[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Notices]
[Pages 18521-18524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7926]



[[Page 18521]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-968]


Aluminum Extrusions From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice.

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SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of aluminum extrusions from the People's Republic of China (the PRC). 
For information on the estimated subsidy rates, see the ``Suspension of 
Liquidation'' section of this notice.

DATES: Effective Date: April 4, 2011.

FOR FURTHER INFORMATION CONTACT: John Conniff, AD/CVD Operations, 
Office 3, Import Administration, U.S. Department of Commerce, Room 
4014, 14th Street and Constitution Avenue, NW., Washington, DC 20230; 
telephone: (202) 482-1009.

SUPPLEMENTARY INFORMATION:

Background

    This investigation covers 58 programs. The mandatory respondents in 
this investigation are: Liaoyang Zhongwang Aluminum Profile Co. Ltd./
Liaoning Zhongwang Group (collectively, the Zhongwang Group), Miland 
Luck Limited, Dragonluxe Limited, and the Government of the PRC. The 
voluntary respondents in this investigation are: Guang Ya Aluminum 
Industries Co., Ltd., Foshan Guangcheng Aluminum Co., Ltd., Guang Ya 
Aluminum Industries Hong Kong, Kong Ah International Company Limited, 
and Yongji Guanghai Aluminum Industry Co., Ltd. (collectively the Guang 
Ya Companies), and Zhaoqing New Zhongya Aluminum Co., Ltd., Zhongya 
Shaped Aluminum HK Holding Ltd., and Karlton Aluminum Company Ltd. 
(collectively the Zhongya Companies).

Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2009, through December 31, 2009, which corresponds to the 
PRC's most recently completed fiscal year at the time we initiated this 
investigation. See 19 CFR 351.204(b)(2).

Case History

    The following events have occurred since the Department published 
the Preliminary Determination on September 7, 2010. See Aluminum 
Extrusions From the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination, 75 FR 54302 (September 7, 2010) 
(Preliminary Determination). From September 17, 2010, through November 
2, 2010, the Department issued supplemental questionnaires to the Guang 
Ya Companies, the Zhongya Companies, and the GOC, which, in turn, 
submitted questionnaire responses from October 13, 2010, through 
November 12, 2010. On October 29, 2010, we issued a post-preliminary 
decision memorandum addressing new subsidy allegations submitted by 
petitioners on July 13 and July 28, 2010.\1\ See Memorandum to Ronald 
K. Lorentzen, Deputy Assistant Secretary for Import Administration, 
``Post-Preliminary Decision Memorandum'' (October 29, 2010), a public 
document on file in room 7046 of HCHB, the Central Records Unit (CRU). 
We conducted verification of the questionnaire responses submitted by 
the Guang Ya Companies, the Zhongya Companies, and the GOC from 
December 3 through December 17, 2010. We issued verification reports 
from January 20 through January 28, 2011. Interested parties submitted 
case briefs on February 9, 2011 and rebuttal briefs on February 15, 
2011. We conducted a public hearing on March 3, 2011.
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    \1\ Petitioners are the Aluminum Extrusion Fair Trade Committee: 
Aerolite Extrusion Company; Alexandria Extrusions Company; Beneda 
Aluminum of Florida, Inc.; William L. Bonnell Company, Inc.; 
Frontier Aluminum Corporation; Futura Industries Corporation; Hydro 
Aluminum North American Inc.; Kaiser Aluminum Corporation; Profile 
Extrusion Company; Sapa Extrusions, Inc.; Western Extrusions 
Corporation; and the United Steel, Paper, and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union.
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Scope Comments

    Based on analysis of information and arguments, the Department has 
modified the scope of the antidumping and countervailing duty 
investigations. For a full discussion, see Comment 3, ``Scope of the 
Antidumping and Countervailing Duty Investigations,'' of the Issues and 
Decision Memorandum that accompanies the final determination in the 
less-than-fair-value investigation of aluminum extrusions from the 
People's Republic of China.

Scope of Investigation

    The merchandise covered by this investigation is aluminum 
extrusions which are shapes and forms, produced by an extrusion 
process, made from aluminum alloys having metallic elements 
corresponding to the alloy series designations published by The 
Aluminum Association commencing with the numbers 1, 3, and 6 (or 
proprietary equivalents or other certifying body equivalents). 
Specifically, the subject merchandise made from aluminum alloy with an 
Aluminum Association series designation commencing with the number 1 
contains not less than 99 percent aluminum by weight. The subject 
merchandise made from aluminum alloy with an Aluminum Association 
series designation commencing with the number 3 contains manganese as 
the major alloying element, with manganese accounting for not more than 
3.0 percent of total materials by weight. The subject merchandise is 
made from an aluminum alloy with an Aluminum Association series 
designation commencing with the number 6 contains magnesium and silicon 
as the major alloying elements, with magnesium accounting for at least 
0.1 percent but not more than 2.0 percent of total materials by weight, 
and silicon accounting for at least 0.1 percent but not more than 3.0 
percent of total materials by weight. The subject aluminum extrusions 
are properly identified by a four-digit alloy series without either a 
decimal point or leading letter. Illustrative examples from among the 
approximately 160 registered alloys that may characterize the subject 
merchandise are as follows: 1350, 3003, and 6060.
    Aluminum extrusions are produced and imported in a wide variety of 
shapes and forms, including, but not limited to, hollow profiles, other 
solid profiles, pipes, tubes, bars, and rods. Aluminum extrusions that 
are drawn subsequent to extrusion (``drawn aluminum'') are also 
included in the scope.
    Aluminum extrusions are produced and imported with a variety of 
finishes (both coatings and surface treatments), and types of 
fabrication. The types of coatings and treatments applied to subject 
aluminum extrusions include, but are not limited to, extrusions that 
are mill finished (i.e., without any coating or further finishing), 
brushed, buffed, polished, anodized (including bright-dip anodized), 
liquid painted, or powder coated. Aluminum extrusions may also be 
fabricated, i.e., prepared for assembly. Such operations would include, 
but are not limited to, extrusions that are cut-to-length, machined, 
drilled, punched, notched, bent, stretched, knurled, swedged, mitered, 
chamfered, threaded, and spun. The subject merchandise includes

[[Page 18522]]

aluminum extrusions that are finished (coated, painted, etc.), 
fabricated, or any combination thereof.
    Subject aluminum extrusions may be described at the time of 
importation as parts for final finished products that are assembled 
after importation, including, but not limited to, window frames, door 
frames, solar panels, curtain walls, or furniture. Such parts that 
otherwise meet the definition of aluminum extrusions are included in 
the scope. The scope includes the aluminum extrusion components that 
are attached (e.g., by welding or fasteners) to form subassemblies, 
i.e., partially assembled merchandise unless imported as part of the 
finished goods `kit' defined further below. The scope does not include 
the non-aluminum extrusion components of subassemblies or subject kits.
    Subject extrusions may be identified with reference to their end 
use, such as fence posts, electrical conduits, heat sinks, door 
thresholds, or carpet trim. Such goods are subject merchandise if they 
otherwise meet the scope definition, regardless of whether they are 
ready for use at the time of importation.
    The following aluminum extrusion products are excluded: Aluminum 
extrusions made from aluminum alloy with an Aluminum Association series 
designation commencing with the number 2 and containing in excess of 
1.5 percent copper by weight; aluminum extrusions made from aluminum 
alloy with an Aluminum Association series designation commencing with 
the number 5 and containing in excess of 1.0 percent magnesium by 
weight; and aluminum extrusions made from aluminum alloy with an 
Aluminum Association series designation commencing with the number 7 
and containing in excess of 2.0 percent zinc by weight.
    The scope also excludes finished merchandise containing aluminum 
extrusions as parts that are fully and permanently assembled and 
completed at the time of entry, such as finished windows with glass, 
doors with glass or vinyl, picture frames with glass pane and backing 
material, and solar panels. The scope also excludes finished goods 
containing aluminum extrusions that are entered unassembled in a 
``finished goods kit.'' A finished goods kit is understood to mean a 
packaged combination of parts that contains, at the time of 
importation, all of the necessary parts to fully assemble a final 
finished good and requires no further finishing or fabrication, such as 
cutting or punching, and is assembled `as is' into a finished product. 
An imported product will not be considered a `finished goods kit' and 
therefore excluded from the scope of the investigation merely by 
including fasteners such as screws, bolts, etc. in the packaging with 
an aluminum extrusion product.
    The scope also excludes aluminum alloy sheet or plates produced by 
other than the extrusion process, such as aluminum products produced by 
a method of casting. Cast aluminum products are properly identified by 
four digits with a decimal point between the third and fourth digit. A 
letter may also precede the four digits. The following Aluminum 
Association designations are representative of aluminum alloys for 
casting: 208.0, 295.0, 308.0, 355.0, C355.0, 356.0, A356.0, A357.0, 
360.0, 366.0, 380.0, A380.0, 413.0, 443.0, 514.0, 518.1, and 712.0. The 
scope also excludes pure, unwrought aluminum in any form.
    The scope also excludes collapsible tubular containers composed of 
metallic elements corresponding to alloy code 1080A as designated by 
the Aluminum Association where the tubular container (excluding the 
nozzle) meets each of the following dimensional characteristics: (1) 
Length of 37 mm or 62 mm, (2) outer diameter of 11.0 mm or 12.7 mm, and 
(3) wall thickness not exceeding 0.13 mm.
    Imports of the subject merchandise are provided for under the 
following categories of the Harmonized Tariff Schedule of the United 
States (``HTS''): 7604.21.0000, 7604.29.1000, 7604.29.3010, 
7604.29.3050, 7604.29.5030, 7604.29.5060, 7608.20.0030, and 
7608.20.0090. The subject merchandise entered as parts of other 
aluminum products may be classifiable under the following additional 
Chapter 76 subheadings: 7610.10, 7610.90, 7615.19, 7615.20, and 7616.99 
as well as under other HTS chapters. In addition, fin evaporator coils 
may be classifiable under HTS numbers: 8418.99.80.50 and 8418.99.80.60. 
While HTS subheadings are provided for convenience and customs 
purposes, the written description of the scope in this proceeding is 
dispositive.

Injury Test

    Because the PRC is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Tariff Act of 1930, as amended (the 
Act), the International Trade Commission (the ITC) is required to 
determine whether imports of the subject merchandise from the PRC 
materially injure, or threaten material injury to, a U.S. industry. On 
June 17, 2010, the ITC published its preliminary determination finding 
that there is a reasonable indication that an industry in the United 
States is threatened with material injury by reason of imports of 
aluminum extrusions from the PRC that are alleged to be sold in the 
United States at less than fair value and subsidized by the GOC. See 
Certain Aluminum Extrusions from China, 75 FR 34482 (June 17, 2010).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Memorandum from Christian 
Marsh, Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, entitled ``Issues and Decision Memorandum for 
the Final Determination in the Countervailing Duty Investigation of 
Aluminum Extrusions from the People's Republic of China,'' (March 28, 
2011) (Decision Memorandum), which is hereby adopted by this notice. 
Attached to this notice as an Appendix is a list of the issues that 
parties raised and to which we have responded in the Decision 
Memorandum. Parties can find a complete discussion of all issues raised 
in this investigation and the corresponding recommendations in this 
public memorandum, which is on file in the Department's CRU. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Internet at http://trade.gov/ia. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we determine 
the total estimated net countervailable subsidy rates to be:

------------------------------------------------------------------------
             Company                    Ad Valorem net subsidy rate
------------------------------------------------------------------------
Guang Ya Aluminum Industries      9.94 percent ad valorem
 Co., Ltd., Foshan Guangcheng
 Aluminum Co., Ltd., Guang Ya
 Aluminum Industries Hong Kong,
 Kong Ah International Company
 Limited, and Yongji Guanghai
 Aluminum Industry Co., Ltd.
 (collectively the Guang Ya
 Companies).

[[Page 18523]]

 
Zhaoqing New Zhongya Aluminum     8.02 percent ad valorem
 Co., Ltd., Zhongya Shaped
 Aluminum HK Holding Ltd., and
 Karlton Aluminum Company Ltd.
 (collectively the Zhongya
 Companies).
Dragonluxe Limited..............  374.15 percent ad valorem
Miland Luck Limited.............  374.15 percent ad valorem
Liaoyang Zhongwang Aluminum       374.15 percent ad valorem
 Profile Co. Ltd./Liaoning
 Zhongwang Group (collectively,
 the Zhongwang Group).
All Others Rate.................  374.15 percent ad valorem
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    We note that section 705(c)(5)(A)(i) of the Act states that for 
companies not investigated, we will determine an all-others rate equal 
to be the weighted average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act. However, as discussed 
in Comment 9 of the Decision Memorandum, the companies that 
participated in the investigation are voluntary respondents. The 
Department's regulations state that in calculating the all-others rate 
under section 705(c)(5) of the Act, the Department will exclude net 
subsidy rates calculated for voluntary respondents. See 19 CFR 
351.204(d)(3). See also Antidumping Duties; Countervailing Duties, 62 
FR 27296, 27310 (May 19, 1997).
    Therefore, we have resorted to ``any reasonable method'' to derive 
the all-others rate, as described under section 705(c)(5)(A)(ii) of the 
Act. We determine that equating the all-others rate with the total 
adverse facts available (AFA) rate applied to the non-cooperating, 
mandatory respondents constitutes a ``reasonable method'' under 
705(c)(5)(A)(ii) of the Act. See, e.g., Certain Potassium Phosphate 
Salts From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination and Termination of Critical 
Circumstances Inquiry, 75 FR 30375 (June 1, 2010) (in an investigation 
where all of the mandatory respondents received a rate based on AFA, 
the Department used the AFA rate assigned to the mandatory respondents 
as the all-others rate).
    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from the PRC which were entered or withdrawn from 
warehouse, for consumption on or after September 7, 2010, the date of 
the publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
countervailing duty (CVD) purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after January 6, 2011, but to continue 
the suspension of liquidation of all entries from September 7, 2010, 
through January 5, 2011.
    We will issue a CVD order and reinstate the suspension of 
liquidation under section 706(a) of the Act if the ITC issues a final 
affirmative injury determination, and will require a cash deposit of 
estimated CVDs for such entries of 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.

ITC 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 Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve 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/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 which is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: March 28, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1: Application of CVD Law to the PRC
Comment 2: Whether Application of the CVD Law to Imports from the 
PRC Violates the Administrative Procedure Act (APA)
Comment 3: Double Counting
Comment 4: Cut-off Date for Identifying Subsidies
Comment 5: Whether the Guang Ya Companies Inaccurately Reported 
Their Affiliates Thereby Warranting the Application of Adverse Facts 
Available (AFA)
Comment 6: Whether the Zhongya Companies Failed to Report Their 
Affiliates Thereby Warranting the Application of AFA
Comment 7: Whether the AFA Calculation is Accurate and Reasonable
Comment 8: Whether to Include Newly Alleged and Self-Reported 
Programs in the AFA Calculation
Comment 9: Whether the All Others Rate Should Equal the Total AFA 
Rate
Comment 10: Whether the Department Should Have Collected Information 
from Firms Subject to the All Others Rate
Comment 11: Whether the Department Should Have Selected Additional 
Mandatory Respondents
Comment 12: Whether the Department Should Retroactively Revise the 
All Others Rate from the Preliminary Determination
Comment 13: Whether the Sale of Aluminum Extrusions for More Than 
Adequate Remuneration (MTAR) Program Was Used by the Voluntary 
Respondents
Comment 14: Whether the Sale of Aluminum Extrusions for MTAR Program 
Is Specific
Comment 15: Whether the Sale of Aluminum Extrusions for MTAR Program 
Confers a Benefit
Comment 16: Whether the Department Improperly Rejected Data From The 
Zhongya Companies Pertaining to the Sale of Aluminum Extrusions For 
MTAR Program
Comment 17: Whether the Ownership Information of Respondents' 
Customers Was Complete and Fully Verified
Comment 18: Whether a Financial Contribution Exists Under the 
Provision of Primary Aluminum for Less Than Adequate Remuneration 
(LTAR) Program
Comment 19: Whether the Provision of Primary Aluminum for LTAR 
Program is Specific

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Comment 20: Whether the Benchmark Used for the Provision of Primary 
Aluminum for LTAR Program Should Include Import Duties
Comment 21: Whether the Department Should Use In-Country Benchmarks 
Under the Provision of Primary Aluminum for LTAR Program
Comment 22: Whether the Guang Ya Companies Properly Reported Their 
Purchases of Primary Aluminum and Whether the Application of AFA is 
Warranted
Comment 23: Whether the Land for LTAR Program Constitutes a 
Financial Contribution, Provides a Benefit, and is Specific
Comment 24: Whether the Department Should Revise the Benchmark Used 
Under the Land for LTAR Program
Comment 25: Whether the Department Erred in Rejecting Factual 
Information Concerning the Benchmark Used Under the Land for LTAR 
Program
Comment 26: Whether the Guang Ya Companies Received an Additional 
Subsidy in Connection With the GOC's Purchase of Land-Use Rights and 
Buildings
Comment 27: Whether PRC Commercial Banks Are GOC Authorities That 
Provide a Financial Contribution
Comment 28: Whether there is a Link Between the Alleged Policy 
Lending Program and Actual Loans Received by Respondents
Comment 29: Whether the Derivation of the Short-Term Benchmark 
Interest Rate is Arbitrary
Comment 30: Whether the Derivation of the Long-Term Benchmark 
Interest Rate is Arbitrary
Comment 31: Whether the Department Committed Ministerial Errors 
Concerning the Famous Brands Program
Comment 32: Whether the Department Should Provide an Entered Value 
Adjustment to the Zhongya Companies to Account for Price Mark-Ups 
Made by Their Hong-Kong Affiliate
Comment 33: Whether the Department Improperly Declined to Initiate 
an Investigation of the GOC's Alleged Currency Undervaluation

[FR Doc. 2011-7926 Filed 4-1-11; 8:45 am]
BILLING CODE 3510-DS-P