Common Alloy Aluminum Sheet From the People's Republic of China: Initiation of Less-Than-Fair-Value and Countervailing Duty Investigations, 57214-57219 [2017-26068]
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Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices
Nanotechnology Solutions, Spain.
Intended Use: See notice at 82 FR
34924–25, July 25, 2017. Comments:
None received. Decision: Approved. We
know of no instruments of equivalent
scientific value to the foreign
instruments described below, for such
purposes as this is intended to be used,
that was being manufactured in the
United States at the time of order.
Reasons: The instrument will be used to
prepare samples and materials for
experiments. The electrospinning and
electrospraying capabilities of this
instrument will allow studies of the
mechanical, biodegradation, optical,
architectural, drug elution,
biocompatibility, and cell metabolism
among other such properties as
materials for basic science and
engineering research. The instrument is
unique in its capabilities to control
climate, jet diameter, micro-droplet
production, fibered core-shell capsule
production, core-shell capsules, and
co/multi-axial designs.
Dated: November 20, 2017.
Gregory W. Campbell,
Director, Subsidies Enforcement, Enforcement
and Compliance.
[FR Doc. 2017–26066 Filed 12–1–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–073, C–570–074]
Common Alloy Aluminum Sheet From
the People’s Republic of China:
Initiation of Less-Than-Fair-Value and
Countervailing Duty Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable November 28, 2017.
FOR FURTHER INFORMATION CONTACT: Erin
Kearney, at (202) 482–0167, AD/CVD
Operations, Office VI, or Vicki Flynn, at
(202) 482–1756, Office of Policy,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW., Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
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AGENCY:
Initiation
On the basis of information available
to the Department of Commerce (the
Department), we are initiating an
antidumping duty (AD) investigation,
under section 732(a) of the Tariff Act of
1930, as amended (the Act), to
determine whether common alloy
aluminum sheet (common alloy sheet)
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from the People’s Republic of China
(PRC) is being, or is likely to be, sold in
the United States at less than fair value
within the meaning of section 731 of the
Act. We are also initiating a
countervailing duty (CVD) investigation,
under section 702(a) of the Act, to
determine whether the Government of
the PRC is providing countervailable
subsidies (within the meaning of
sections 701 and 771(5) of the Act) with
respect to imports of common alloy
sheet from the PRC.
We have evidence indicating that the
United States price of common alloy
sheet from the PRC may be less than the
normal value of such or similar
merchandise and that imports of
common alloy sheet from the PRC may
be benefitting from countervailable
subsidies. We also have evidence that
imports of common alloy sheet from the
PRC may be materially injuring, or
threatening material injury to, the
domestic industry producing common
alloy sheet in the United States.
U.S. law provides two mechanisms
for the initiation of AD and CVD
investigations. Normally, AD and/or
CVD investigations are initiated under
sections 702(b) and 732(b) of the Act,
which specify that AD and/or CVD
proceedings ‘‘shall be initiated
whenever an interested party described
in subparagraph (C), (D), (E), (F), or (G)
of section 771(9) files a petition with the
administering authority, on behalf of an
industry, which alleges the elements
necessary for the imposition of the duty
imposed by {section 701(a) (for CVD) or
731 (for AD)}, and which is
accompanied by information reasonably
available to the petitioner supporting
those allegations.’’ Investigations may
also be initiated under sections 702(a)
and 732(a) of the Act, which specify that
AD and/or CVD investigations ‘‘shall be
initiated whenever the administering
authority determines, from information
available to it, that a formal
investigation is warranted into the
question of whether the elements
necessary for the imposition of a duty
under {section 701 (CVD) or 731 (AD)}
exist.’’ Although the Department has
rarely invoked this statutory authority,
the Department intends to make use of
all the tools available under U.S. unfair
trade laws, where such action is
warranted under the law, to ensure
potential unfair trade practices are
addressed. To that end, self-initiation of
certain AD and CVD cases can address
situations where industries are faced
with potentially dumped and/or
subsidized imports and where the
Department received comprehensive
detailed information. Although the
Department expects that future
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investigations will normally proceed
based on petitions filed by or on behalf
of the industry, the Department will
take action under Sections 702(a) and
732(a), where warranted, to facilitate the
application of the appropriate trade
remedy for U.S. industries.
In this instance, we have information
warranting an investigation into
whether (1) the United States price of
common alloy sheet from the PRC may
be less than the normal value of such or
similar merchandise, (2) imports of
common alloy sheet from the PRC may
be benefitting from countervailable
subsidies, and (3) imports of common
alloy sheet from the PRC may be
materially injuring, or threatening
material injury to, the domestic industry
producing common alloy sheet in the
United States. Imports of common alloy
sheet from the PRC into the United
States have been significant since 2005
and have increased rapidly in the last
three years.1 Furthermore, in light of the
systemic and significant over-capacity
in the Chinese aluminum industry,
which has been extensively
documented, including in a recent
International Trade Commission (ITC)
investigation conducted under section
332(g) of the Act,2 the U.S. industry is
faced with the potential for even further
increases in exports from the PRC. In
light of the above, among other
considerations, the Department is selfinitiating AD and CVD investigations of
imports of common alloy sheet from the
PRC as provided for under sections
702(a) and 732(a) of the Act.
Period of Investigation
Pursuant to 19 CFR 351.204(b), the
proposed period of investigation (POI)
for the CVD investigation is January 1,
2016 through December 31, 2016 while
the proposed POI for the AD
investigation is April 1, 2017 through
September 30, 2017.
1 Department Memoranda: Supporting
Memorandum for the Initiation of Antidumping
Duty Investigation of Common Alloy Aluminum
Sheet from the People’s Republic of China (AD
Initiation Memo), at Exhibit 1A, at Attachment 9,
and Supporting Memorandum for the Initiation of
Countervailing Duty Investigation of Common Alloy
Aluminum Sheet from the People’s Republic of
China (CVD Initiation Memo), at Exhibit 1A, at
Attachment 9. These memoranda are dated
concurrently with this notice and on file
electronically via Enforcement & Compliance’s
Antidumping and Countervailing Duty Centralized
Electronic Service System (ACCESS). Access to
documents filed via ACCESS is also available in the
Central Records Unit, Room B8024 of the main
Department of Commerce building.
2 See Aluminum: Competitive Conditions
Affecting the U.S. Industry, Inv. No. 332–557,
USITC Pub. 4703 (June 2017), at 39, 68, 161, 241,
and 465.
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Scope of the Investigations
The product covered by these
investigations is common alloy sheet
from the PRC. For a full description of
the scope of these investigations, see the
‘‘Scope of the Investigations,’’ in the
Appendix to this notice.
Comments on Scope of the
Investigations
As discussed in the preamble to the
Department’s regulations,3 we are
setting aside a period for interested
parties to raise issues regarding product
coverage (scope). The Department will
consider all comments received from
parties and, if necessary, will consult
with parties prior to the issuance of the
preliminary determinations. If scope
comments include factual information
(see 19 CFR 351.102(b)(21)), all such
factual information should be limited to
public information. In order to facilitate
preparation of its questionnaires, the
Department requests all interested
parties to submit such comments by
5:00 p.m. Eastern Time (ET) on
December 18, 2017. Any rebuttal
comments, which may include factual
information, must be filed by 5:00 p.m.
ET on December 28, 2017.
The Department requests that any
factual information the parties consider
relevant to the scope of the
investigations be submitted during this
time period. However, if a party
subsequently finds that additional
factual information pertaining to the
scope of the investigations may be
relevant, the party may contact the
Department and request permission to
submit the additional information. All
such comments must also be filed on
the records of the concurrent AD and
CVD investigations.
Filing Requirements
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All submissions to the Department
must be filed electronically using
ACCESS.4 An electronically filed
document must be received successfully
in its entirety by the time and date when
it is due. Documents excepted from the
electronic submission requirements
3 See Antidumping Duties; Countervailing Duties,
62 FR 27296, 27323 (May 19, 1997).
4 See 19 CFR 351.303 (describing general filing
requirements); see also Antidumping and
Countervailing Duty Proceedings: Electronic Filing
Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011) and
Enforcement and Compliance; Change of Electronic
Filing System Name, 79 FR 69046 (November 20,
2014) for details of the Department’s electronic
filing requirements, which went into effect on
August 5, 2011. Information on help using ACCESS
can be found at https://access.trade.gov/help.aspx
and a handbook can be found at https://
access.trade.gov/help/Handbook%20on
%20Electronic%20Filling%20Procedures.pdf.
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must be filed manually (i.e., in paper
form) with Enforcement & Compliance’s
APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401
Constitution Avenue NW., Washington,
DC 20230, and stamped with the date
and time of receipt by the applicable
deadlines.
Comments on Product Characteristics
for AD Questionnaires
The Department requests comments
from interested parties regarding the
appropriate physical characteristics of
common alloy sheet to be reported in
response to the Department’s AD
questionnaires. This information will be
used to identify the key physical
characteristics of the subject
merchandise in order to report the
relevant factors and costs of production
accurately as well as to develop
appropriate product-comparison
criteria.
Interested parties may provide any
information or comments that they
believe are relevant to the development
of an accurate list of physical
characteristics. Specifically, they may
provide comments as to which
characteristics are appropriate to use as:
(1) General product characteristics and
(2) 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,
although there may be some physical
product characteristics utilized by
manufacturers to describe common
alloy sheet, 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
matching products. 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 AD questionnaire, all
comments must be filed by 5:00 p.m. ET
on December 18, 2017. Any rebuttal
comments, which may include factual
information, must be filed by 5:00 p.m.
ET on December 28, 2017. All
comments and submissions to the
Department must be filed electronically
using ACCESS, as explained above, on
the record of the less-than-fair-value
investigation.
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Injury Test
Because the PRC is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
the CVD investigation. Accordingly, the
ITC must determine whether imports of
the subject merchandise from the PRC
materially injure, or threaten material
injury to, a U.S. industry.
Evidence of Material Injury, Threat of
Material Injury, and Causation
The Department has evidence
indicating that the U.S. industry
producing the domestic like product 5
may be materially injured, or may be
threatened with material injury, by
reason of imports of the subject
merchandise that may be benefitting
from countervailable subsidies and may
be sold at less than normal value (NV).
In addition, the subject imports exceed
the negligibility threshold provided for
under section 771(24)(A) of the Act.6
Information considered by the
Department indicates that the industry’s
injured condition is illustrated by
reduced market share; underselling and
price suppression or depression;
decreasing U.S. shipment and
production trends, as well as low
capacity utilization rates; increasing
volumes of imports from the PRC; plant
and facility closures; and deterioration
in financial performance. In addition,
the information indicates a threat of
material injury by reason of the imports
from the PRC based on the vulnerability
of the domestic industry to material
injury; the rapid increase in the volume
and market penetration of subject
imports; continued underselling and
price suppression or depression;
countervailable subsidies received by
common alloy sheet producers in the
PRC; and significant unused capacity
available to PRC producers of common
alloy sheet to increase production for
exportation.7
Sales at Less-Than-Fair Value
The following is a description of the
evidence of sales at less-than-fair value
upon which the Department based its
decision to initiate an AD investigation
of imports of common alloy sheet from
the PRC. The sources of data for the
deductions and adjustments relating to
U.S. price and NV are discussed in
5 For a discussion of the domestic like product
analysis in this case, see AD Initiation Memo and
CVD Initiation Memo, at ‘‘Definition of Domestic
Industry.’’
6 See AD Initiation Memo and CVD Initiation
Memo, at ‘‘Negligibility.’’
7 See AD Initiation Memo; see also CVD Initiation
Memo.
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Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices
greater detail in the AD Initiation
Memo.
Export Price
The Department calculated two export
prices (EP) based on (1) the average unit
value (AUV) of combined imports of
common alloy sheet under the relevant
Harmonized Tariff Schedule of the
United States (HTSUS) subheadings for
this product (7060.11.3060,
7060.11.6000, 7606.12.3090,
7606.12.6000, 7606.91.3090,
7606.91.6080, 7606.92.3090,
7606.92.6080) from the PRC during the
POI; and (2) the AUV of imports of
common alloy sheet under HTSUS
subheading 7606.12.3090 from the PRC
during the POI, which accounted for
over 90 percent of total imports of
subject merchandise. The Department
deducted foreign inland freight, foreign
brokerage and handling, and unrebated
Value-Added Tax (VAT) to obtain exfactory prices, in accordance with our
normal practice for calculating EPs.8
Normal Value
The Department considers the PRC to
be a non-market economy (NME)
country.9 In accordance with section
771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by the Department.
Therefore, we continue to treat the PRC
as an NME country for purposes of the
initiation of this AD investigation.
Accordingly, the NV of the product is
appropriately based on factors of
production (FOPs) valued in a surrogate
market economy country, in accordance
with section 773(c) of the Act.
South Africa is an appropriate
surrogate country because it is a market
economy country that is at a level of
economic development comparable to
that of the PRC, it is a significant
producer of comparable merchandise,
and public information pertaining to
South Africa is available to value the
FOPs.10 Interested parties will have the
opportunity to submit comments
8 See
AD Initiation Memo, at ‘‘U.S. Price.’’
Antidumping Duty Investigation of Certain
Aluminum Foil from the People’s Republic of
China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861
(November 2, 2017) and accompanying decision
memorandum, China’s Status as a Non-Market
Economy.
10 See AD Initiation Memo at 3–7 (citing
Department Memorandum: ‘‘Request for a List of
Surrogate Countries for an Antidumping
Investigation on Cast Soil Iron Pipe Fittings (CSIPF)
from the People’s Republic of China (China),’’ dated
November 7, 2017); see also Potassium
Permanganate from the People’s Republic of China:
Preliminary Results of the 2015 Antidumping Duty
Administrative Review, 81 FR 89897 (December 13,
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9 See
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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 FOPs within 30
days before the scheduled date of the
preliminary determination.
Factors of Production
We based the FOPs for materials,
labor, and energy on the consumption
rates of certain producers of common
alloy sheet in the United States.11 The
production process for common alloy
sheet is similar regardless of whether
the product is produced in the United
States or in the PRC.12 We valued the
estimated FOPs using surrogate values
from South Africa, as discussed
below.13
Valuation of Raw Materials
We valued the FOPs for raw materials
using public import data for South
Africa obtained from the Global Trade
Atlas (GTA) for the POI.14 We excluded
all import data from countries
previously determined by the
Department to maintain broadly
available, non-industry-specific export
subsidies and from countries previously
determined by the Department to be
NME countries. In addition, in
accordance with the Department’s
practice, we excluded imports that were
labeled as originating from an
unidentified country.15
Valuation of Energy
We valued natural gas using the AUV
of imports of liquid natural gas into
South Africa.16 We valued electricity
using electricity rates reported by
Eskom, South Africa’s electricity public
utility.17
Valuation of Labor
We valued labor using labor data
published by Statistics South Africa
(SSA), the national statistics service of
2016) (Potassium Permanganate from the PRC
Preliminary Decision) and accompanying
Preliminary Decision Memorandum (PDM)
(unchanged in Potassium Permanganate from the
People’s Republic of China: Final Results of
Antidumping Duty Administrative Review; 2015, 82
FR 28044 (June 20, 2017) (Potassium Permanganate
from the PRC)) and accompanying Issues and
Decision Memorandum (IDM)).
11 See AD Initiation Memo.
12 Id.
13 Id.
14 See AD Initiation Memo; see also Potassium
Permanganate from the PRC Preliminary Decision
and accompanying PDM at 14 (unchanged in
Potassium Permanganate from the PRC).
15 See AD Initiation Memo at 4–7.
16 Id.
17 Id., at 6; see also Potassium Permanganate from
the PRC Preliminary Decision and accompanying
PDM at 14 (unchanged in Potassium Permanganate
from the PRC).
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South Africa.18 SSA is the official South
African source for government
employment and earnings data.19
Valuation of Packing Materials
We determined the FOPs for packing
materials based on the experience of
U.S. producers of common alloy sheet
in packing their own products.20 We
valued the packing materials based on
South African import values.21 We
valued labor expenses for packing based
on the hourly rates derived from the
aforementioned labor data from the
SSA.22
Valuation of Factory Overhead, Selling,
General and Administrative Expenses,
and Profit
We calculated ratios for factory
overhead, selling, general and
administrative expenses based on the
2016 consolidated financial statements
of Hulamin Ltd. (Hulamin), a South
African producer of common alloy
sheet.23 We calculated a profit rate for
Hulamin by dividing its operating profit
before taxes by the sum of cost of sales
and SG&A expenses. We multiplied that
rate by the total cost of production to
obtain a profit value. The resulting
profit value was added to the cost of
production value to arrive at total cost
of production plus profit for the
product.24
Fair Value Comparisons
Based on the data obtained by the
Department, there is reason to believe
that imports of common alloy sheet
from the PRC are being, or are likely to
be, sold in the United States at lessthan-fair value. Based on comparisons
of EP to NV, in accordance with section
773(c) of the Act, the estimated
dumping margins for common alloy
sheet from the PRC are 56.54 percent
and 59.72 percent.25
Initiation of Less-Than-Fair-Value
Investigation
Section 732(a) of the Act states that
the Department shall initiate an
antidumping duty investigation
whenever it determines, from
information available to it, that a formal
18 See
AD Initiation Memo.
19 Id.
20 Id.
21 Id.; see also Potassium Permanganate from the
PRC Preliminary Decision and accompanying PDM
at 14 (unchanged in Potassium Permanganate from
the PRC).
22 See AD Initiation Memo.
23 Id.; see also Potassium Permanganate from the
PRC Preliminary Decision and accompanying PDM
at 15–16 (unchanged in Potassium Permanganate
from the PRC).
24 See AD Initiation Memo, at 7.
25 Id., at ‘‘Estimated Margins.’’
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investigation is warranted into the
question of whether the elements
necessary for the imposition of a duty
under section 731 exists. Pursuant to
section 732(a) of the Act, on the basis
of information available to the
Department, we are initiating an AD
investigation to determine whether
imports of common alloy sheet 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
intend to make our preliminary AD
determination no later than 140 days
after the date of this initiation.
Use of Combination Rates
Respondent Selection for AD
Investigation
In accordance with our standard
practice for respondent selection in AD
cases involving NME countries, we
intend to issue quantity and value
(Q&V) questionnaires to known
producers/exporters of merchandise
subject to the investigation and, if
necessary, base respondent selection on
the responses received. In addition, the
Department will post the Q&V
questionnaire along with filing
instructions on the Enforcement and
Compliance Web site at https://
www.trade.gov/enforcement/news.asp.
Producers/exporters of common alloy
sheet from the PRC that do not receive
Q&V questionnaires by mail may still
submit a response to the Q&V
questionnaire and can obtain a copy
from the Enforcement & Compliance
Web site. The Q&V response must be
submitted by the relevant PRC
exporters/producers no later than 5:00
p.m. ET on December 13, 2017. All Q&V
responses must be filed electronically
via ACCESS.
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Separate Rates
In order to obtain separate-rate status
in an NME AD investigation, exporters
and producers must submit a separaterate application.26 The specific
requirements for submitting a separaterate application in the PRC AD
investigation are outlined in detail in
the application itself, which is available
on the Department’s Web site at https://
enforcement.trade.gov/nme/nme-seprate.html. The separate-rate application
will be due 30 days after publication of
26 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation Involving Non-Market
Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf
(Policy Bulletin 05.1).
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this initiation notice.27 Exporters and
producers who submit a separate-rate
application and have been selected as
mandatory respondents will be eligible
for consideration for separate-rate status
only if they respond to all parts of the
Department’s AD questionnaire as
mandatory respondents. The
Department requires that companies
from the PRC submit a response to both
the Q&V questionnaire and the separaterate application by the respective
deadlines in order to receive
consideration for separate-rate status.
Companies not filing a timely Q&V
response will not receive separate rate
consideration.
In an NME AD investigation, the
Department will calculate combination
rates for certain respondents that are
eligible for a separate rate in that
investigation. The Separate Rates and
Combination Rates Bulletin states:
{W}hile continuing the practice of
assigning separate rates only to exporters, all
separate rates that the Department will now
assign in its NME Investigation 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.28
Initiation of Countervailing Duty
Investigation
Section 702(a) of the Act states that
the Department shall initiate a CVD
investigation whenever it determines
that a formal investigation is warranted
into the question of whether the
elements necessary for an imposition of
a duty under section 701(a) of the Act
exist based on information available to
the Department.
27 Although in past investigations this deadline
was 60 days, consistent with 19 CFR 351.301(a),
which states that ‘‘the Secretary may request any
person to submit factual information at any time
during a proceeding,’’ this deadline is now 30 days.
28 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation Involving Non-Market
Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf
(Policy Bulletin 05.1).
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57217
On the basis of information available
to the Department, producers/exporters
of common alloy sheet in the PRC may
benefit from countervailable subsidies
bestowed by the Government of the
PRC. Pursuant to section 702(a) of the
Act, on the basis of information
available to the Department, we are
initiating a CVD investigation to
determine whether manufacturers,
producers, or exporters of common alloy
sheet from the PRC receive
countervailable subsidies from the
Government of the PRC. Based on
information available to the Department,
we find that there is sufficient
information to initiate a CVD
investigation on 26 programs. For a full
discussion of the basis for our decision
to initiate on each program, see CVD
Initiation Memo.
In accordance with section 703(b)(1)
of the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary CVD determination no later
than 65 days after the date of this
initiation.
Respondent Selection in CVD
Investigation
Following standard practice in CVD
investigations, in the event the
Department determines that the number
of producers/exporters of common alloy
sheet in the PRC is large and it cannot
individually examine each company
based upon the Department’s resources,
where appropriate, the Department
intends to select respondents based on
U.S. Customs and Border Protection
(CBP) data for U.S. imports of common
alloy sheet during the POI under the
appropriate HTSUS subheadings listed
in the ‘‘Scope of the Investigations,’’ in
the Appendix. We intend to release the
CBP data under APO to all parties with
access to information protected by APO
within five business days of this
initiation. Interested parties may submit
comments regarding the CBP data and
respondent selection by 5:00 p.m. ET
seven calendar days after the placement
of the CBP data on the record of this
investigation. The Department will not
accept rebuttal comments regarding the
CBP data or respondent selection.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found at https://
enforcement.trade.gov/apo/.
Comments must be filed
electronically using ACCESS. An
electronically-filed document must be
received successfully, in its entirety, by
ACCESS no later than 5:00 p.m. ET on
the date noted above. If respondent
selection is appropriate, we intend to
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finalize our decisions regarding
respondent selection within 20 days of
publication of this notice.
ITC Notification
We will notify the ITC of our
initiation, as required by sections 702(d)
and 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the ITC receives notice from the
Department that an investigation has
been initiated, whether there is a
reasonable indication that imports of
common alloy sheet from the PRC are
materially injuring or threatening
material injury to a U.S. industry.29 A
negative ITC determination will result
in the investigations being
terminated; 30 otherwise, these
investigations will proceed according to
statutory and regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by the Department; and (v)
evidence other than factual information
described in (i)–(iv). Any party, when
submitting factual information, must
specify under which subsection of 19
CFR 351.102(b)(21) the information is
being submitted 31 and, if the
information is submitted to rebut,
clarify, or correct factual information
already on the record, to provide an
explanation identifying the information
already on the record that the factual
information seeks to rebut, clarify, or
correct.32 Time limits for the
submission of factual information are
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Interested parties should
review the regulations prior to
submitting factual information in these
investigations.
sradovich on DSK3GMQ082PROD with NOTICES
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351, or as otherwise specified by the
Secretary. In general, an extension
29 See
sections 793(a) and 733(a) of the Act.
30 Id.
31 See
32 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
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18:22 Dec 01, 2017
Jkt 244001
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351
expires. For submissions that are due
from multiple parties simultaneously,
an extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we may elect to specify
a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, we will inform parties in
the letter or memorandum setting forth
the deadline (including a specified time)
by which extension requests must be
filed to be considered timely. An
extension request must be made in a
separate, stand-alone submission; under
limited circumstances we will grant
untimely-filed requests for the extension
of time limits. Review Extension of
Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at
https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to
submitting factual information in this
investigation.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.33
Parties are hereby reminded that revised
certification requirements are in effect
for company/government officials, as
well as their representatives.
Investigations initiated on or after
August 16, 2013, and other segments of
any AD or CVD proceedings initiated on
or after August 16, 2013, should use the
formats for the revised certifications
provided at the end of the Final Rule.34
The Department intends to reject factual
submissions if the submitting party does
not comply with applicable revised
certification requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under
administrative protective order (APO) 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 (January
22, 2008).
33 See
section 782(b) of the Act.
34 See Certification of Factual Information to
Import Administration during Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
Parties wishing to participate in these
investigations should ensure that they
meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed in 19 CFR
351.103(d)).
Under the Trade Preferences
Extension Act of 2015, numerous
amendments to the AD and CVD laws
were made.35 The 2015 law does not
specify dates of application for those
amendments. On August 6, 2015, the
Department published an interpretative
rule, in which it announced the
applicability dates for each amendment
to the Act, except for amendments
contained in section 771(7) of the Act,
which relate to determinations of
material injury by the ITC.36 The
amendments to sections 771(15), 773,
776, and 782 of the Act are applicable
to all determinations made on or after
August 6, 2015, and, therefore, apply to
these AD and CVD investigations.37
This notice is issued and published
pursuant to sections 702(a), 732(a), and
777(i) of the Act and 19 CFR 351.201(b).
Dated: November 28, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix—Scope of the Investigations
The merchandise covered by these
investigations is aluminum common alloy
sheet (common alloy sheet), which is a flatrolled aluminum product having a thickness
of 6.3 mm or less, but greater than 0.2 mm,
in coils or cut-to-length, regardless of width.
Common alloy sheet within the scope of
these investigations includes both not clad
aluminum sheet, as well as multi-alloy, clad
aluminum sheet. With respect to not clad
aluminum sheet, common alloy sheet is
manufactured from a 1XXX-, 3XXX-, or
5XXX-series alloy as designated by the
Aluminum Association. With respect to
multi-alloy, clad aluminum sheet, common
alloy sheet is produced from a 3XXX-series
core, to which cladding layers are applied to
either one or both sides of the core.
Common alloy sheet may be made to
ASTM specification B209–14, but can also be
made to other specifications. Regardless of
specification, however, all common alloy
sheet meeting the scope description is
included in the scope. Subject merchandise
includes common alloy sheet that has been
further processed in a third country,
including but not limited to annealing,
35 See Trade Preferences Extension Act of 2015,
Public Law 114–27, 129 Stat. 362 (2015).
36 See Dates of Application of Amendments to the
Antidumping and Countervailing Duty Laws Made
by the Trade Preferences Extension Act of 2015, 80
FR 46793 (August 6, 2015) (Applicability Notice).
37 Id. at 46794–95. The 2015 amendments may be
found at https://www.congress.gov/bill/114thcongress/house-bill/1295/text/pl.
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tempering, painting, varnishing, trimming,
cutting, punching, and/or slitting, or any
other processing that would not otherwise
remove the merchandise from the scope of
the investigations if performed in the country
of manufacture of the common alloy sheet.
Excluded from the scope of these
investigations is aluminum can stock, which
is suitable for use in the manufacture of
aluminum beverage cans, lids of such cans,
or tabs used to open such cans. Aluminum
can stock is produced to gauges that range
from 0.200 mm to 0.292 mm, and has an H–
19, H–41, H–48, or H–391 temper. In
addition, aluminum can stock has a lubricant
applied to the flat surfaces of the can stock
to facilitate its movement through machines
used in the manufacture of beverage cans.
Aluminum can stock is properly classified
under Harmonized Tariff Schedule of the
United States (HTSUS) subheadings
7606.12.3045 and 7606.12.3055.
Where the nominal and actual
measurements vary, a product is within the
scope if application of either the nominal or
actual measurement would place it within
the scope based on the definitions set for the
above.
Common alloy sheet is currently
classifiable under HTSUS subheadings
7606.11.3060, 7606.11.6000, 7606.12.3090,
7606.12.6000, 7606.91.3090, 7606.91.6080,
7606.92.3090, and 7606.92.6080. Further,
merchandise that falls within the scope of
these investigations may also be entered into
the United States under HTSUS subheadings
7606.11.3030, 7606.12.3030, 7606.91.3060,
7606.91.6040, 7606.92.3060, 7606.92.6040,
7607.11.9090. Although the HTSUS
subheadings are provided for convenience
and customs purposes, the written
description of the scope of these
investigations is dispositive.
[FR Doc. 2017–26068 Filed 12–1–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity To Request
Administrative Review
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
FOR FURTHER INFORMATION CONTACT:
Brenda E. Brown, Office of AD/CVD
Operations, Customs Liaison Unit,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW., Washington,
DC 20230, telephone: (202) 482–4735.
sradovich on DSK3GMQ082PROD with NOTICES
AGENCY:
Background
Each year during the anniversary
month of the publication of an
antidumping or countervailing duty
order, finding, or suspended
investigation, an interested party, as
VerDate Sep<11>2014
18:22 Dec 01, 2017
Jkt 244001
defined in section 771(9) of the Tariff
Act of 1930, as amended (the Act), may
request, in accordance with 19 CFR
351.213, that the Department of
Commerce (the Department) conduct an
administrative review of that
antidumping or countervailing duty
order, finding, or suspended
investigation.
All deadlines for the submission of
comments or actions by the Department
discussed below refer to the number of
calendar days from the applicable
starting date.
Respondent Selection
In the event the Department limits the
number of respondents for individual
examination for administrative reviews
initiated pursuant to requests made for
the orders identified below, the
Department intends to select
respondents based on U.S. Customs and
Border Protection (CBP) data for U.S.
imports during the period of review. We
intend to release the CBP data under
Administrative Protective Order (APO)
to all parties having an APO within five
days of publication of the initiation
notice and to make our decision
regarding respondent selection within
21 days of publication of the initiation
Federal Register notice. Therefore, we
encourage all parties interested in
commenting on respondent selection to
submit their APO applications on the
date of publication of the initiation
notice, or as soon thereafter as possible.
The Department invites comments
regarding the CBP data and respondent
selection within five days of placement
of the CBP data on the record of the
review.
In the event the Department decides
it is necessary to limit individual
examination of respondents and
conduct respondent selection under
section 777A(c)(2) of the Act:
In general, the Department finds that
determinations concerning whether
particular companies should be
‘‘collapsed’’ (i.e., treated as a single
entity for purposes of calculating
antidumping duty rates) require a
substantial amount of detailed
information and analysis, which often
require follow-up questions and
analysis. Accordingly, the Department
will not conduct collapsing analyses at
the respondent selection phase of a
review and will not collapse companies
at the respondent selection phase unless
there has been a determination to
collapse certain companies in a
previous segment of this antidumping
proceeding (i.e., investigation,
administrative review, new shipper
review or changed circumstances
review). For any company subject to a
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
57219
review, if the Department determined,
or continued to treat, that company as
collapsed with others, the Department
will assume that such companies
continue to operate in the same manner
and will collapse them for respondent
selection purposes. Otherwise, the
Department will not collapse companies
for purposes of respondent selection.
Parties are requested to (a) identify
which companies subject to review
previously were collapsed, and (b)
provide a citation to the proceeding in
which they were collapsed. Further, if
companies are requested to complete a
Quantity and Value Questionnaire for
purposes of respondent selection, in
general each company must report
volume and value data separately for
itself. Parties should not include data
for any other party, even if they believe
they should be treated as a single entity
with that other party. If a company was
collapsed with another company or
companies in the most recently
completed segment of a proceeding
where the Department considered
collapsing that entity, complete quantity
and value data for that collapsed entity
must be submitted.
Deadline for Withdrawal of Request for
Administrative Review
Pursuant to 19 CFR 351.213(d)(1), a
party that requests a review may
withdraw that request within 90 days of
the date of publication of the notice of
initiation of the requested review. The
regulation provides that the Department
may extend this time if it is reasonable
to do so. In order to provide parties
additional certainty with respect to
when the Department will exercise its
discretion to extend this 90-day
deadline, interested parties are advised
that, with regard to reviews requested
on the basis of anniversary months on
or after December 2017, the Department
does not intend to extend the 90-day
deadline unless the requestor
demonstrates that an extraordinary
circumstance prevented it from
submitting a timely withdrawal request.
Determinations by the Department to
extend the 90-day deadline will be
made on a case-by-case basis.
The Department is providing this
notice on its Web site, as well as in its
‘‘Opportunity to Request Administrative
Review’’ notices, so that interested
parties will be aware of the manner in
which the Department intends to
exercise its discretion in the future.
Opportunity to Request a Review: Not
later than the last day of December
E:\FR\FM\04DEN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Notices]
[Pages 57214-57219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26068]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-073, C-570-074]
Common Alloy Aluminum Sheet From the People's Republic of China:
Initiation of Less-Than-Fair-Value and Countervailing Duty
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable November 28, 2017.
FOR FURTHER INFORMATION CONTACT: Erin Kearney, at (202) 482-0167, AD/
CVD Operations, Office VI, or Vicki Flynn, at (202) 482-1756, Office of
Policy, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
Initiation
On the basis of information available to the Department of Commerce
(the Department), we are initiating an antidumping duty (AD)
investigation, under section 732(a) of the Tariff Act of 1930, as
amended (the Act), to determine whether common alloy aluminum sheet
(common alloy sheet) from the People's Republic of China (PRC) is
being, or is likely to be, sold in the United States at less than fair
value within the meaning of section 731 of the Act. We are also
initiating a countervailing duty (CVD) investigation, under section
702(a) of the Act, to determine whether the Government of the PRC is
providing countervailable subsidies (within the meaning of sections 701
and 771(5) of the Act) with respect to imports of common alloy sheet
from the PRC.
We have evidence indicating that the United States price of common
alloy sheet from the PRC may be less than the normal value of such or
similar merchandise and that imports of common alloy sheet from the PRC
may be benefitting from countervailable subsidies. We also have
evidence that imports of common alloy sheet from the PRC may be
materially injuring, or threatening material injury to, the domestic
industry producing common alloy sheet in the United States.
U.S. law provides two mechanisms for the initiation of AD and CVD
investigations. Normally, AD and/or CVD investigations are initiated
under sections 702(b) and 732(b) of the Act, which specify that AD and/
or CVD proceedings ``shall be initiated whenever an interested party
described in subparagraph (C), (D), (E), (F), or (G) of section 771(9)
files a petition with the administering authority, on behalf of an
industry, which alleges the elements necessary for the imposition of
the duty imposed by {section 701(a) (for CVD) or 731 (for AD){time} ,
and which is accompanied by information reasonably available to the
petitioner supporting those allegations.'' Investigations may also be
initiated under sections 702(a) and 732(a) of the Act, which specify
that AD and/or CVD investigations ``shall be initiated whenever the
administering authority determines, from information available to it,
that a formal investigation is warranted into the question of whether
the elements necessary for the imposition of a duty under {section 701
(CVD) or 731 (AD){time} exist.'' Although the Department has rarely
invoked this statutory authority, the Department intends to make use of
all the tools available under U.S. unfair trade laws, where such action
is warranted under the law, to ensure potential unfair trade practices
are addressed. To that end, self-initiation of certain AD and CVD cases
can address situations where industries are faced with potentially
dumped and/or subsidized imports and where the Department received
comprehensive detailed information. Although the Department expects
that future investigations will normally proceed based on petitions
filed by or on behalf of the industry, the Department will take action
under Sections 702(a) and 732(a), where warranted, to facilitate the
application of the appropriate trade remedy for U.S. industries.
In this instance, we have information warranting an investigation
into whether (1) the United States price of common alloy sheet from the
PRC may be less than the normal value of such or similar merchandise,
(2) imports of common alloy sheet from the PRC may be benefitting from
countervailable subsidies, and (3) imports of common alloy sheet from
the PRC may be materially injuring, or threatening material injury to,
the domestic industry producing common alloy sheet in the United
States. Imports of common alloy sheet from the PRC into the United
States have been significant since 2005 and have increased rapidly in
the last three years.\1\ Furthermore, in light of the systemic and
significant over-capacity in the Chinese aluminum industry, which has
been extensively documented, including in a recent International Trade
Commission (ITC) investigation conducted under section 332(g) of the
Act,\2\ the U.S. industry is faced with the potential for even further
increases in exports from the PRC. In light of the above, among other
considerations, the Department is self-initiating AD and CVD
investigations of imports of common alloy sheet from the PRC as
provided for under sections 702(a) and 732(a) of the Act.
---------------------------------------------------------------------------
\1\ Department Memoranda: Supporting Memorandum for the
Initiation of Antidumping Duty Investigation of Common Alloy
Aluminum Sheet from the People's Republic of China (AD Initiation
Memo), at Exhibit 1A, at Attachment 9, and Supporting Memorandum for
the Initiation of Countervailing Duty Investigation of Common Alloy
Aluminum Sheet from the People's Republic of China (CVD Initiation
Memo), at Exhibit 1A, at Attachment 9. These memoranda are dated
concurrently with this notice and on file electronically via
Enforcement & Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). Access to documents
filed via ACCESS is also available in the Central Records Unit, Room
B8024 of the main Department of Commerce building.
\2\ See Aluminum: Competitive Conditions Affecting the U.S.
Industry, Inv. No. 332-557, USITC Pub. 4703 (June 2017), at 39, 68,
161, 241, and 465.
---------------------------------------------------------------------------
Period of Investigation
Pursuant to 19 CFR 351.204(b), the proposed period of investigation
(POI) for the CVD investigation is January 1, 2016 through December 31,
2016 while the proposed POI for the AD investigation is April 1, 2017
through September 30, 2017.
[[Page 57215]]
Scope of the Investigations
The product covered by these investigations is common alloy sheet
from the PRC. For a full description of the scope of these
investigations, see the ``Scope of the Investigations,'' in the
Appendix to this notice.
Comments on Scope of the Investigations
As discussed in the preamble to the Department's regulations,\3\ we
are setting aside a period for interested parties to raise issues
regarding product coverage (scope). The Department will consider all
comments received from parties and, if necessary, will consult with
parties prior to the issuance of the preliminary determinations. If
scope comments include factual information (see 19 CFR 351.102(b)(21)),
all such factual information should be limited to public information.
In order to facilitate preparation of its questionnaires, the
Department requests all interested parties to submit such comments by
5:00 p.m. Eastern Time (ET) on December 18, 2017. Any rebuttal
comments, which may include factual information, must be filed by 5:00
p.m. ET on December 28, 2017.
---------------------------------------------------------------------------
\3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
---------------------------------------------------------------------------
The Department requests that any factual information the parties
consider relevant to the scope of the investigations be submitted
during this time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party may contact the Department
and request permission to submit the additional information. All such
comments must also be filed on the records of the concurrent AD and CVD
investigations.
Filing Requirements
All submissions to the Department must be filed electronically
using ACCESS.\4\ An electronically filed document must be received
successfully in its entirety by the time and date when it is due.
Documents excepted from the electronic submission requirements must be
filed manually (i.e., in paper form) with Enforcement & Compliance's
APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401
Constitution Avenue NW., Washington, DC 20230, and stamped with the
date and time of receipt by the applicable deadlines.
---------------------------------------------------------------------------
\4\ See 19 CFR 351.303 (describing general filing requirements);
see also Antidumping and Countervailing Duty Proceedings: Electronic
Filing Procedures; Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011) and Enforcement and Compliance; Change of
Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for
details of the Department's electronic filing requirements, which
went into effect on August 5, 2011. Information on help using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------
Comments on Product Characteristics for AD Questionnaires
The Department requests comments from interested parties regarding
the appropriate physical characteristics of common alloy sheet to be
reported in response to the Department's AD questionnaires. This
information will be used to identify the key physical characteristics
of the subject merchandise in order to report the relevant factors and
costs of production accurately as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they believe are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics and (2) 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, although there
may be some physical product characteristics utilized by manufacturers
to describe common alloy sheet, 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
matching products. 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 AD questionnaire, all comments must be filed
by 5:00 p.m. ET on December 18, 2017. Any rebuttal comments, which may
include factual information, must be filed by 5:00 p.m. ET on December
28, 2017. All comments and submissions to the Department must be filed
electronically using ACCESS, as explained above, on the record of the
less-than-fair-value investigation.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to the CVD investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from the PRC materially
injure, or threaten material injury to, a U.S. industry.
Evidence of Material Injury, Threat of Material Injury, and Causation
The Department has evidence indicating that the U.S. industry
producing the domestic like product \5\ may be materially injured, or
may be threatened with material injury, by reason of imports of the
subject merchandise that may be benefitting from countervailable
subsidies and may be sold at less than normal value (NV). In addition,
the subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.\6\
---------------------------------------------------------------------------
\5\ For a discussion of the domestic like product analysis in
this case, see AD Initiation Memo and CVD Initiation Memo, at
``Definition of Domestic Industry.''
\6\ See AD Initiation Memo and CVD Initiation Memo, at
``Negligibility.''
---------------------------------------------------------------------------
Information considered by the Department indicates that the
industry's injured condition is illustrated by reduced market share;
underselling and price suppression or depression; decreasing U.S.
shipment and production trends, as well as low capacity utilization
rates; increasing volumes of imports from the PRC; plant and facility
closures; and deterioration in financial performance. In addition, the
information indicates a threat of material injury by reason of the
imports from the PRC based on the vulnerability of the domestic
industry to material injury; the rapid increase in the volume and
market penetration of subject imports; continued underselling and price
suppression or depression; countervailable subsidies received by common
alloy sheet producers in the PRC; and significant unused capacity
available to PRC producers of common alloy sheet to increase production
for exportation.\7\
---------------------------------------------------------------------------
\7\ See AD Initiation Memo; see also CVD Initiation Memo.
---------------------------------------------------------------------------
Sales at Less-Than-Fair Value
The following is a description of the evidence of sales at less-
than-fair value upon which the Department based its decision to
initiate an AD investigation of imports of common alloy sheet from the
PRC. The sources of data for the deductions and adjustments relating to
U.S. price and NV are discussed in
[[Page 57216]]
greater detail in the AD Initiation Memo.
Export Price
The Department calculated two export prices (EP) based on (1) the
average unit value (AUV) of combined imports of common alloy sheet
under the relevant Harmonized Tariff Schedule of the United States
(HTSUS) subheadings for this product (7060.11.3060, 7060.11.6000,
7606.12.3090, 7606.12.6000, 7606.91.3090, 7606.91.6080, 7606.92.3090,
7606.92.6080) from the PRC during the POI; and (2) the AUV of imports
of common alloy sheet under HTSUS subheading 7606.12.3090 from the PRC
during the POI, which accounted for over 90 percent of total imports of
subject merchandise. The Department deducted foreign inland freight,
foreign brokerage and handling, and unrebated Value-Added Tax (VAT) to
obtain ex-factory prices, in accordance with our normal practice for
calculating EPs.\8\
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\8\ See AD Initiation Memo, at ``U.S. Price.''
---------------------------------------------------------------------------
Normal Value
The Department considers the PRC to be a non-market economy (NME)
country.\9\ In accordance with section 771(18)(C)(i) of the Act, any
determination that a foreign country is an NME country shall remain in
effect until revoked by the Department. Therefore, we continue to treat
the PRC as an NME country for purposes of the initiation of this AD
investigation. Accordingly, the NV of the product is appropriately
based on factors of production (FOPs) valued in a surrogate market
economy country, in accordance with section 773(c) of the Act.
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\9\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861 (November 2, 2017) and
accompanying decision memorandum, China's Status as a Non-Market
Economy.
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South Africa is an appropriate surrogate country because it is a
market economy country that is at a level of economic development
comparable to that of the PRC, it is a significant producer of
comparable merchandise, and public information pertaining to South
Africa is available to value the FOPs.\10\ 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 FOPs
within 30 days before the scheduled date of the preliminary
determination.
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\10\ See AD Initiation Memo at 3-7 (citing Department
Memorandum: ``Request for a List of Surrogate Countries for an
Antidumping Investigation on Cast Soil Iron Pipe Fittings (CSIPF)
from the People's Republic of China (China),'' dated November 7,
2017); see also Potassium Permanganate from the People's Republic of
China: Preliminary Results of the 2015 Antidumping Duty
Administrative Review, 81 FR 89897 (December 13, 2016) (Potassium
Permanganate from the PRC Preliminary Decision) and accompanying
Preliminary Decision Memorandum (PDM) (unchanged in Potassium
Permanganate from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review; 2015, 82 FR 28044 (June 20,
2017) (Potassium Permanganate from the PRC)) and accompanying Issues
and Decision Memorandum (IDM)).
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Factors of Production
We based the FOPs for materials, labor, and energy on the
consumption rates of certain producers of common alloy sheet in the
United States.\11\ The production process for common alloy sheet is
similar regardless of whether the product is produced in the United
States or in the PRC.\12\ We valued the estimated FOPs using surrogate
values from South Africa, as discussed below.\13\
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\11\ See AD Initiation Memo.
\12\ Id.
\13\ Id.
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Valuation of Raw Materials
We valued the FOPs for raw materials using public import data for
South Africa obtained from the Global Trade Atlas (GTA) for the
POI.\14\ We excluded all import data from countries previously
determined by the Department to maintain broadly available, non-
industry-specific export subsidies and from countries previously
determined by the Department to be NME countries. In addition, in
accordance with the Department's practice, we excluded imports that
were labeled as originating from an unidentified country.\15\
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\14\ See AD Initiation Memo; see also Potassium Permanganate
from the PRC Preliminary Decision and accompanying PDM at 14
(unchanged in Potassium Permanganate from the PRC).
\15\ See AD Initiation Memo at 4-7.
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Valuation of Energy
We valued natural gas using the AUV of imports of liquid natural
gas into South Africa.\16\ We valued electricity using electricity
rates reported by Eskom, South Africa's electricity public utility.\17\
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\16\ Id.
\17\ Id., at 6; see also Potassium Permanganate from the PRC
Preliminary Decision and accompanying PDM at 14 (unchanged in
Potassium Permanganate from the PRC).
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Valuation of Labor
We valued labor using labor data published by Statistics South
Africa (SSA), the national statistics service of South Africa.\18\ SSA
is the official South African source for government employment and
earnings data.\19\
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\18\ See AD Initiation Memo.
\19\ Id.
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Valuation of Packing Materials
We determined the FOPs for packing materials based on the
experience of U.S. producers of common alloy sheet in packing their own
products.\20\ We valued the packing materials based on South African
import values.\21\ We valued labor expenses for packing based on the
hourly rates derived from the aforementioned labor data from the
SSA.\22\
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\20\ Id.
\21\ Id.; see also Potassium Permanganate from the PRC
Preliminary Decision and accompanying PDM at 14 (unchanged in
Potassium Permanganate from the PRC).
\22\ See AD Initiation Memo.
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Valuation of Factory Overhead, Selling, General and Administrative
Expenses, and Profit
We calculated ratios for factory overhead, selling, general and
administrative expenses based on the 2016 consolidated financial
statements of Hulamin Ltd. (Hulamin), a South African producer of
common alloy sheet.\23\ We calculated a profit rate for Hulamin by
dividing its operating profit before taxes by the sum of cost of sales
and SG&A expenses. We multiplied that rate by the total cost of
production to obtain a profit value. The resulting profit value was
added to the cost of production value to arrive at total cost of
production plus profit for the product.\24\
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\23\ Id.; see also Potassium Permanganate from the PRC
Preliminary Decision and accompanying PDM at 15-16 (unchanged in
Potassium Permanganate from the PRC).
\24\ See AD Initiation Memo, at 7.
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Fair Value Comparisons
Based on the data obtained by the Department, there is reason to
believe that imports of common alloy sheet from the PRC are being, or
are likely to be, sold in the United States at less-than-fair value.
Based on comparisons of EP to NV, in accordance with section 773(c) of
the Act, the estimated dumping margins for common alloy sheet from the
PRC are 56.54 percent and 59.72 percent.\25\
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\25\ Id., at ``Estimated Margins.''
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Initiation of Less-Than-Fair-Value Investigation
Section 732(a) of the Act states that the Department shall initiate
an antidumping duty investigation whenever it determines, from
information available to it, that a formal
[[Page 57217]]
investigation is warranted into the question of whether the elements
necessary for the imposition of a duty under section 731 exists.
Pursuant to section 732(a) of the Act, on the basis of information
available to the Department, we are initiating an AD investigation to
determine whether imports of common alloy sheet 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 intend to make our preliminary AD
determination no later than 140 days after the date of this initiation.
Respondent Selection for AD Investigation
In accordance with our standard practice for respondent selection
in AD cases involving NME countries, we intend to issue quantity and
value (Q&V) questionnaires to known producers/exporters of merchandise
subject to the investigation and, if necessary, base respondent
selection on the responses received. In addition, the Department will
post the Q&V questionnaire along with filing instructions on the
Enforcement and Compliance Web site at https://www.trade.gov/enforcement/news.asp.
Producers/exporters of common alloy sheet from the PRC that do not
receive Q&V questionnaires by mail may still submit a response to the
Q&V questionnaire and can obtain a copy from the Enforcement &
Compliance Web site. The Q&V response must be submitted by the relevant
PRC exporters/producers no later than 5:00 p.m. ET on December 13,
2017. All Q&V responses must be filed electronically via ACCESS.
Separate Rates
In order to obtain separate-rate status in an NME AD investigation,
exporters and producers must submit a separate-rate application.\26\
The specific requirements for submitting a separate-rate application in
the PRC AD investigation are outlined in detail in the application
itself, which is available on the Department's Web site at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice.\27\ Exporters and producers who submit a separate-rate
application and have been selected as mandatory respondents will be
eligible for consideration for separate-rate status only if they
respond to all parts of the Department's AD questionnaire as mandatory
respondents. The Department requires that companies from the PRC submit
a response to both the Q&V questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. Companies not filing a timely
Q&V response will not receive separate rate consideration.
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\26\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
Involving Non-Market Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\27\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
In an NME AD investigation, the Department will calculate
combination rates for certain respondents that are eligible for a
separate rate in that investigation. The Separate Rates and Combination
Rates Bulletin states:
{W{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that the Department will
now assign in its NME Investigation 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.\28\
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\28\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
Involving Non-Market Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
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Initiation of Countervailing Duty Investigation
Section 702(a) of the Act states that the Department shall initiate
a CVD investigation whenever it determines that a formal investigation
is warranted into the question of whether the elements necessary for an
imposition of a duty under section 701(a) of the Act exist based on
information available to the Department.
On the basis of information available to the Department, producers/
exporters of common alloy sheet in the PRC may benefit from
countervailable subsidies bestowed by the Government of the PRC.
Pursuant to section 702(a) of the Act, on the basis of information
available to the Department, we are initiating a CVD investigation to
determine whether manufacturers, producers, or exporters of common
alloy sheet from the PRC receive countervailable subsidies from the
Government of the PRC. Based on information available to the
Department, we find that there is sufficient information to initiate a
CVD investigation on 26 programs. For a full discussion of the basis
for our decision to initiate on each program, see CVD Initiation Memo.
In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary CVD
determination no later than 65 days after the date of this initiation.
Respondent Selection in CVD Investigation
Following standard practice in CVD investigations, in the event the
Department determines that the number of producers/exporters of common
alloy sheet in the PRC is large and it cannot individually examine each
company based upon the Department's resources, where appropriate, the
Department intends to select respondents based on U.S. Customs and
Border Protection (CBP) data for U.S. imports of common alloy sheet
during the POI under the appropriate HTSUS subheadings listed in the
``Scope of the Investigations,'' in the Appendix. We intend to release
the CBP data under APO to all parties with access to information
protected by APO within five business days of this initiation.
Interested parties may submit comments regarding the CBP data and
respondent selection by 5:00 p.m. ET seven calendar days after the
placement of the CBP data on the record of this investigation. The
Department will not accept rebuttal comments regarding the CBP data or
respondent selection.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found at https://enforcement.trade.gov/apo/.
Comments must be filed electronically using ACCESS. An
electronically-filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above.
If respondent selection is appropriate, we intend to
[[Page 57218]]
finalize our decisions regarding respondent selection within 20 days of
publication of this notice.
ITC Notification
We will notify the ITC of our initiation, as required by sections
702(d) and 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the ITC receives notice from the Department that an
investigation has been initiated, whether there is a reasonable
indication that imports of common alloy sheet from the PRC are
materially injuring or threatening material injury to a U.S.
industry.\29\ A negative ITC determination will result in the
investigations being terminated; \30\ otherwise, these investigations
will proceed according to statutory and regulatory time limits.
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\29\ See sections 793(a) and 733(a) of the Act.
\30\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by the Department; and (v) evidence other than
factual information described in (i)-(iv). Any party, when submitting
factual information, must specify under which subsection of 19 CFR
351.102(b)(21) the information is being submitted \31\ and, if the
information is submitted to rebut, clarify, or correct factual
information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct.\32\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Interested parties should review the
regulations prior to submitting factual information in these
investigations.
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\31\ See 19 CFR 351.301(b).
\32\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351 expires. For submissions that
are due from multiple parties simultaneously, an extension request will
be considered untimely if it is filed after 10:00 a.m. ET on the due
date. Under certain circumstances, we may elect to specify a different
time limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in the letter or memorandum setting
forth the deadline (including a specified time) by which extension
requests must be filed to be considered timely. An extension request
must be made in a separate, stand-alone submission; under limited
circumstances we will grant untimely-filed requests for the extension
of time limits. Review Extension of Time Limits; Final Rule, 78 FR
57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual
information in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\33\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials, as well as their
representatives. Investigations initiated on or after August 16, 2013,
and other segments of any AD or CVD proceedings initiated on or after
August 16, 2013, should use the formats for the revised certifications
provided at the end of the Final Rule.\34\ The Department intends to
reject factual submissions if the submitting party does not comply with
applicable revised certification requirements.
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\33\ See section 782(b) of the Act.
\34\ See Certification of Factual Information to Import
Administration during Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective order (APO) 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 (January 22, 2008).
Parties wishing to participate in these investigations should
ensure that they meet the requirements of these procedures (e.g., the
filing of letters of appearance as discussed in 19 CFR 351.103(d)).
Under the Trade Preferences Extension Act of 2015, numerous
amendments to the AD and CVD laws were made.\35\ The 2015 law does not
specify dates of application for those amendments. On August 6, 2015,
the Department published an interpretative rule, in which it announced
the applicability dates for each amendment to the Act, except for
amendments contained in section 771(7) of the Act, which relate to
determinations of material injury by the ITC.\36\ The amendments to
sections 771(15), 773, 776, and 782 of the Act are applicable to all
determinations made on or after August 6, 2015, and, therefore, apply
to these AD and CVD investigations.\37\
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\35\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015).
\36\ See Dates of Application of Amendments to the Antidumping
and Countervailing Duty Laws Made by the Trade Preferences Extension
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
\37\ Id. at 46794-95. The 2015 amendments may be found at
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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This notice is issued and published pursuant to sections 702(a),
732(a), and 777(i) of the Act and 19 CFR 351.201(b).
Dated: November 28, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Investigations
The merchandise covered by these investigations is aluminum
common alloy sheet (common alloy sheet), which is a flat-rolled
aluminum product having a thickness of 6.3 mm or less, but greater
than 0.2 mm, in coils or cut-to-length, regardless of width. Common
alloy sheet within the scope of these investigations includes both
not clad aluminum sheet, as well as multi-alloy, clad aluminum
sheet. With respect to not clad aluminum sheet, common alloy sheet
is manufactured from a 1XXX-, 3XXX-, or 5XXX-series alloy as
designated by the Aluminum Association. With respect to multi-alloy,
clad aluminum sheet, common alloy sheet is produced from a 3XXX-
series core, to which cladding layers are applied to either one or
both sides of the core.
Common alloy sheet may be made to ASTM specification B209-14,
but can also be made to other specifications. Regardless of
specification, however, all common alloy sheet meeting the scope
description is included in the scope. Subject merchandise includes
common alloy sheet that has been further processed in a third
country, including but not limited to annealing,
[[Page 57219]]
tempering, painting, varnishing, trimming, cutting, punching, and/or
slitting, or any other processing that would not otherwise remove
the merchandise from the scope of the investigations if performed in
the country of manufacture of the common alloy sheet.
Excluded from the scope of these investigations is aluminum can
stock, which is suitable for use in the manufacture of aluminum
beverage cans, lids of such cans, or tabs used to open such cans.
Aluminum can stock is produced to gauges that range from 0.200 mm to
0.292 mm, and has an H-19, H-41, H-48, or H-391 temper. In addition,
aluminum can stock has a lubricant applied to the flat surfaces of
the can stock to facilitate its movement through machines used in
the manufacture of beverage cans. Aluminum can stock is properly
classified under Harmonized Tariff Schedule of the United States
(HTSUS) subheadings 7606.12.3045 and 7606.12.3055.
Where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set for the above.
Common alloy sheet is currently classifiable under HTSUS
subheadings 7606.11.3060, 7606.11.6000, 7606.12.3090, 7606.12.6000,
7606.91.3090, 7606.91.6080, 7606.92.3090, and 7606.92.6080. Further,
merchandise that falls within the scope of these investigations may
also be entered into the United States under HTSUS subheadings
7606.11.3030, 7606.12.3030, 7606.91.3060, 7606.91.6040,
7606.92.3060, 7606.92.6040, 7607.11.9090. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of these investigations is
dispositive.
[FR Doc. 2017-26068 Filed 12-1-17; 8:45 am]
BILLING CODE 3510-DS-P
