[Federal Register Volume 89, Number 208 (Monday, October 28, 2024)]
[Notices]
[Pages 85495-85497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25013]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-171]


Disposable Aluminum Containers, Pans, Trays, and Lids From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Determination of Critical 
Circumstances, and Alignment of Final Determination With Final 
Antidumping Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of disposable aluminum containers, pans, trays, 
and lids (disposable aluminum containers) from the People's Republic of 
China (China). The period of investigation (POI) is January 1, 2023, 
through December 31, 2023. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable October 28, 2024.

FOR FURTHER INFORMATION CONTACT: Brian Warnes, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0028.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this countervailing duty (CVD) 
investigation on June 12, 2024.\1\ On July 25, 2024, Commerce postponed 
the deadline for the preliminary determination until October 15, 2024, 
in accordance with section 703(c)(1)(A) of the Act.\2\ On July 26, 
2024, Commerce further tolled all deadlines in this proceeding by seven 
days.\3\ The deadline for the preliminary determination is now October 
21, 2024.
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    \1\ See Disposable Aluminum Containers, Pans, Trays, and Lids 
from the People's Republic of China: Initiation of Countervailing 
Duty Investigation, 89 FR 49833 (June 12,2024) (Initiation Notice).
    \2\ See Disposable Aluminum Containers, Pans, Trays, and Lids 
from the People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 89 FR 60355 
(July 25, 2024).
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 25, 2024.
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    For a complete description of events that followed the initiation 
of this investigation, see the Preliminary Decision Memorandum.\4\ A 
list of topics discussed in the Preliminary Decision Memorandum is 
included as Appendix II 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. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination of the Countervailing Duty Investigation 
of Disposable Aluminum Containers, Pans, Trays, and Lids from the 
People's Republic of China,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are disposable aluminum 
containers from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 89 FR at 49834.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient,

[[Page 85496]]

and that the subsidy is specific.\7\ For a full description of the 
methodology underlying our preliminary determination, see the 
Preliminary Decision Memorandum.
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    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available, and, because it finds that certain respondents and 
the Government of China did not act to the best of their ability to 
respond to Commerce's requests for information, it drew an adverse 
inference where appropriate in selecting from among the facts otherwise 
available.\8\ For further information, see the ``Use of Facts Otherwise 
Available and Adverse Inferences'' section in the Preliminary Decision 
Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination Critical Circumstances

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of 
subject merchandise from Henan Aluminium Corporation (Henan), Zhejiang 
Acumen Living Technology Co., Ltd. (Zhejiang Acumen), and all other 
exporters/producers of disposable aluminum containers from China. For a 
full discussion of our preliminary critical circumstances 
determination, see the ``Preliminary Affirmative Determination of 
Critical Circumstances'' section of the Preliminary Decision 
Memorandum.

Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final CVD determination in this 
investigation with the final determination in the concurrent 
antidumping duty (AD) investigation of disposable aluminum containers 
from China, based on a request made by the Aluminum Foil Container 
Manufacturers Association (the petitioner).\9 \Consequently, the final 
CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
March 4, 2025, unless postponed.
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    \9\ See Petitioner's Letter, ``Petitioner's Request to Align 
Final Antidumping and Countervailing Duty Determinations,'' dated 
October 11, 2024.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or based entirely under section 776 of 
the Act.
    In this investigation, Commerce preliminarily calculated a total 
subsidy rate for Henan that is not zero, de minimis, or based entirely 
on the facts otherwise available. The rate determined for the other 
mandatory respondent, Zhejiang Acumen, is based entirely under section 
776 of the Act. Because Commerce calculated a total countervailable 
subsidy rate for Henan that is not zero, de minimis, or based entirely 
on the facts otherwise available, and because the only other 
respondent, Zhejiang Acumen, is based entirely on the facts otherwise 
available, we have preliminarily determined the all-others rate to be 
Henan's rate.\10\
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    \10\ See Memorandum, ``Calculation of Subsidy Rate for All 
Others,'' dated concurrently with this notice.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                  Subsidy rate (percent
                    Company                            ad valorem)
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Henan Aluminium Corporation....................                    78.12
Zhejiang Acumen Living Technology Co., Ltd.....                 * 312.91
All Others.....................................                    78.12
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* Rate based on facts available with adverse inferences.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in the Federal Register, accordance with 19 CFR 351.224(b).
    Consistent with 19 CFR 351.224(e), Commerce will analyze and, if 
appropriate, correct any timely allegations of significant ministerial 
errors by amending the preliminary determination. However, consistent 
with 19 CFR 351.224(d), Commerce will not consider incomplete 
allegations that do not address the significance standard under 19 CFR 
351.224(g) following the preliminary determination. Instead, Commerce 
will address such allegations in the final determination together with 
issues raised in the case briefs or other written comments.

Suspension of Liquidation

    Section 703(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 all exporters/producers. In accordance with section 
703(e)(2)(A) of the Act, the suspension of liquidation shall apply to 
unliquidated entries of merchandise from all exporters/producers that 
were entered, or withdrawn from warehouse, for consumption on or after 
the date which is 90 days before the publication of this notice. 
Further, pursuant to 19 CFR 351.205(d), Commerce will instruct U.S. 
Customs and Border Protection to require a cash deposit to suspended 
entries equal to the rates indicated above.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments 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 investigation. Rebuttal briefs, limited to

[[Page 85497]]

issues raised in the case briefs, may be filed not later than five days 
after the date for filing case briefs.\11\ Interested parties who 
submit case or rebuttal briefs in this proceeding must submit: (1) a 
table of contents listing each issue; and (2) a table of 
authorities.\12\
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    \11\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \12\ See 19 CFR 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public executive summary for each issue raised in their briefs.\13\ 
Further, we request that interested parties limit their public 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the public executive summaries as 
the basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final determination in this 
investigation. We request that interested parties include footnotes for 
relevant citations in the executive summary of each issue. Note that 
Commerce has amended certain of its requirements pertaining to the 
service of documents in 19 CFR 351.303(f).\14\
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    \13\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \14\ See APO and Service Final Rule, 88 FR at 67069.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, via ACCESS, 
within 30 days after the date of publication of this notice. Requests 
should contain (1) the party's name, address, and telephone number; (2) 
the number of participants and whether any participant is a foreign 
national; and (3) a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\15\ Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
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    \15\ See 19 CFR 351.310(d).
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    All submissions, including case and rebuttal briefs, as well as 
hearing requests, should be filed using ACCESS. An electronically-filed 
document must be received successfully in its entirety by ACCESS by 
5:00 p.m. Eastern Time on the established deadline.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the ITC of its determination. If the 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 the final 
determination whether imports of disposable aluminum containers from 
China are materially injuring, or threaten material injury to, the U.S. 
industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: October 21, 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.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is disposable 
aluminum containers, pans, trays, and lids produced primarily from 
flat-rolled aluminum. The subject merchandise includes disposable 
aluminum containers, pans, trays, and lids regardless of shape or 
size and whether or not wrinkled or smooth.
    The term ``disposable'' is used to identify an aluminum article 
that is designed to be used once, or for a limited number of times, 
and then recycled or otherwise disposed. ``Containers, pans, and 
trays'' are receptacles for holding goods.
    The subject disposable aluminum lids are intended to be used in 
combination with disposable containers produced from aluminum or 
other materials (e.g., paper or plastic). Where a disposable 
aluminum lid is imported with a non-aluminum container, only the 
disposable aluminum lid is included in the scope.
    Disposable aluminum containers, pans, trays, and lids are also 
included within the scope regardless of whether the surface has been 
embossed, printed, coated (including with a non-stick substance), or 
decorated, and regardless of the style of the edges. The inclusion 
of a nonaluminum lid or dome sold or packaged with an otherwise in-
scope article does not remove the article from the scope, however, 
only the disposable aluminum container, pan, tray, and lid is 
covered by the scope definition.
    Disposable aluminum containers, pans, trays, and lids are 
typically used in food-related applications, including but not 
limited to food preparation, packaging, baking, barbequing, 
reheating, takeout, or storage, but also have other uses. Regardless 
of end use, disposable aluminum containers, pans, trays, and lids 
that meet the scope definition and are not otherwise excluded are 
subject merchandise.
    Excluded from the scope are disposable aluminum casks, drums, 
cans, boxes and similar containers (including disposable aluminum 
cups and bottles) properly classified under Harmonized Tariff 
Schedule of the United States (HTSUS) subheading 7612.90. However, 
aluminum containers, pans, trays, and lids that would otherwise be 
covered by the scope are not excluded based solely on the fact that 
they are being classified under HTSUS subheading 7612.90.5000 due to 
the thickness of aluminum being less than 0.04 mm or greater than 
0.22 mm.
    The flat-rolled aluminum used to produce the subject articles 
may be made to ASTM specifications ASTM B479 or ASTM B209-14 but can 
also be made to other specifications. Regardless of the 
specification, however, all disposable aluminum containers, pans, 
trays, and lids meeting the scope description are included in the 
scope.
    Disposable aluminum containers, pans, trays, and lids are 
currently classifiable under HTSUS subheading 7615.10.7125. Further, 
merchandise that falls within the scope of this proceeding may also 
be entered into the United States under HTSUS subheadings 
7612.90.1090, 7615.10.3015, 7615.10.3025, 7615.10.7130, 
7615.10.7155, 7615.10.7180, 7615.10.9100, and 8309.90.0000. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Alignment
IV. Injury Test
V. Preliminary Affirmative Determination of Critical Circumstances
VI. Diversification of China's Economy
VII. Use of Facts Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation

[FR Doc. 2024-25013 Filed 10-25-24; 8:45 am]
BILLING CODE 3510-DS-P