Common Alloy Aluminum Sheet From the People's Republic of China: Initiation of Circumvention Inquiry of the Antidumping and Countervailing Duty Orders; Aluminum Sheet Further Processed in the Republic of Korea, 44779-44781 [2023-14875]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 88, Number 133 (Thursday, July 13, 2023)]
[Notices]
[Pages 44779-44781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14875]


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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 Circumvention Inquiry of the Antidumping and 
Countervailing Duty Orders; Aluminum Sheet Further Processed in the 
Republic of Korea

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

SUMMARY: In response to a request from the Aluminum Association Common 
Alloy Aluminum Sheet Trade Enforcement Working Group and its individual 
members (the domestic industry), the U.S. Department of Commerce 
(Commerce) is initiating a company-specific circumvention inquiry to 
determine whether imports of common alloy aluminum sheet (CAAS) from 
the Republic of Korea (Korea) produced by Gwangyang Aluminum Industries 
Co., Ltd. (Gwangyang Aluminum), which is completed or assembled using 
non-subject flat rolled aluminum having a thickness greater than 6.3 
millimeters (mm) produced by Henan Mingtai Aluminum Industry Co., Ltd. 
(Henan Mingtai) or Zhengzhou Mingtai Industry Co., Ltd. (Zhengzhou 
Mingtai) in the People's Republic of China (China), is circumventing 
the antidumping duty (AD) and countervailing duty (CVD) orders on CAAS 
from China.

DATES: Applicable July 13, 2023.

FOR FURTHER INFORMATION CONTACT: Frank Schmitt, 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) 482-4880.

SUPPLEMENTARY INFORMATION: 

Background

    On May 23, 2023, the domestic industry \1\ filed a circumvention 
inquiry

[[Page 44780]]

request alleging that CAAS from Korea produced by Gwangyang Aluminum, 
assembled or completed using flat rolled aluminum having a thickness 
greater than 6.3 mm (aluminum plated) produced by Henan Mingtai \2\ in 
China, is circumventing the AD and CVD orders on CAAS from China \3\ 
and, accordingly, should be included in the scope of the Orders.\4\ The 
domestic industry alleges that the further processing in Korea is minor 
or insignificant and otherwise meets the circumvention criteria set 
forth in section 781(b) of the Tariff Act of 1930, as amended (the 
Act), and 19 CFR 351.226(i).
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    \1\ The individual members of the Aluminum Association Common 
Alloy Aluminum Sheet Trade Enforcement Working Group are: Arconic 
Corporation; Commonwealth Rolled Products, Inc.; Constellium Rolled 
Products Ravenswood, LLC; Jupiter Aluminum Corporation; JW Aluminum 
Company; and Novelis Corporation.
    \2\ Commerce previously determined that Henan Mingtai and 
Zhengzhou Mingtai are a single entity. See Antidumping Duty 
Investigation of Common Alloy Aluminum Sheet from the People's 
Republic of China: Affirmative Preliminary Determination of Sales at 
Less-Than-Fair Value, Preliminary Affirmative Determination of 
Critical Circumstances, and Postponement of Final Determination, 83 
FR 29088 (June 2022, 2018), and accompanying Preliminary Decision 
Memorandum at 19, unchanged at Antidumping Duty Investigation of 
Common Alloy Aluminum Sheet from the People's Republic of China: 
Affirmative Final Determination of Sales at Less-Than-Fair Value, 83 
FR 57421 (November 15, 2018). Accordingly, for the purposes of this 
circumvention inquiry, we will consider aluminum plate produced by 
Henan Mingtai and Zhengzhou Mingtai (collectively, Mingtai).
    \3\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Countervailing Duty Order, 84 FR 2157 (February 6, 2019); 
and Common Alloy Aluminum Sheet from the People's Republic of China: 
Antidumping Duty Order, 84 FR 2813 (February 8, 2019) (collectively, 
Orders).
    \4\ Id.
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Scope of the Orders

    The merchandise covered by the Orders 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. A full description of the scope 
of the Orders is provided in the Initiation Checklist.\5\
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    \5\ See Checklist, ``Common Alloy Aluminum Sheet from the 
People's Republic of China,'' dated concurrently with, and hereby 
adopted by, this notice (Initiation Checklist).
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Merchandise Subject to the Circumvention Inquiry

    The circumvention inquiry covers CAAS from Korea produced by 
Gwangyang Aluminum, assembled or completed using flat rolled aluminum 
having a thickness greater than 6.3 mm produced by Mingtai in China, 
and exported to the United States.

Statutory and Regulatory Framework

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested party supporting these allegations.'' The domestic 
industry alleged circumvention pursuant to section 781(b) of the Act 
(merchandise completed or assembled in other foreign countries).
    Section 781(b)(1) of the Act provides that Commerce may find 
circumvention of an AD or CVD order when merchandise of the same class 
or kind subject to the order is completed or assembled in a foreign 
country other than the country to which the order applies. In 
conducting circumvention inquiries, under section 781(b)(1) of the Act, 
Commerce relies on the following criteria: (A) merchandise imported 
into the United States is of the same class or kind as any merchandise 
produced in a foreign country that is the subject of an antidumping or 
countervailing duty order or finding; (B) before importation into the 
United States, such imported merchandise is completed or assembled in 
another foreign country from merchandise which is subject to the order 
or merchandise which is produced in the foreign country that is subject 
to the order; (C) the process of assembly or completion in the foreign 
country referred to in section (B) is minor or insignificant; (D) the 
value of the merchandise produced in the foreign country to which the 
AD or CVD order applies is a significant portion of the total value of 
the merchandise exported to the United States; and (E) the 
administering authority determines that action is appropriate to 
prevent evasion of such order or finding.
    In determining whether or not the process of assembly or completion 
in a third country is minor or insignificant under section 781(b)(1)(C) 
of the Act, section 781(b)(2) of the Act directs Commerce to consider: 
(A) the level of investment in the foreign country; (B) the level of 
research and development in the foreign country; (C) the nature of the 
production process in the foreign country; (D) the extent of production 
facilities in the foreign country and (E) whether or not the value of 
processing performed in the foreign country represents a small 
proportion of the value of the merchandise imported into the United 
States. However, no single factor, by itself, controls Commerce's 
determination of whether the process of assembly or completion in a 
third country is minor or insignificant.\6\ Accordingly, it is 
Commerce's practice to evaluate each of these five factors as they 
exist in the third country, depending on the totality of the 
circumstances of the particular circumvention inquiry.\7\
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    \6\ See Statement of Administrative Action Accompanying the 
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994), 
at 893.
    \7\ See Uncovered Innerspring Units from the People's Republic 
of China: Final Affirmative Determination of Circumvention of the 
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and 
accompanying Issues and Decision Memorandum at 4.
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    In addition, section 781(b)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in a third country within the scope of an AD 
and/or CVD order. Specifically, Commerce shall take into account such 
factors as: (A) the pattern of trade, including sourcing patterns; (B) 
whether the manufacturer or exporter of the merchandise is affiliated 
with the person who, in the third country, uses the merchandise to 
complete or assemble the merchandise which is subsequently imported 
into the United States; and (C) whether imports of the merchandise into 
the third country have increased after the initiation of the 
investigation that resulted in the issuance of such order or finding.

Analysis

    Based on our analysis of the domestic industry's circumvention 
request, we determine that the domestic industry satisfied the criteria 
under 19 CFR 351.226(c); thus, pursuant to 19 CFR 351.226(d)(1)(ii), we 
have accepted the request and are initiating the requested 
circumvention inquiry.\8\
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    \8\ See Initiation Checklist.
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    The domestic industry requests that Commerce initiate this inquiry 
on a company-specific basis, with respect to Gwangyang Aluminum only. 
The information provided by the domestic industry is centered on 
Gwangyang Aluminum and does not warrant initiating this circumvention 
inquiry on a country-wide basis. Therefore, Commerce is initiating this 
circumvention inquiry with respect to Gwangyang Aluminum.
    Commerce intends to establish a schedule for questionnaires and

[[Page 44781]]

comments on the issues related to this inquiry. A company's failure to 
respond completely to Commerce's requests for information may result in 
the application of partial or total facts available, pursuant to 
section 776(a) of the Act, which may include adverse inferences, 
pursuant to section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of its initiation of the requested 
circumvention inquiry and direct CBP to continue the suspension of 
liquidation of entries of products subject to the circumvention inquiry 
that were already subject to the suspension of liquidation under the 
Orders and to apply the cash deposit rates that would be applicable if 
the products were determined to be covered by the scope of the Orders. 
Should Commerce issue a preliminary or final circumvention 
determination, Commerce will follow the suspension of liquidation rules 
under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(b) of the Act, 
Commerce determines that the domestic industry's request for a 
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). 
Accordingly, Commerce is notifying all interested parties of the 
initiation of this circumvention inquiry to determine whether CAAS from 
Korea produced by Gwangyang Aluminum, assembled or completed using 
aluminum plate produced by Mingtai in China, and exported to the United 
States, is circumventing the Orders. We included a description of the 
products that are subject to the circumvention inquiry, and an 
explanation of the reasons for Commerce's decision to initiate this 
inquiry, in the accompanying Initiation Checklist.\9\ In accordance 
with 19 CFR 351.226(e)(1), Commerce intends to issue its preliminary 
determination in this circumvention proceeding no later than 150 days 
from the date of publication of this notice in the Federal Register.
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    \9\ Id.
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    This notice is published in accordance with section 781(b) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: July 7, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-14875 Filed 7-12-23; 8:45 am]
BILLING CODE 3510-DS-P