Countervailing Duty Investigation of Certain Aluminum Foil From the People's Republic of China: Final Affirmative Determination, 9274-9277 [2018-04402]

Download as PDF 9274 Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices sradovich on DSK3GMQ082PROD with NOTICES bed units; 18 (16) certain shoe cabinets; 19 and (17) certain bed bases.20 Imports of subject merchandise are classified under subheadings 9403.50.9042 and 9403.50.9045 of the HTSUS as ‘‘wooden . . . beds’’ and under subheading 9403.50.9080 of the HTSUS as ‘‘other . . . wooden furniture of a kind used in the bedroom.’’ In addition, wooden headboards for beds, wooden footboards for beds, wooden side rails for beds, and wooden canopies for beds may be entered under subheadings 9403.90.7005 or 9403.90.7080 of the HTSUS. Subject merchandise may also be entered under subheadings 9403.50.9041, 9403.60.8081, 9403.20.0018, or 9403.90.8041. Further, framed glass mirrors may be entered under subheading 7009.92.1000 or 7009.92.5000 of the HTSUS as ‘‘glass generally designed for the purpose of storing children’s items such as toys, books, and playthings. See Wooden Bedroom Furniture from the People’s Republic of China: Final Results of Changed Circumstances Review and Determination to Revoke Order in Part, 74 FR 8506 (February 25, 2009). Further, as determined in the scope ruling memorandum ‘‘Wooden Bedroom Furniture from the People’s Republic of China: Scope Ruling on a White Toy Box,’’ dated July 6, 2009, the dimensional ranges used to identify the toy boxes that are excluded from the wooden bedroom furniture order apply to the box itself rather than the lid. 18 Excluded from the scope are certain enclosable wall bed units, also referred to as murphy beds, which are composed of the following three major sections: (1) A metal wall frame, which attaches to the wall and uses coils or pistons to support the metal mattress frame; (2) a metal frame, which has euro slats for supporting a mattress and two legs that pivot; and (3) wood panels, which attach to the metal wall frame and/or the metal mattress frame to form a cabinet to enclose the wall bed when not in use. Excluded enclosable wall bed units are imported in ready-to-assemble format with all parts necessary for assembly. Enclosable wall bed units do not include a mattress. Wood panels of enclosable wall bed units, when imported separately, remain subject to the order. 19 Excluded from the scope are certain shoe cabinets 31.5–33.5 inches wide by 15.5–17.5 inches deep by 34.5–36.5 inches high. They are designed strictly to store shoes, which are intended to be aligned in rows perpendicular to the wall along which the cabinet is positioned. Shoe cabinets do not have drawers, rods, or other indicia for the storage of clothing other than shoes. The cabinets are not designed, manufactured, or offered for sale in coordinated groups or sets and are made substantially of wood, have two to four shelves inside them, and are covered by doors. The doors often have blinds that are designed to allow air circulation and release of bad odors. The doors themselves may be made of wood or glass. The depth of the shelves does not exceed 14 inches. Each shoe cabinet has doors, adjustable shelving, and ventilation holes. 20 Excluded from the scope are certain bed bases consisting of: (1) A wooden box frame, (2) three wooden cross beams and one perpendicular center wooden support beam, and (3) wooden slats over the beams. These bed bases are constructed without inner springs and/or coils and do not include a headboard, footboard, side rails, or mattress. The bed bases are imported unassembled. VerDate Sep<11>2014 19:25 Mar 02, 2018 Jkt 244001 mirrors . . . framed.’’ The order covers all wooden bedroom furniture meeting the above description, regardless of tariff classification. Although the HTSUS subheadings are provided for convenience and customs purposes, our written description of the scope of this proceeding is dispositive. Filing Requirements All submissions to Commerce must be filed electronically using ACCESS.21 An electronically filed document must be received successfully in its entirety by the time and date it is due. Documents exempted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/ Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, and stamped with the date of receipt by the applicable deadlines. Letters of Appearance and Administrative Protective Order Interested parties that wish to participate in this segment of the proceeding and be added to the public service list for this segment of the proceeding must file a letter of appearance in accordance with 19 CFR 351.103(d)(1), with one exception: the parties publicly identified by CBP in the covered merchandise referral (referenced above) are not required to submit a letter of appearance, and will be added to the public service list for this segment of the proceeding by Commerce. Commerce placed an APO on the record on January 11, 2018,22 and established the APO service list for use in this segment. Commerce intends to place the business proprietary versions of the documents contained in the covered merchandise referral on the record of this proceeding in ACCESS within five days of publication of this notice. Interested parties must submit applications for disclosure under the 21 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, effective 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%20Filing%20 Procedures.pdf. 22 See the Administrative Protective Order ‘‘In the Matter of the Scope Inquiry of the Antidumping Duty Order on Wooden Bedroom Furniture from the People’s Republic of China (A–570–890) (CBP EAPA Inv. No. 7189)’’, dated January 11, 2018. PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 APO in accordance with the procedures outlined in Commerce’s regulations at 19 CFR 351.305. Those procedures apply to this segment of the proceeding, with one exception: APO applicants representing the parties that have been identified by CBP as an importer in the covered merchandise referral (referenced above) are exempt from the additional filing requirements for importers pursuant to 19 CFR 351.305(d). Dated: February 22, 2018. Christian Marsh, Deputy Assistant Secretary for Enforcement and Compliance. [FR Doc. 2018–04392 Filed 3–2–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–054] Countervailing Duty Investigation of Certain Aluminum Foil From the People’s Republic of China: Final Affirmative Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain aluminum foil (aluminum foil) from the People’s Republic of China (China). The period of investigation is January 1, 2016, through December 31, 2016. For information on the estimated subsidy rates, see the ‘‘Final Determination and Suspension of Liquidation’’ section of this notice. DATES: Applicable March 5, 2018. FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone (202) 482–3813. SUPPLEMENTARY INFORMATION: AGENCY: Background Commerce published the Preliminary Determination on August 14, 2017.1 A summary of the events that occurred since Commerce published the Preliminary Determination, as well as a full discussion of the issues raised by 1 See Certain Aluminum Foil from the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, 82 FR 37844 (August 14, 2017) (Preliminary Determination) and accompanying Preliminary Decision Memorandum (Preliminary Decision Memorandum). E:\FR\FM\05MRN1.SGM 05MRN1 Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices parties for this final determination, may be found in the Issues and Decision Memorandum 2 issued concurrently with this notice. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed Issues and Decision Memorandum and the electronic version are identical in content. Scope Comments We invited parties to comment on Commerce’s Preliminary Scope Memorandum.3 Commerce has reviewed the briefs submitted by interested parties, considered the arguments therein, and has made changes to the scope of the investigation. For further discussion, see Commerce’s Final Scope Decision Memorandum.4 Methodology Commerce is conducting this countervailing duty (CVD) investigation in accordance with section 701 of the Tariff Act of 1930, as amended (Act). For each of the subsidy programs found to be countervailable, we determine that there is a subsidy (i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient) and that the subsidy is specific. For a full description of the methodology underlying our final determination, see the Issues and Decisions Memorandum. Scope of the Investigation The merchandise covered by this investigation is aluminum foil from China. For a complete description of the scope of this investigation, see Appendix II. sradovich on DSK3GMQ082PROD with NOTICES 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Aluminum Foil from the People’s Republic of China,’’ dated concurrently with this determination and hereby adopted by this notice (Issues and Decision Memorandum). 3 See Memorandum, ‘‘Certain Aluminum Foil from the People’s Republic of China: Scope Comments Decision Memorandum for the Preliminary Determinations,’’ dated October 26, 2017, and filed to ACCESS on October 30, 2017. 4 See Memorandum, ‘‘Certain Aluminum Foil from the People’s Republic of China: Final Scope Decision Memorandum,’’ dated concurrently with this memorandum. VerDate Sep<11>2014 19:25 Mar 02, 2018 Jkt 244001 Verification As provided in section 782(i) of the Act, in November 2017, we conducted verification of the questionnaire responses submitted by Dingsheng Aluminum (Hong Kong) Trading Co., Ltd. (Dingsheng HK) and Jiangsu Zhongji Lamination Materials Co., Ltd. (Zhongji). We issued verification reports on November 25, 2017.5 We used standard verification procedures, including an examination of relevant accounting and financial records, and original source documents provided by Dingsheng HK and Zhongji. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs submitted by the parties, are discussed in the Issues and Decision Memorandum. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice at Appendix I. Use of Adverse Facts Available (AFA) For purposes of this final determination, we relied on facts available, and because certain respondents did not act to the best of their ability in responding to Commerce’s requests for information, we drew an adverse inference, where appropriate, in selecting from among the facts otherwise available.6 The subsidy rates for Loften Aluminum (Hong Kong) Limited and Manakin Industries, LLC, are based totally on AFA. A full discussion of our decision to rely on adverse facts available is presented in the ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ section of the Issues and Decisions Memorandum. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, and minor corrections presented at verification, we made certain changes to the respondents’ subsidy rate calculations since the Preliminary Determination. For a discussion of these changes, see the Issues and Decision 5 See Commerce Memoranda, ‘‘Verification of the Questionnaire Responses of Dingsheng Aluminum Industries (Hong Kong) Trading Co., Ltd.: Countervailing Duty Investigation of Certain Aluminum Foil from the People’s Republic of China,’’ (Dingsheng Verification Report) and ‘‘Verification of the Questionnaire Responses of Jiangsu Zhongji Lamination Materials Co., Ltd.: Countervailing Duty Investigation of Certain Aluminum Foil from the People’s Republic of China,’’ (Zhongji Verification Report), both dated November 25, 2017. 6 See sections 776(a) and (b) of the Act. PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 9275 Memorandum and the Final Calculation Memoranda.7 All-Others Rate In accordance with section 705(c)(1)(B)(i) of the Act, we calculated an individual rate for each producer/ exporter of the subject merchandise individually investigated. In accordance with section 705(c)(5)(A) of the Act, for companies not individually investigated, we apply an ‘‘all-others’’ rate, which is normally calculated by weighting the subsidy rates of the individual companies selected as mandatory respondents by those companies’ exports of the subject merchandise to the United States. Under section 705(c)(5)(A)(i) of the Act, the ‘‘all-others’’ rate excludes zero and de minimis rates calculated for the exporters and producers individually investigated as well as rates based entirely on facts otherwise available. Where the rates for the individually investigated companies are all zero or de minimis, or determined entirely using facts otherwise available, section 705(c)(5)(A)(ii) of the Act instructs Commerce to establish an ‘‘all-others’’ rate using ‘‘any reasonable method.’’ Pursuant to section 705(c)(5)(A)(i) of the Act, we have calculated the ‘‘allothers’’ rate using the subsidy rates of Dingsheng HK and Zhongji, the only two mandatory respondents not receiving a subsidy rate based totally on section 776 of the Act. However, we have not calculated the ‘‘all-others’’ rate by weight-averaging these two rates because doing so risks disclosure of proprietary information. Therefore, and consistent with Commerce’s practice, for the ‘‘all-others’’ rate, we calculated a simple average of these two mandatory respondents’ subsidy rates. Final Determination Company Dingsheng Aluminum Industries (Hong Kong) Trading Co., Ltd.8 ........................... Jiangsu Zhongji Lamination Materials Co., Ltd.9 ........... Loften Aluminum (Hong Kong) Limited .................... Manakin Industries, LLC 10 ... Subsidy rate (percent) 19.98 17.14 80.97 80.97 7 See Memoranda, ‘‘Countervailing Duty Investigation of Certain Aluminum Foil from the People’s Republic of China: Final Determination Calculation Memorandum for Dingsheng Aluminum (Hong Kong) Trading Co., Ltd.,’’ dated February 26, 2018 (Dingsheng Final Calculation Memorandum) and ‘‘Countervailing Duty Investigation of Certain Aluminum Foil from the People’s Republic of China: Final Determination Calculation Memorandum for Zhongji Lamination Materials Co., Ltd,’’ dated February 26, 2018 (Zhongji Final Calculation Memorandum). E:\FR\FM\05MRN1.SGM 05MRN1 9276 Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices Company All-Others .............................. Subsidy rate (percent) 18.56 Disclosure We intend to disclose to parties in this proceeding the calculations performed for this final determination within five days of the date of public announcement of our final determination, in accordance with 19 CFR 351.224(b). Suspension of Liquidation sradovich on DSK3GMQ082PROD with NOTICES As a result of our Preliminary Determination, and pursuant to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of merchandise under consideration from the PRC that were entered or withdrawn from warehouse, for consumption, on or after August 14, 2017, the date of publication of the Preliminary Determination in the Federal Register. In accordance with section 703(d) of the Act, on December 12, 2017, we instructed CBP to discontinue the suspension of liquidation of all entries at that time. If the U.S. International Trade Commission (the ITC) issues a final affirmative injury determination, we will issue a CVD order, will reinstate the suspension of liquidation under section 706(a) of the Act, and will require a cash deposit of estimated CVDs for such entries of subject merchandise in the amounts indicated above. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the 8 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Dingsheng HK: Jiangsu Dingsheng New Materials Joint-Stock Co., Ltd.; Hangzhou Teemful Aluminum Co., Ltd.; Hangzhou Five Star Aluminum Co., Ltd.; Hangzhou DingCheng Aluminum Co., Ltd.; Luoyang Longding Aluminum Co., Ltd.; Hangzhou Dingsheng Industrial Group Co., Ltd.; Hangzhou Dingsheng Import & Export Co., Ltd.; and Walson (HK) Trading Co., Limited. 9 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Zhongji: Shantou Wanshun Package Material Stock Co., Ltd.; Jiangsu Huafeng Aluminum Industry Co., Ltd.; and Jiangsu Zhongji Lamination Materials Co., (HK) Ltd. 10 As discussed in the Preliminary Decision Memorandum, Commerce finds that Manakin Industries and Suzhou Manakin Aluminum Processing Technology Co., Ltd., effectively function by joint operation as a trading company. Therefore, the rate for Manakin Industries also applies to Suzhou Manakin Aluminum Processing Technology Co., Ltd. For additional information, see Preliminary Decision Memorandum and Issues and Decision Memorandum. VerDate Sep<11>2014 19:25 Mar 02, 2018 Jkt 244001 suspension of liquidation will be refunded or canceled. International Trade Commission Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all nonprivileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance. Notification Regarding Administrative Protective Orders This notice also serves as a reminder to parties subject to administrative protective orders (APOs) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or 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. Return or Destruction of Proprietary Information In the event the ITC issues a final negative injury determination, this notice serves as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a violation subject to sanction. Notification to Interested Parties This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act. Dated: February 26, 2018. Prentiss Lee Smith, Deputy Assistant Secretary for Policy and Negotiations. Appendix I List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 IV. Scope Comments V. Application of the Countervailing Duty Law to Imports from the PRC VI. Subsidies Valuation Information VII. Benchmarks and Discount Rates VIII. Use of Facts Otherwise Available and Adverse Inferences IX. Analysis of Programs X. Analysis of Comments Comment 1: Whether Commerce Erred in Its Treatment of Manakin Comment 2: Whether the Record Supports a Finding of Policy Lending Comment 3: Whether Chinese Commercial Banks Are Government Authorities Comment 4: Whether Commerce’s Policy Lending Benchmark Interest Rate Computations Are Supported by the Record and Lawful Comment 5: Whether Commerce’s Investigation of Uninitiated Programs Is Lawful Comment 6: Whether Commerce Should Change Its Export Buyer’s Credit Determination Comment 7: Whether Commerce Should Use the USD Interest Rate Benchmark for Hong Kong Loans Comment 8: Whether Loans Issued in Hong Kong to Hong Kong Companies Are Countervailable Comment 9: Whether Commerce Should Revise Dingsheng’s Sales Denominator Comment 10: Whether Commerce Should Correct Calculation Errors for Dingsheng’s Loans Comment 11: Whether Commerce Should Correct Calculation Errors for Dingsheng’s Aluminum and Coal Purchases Comment 12: Whether Commerce Should Place Interest Rate Benchmarks on the Record That Are Contemporaneous to the POI Comment 13: Whether Commerce Should Rely on AFA for Subsidies Discovered at Zhongji’s Verification Comment 14: Whether Commerce Should Grant Zhongji an Export Value Adjustment Comment 15: Whether Commerce Improperly Rejected Dingsheng’s Benchmark Data Comment 16: Whether Commerce Should Revise the Benchmarks for Primary Aluminum Comment 17: Whether the GOC Provided Sufficient Evidence To Find That Input Suppliers Were Not Government Authorities Comment 18: Whether CCP Affiliations or Activities by Company Officials Make a Company a Government Authority Comment 19: Whether the Primary Aluminum and Steam Coal for LTAR Programs Are Specific Comment 20: Whether Commerce Must Use a Tier-One Benchmark for the Primary Aluminum and Steam Coal for LTAR Programs Comment 21: Whether Dingsheng’s Income Tax Deductions for R&D Expenses Are Understated Comment 22: Whether Commerce Selected the Highest Electricity Rate Benchmarks Comment 23: Whether Commerce Should Apply AFA for Electricity E:\FR\FM\05MRN1.SGM 05MRN1 Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices Comment 24: Whether Commerce Should Adjust the Electricity Benchmark for VAT Comment 25: Whether Electricity Constitutes General Infrastructure and Provides a Financial Contribution Comment 26: Whether Commerce Should Rely on Xeneta Data for Freight Benchmark Comment 27: Whether Commerce Should Find Non-Use of Steam Coal XI. Recommendation Appendix II Scope of the Investigation The merchandise covered by this investigation is aluminum foil having a thickness of 0.2 mm or less, in reels exceeding 25 pounds, regardless of width. Aluminum foil is made from an aluminum alloy that contains more than 92 percent aluminum. Aluminum foil may be made to ASTM specification ASTM B479, but can also be made to other specifications. Regardless of specification, however, all aluminum foil meeting the scope description is included in the scope, including aluminum foil to which lubricant has been applied to one or both sides of the foil. Excluded from the scope of this investigation is aluminum foil that is backed with paper, paperboard, plastics, or similar backing materials on one side or both sides of the aluminum foil, as well as etched capacitor foil and aluminum foil that is cut to shape. 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 forth above. The products under investigation are currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7607.11.3000, 7607.11.6000, 7607.11.9030, 7607.11.9060, 7607.11.9090, and 7607.19.6000. Further, merchandise that falls within the scope of this proceeding may also be entered into the United States under HTSUS subheadings 7606.11.3060, 7606.11.6000, 7606.12.3045, 7606.12.3055, 7606.12.3090, 7606.12.6000, 7606.91.3090, 7606.91.6080, 7606.92.3090, and 7606.92.6080. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive. [FR Doc. 2018–04402 Filed 3–2–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE sradovich on DSK3GMQ082PROD with NOTICES International Trade Administration [A–570–028] Hydrofluorocarbon Blends From the People’s Republic of China: Notice of Covered Merchandise Referral Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: VerDate Sep<11>2014 19:25 Mar 02, 2018 Jkt 244001 Pursuant to the Enforce and Protect Act of 2015 (EAPA), the Department of Commerce (Commerce) received a covered merchandise referral from U.S. Customs and Border Protection (CBP) in connection with a CBP Enforce and Protect Act (EAPA) investigation concerning the antidumping duty (AD) order on hydrofluorocarbon (HFC) blends from the People’s Republic of China (China). In accordance with EAPA, Commerce intends to determine whether the merchandise subject to the referral is covered by the scope of the order and promptly transmit its determination to CBP. Commerce is providing notice of the referral and inviting participation from interested parties. SUMMARY: DATES: Applicable March 5, 2018. FOR FURTHER INFORMATION CONTACT: Manuel Rey at (202) 482–5518, AD/CVD Operations Office II, Enforcement & Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: Background On February 24, 2016, the Trade Facilitation and Trade Enforcement Act of 2015 was signed into law, which contains Title IV-Prevention of Evasion of Antidumping and Countervailing Duty Orders (short title ‘‘Enforce and Protect Act of 2015’’ or ‘‘EAPA’’) (Pub. L. 114–125, 130 Stat. 122, 155, Feb. 24, 2016). Effective August 22, 2016, section 421 of the EAPA added section 517 to the Tariff Act of 1930, as amended (the Act), which establishes a formal process for CBP to investigate allegations of the evasion of antidumping and countervailing duty (AD/CVD) orders. Section 517(b)(4)(A) of the Act provides a procedure whereby if, during the course of an EAPA investigation, CBP is unable to determine whether the merchandise at issue is covered merchandise within the meaning of section 517(a)(3) of the Act, it shall refer the matter to Commerce to make such a determination. Section 517(a)(3) of the Act defines covered merchandise as merchandise that is subject to an antidumping duty order issued under section 736 of the Act or a countervailing duty order issued under section 706 of the Act. Section 517(b)(4)(B) of the Act states that Commerce, after receiving a covered merchandise referral from CBP, shall determine whether the merchandise is covered merchandise and promptly transmit its determination to CBP. The Act does not establish a deadline within PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 9277 which Commerce must issue its determination. On December 4, 2017, Commerce received a covered merchandise referral from CBP regarding CBP EAPA Investigation No. 7212 1 which concerns the AD order on HFCs from China.2 Specifically, based on an allegation by RMS of Georgia d/b/a Choice Refrigerants, CBP has requested that Commerce issue a determination as to whether certain merchandise imported by LM Supply, Inc. (LM Supply) is subject to the AD order on HFCs from China. Specifically, CBP asked Commerce to clarify: (1) If the scope exclusion for Choice® R–421A is limited to only merchandise that is licensed by the rights holder or does it apply to any HFC blends that satisfy the terms of the patents, and (2) if the scope exclusion is limited to only that merchandise that also carries the trademarks indicated in the scope exclusion. Notification to Interested Parties Commerce is hereby notifying interested parties that it has received the covered merchandise referral referenced above, will begin a new segment of the proceeding, and intends to issue a determination regarding whether the merchandise subject to the referral is covered merchandise within the meaning of section 517(a)(3) of the Act. Additionally, Commerce intends to provide interested parties with the opportunity to participate in this segment of the proceeding, including through the submission of comments, and, if appropriate, new factual information and verification. Specifically, Commerce will notify parties on the segment-specific service list for this segment of the proceeding of a schedule for comments. In addition, Commerce may request factual information from any person to assist in making its determination and may verify submissions of factual information, if Commerce determines that such verification is appropriate. Commerce intends to issue a final determination within 120 days of the publication of this notice (this deadline 1 See Letter from CBP, ‘‘EAPA Case Number: 7212; Scope Referral Request for merchandise under EAPA Investigation 7212, imported by LM Supply, Inc. and concerning the investigation of evasion of the antidumping duty order on hydrofluorocarbon blends from the People’s Republic of China (A–570–028),’’ dated December 4, 2017. This document and any supporting documents will be available electronically on Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS) within five days of publication of this notice. 2 See Hydrofluorocarbon Blends from the People’s Republic of China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016). E:\FR\FM\05MRN1.SGM 05MRN1

Agencies

[Federal Register Volume 83, Number 43 (Monday, March 5, 2018)]
[Notices]
[Pages 9274-9277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04402]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-054]


Countervailing Duty Investigation of Certain Aluminum Foil From 
the People's Republic of China: Final Affirmative Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain aluminum foil (aluminum foil) from the People's Republic of 
China (China). The period of investigation is January 1, 2016, through 
December 31, 2016. For information on the estimated subsidy rates, see 
the ``Final Determination and Suspension of Liquidation'' section of 
this notice.

DATES: Applicable March 5, 2018.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, AD/CVD Operations, 
Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-3813.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination on August 14, 
2017.\1\ A summary of the events that occurred since Commerce published 
the Preliminary Determination, as well as a full discussion of the 
issues raised by

[[Page 9275]]

parties for this final determination, may be found in the Issues and 
Decision Memorandum \2\ issued concurrently with this notice. The 
Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, and 
is available to all parties in the Central Records Unit, Room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic version are identical in content.
---------------------------------------------------------------------------

    \1\ See Certain Aluminum Foil from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, 82 
FR 37844 (August 14, 2017) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum (Preliminary Decision 
Memorandum).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Aluminum Foil from the People's Republic of China,'' dated 
concurrently with this determination and hereby adopted by this 
notice (Issues and Decision Memorandum).
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Scope Comments

    We invited parties to comment on Commerce's Preliminary Scope 
Memorandum.\3\ Commerce has reviewed the briefs submitted by interested 
parties, considered the arguments therein, and has made changes to the 
scope of the investigation. For further discussion, see Commerce's 
Final Scope Decision Memorandum.\4\
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    \3\ See Memorandum, ``Certain Aluminum Foil from the People's 
Republic of China: Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated October 26, 2017, and filed to 
ACCESS on October 30, 2017.
    \4\ See Memorandum, ``Certain Aluminum Foil from the People's 
Republic of China: Final Scope Decision Memorandum,'' dated 
concurrently with this memorandum.
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Methodology

    Commerce is conducting this countervailing duty (CVD) investigation 
in accordance with section 701 of the Tariff Act of 1930, as amended 
(Act). For each of the subsidy programs found to be countervailable, we 
determine that there is a subsidy (i.e., a financial contribution by an 
``authority'' that gives rise to a benefit to the recipient) and that 
the subsidy is specific. For a full description of the methodology 
underlying our final determination, see the Issues and Decisions 
Memorandum.

Scope of the Investigation

    The merchandise covered by this investigation is aluminum foil from 
China. For a complete description of the scope of this investigation, 
see Appendix II.

Verification

    As provided in section 782(i) of the Act, in November 2017, we 
conducted verification of the questionnaire responses submitted by 
Dingsheng Aluminum (Hong Kong) Trading Co., Ltd. (Dingsheng HK) and 
Jiangsu Zhongji Lamination Materials Co., Ltd. (Zhongji). We issued 
verification reports on November 25, 2017.\5\ We used standard 
verification procedures, including an examination of relevant 
accounting and financial records, and original source documents 
provided by Dingsheng HK and Zhongji.
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    \5\ See Commerce Memoranda, ``Verification of the Questionnaire 
Responses of Dingsheng Aluminum Industries (Hong Kong) Trading Co., 
Ltd.: Countervailing Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China,'' (Dingsheng Verification 
Report) and ``Verification of the Questionnaire Responses of Jiangsu 
Zhongji Lamination Materials Co., Ltd.: Countervailing Duty 
Investigation of Certain Aluminum Foil from the People's Republic of 
China,'' (Zhongji Verification Report), both dated November 25, 
2017.
---------------------------------------------------------------------------

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the parties, are discussed in 
the Issues and Decision Memorandum. A list of the issues that parties 
raised, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available (AFA)

    For purposes of this final determination, we relied on facts 
available, and because certain respondents did not act to the best of 
their ability in responding to Commerce's requests for information, we 
drew an adverse inference, where appropriate, in selecting from among 
the facts otherwise available.\6\ The subsidy rates for Loften Aluminum 
(Hong Kong) Limited and Manakin Industries, LLC, are based totally on 
AFA. A full discussion of our decision to rely on adverse facts 
available is presented in the ``Use of Facts Otherwise Available and 
Adverse Inferences'' section of the Issues and Decisions Memorandum.
---------------------------------------------------------------------------

    \6\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum and the Final Calculation Memoranda.\7\
---------------------------------------------------------------------------

    \7\ See Memoranda, ``Countervailing Duty Investigation of 
Certain Aluminum Foil from the People's Republic of China: Final 
Determination Calculation Memorandum for Dingsheng Aluminum (Hong 
Kong) Trading Co., Ltd.,'' dated February 26, 2018 (Dingsheng Final 
Calculation Memorandum) and ``Countervailing Duty Investigation of 
Certain Aluminum Foil from the People's Republic of China: Final 
Determination Calculation Memorandum for Zhongji Lamination 
Materials Co., Ltd,'' dated February 26, 2018 (Zhongji Final 
Calculation Memorandum).
---------------------------------------------------------------------------

All-Others Rate

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated.
    In accordance with section 705(c)(5)(A) of the Act, for companies 
not individually investigated, we apply an ``all-others'' rate, which 
is normally calculated by weighting the subsidy rates of the individual 
companies selected as mandatory respondents by those companies' exports 
of the subject merchandise to the United States. Under section 
705(c)(5)(A)(i) of the Act, the ``all-others'' rate excludes zero and 
de minimis rates calculated for the exporters and producers 
individually investigated as well as rates based entirely on facts 
otherwise available. Where the rates for the individually investigated 
companies are all zero or de minimis, or determined entirely using 
facts otherwise available, section 705(c)(5)(A)(ii) of the Act 
instructs Commerce to establish an ``all-others'' rate using ``any 
reasonable method.''
    Pursuant to section 705(c)(5)(A)(i) of the Act, we have calculated 
the ``all-others'' rate using the subsidy rates of Dingsheng HK and 
Zhongji, the only two mandatory respondents not receiving a subsidy 
rate based totally on section 776 of the Act. However, we have not 
calculated the ``all-others'' rate by weight-averaging these two rates 
because doing so risks disclosure of proprietary information. 
Therefore, and consistent with Commerce's practice, for the ``all-
others'' rate, we calculated a simple average of these two mandatory 
respondents' subsidy rates.

Final Determination

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Dingsheng Aluminum Industries (Hong Kong) Trading Co.,             19.98
 Ltd.\8\................................................
Jiangsu Zhongji Lamination Materials Co., Ltd.\9\.......           17.14
Loften Aluminum (Hong Kong) Limited.....................           80.97
Manakin Industries, LLC \10\............................           80.97

[[Page 9276]]

 
All-Others..............................................           18.56
------------------------------------------------------------------------

Disclosure
---------------------------------------------------------------------------

    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Dingsheng HK: Jiangsu Dingsheng New Materials Joint-Stock Co., Ltd.; 
Hangzhou Teemful Aluminum Co., Ltd.; Hangzhou Five Star Aluminum 
Co., Ltd.; Hangzhou DingCheng Aluminum Co., Ltd.; Luoyang Longding 
Aluminum Co., Ltd.; Hangzhou Dingsheng Industrial Group Co., Ltd.; 
Hangzhou Dingsheng Import & Export Co., Ltd.; and Walson (HK) 
Trading Co., Limited.
    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Zhongji: Shantou Wanshun Package Material Stock Co., Ltd.; Jiangsu 
Huafeng Aluminum Industry Co., Ltd.; and Jiangsu Zhongji Lamination 
Materials Co., (HK) Ltd.
    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce finds that Manakin Industries and Suzhou Manakin Aluminum 
Processing Technology Co., Ltd., effectively function by joint 
operation as a trading company. Therefore, the rate for Manakin 
Industries also applies to Suzhou Manakin Aluminum Processing 
Technology Co., Ltd. For additional information, see Preliminary 
Decision Memorandum and Issues and Decision Memorandum.
---------------------------------------------------------------------------

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after August 14, 2017, 
the date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, on December 12, 
2017, we instructed CBP to discontinue the suspension of liquidation of 
all entries at that time.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order, will 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and will require a cash deposit of estimated CVDs for such entries 
of subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or 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.

Return or Destruction of Proprietary Information

    In the event the ITC issues a final negative injury determination, 
this notice serves as the only reminder to parties subject to an APO of 
their responsibility concerning the destruction of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials, or conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: February 26, 2018.
Prentiss Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Application of the Countervailing Duty Law to Imports from the 
PRC
VI. Subsidies Valuation Information
VII. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether Commerce Erred in Its Treatment of Manakin
    Comment 2: Whether the Record Supports a Finding of Policy 
Lending
    Comment 3: Whether Chinese Commercial Banks Are Government 
Authorities
    Comment 4: Whether Commerce's Policy Lending Benchmark Interest 
Rate Computations Are Supported by the Record and Lawful
    Comment 5: Whether Commerce's Investigation of Uninitiated 
Programs Is Lawful
    Comment 6: Whether Commerce Should Change Its Export Buyer's 
Credit Determination
    Comment 7: Whether Commerce Should Use the USD Interest Rate 
Benchmark for Hong Kong Loans
    Comment 8: Whether Loans Issued in Hong Kong to Hong Kong 
Companies Are Countervailable
    Comment 9: Whether Commerce Should Revise Dingsheng's Sales 
Denominator
    Comment 10: Whether Commerce Should Correct Calculation Errors 
for Dingsheng's Loans
    Comment 11: Whether Commerce Should Correct Calculation Errors 
for Dingsheng's Aluminum and Coal Purchases
    Comment 12: Whether Commerce Should Place Interest Rate 
Benchmarks on the Record That Are Contemporaneous to the POI
    Comment 13: Whether Commerce Should Rely on AFA for Subsidies 
Discovered at Zhongji's Verification
    Comment 14: Whether Commerce Should Grant Zhongji an Export 
Value Adjustment
    Comment 15: Whether Commerce Improperly Rejected Dingsheng's 
Benchmark Data
    Comment 16: Whether Commerce Should Revise the Benchmarks for 
Primary Aluminum
    Comment 17: Whether the GOC Provided Sufficient Evidence To Find 
That Input Suppliers Were Not Government Authorities
    Comment 18: Whether CCP Affiliations or Activities by Company 
Officials Make a Company a Government Authority
    Comment 19: Whether the Primary Aluminum and Steam Coal for LTAR 
Programs Are Specific
    Comment 20: Whether Commerce Must Use a Tier-One Benchmark for 
the Primary Aluminum and Steam Coal for LTAR Programs
    Comment 21: Whether Dingsheng's Income Tax Deductions for R&D 
Expenses Are Understated
    Comment 22: Whether Commerce Selected the Highest Electricity 
Rate Benchmarks
    Comment 23: Whether Commerce Should Apply AFA for Electricity

[[Page 9277]]

    Comment 24: Whether Commerce Should Adjust the Electricity 
Benchmark for VAT
    Comment 25: Whether Electricity Constitutes General 
Infrastructure and Provides a Financial Contribution
    Comment 26: Whether Commerce Should Rely on Xeneta Data for 
Freight Benchmark
    Comment 27: Whether Commerce Should Find Non-Use of Steam Coal
XI. Recommendation

Appendix II

Scope of the Investigation

    The merchandise covered by this investigation is aluminum foil 
having a thickness of 0.2 mm or less, in reels exceeding 25 pounds, 
regardless of width. Aluminum foil is made from an aluminum alloy 
that contains more than 92 percent aluminum. Aluminum foil may be 
made to ASTM specification ASTM B479, but can also be made to other 
specifications. Regardless of specification, however, all aluminum 
foil meeting the scope description is included in the scope, 
including aluminum foil to which lubricant has been applied to one 
or both sides of the foil.
    Excluded from the scope of this investigation is aluminum foil 
that is backed with paper, paperboard, plastics, or similar backing 
materials on one side or both sides of the aluminum foil, as well as 
etched capacitor foil and aluminum foil that is cut to shape.
    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 forth above. The products under investigation are currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 7607.11.3000, 7607.11.6000, 7607.11.9030, 
7607.11.9060, 7607.11.9090, and 7607.19.6000. Further, merchandise 
that falls within the scope of this proceeding may also be entered 
into the United States under HTSUS subheadings 7606.11.3060, 
7606.11.6000, 7606.12.3045, 7606.12.3055, 7606.12.3090, 
7606.12.6000, 7606.91.3090, 7606.91.6080, 7606.92.3090, and 
7606.92.6080.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope of this 
proceeding is dispositive.

[FR Doc. 2018-04402 Filed 3-2-18; 8:45 am]
 BILLING CODE 3510-DS-P
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