated
5050 alloy extrusions are not recognized by The Aluminum Association
for the purposes of aluminum extrusions.\55\ Additionally, Petitioner
adds that The Aluminum Association did not recognize heat-treating
series 5050 alloys at the time of the Petition, and still does not
recognize doing so to the present day.\56\ Thus, Petitioner argues that
extruded aluminum products meeting the chemical specifications for
5050-grade aluminum alloy and which are heat-treated were not
commercially available at the time of the investigations; they were
developed and made available after the publication of the Orders.
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\54\ Id. at 54.
\55\ See Petitioner's Resubmission of Circumvention Inquiry at
54.
\56\ Id. at 54, Exhibit 21, and Exhibit 27.
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Conclusion
Based on the information provided by Petitioner, the Department
finds there is sufficient basis to initiate an anti-circumvention
inquiry, pursuant to sections 781(c) and 781(d) of the Act. The
Department will determine whether the merchandise subject to the
inquiry (identified in the ``Merchandise Subject to the Anti-
Circumvention Inquiry'' section above) involves either a minor
alteration to subject merchandise in such minor respects that it should
be subject to the Orders, and/or represents a later-developed product
that can be considered subject to the Orders.
The Department will not order the suspension of liquidation of
entries of any additional merchandise at this time. However, in
accordance with 19 CFR 351.225(l)(2), if the Department issues a
preliminary affirmative determination, we will then instruct U.S.
Customs and Border Protection to suspend liquidation and require a cash
deposit of estimated duties, at the applicable rate, for each
unliquidated entry of the merchandise at issue, entered or withdrawn
from warehouse for consumption on or after the date of initiation of
the inquiry.
In the event we issue a preliminary affirmative determination of
circumvention pursuant to section 781(d) of the act (later-developed
merchandise), we intend to notify the International Trade Commission,
in accordance with section 781(e)(1) of the Act and 19 CFR
351.225(f)(7)(i)(C), if applicable.
[[Page 15045]]
The Department will, following consultation with interested
parties, establish a schedule for questionnaires and comments on the
issues. The Department intends to issue its final determination within
300 days of this initiation, in accordance with section 781(f) of the
Act.
This notice is published in accordance with sections 781(c) and
781(d) of the Act and 19 CFR 351.225(i) and (j).
Dated: March 14, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-06299 Filed 3-18-16; 8:45 am]
BILLING CODE 3510-DS-P
