Aluminum Extrusions From the United Arab Emirates: Preliminary Affirmative Determination of Critical Circumstances, in Part, in the Less-Than-Fair Value Investigation, 46057-46060 [2024-11598]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 103 (Tuesday, May 28, 2024)]
[Notices]
[Pages 46057-46060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11598]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-520-810]


Aluminum Extrusions From the United Arab Emirates: Preliminary 
Affirmative Determination of Critical Circumstances, in Part, in the 
Less-Than-Fair Value Investigation

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that critical circumstances exist regarding certain imports 
of aluminum extrusions from the United Arab Emirates (UAE).

DATES: Applicable May 28, 2024.

FOR FURTHER INFORMATION CONTACT: Jinny Ahn or John K. Drury at (202) 
482-0339 and (202) 482-0195, respectively, AD/CVD Operations, Office 
VI, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On October 24, 2023, Commerce initiated a less than fair value 
(LTFV) investigation concerning aluminum

[[Page 46058]]

extrusions from the UAE.\1\ On April 19, 2024, the U.S. Aluminum 
Extruders Coalition and the United Steel, Paper and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union (collectively, the petitioners) filed a timely 
critical circumstances allegation, pursuant to section 703(e)(1) of the 
Tariff Act of 1930, as amended, (the Act) and 19 CFR 351.206, alleging 
that critical circumstances exist with respect to aluminum extrusions 
from the UAE.\2\ Commerce published its preliminary LTFV determination 
on May 7, 2024.\3\
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    \1\ See Aluminum Extrusions from the People's Republic of China, 
Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, 
the Republic of Korea, Malaysia, Mexico, Taiwan, Thailand, the 
Republic of Turkey, the United Arab Emirates, and the Socialist 
Republic of Vietnam: Initiation of Less-Than-Fair-Value 
Investigations, 88 FR 74421 (October 31, 2023) (Initiation Notice).
    \2\ See Petitioners' Letter, ``Critical Circumstances 
Allegation,'' dated April 19, 2024 (Critical Circumstances 
Allegation).
    \3\ See Aluminum Extrusions from the United Arab Emirates: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Extension of 
Provisional Measures, 89 FR 38090 (May 7, 2024) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum 
(PDM).
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    In accordance with 19 CFR 351.206(c)(1) and (c)(2)(ii), when a 
critical circumstances allegation is filed 30 days or more before the 
scheduled date of the final determination, but later than 20 days 
before the scheduled date of the preliminary determination, Commerce 
will make a preliminary finding whether there is a reasonable basis to 
believe or suspect that critical circumstances exist and will issue a 
preliminary critical circumstances determination within 30 days after 
the allegation is filed.

Legal Framework

    Section 733(e)(1) of the Act provides that Commerce, upon receipt 
of a timely allegation of critical circumstances, will determine 
whether there is a reasonable basis to believe or suspect that: (A)(i) 
there is a history of dumping and material injury by reason of dumped 
imports in the United States or elsewhere of the subject merchandise, 
or (ii) the person by whom, or for whose account, the merchandise was 
imported knew or should have known that the exporter was selling the 
subject merchandise at less than its fair value and that there was 
likely to be material injury by reason of such sales; and (B) there 
have been massive imports of the subject merchandise over a relatively 
short period.
    Further, 19 CFR 351.206(h)(1) provides that, in determining whether 
imports of the subject merchandise have been ``massive,'' Commerce will 
normally examine: (i) the volume and value of the imports; (ii) 
seasonal trends; and (iii) the share of domestic consumption accounted 
for by the imports. In addition, 19 CFR 351.206(h)(2) provides that, 
``{i{time} n general, unless the imports during the `relatively short 
period' . . . have increased by at least 15 percent over the imports 
during an immediately preceding period of comparable duration, the 
Secretary will not consider the imports massive.'' Section 351.206(i) 
of Commerce's regulations defines ``relatively short period'' generally 
as the period starting on the date the proceeding begins (i.e., the 
date the petition is filed) and ending at least three months later. 
This section of the regulations further provides that, if Commerce 
``finds that importers, or exporters or producers, had reason to 
believe, at some time prior to the beginning of the proceeding, that a 
proceeding was likely,'' Commerce may consider a period of not less 
than three months from that earlier time.

Critical Circumstances Allegation

    In their allegation, the petitioners state that based on the 
dumping margins calculated in the petition (i.e., 42.29 percent), 
importers knew, or should have known, that imports of aluminum 
extrusions from the UAE were being sold at LTFV because this margin 
exceeds the 25 and 15 percent thresholds established for export price 
(EP).\4\ Additionally, the petitioners contend that the U.S. 
International Trade Commission's (ITC's) affirmative determination that 
there is a reasonable indication that an industry in the United States 
is materially injured by reason of imports of aluminum extrusions from 
the UAE is sufficient to impute knowledge of the likelihood of material 
injury.\5\
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    \4\ See Initiation Notice, 88 FR at 77426.
    \5\ See Aluminum Extrusions from China, Colombia, Dominican 
Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South 
Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam, 
88 FR 82913 (November 27, 2023) (ITC Preliminary Determination).
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    Finally, as part of their allegation and pursuant to 19 CFR 
351.206(h)(2), the petitioners provided monthly import data for the 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings 
included in the scope of the investigation for the period between May 
2023 and February 2024 as evidence of massive imports of aluminum 
extrusions from the UAE during a relatively short period.\6\
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    \6\ See Critical Circumstances Allegation at 7.
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Analysis

    Generally, when determining whether critical circumstances exist 
pursuant to the statutory criteria, Commerce examines record evidence, 
including: (1) the evidence presented in the petitioners' allegation; 
(2) import statistics released by the ITC; and (3) shipment information 
submitted to Commerce by the respondents selected for individual 
examination.\7\ Consistent with Commerce's practice, here we examined 
record information obtained since the initiation of this investigation, 
as well as the ITC's preliminary injury determination.\8\
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    \7\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Value and Affirmative Final Determination of Critical 
Circumstances: Circular Welded Carbon Quality Steel Pipe from the 
People's Republic of China, 73 FR 31970, 31972-73 (June 5, 2008); 
see also Final Determination of Sales at Less Than Fair Value and 
Affirmative Determination of Critical Circumstances: Small Diameter 
Graphite Electrodes from the People's Republic of China, 74 FR 2049, 
2052-53 (January 14, 2009).
    \8\ See, e.g., Critical Circumstances Allegation; Preliminary 
Determination; and ITC Preliminary Determination.
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Section 733(e)(1)(A)(i) of the Act: History of Dumping and Material 
Injury by Reason of Dumped Imports in the United States or Elsewhere of 
the Subject Merchandise

    In determining whether there is a history of dumping pursuant to 
section 733(e)(1)(A)(i) of the Act, Commerce generally considers 
current or previous antidumping duty (AD) orders on subject merchandise 
from the country in question in the United States and current orders in 
any other country with regard to imports of subject merchandise.\9\ 
There are no current or previous AD orders on aluminum extrusions from 
the UAE in the United States, and Commerce is not aware of the 
existence of any active AD orders on aluminum extrusions from the UAE 
in other countries. Therefore, Commerce preliminarily finds that there 
is no history of injurious dumping of aluminum extrusions from the UAE; 
thus, this criterion is not met.
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    \9\ See, e.g., Certain Oil Country Tubular Goods from the 
People's Republic of China: Notice of Preliminary Determination of 
Sales at Less Than Fair Value, Affirmative Preliminary Determination 
of Critical Circumstances and Postponement of Final Determination, 
74 FR 59117, 59120 (November 17, 2009), unchanged in Certain Oil 
Country Tubular Goods from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value, Affirmative Final 
Determination of Critical Circumstances and Final Determination of 
Targeted Dumping, 75 FR 20335 (April 19, 2010).

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[[Page 46059]]

Section 733(e)(1)(A)(ii): The Importer Knew or Should Have Known That 
the Exporter Was Selling at Less Than Fair Value and That There Was 
Likely To Be Material Injury

    In determining whether importers knew or should have known that 
exporters were selling subject merchandise at LTFV and that there was 
likely to be material injury by reason of such sales, Commerce must 
rely on the facts before it at the time the determination is made. 
Commerce generally bases its decision with respect to knowledge on the 
margins calculated in the preliminary determination and the ITC's 
preliminary injury determination.\10\
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    \10\ See, e.g., Granular Polytetrafluoroethylene Resin from 
India: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, Postponement of Final Determination, and Extension of 
Provisional Measures, 86 FR 49299 (September 2, 2021), and 
accompanying PDM at 15, unchanged in Granular 
Polytetrafluoroethylene Resin From India: Final Determination of 
Sales at Less Than Fair Value and Final Affirmative Determination of 
Critical Circumstances, 87 FR 3772 (January 25, 2022). See also Oil 
Country Tubular Goods from Mexico: Preliminary Affirmative 
Determinations of Sales at Less Than Fair Value and Critical 
Circumstances, Postponement of Final Determination, and Extension of 
Provisional Measures, 87 FR 28808 (May 11, 2022) and accompanying 
PDM at 11, unchanged in Oil Country Tubular Goods from Mexico: Final 
Affirmative Determinations of Sales at Less Than Fair Value and 
Critical Circumstances, 87 FR 59041 (September 29, 2022).
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    Commerce normally considers margins of 25 percent or more for EP 
sales and 15 percent or more for constructed export price sales 
sufficient to impute importer knowledge of sales at LTFV.\11\ In this 
investigation, we preliminarily calculated a weighted-average dumping 
margin of 9.13 percent for Gulf Extrusions LLC/Automotive Precision 
Technology (APT)-Sole Proprietorship LLC (Gulfex),\12\ 9.17 percent for 
OSE Industries LLC (OSE), and 9.15 percent for all other UAE exporters/
producers.\13\ Additionally, we preliminarily assigned a dumping margin 
of 42.29 percent to various companies based on total adverse facts 
available (AFA).\14\
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    \11\ See, e.g., Carbon and Alloy Steel Wire Rod from Germany, 
Mexico, Moldova, Trinidad and Tobago, and Ukraine: Preliminary 
Determination of Critical Circumstances, 67 FR 6224, 6225 (February 
11, 2002) (Steel Wire Rod Preliminary), unchanged in Notice of Final 
Determination of Sales at Less Than Fair Value: Carbon and Certain 
Alloy Steel Wire Rod from Moldova, 67 FR 55790 (August 30, 2002) 
(Steel Wire Rod Final).
    \12\ As explained in the PDM, based on the record information, 
Commerce preliminarily determined that Gulf Extrusions LLC and a 
non-selected respondent, Automotive Precision Technology LLC, are 
affiliated within the meaning of section 771(33)(F) of the Act and 
should be treated as a single entity pursuant to 19 CFR 351.401(f) 
for this preliminary determination. See PDM; see also Memorandum, 
``Preliminary Collapsing Memorandum for Gulf Extrusions LLC and 
Automotive Precision Technology--Sole Proprietorship LLC,'' dated 
May 1, 2024.
    \13\ See Preliminary Determination, 89 FR at 38091.
    \14\ Id. The companies to which we assigned the rate of 42.29 
percent are Al Buraq Trading & Enterprises, Co. (Al Buraq), Al Hamad 
Industrial Co., LLC (Al Hamad), Al Jaber Aluminium Extrusions, LLC 
(Al Jaber), Aluminum Products Co. (APC), Arabian Extrusions Factory 
(Arabian Extrusions), Emirates Extrusion Factory, LLC (Emirates 
Extrusion), Taweelah Aluminium Extrusion Co. (Taweelah), and White 
Aluminum Extrusions, LLC (White Aluminum). See also Preliminary 
Determination PDM at 6.
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    Based on these dumping margins, we preliminarily find no reasonable 
basis to believe or suspect that importers of subject merchandise from 
Gulfex, OSE, or producers/importers of subject merchandise from the UAE 
other than Gulfex, OSE, Al Buraq, Al Hamad, Al Jaber, APC, Arabian 
Extrusions, Emirates Extrusion, Taweelah, and White Aluminum knew or 
should have known that the exporters were selling subject merchandise 
at LTFV. Because this criterion is not met for these companies, we 
preliminarily determine that critical circumstances do not exist for 
these companies.
    However, given the preliminary dumping margins for Al Buraq, Al 
Hamad, Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, Taweelah, 
and White Aluminum exceed the threshold sufficient to impute knowledge 
of dumping, we preliminarily find that there is a reasonable basis to 
believe or suspect that these producers/exporters of subject 
merchandise knew, or should have known, that the exporters were selling 
subject merchandise at LTFV.
    In determining whether an importer knew or should have known that 
there was likely to be material injury caused by reason of such 
imports, Commerce normally will look to the preliminary injury 
determination of the ITC.\15\ If the ITC finds a reasonable indication 
of present material injury to the relevant U.S. industry, Commerce will 
determine that a reasonable basis exists to impute importer knowledge 
that material injury is likely by reason of such imports.\16\ Here, the 
ITC preliminarily found that there is ``reasonable indication'' of 
material injury to the domestic industry because of the imported 
subject merchandise from the UAE. Thus, Commerce determines that 
importers knew, or should have known, that there was likely to be 
material injury by reason of sales of aluminum extrusions by Al Buraq, 
Al Hamad, Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, 
Taweelah, and White Aluminum.\17\
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    \15\ See, e.g., Certain Potassium Phosphate Salts from the 
People's Republic of China: Preliminary Affirmative Determination of 
Critical Circumstances in the Antidumping Duty Investigation, 75 FR 
24572, 24573 (May 5, 2010).
    \16\ See, e.g., Steel Wire Rod Preliminary, 67 FR at 6225, 
unchanged in Steel Wire Rod Final.
    \17\ See ITC Preliminary Determination.
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Section 733(e)(1)(B): Whether There Have Been Massive Imports of the 
Subject Merchandise Over a Relatively Short Period

    In determining whether there have been ``massive imports'' over a 
``relatively short period,'' pursuant to section 733(e)(1)(B) of the 
Act and 19 CFR 351.206(h), Commerce normally compares the import 
volumes of the subject merchandise for at least three months 
immediately preceding the filing of the petition (i.e., the ``base 
period'') to a comparable period of at least three months following the 
filing of the petition (i.e., the ``comparison period''). The 
regulations also provide, however, that if Commerce finds that 
importers, or exporters or producers, had reason to believe, at some 
time prior to the beginning of the proceeding, that a proceeding was 
likely, Commerce may consider a period of not less than three months 
from that earlier time.\18\ Pursuant to 19 CFR 351.206(h)(2), imports 
must increase by at least 15 percent during the ``relatively short 
period'' to be considered ``massive.''
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    \18\ See 19 CFR 351.206(i).
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    As discussed above, we preliminarily find that for Gulfex, OSE, and 
producers/importers of subject merchandise from the UAE other than 
Gulfex, OSE, Al Buraq, Al Hamad, Al Jaber, APC, Arabian Extrusions, 
Emirates Extrusion, Taweelah, and White Aluminum, pursuant to section 
733(e)(1) of the Act there is not a reasonable basis to believe or 
suspect that: (A)(i) there is a history of dumping and material injury 
by reason of dumped imports in the United States or elsewhere of the 
subject merchandise, or (ii) the person by whom, or for whose account, 
the merchandise was imported knew or should have known that the 
exporter was selling the subject merchandise at less than its fair 
value and that there was likely to be material injury by reason of such 
sales; thus, whether there was a massive increase in imports from these 
companies between the base and comparison periods is moot.
    However, as explained in the Preliminary Determination, we 
preliminarily applied total AFA to Al Buraq, Al Hamad, Al Jaber, APC, 
Arabian Extrusions, Emirates Extrusion, Taweelah, and White Aluminum 
because they failed to cooperate in this

[[Page 46060]]

proceeding.\19\ Specifically, we determined that the use of facts 
available is warranted, pursuant to sections 776(a)(1) and (a)(2)(A)-
(C) of the Act, because Al Buraq, Al Hamad, Al Jaber, APC, Arabian 
Extrusions, Emirates Extrusion, Taweelah, and White Aluminum did not 
respond to our quantity and value (Q&V) questionnaire, despite 
confirmation that the questionnaire was successfully delivered to 
them.\20\ Further, we determined these companies withheld information 
requested by Commerce, failed to provide information in a timely 
manner, and significantly impeded this proceeding by not submitting the 
requested Q&V information.\21\ We also determined that an adverse 
inference is warranted pursuant to section 776(b) of the Act because 
these companies were not cooperative.\22\ Thus, for Al Buraq, Al Hamad, 
Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, Taweelah, and 
White Aluminum, we preliminarily determine, as AFA and in accordance 
with section 776(b) of the Act, there was a massive surge in imports 
between the base and comparison periods.
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    \19\ See Preliminary Determination PDM at 6.
    \20\ See Preliminary Determination PDM at 6-7; see also 
Memorandum, ``Issuance of the Quantity and Value Questionnaire,'' 
dated November 6, 2023.
    \21\ See Preliminary Determination PDM at 7.
    \22\ Id. at 6-7.
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Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    Based on the criteria and findings discussed above, we 
preliminarily determine that critical circumstances exist with respect 
to imports of aluminum extrusions from the UAE from Al Buraq, Al Hamad, 
Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, Taweelah, and 
White Aluminum. Further, we preliminarily determine that critical 
circumstances do not exist with respect to imports of aluminum 
extrusions from the UAE produced or exported by Gulfex, OSE, and 
producers/importers of subject merchandise from the UAE other than 
Gulfex, OSE, Al Buraq, Al Hamad, Al Jaber, APC, Arabian Extrusions, 
Emirates Extrusion, Taweelah, or White Aluminum.

Final Critical Circumstances Determination

    We will make a final determination concerning critical 
circumstances in the final LTFV determination, which is currently 
scheduled for September 19, 2024.

Public Comment

    In the Preliminary Determination, Commerce stated that case briefs 
or other written comments may be submitted to the Assistant Secretary 
for Enforcement and Compliance and set a deadline for case briefs or 
other written comments on non-scope issues as no later than seven days 
after the date on which the final verification report is issued.\23\ 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline for case 
briefs.\24\ All comments regarding this preliminary critical 
circumstances determination are subject to the same request for public 
executive summaries in case and rebuttal briefs, as noted in the 
Preliminary Determination.\25\
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    \23\ See Preliminary Determination, 89 FR at 38091-92.
    \24\ See 19 CFR 351.309(d)(1).
    \25\ See Preliminary Determination, 89 FR at 38092.
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Suspension of Liquidation

    In accordance with section 703(e)(2)(A) of the Act, for Al Buraq, 
Al Hamad, Al Jaber, APC, Arabian Extrusions, Emirates Extrusion, 
Taweelah, and White Aluminum, we will direct U.S. Customs and Border 
Protection (CBP) to suspend liquidation of any unliquidated entries of 
subject merchandise from the UAE entered, or withdrawn from warehouse 
for consumption, on or after February 7, 2024, which is 90 days prior 
to the date of publication of the Preliminary Determination in the 
Federal Register. For such entries, CBP shall require a cash deposit 
equal to the estimated weighted-average dumping margin established in 
the Preliminary Determination. This suspension of liquidation will 
remain in effect until further notice.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of this preliminary determination of critical circumstances.
    This determination is issued and published pursuant to section 
733(f) and 777(i) of the Act and 19 CFR 351.206(c)(2)(ii).

    Dated: May 20, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2024-11598 Filed 5-24-24; 8:45 am]
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