[Federal Register Volume 83, Number 121 (Friday, June 22, 2018)]
[Notices]
[Pages 29088-29092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13423]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-073]


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

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that common alloy aluminum sheet (aluminum sheet) from the People's 
Republic of China (China) is being, or is likely to be, sold in the 
United States at less-than-fair value (LTFV). We invite interested 
parties to comment on this preliminary determination.

DATES: Applicable June 22, 2018.

FOR FURTHER INFORMATION CONTACT: Deborah Scott or Scott Hoefke, 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) 482-2657 and (202) 482-4947, 
respectively.

[[Page 29089]]


SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the notice of initiation of this LTFV 
investigation on December 4, 2017.\1\ Commerce exercised its discretion 
to toll deadlines affected by the closure of the Federal Government 
from January 20 through 22, 2018. The revised deadline for the 
preliminary determination of this investigation became April 26, 
2018.\2\ On March 29, 2018, we postponed the deadline for the 
preliminary determination by 50 days, in accordance with section 
733(c)(1)(B) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 
351.205(b)(2).\3\ On April 13, 2018, we clarified that the postponed 
preliminary deadline is June 15, 2018.\4\
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    \1\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Initiation of Less-Than-Fair-Value and Countervailing Duty 
Investigations, 82 FR 57214 (December 4, 2017) (Initiation Notice).
    \2\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government'' (Tolling Memorandum), dated January 23, 2018. 
All deadlines in this segment of the proceeding have been extended 
by 3 days.
    \3\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Postponement of Preliminary Determination of the Less-
Than-Fair-Value Investigation, 83 FR 14262 (April 3, 2018).
    \4\ See Memorandum, ``Less-Than-Fair-Value Investigation of 
Common Alloy Aluminum Sheet from the People's Republic of China: 
Correction of the Preliminary Determination Deadline,'' dated April 
13, 2018.
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum that is dated concurrently with this determination and is 
hereby adopted by this notice.\5\ A list of topics included in the 
Preliminary Decision Memorandum is included as Appendix I to this 
notice. The Preliminary 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 to all parties in the Central Records Unit, Room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be found at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum 
and electronic version of the Preliminary Decision Memorandum are 
identical in content.
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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Antidumping Duty Investigation of Common Alloy 
Aluminum Sheet from the People's Republic of China,'' dated 
concurrently with this notice (Preliminary Decision Memorandum).
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Period of Investigation

    The period of investigation (POI) is April 1, 2017, through 
September 30, 2017.

Scope of the Investigation

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

Scope Comments

    In accordance with the preamble to Commerce's regulations,\6\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., ``scope'').\7\ We received 
scope comments from interested parties between December 18 and December 
20, 2017.\8\ We received rebuttal scope comments from the Aluminum 
Association Common Alloy Sheet Trade Enforcement Working Group (the 
Domestic Industry) on January 3, 2018.\9\ Between March 2 and March 26, 
2018, we received additional scope comments from interested 
parties,\10\ and on March 14, 2018, we received rebuttal scope comments 
from the Domestic Industry.\11\ Based on the comments received, for 
purposes of this preliminary determination, we are not modifying the 
scope language as it appeared in the Initiation Notice.\12\
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    \6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \7\ See Initiation Notice, 82 FR at 57215.
    \8\ See Letter from the Metal Composite Building Materials and 
Products Branch of China, ``Common Alloy Aluminum Sheet from of 
China; Antidumping and Countervailing Duty Investigations: Comments 
on Scope of Investigations,'' dated December 18, 2017; Letter from 
The Beer Institute, ``Common Alloy Aluminum Sheet from the People's 
Republic of China: Comments on Scope,'' dated December 18, 2017; 
Letter from The Truck Trailer Manufacturers Association, ``A-570-
073, C-570-074 Common Alloy Aluminum Sheet from the People's 
Republic of China: Initiation of Less-Than-Fair-Value and 
Countervailing Duty Investigations,'' dated December 18, 2017; and 
Letter from MAHLE Behr USA Inc., MAHLE Behr Troy Inc. and MAHLE Behr 
Charleston Inc., ``Comments on Scope of the Investigation--Common 
Alloy Aluminum Sheet from the People's Republic of China,'' dated 
December 18, 2017; Letter from Can Manufactures Institute, ``Common 
Alloy Aluminum Sheet from the People's Republic of China: Comments 
on Scope (Case Nos. A-570-073, C-570-074),'' dated December 20, 
2017.
    \9\ See Letter from the Domestic Industry, ``Common Alloy 
Aluminum Sheet from the People's Republic of China--Domestic 
Industry's Scope Rebuttal Comments,'' dated January 3, 2018.
    \10\ See Letter from FUJIFILM Manufacturing U.S.A., Inc. and 
FUJIFILM Holdings America Corporation (collectively, FUJIFILM), 
``Common Alloy Aluminum Sheet from the People's Republic of China--
Scope Exclusion Comments,'' dated March 2, 2018; see also Letter 
from FUJIFILM, ``Common Alloy Aluminum Sheet from the People's 
Republic of China--Submission of Factual Information to Rebut, 
Clarify, or Correct Factual Information Submitted by the Domestic 
Industry,'' dated March 26, 2018.
    \11\ See Letter from the Domestic Industry, ``Common Alloy 
Aluminum Sheet from the People's Republic of China--Domestic 
Industry's Rebuttal to F'UJIIFILM's Scope Comments,'' dated March 
14, 2018.
    \12\ See Memorandum, ``Common Alloy Aluminum Sheet from the 
People's Republic of China: Scope Comments Preliminary Decision 
Memorandum,'' dated June 15, 2018.
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Methodology

    We are conducting this investigation in accordance with section 731 
of the Tariff Act of 1930, as amended (the Act). We calculated export 
prices in accordance with section 772 of the Act. Because China is a 
non-market economy within the meaning of section 771(18) of the Act, we 
calculated normal value (NV) in accordance with section 773(c) of the 
Act. For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum.

Affirmative Preliminary Determination, in Part, of Critical 
Circumstances

    On March 23, 2018, the Domestic Industry timely filed a critical 
circumstances allegation, pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206, alleging that critical circumstances exist with respect 
to imports of aluminum sheet from China.\13\ We preliminarily determine 
that critical circumstances exist for Nanjie Resources Co., Limited 
(Nanjie), Yong Jie New Material Co., Ltd. (Yong Jie New Material), and 
Zhejiang Yongjie Aluminum Co., Ltd. (Yongjie Aluminum) (collectively, 
Yongjie Companies); Zhejiang GKO Aluminium Stock Co., Ltd. (GKO 
Aluminium); the companies eligible for a separate rate; and the China-
wide entity. In addition, we preliminarily determine that critical 
circumstances do not exist for Henan Mingtai Al Industrial Co., Ltd. 
(Henan Mingtai) and Zhengzhou Mingtai Industry Co., Ltd. (Zhengzhou 
Mingtai) (collectively, Mingtai). For a full description of the 
methodology and results of our analysis, see the Preliminary Decision 
Memorandum and Critical Circumstances Memorandum.\14\
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    \13\ See Letter from the Domestic Industry, ``Antidumping and 
Countervailing Duty Investigation of Common Alloy Aluminum Sheet 
from the People's Republic of China--Domestic Industry's Allegation 
of Critical Circumstances,'' dated March 23, 2018.
    \14\ See Memorandum, ``Calculations for Preliminary 
Determination of Critical Circumstances,'' dated June 15, 2018.
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Combination Rates

    In the Initiation Notice, we stated that it would calculate 
combination rates for the respondents that are eligible for a

[[Page 29090]]

separate rate in this investigation.\15\ Policy Bulletin 05.1 describes 
this practice.\16\
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    \15\ See Initiation Notice, 82 FR at 57217.
    \16\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
the Department's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    The preliminary weighted-average antidumping margins are as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Cash deposit
                                                                                     Weighted-     adjusted for
                   Exporter                                 Producer              average margin  subsidy offset
                                                                                     (percent)       (percent)
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Henan Mingtai Al Industrial Co., Ltd./          Henan Mingtai Al Industrial Co.,          167.16          167.16
 Zhengzhou Mingtai Industry Co., Ltd \17\.       Ltd./Zhengzhou Mingtai Industry
                                                 Co., Ltd.
Alcha International Holdings Limited..........  Jiangsu Alcha Aluminium Co., Ltd          167.16          167.16
Alumax Composite Material (Jiangyin) Co., Ltd.  Chalco Ruimin Co., Ltd..........          167.16          167.16
Granges Aluminum (Shanghai) Co., Ltd..........  Granges Aluminum (Shanghai) Co.,          167.16          167.16
                                                 Ltd.
Henan Founder Beyond Industry Co., Ltd........  Henan Xintai Aluminum Industry            167.16          167.16
                                                 Co., Ltd.
Huafon Nikkei Aluminium Corporation...........  Huafon Nikkei Aluminium                   167.16          167.16
                                                 Corporation.
Jiangsu Lidao New Material Co., Ltd...........  Henan Jinyang Luyue Co., Ltd....          167.16          167.16
Jiangsu Lidao New Material Co., Ltd...........  Jiangsu Zhong He Aluminum Co.,            167.16          167.16
                                                 Ltd.
Jiangyin Litai Ornamental Materials Co., Ltd..  Jiangyin Litai Ornamental                 167.16          167.16
                                                 Materials Co., Ltd.
Jiangyin New Alumax Composite Material Co. Ltd  Chalco Ruimin Co., Ltd..........          167.16          167.16
Shandong Fuhai Industrial Co., Ltd............  Shandong Fuhai Industrial Co.,            167.16          167.16
                                                 Ltd.
Tianjin Zhongwang Aluminium Co., Ltd..........  Tianjin Zhongwang Aluminium Co.,          167.16          167.16
                                                 Ltd.
Xiamen Xiashun Aluminum Foil Co., Ltd.........  Xiamen Xiashun Aluminum Foil              167.16          167.16
                                                 Co., Ltd.
Yantai Jintai International Trade Co., Ltd....  Shandong Nanshan Aluminium Co.,           167.16          167.16
                                                 Ltd.
Yinbang Clad Material Co., Ltd................  Yinbang Clad Material Co., Ltd..          167.16          167.16
Zhengzhou Silverstone Limited.................  Henan Zhongyuan Aluminum Co.,             167.16          167.16
                                                 Ltd.
Zhengzhou Silverstone Limited.................  Luoyang Xinlong Aluminum Co.,             167.16          167.16
                                                 Ltd.
Zhengzhou Silverstone Limited.................  Shanghai Dongshuo Metal Trade             167.16          167.16
                                                 Co., Ltd.
Zhengzhou Silverstone Limited.................  Zhengzhou Mingtai Industry Co.,           167.16          167.16
                                                 Ltd.
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                                China-Wide Entity                                         167.16          167.16
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Suspension of Liquidation
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    \17\ We preliminarily determine that Henan Mingtai Al Industrial 
Co., Ltd. and Zhengzhou Mingtai Industry Co., Ltd. are a single 
entity. See Preliminary Decision Memorandum; see also Memorandum, 
``Preliminary Affiliation and Collapsing Memorandum for Henan 
Mingtai Al Industrial Co., Ltd. and Zhengzhou Mingtai Industry Co., 
Ltd.,'' dated concurrently with this notice.
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    In accordance with section 733(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of aluminum sheet from China as described in the scope of the 
investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Further, pursuant to section 733(d)(1)(B) of the Act 
and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash 
deposit equal to the weighted-average amount by which normal value 
exceeds U.S. price, as indicated in the chart above as follows: (1) For 
the producer/exporter combinations listed in the table above, the cash 
deposit rate is equal to the estimated weighted average dumping margin 
listed for that combination in the table; (2) for all combinations of 
China producers/exporters of merchandise under consideration that have 
not established eligibility for their own separate rates, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin established for the China-wide entity; and (3) for all third-
country exporters of merchandise under consideration not listed in the 
table above, the cash deposit rate is the cash deposit rate applicable 
to the China producer/exporter combination that supplied that third-
country exporter.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise from Nanjie Resources Co., Limited/Yong Jie New Material 
Co., Ltd./Zhejiang Yongjie Aluminum Co., Ltd.; Zhejiang GKO Aluminium 
Stock Co., Ltd.; the companies eligible for a separate rate; and the 
China-wide entity, as discussed above.
    In accordance with section 733(e)(2)(A) of the Act, the suspension 
of liquidation shall apply to all unliquidated entries of merchandise 
from the producer/exporter combinations identified in this paragraph 
that were entered, or withdrawn from warehouse, for consumption on or 
after the date which is 90 days before the publication of this notice.
    The suspension of liquidation will remain in effect until further 
notice.

Disclosure and Public Comment

    We will disclose to interested parties the calculations performed 
in this proceeding within five days of the date of announcement of this 
preliminary determination in accordance with 19 CFR 351.224(b). Case 
briefs or other written comments on the preliminary determination 
described above may be submitted to the Assistant Secretary for 
Enforcement and Compliance no later than seven days after the date on 
which the last verification report is issued in this proceeding.\18\ 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline date for case 
briefs.\19\
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    \18\ See 19 CFR 351.309(b)(2)(c)(i).
    \19\ See 19 CFR 351.309, see also 19 CFR 351.303 (for general 
filing requirements).
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    Parties who submit case briefs or rebuttal briefs in this 
proceeding are encouraged to submit with each

[[Page 29091]]

argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.\20\ This summary should be 
limited to five pages total, including footnotes.
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    \20\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Interested parties who wish to request a hearing must do so in 
writing within 30 days after the publication of this preliminary 
determination in the Federal Register.\21\ Requests should contain the 
party's name, address, and telephone number; the number of 
participants; and a list of the issues to be discussed. If a request 
for a hearing is made, we intend to hold the hearing at the U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, at a date, time, and location to be determined. Parties will be 
notified of the date, time, and location of any hearing.
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    \21\ See 19 CFR 351.310(c).
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    Parties must file their case and rebuttal briefs, and any requests 
for a hearing, electronically using ACCESS.\22\ Electronically filed 
documents must be received successfully in their entirety by 5:00 p.m. 
Eastern Time on the due dates established above.\23\
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    \22\ See 19 CFR 351.303(b)(2)(i).
    \23\ See 19 CFR 351.303(b)(1).
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Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that requests by respondents for postponement of a final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    Respondents Mingtai and Yongjie Companies requested that, in the 
event of an affirmative preliminary determination in this 
investigation, Commerce postpone its final determination, i.e., no 
later than 135 days after the publication of the preliminary 
determination in the Federal Register, and that Commerce extend the 
application of the provisional measures prescribed under section 733(d) 
of the Act and 19 CFR 351.210(e)(2), from a four-month period to a 
period not to exceed six months.\24\ Additionally, the Domestic 
Industry requested that Commerce postpone its final determination and 
extend the application of provisional measures from a four-month period 
to a period not to exceed six months.\25\
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    \24\ See Letter from Mingtai and Yongjie Companies, ``Common 
Alloy Aluminum Sheet from the People's Republic of China: Request 
for Postponement of Final Determination,'' dated May 14, 2018.
    \25\ See Letter from the Domestic Industry, ``Common Alloy 
Aluminum Sheet from the People's Republic of China--Domestic 
Industry's Request to Extend Deadline for Final Antidumping 
Determination,'' dated May 18, 2018.
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    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because: (1) Our preliminary determination is 
affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination 
until no later than 135 days after the publication of this notice in 
the Federal Register and extending the provisional measures from a 
four-month period to a period not greater than six months. Accordingly, 
we will issue our final determination no later than 135 days after the 
date of publication of this preliminary determination, pursuant to 
section 735(a)(2) of the Act.\26\
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    \26\ See 19 CFR 351.210(b)(2) and (e).
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International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
International Trade Commission (ITC) of our preliminary determination 
of sales at LTFV. If our final determination is affirmative, the ITC 
will determine before the later of 120 days after the date of this 
preliminary determination or 45 days after our final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(I) of the Act and 19 CFR 351.205(c).

    Dated: June 15, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Determination of Critical Circumstances
V. Scope Comments
VI. Scope of the Investigation
VII. Postponement of Final Determination and Extension of 
Provisional Measures
VIII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Values
    C. Separate Rates
    D. Combination Rates
    E. Collapsing and Affiliation
    F. China-Wide Entity
    G. Application of Facts Available and Adverse Inferences
    H. Date of Sale
    I. Comparisons to Fair Value
    J. Normal Value
    K. Factor Valuation Methodology
    L. Determination of the Comparison Method
IX. Currency Conversion
X. Adjustment Under Section 777A(F) of the Act
XI. Adjustment for Countervailable Export Subsidies
XII. Disclosure and Public Comment
XIII. Verification
XIV. Conclusion

Appendix II

Scope of the Investigation

    The merchandise covered by this investigation is aluminum common 
alloy sheet (common alloy sheet), which is a flat-rolled aluminum 
product having a thickness of 6.3 mm or less, but greater than 0.2 
mm, in coils or cut-to-length, regardless of width. Common alloy 
sheet within the scope of this investigation includes both not clad 
aluminum sheet, as well as multi-alloy, clad aluminum sheet. With 
respect to not clad aluminum sheet, common alloy sheet is 
manufactured from a 1XXX-, 3XXX-, or 5XXX-series alloy as designated 
by the Aluminum Association. With respect to multi-alloy, clad 
aluminum sheet, common alloy sheet is produced from a 3XXX-series 
core, to which cladding layers are applied to either one or both 
sides of the core.
    Common alloy sheet may be made to ASTM specification B209-14, 
but can also be made to other specifications. Regardless of 
specification, however, all common alloy sheet meeting the scope 
description is included in the scope. Subject merchandise includes 
common alloy sheet that has been further processed in a third 
country, including but not limited to annealing, tempering, 
painting, varnishing, trimming, cutting, punching, and/or slitting, 
or any other processing that would not otherwise remove the 
merchandise from the scope of the investigations if performed in the 
country of manufacture of the common alloy sheet.
    Excluded from the scope of this investigation is aluminum can 
stock, which is suitable for use in the manufacture of aluminum 
beverage cans, lids of such cans, or tabs used to open such cans. 
Aluminum can stock is produced to gauges that range from 0.200 mm to 
0.292 mm, and has an H-19, H-41, H-48, or H-391 temper. In addition, 
aluminum can stock has a lubricant

[[Page 29092]]

applied to the flat surfaces of the can stock to facilitate its 
movement through machines used in the manufacture of beverage cans. 
Aluminum can stock is properly classified under Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings 7606.12.3045 and 
7606.12.3055.
    Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set for the above.
    Common alloy sheet is currently classifiable under HTSUS 
subheadings 7606.11.3060, 7606.11.6000, 7606.12.3090, 7606.12.6000, 
7606.91.3090, 7606.91.6080, 7606.92.3090, and 7606.92.6080. Further, 
merchandise that falls within the scope of this investigation may 
also be entered into the United States under HTSUS subheadings 
7606.11.3030, 7606.12.3030, 7606.91.3060, 7606.91.6040, 
7606.92.3060, 7606.92.6040, 7607.11.9090. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this investigation is 
dispositive.

[FR Doc. 2018-13423 Filed 6-21-18; 8:45 am]
 BILLING CODE 3510-DS-P