[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33650-33652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13551]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-074]


Common Alloy Aluminum Sheet From the People's Republic of China: 
Preliminary Results of Countervailing Duty Administrative Review, 
Rescission of Review, in Part, and Intent To Rescind, in Part; 2018-
2019

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of common alloy aluminum sheet (aluminum sheet) from the 
People's Republic of China (China). The period of review (POR) is April 
23, 2018, through December 31, 2019.

DATES: Applicable June 25, 2021.

FOR FURTHER INFORMATION CONTACT: John McGowan or Natasia Harrison, 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) 482-3019 or (202) 
482-1240, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 8, 2020, Commerce published a notice of initiation of an 
administrative review of the countervailing duty (CVD) order \1\ on 
aluminum sheet from China.\2\ On April 24, 2020, Commerce tolled all 
deadlines in administrative reviews by 50 days.\3\ On July 21, 2020, 
Commerce tolled all deadlines in administrative reviews by an 
additional 60 days.\4\ On January 25, 2021, Commerce extended the 
deadline for the preliminary results of this review until June 18, 
2021.\5\
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    \1\ See Common Alloy Aluminum Sheet from the People's Republic 
of China: Countervailing Duty Order, 84 FR 2157 (February 6, 2019) 
(Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 19730 (April 8, 2020).
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews in Response to 
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
    \4\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
    \5\ See Memorandum, ``Common Alloy Aluminum Sheet from the 
People's Republic of China: Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review; 4/23/2018-12/
31/2019,'' dated January 25, 2021.
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    Based on timely withdrawal of requests for administrative review, 
Commerce intends to partially rescind the administrative review of two 
entities.\6\ Therefore, concurrently with these preliminary results, we 
are rescinding the review with respect to these companies.
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    \6\ See Texarkana Aluminum, Inc.'s Letter, ``Common Alloy 
Aluminum Sheet (CAAS) from China, Antidumping (AD) & Countervailing 
Duty (CVD) Administrative Reviews,'' dated April 9, 2020; and 
Domestic Industry's Letter, ``1st Administrative Review of the 
Countervailing Duty Order on Common Alloy Aluminum Sheet from the 
People's Republic of China--Domestic Industry's Withdrawal of 
Certain Requests for Administrative Reviews,'' dated August 19, 
2020.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\7\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included at Appendix I of 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 System (ACCESS). ACCESS is available to 
registered users at http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/.
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    \7\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review of Common 
Alloy Aluminum Sheet from the People's Republic of China; 2018-
2019,'' dated concurrently, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Order

    The merchandise covered by the Order is aluminum sheet form China. 
For a complete description of the scope of the Order, see Appendix II.

Rescission of Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the party or parties 
that requested a review withdraw the request within 90 days of the 
publication date of the notice of initiation of the requested review. 
As noted above, all requests for administrative review were timely 
withdrawn for certain companies. Therefore, in accordance with 19 CFR 
351.213(d)(1), we are rescinding this administrative review with 
respect to: Luoyang Longding Aluminium Industries Co., Ltd. and 
Multipanel UK Ltd.

Intent To Rescind Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(3), we intend to rescind this review 
following

[[Page 33651]]

the publication of the final results on the basis of no reviewable 
suspended entries of subject merchandise, according to the U.S. Customs 
and Border Protection (CBP) data, with respect to Teknik Aluminyum 
Sanayi A.S. and Companhia Brasileira De Aluminio, which filed no 
shipment letters,\8\ and with respect three additional companies (i.e., 
Choil Aluminum Co., Ltd; PMS Metal Profil Aluminyum San. Ve Tic. A.S. 
Demirtas Organize Sanayi Bolgesi; and United Metal Coating LLC). See 
the Preliminary Decision Memorandum for a full discussion.
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    \8\ See Memorandum, ``Common Alloy Aluminum Sheet from the 
People's Republic of China: Release of U.S. Customs and Border 
Protection Data,'' dated April 16, 2020; see also Memorandum, 
``Common Alloy Aluminum Sheet from the People's Republic of China; 
No Shipment Inquiry for Teknik Aluminyum Sanayi A.S. and Companhia 
Brasileira de Aluminio during the period 04/23/2018 through 12/31/
2019,'' dated June 11, 2021.
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Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the 
Act). For each of the subsidy programs found countervailable, we 
preliminarily find that there is a subsidy, i.e., a financial 
contribution from an ``authority'' that confers a benefit to the 
recipient, and that the subsidy is specific.\9\ For a full description 
of the methodology underlying our preliminary conclusions, including 
our reliance, in part, on adverse facts available (AFA) pursuant to 
sections 776(a) and (b) of the Act, see the Preliminary Decision 
Memorandum.
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    \9\ 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(5)(A) 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 the Government of China 
did not act to the best of its ability to respond to Commerce's request 
for information, it drew an adverse inference where appropriate in 
selecting from among the facts otherwise available. For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.

Preliminary Rate for Non-Selected Companies Under Review

    There is one company for which a review was requested, that had 
reviewable entries, and that was not selected for individual 
examination as a mandatory respondent or found to be cross-owned with a 
mandatory respondent. Because the rate calculated for the mandatory 
respondent, Jiangsu Alcha Aluminum Co., Ltd. (Jiangsu Alcha),\10\ is 
above de minimis and is not based entirely on facts available, we 
applied the subsidy rate calculated for Jiangsu Alcha to this non-
selected company. This methodology to establish the subsidy rate for 
the non-selected company is consistent with our practice and with 
section 705(c)(5)(A) of the Act.\11\
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    \10\ Jiangsu Alcha and its cross owned companies include Alcha 
International Holdings Limited; Baotou Alcha Aluminum Co., Ltd.; and 
Jiangsu Alcha New Energy Materials Co., Ltd.
    \11\ The petitioners initially requested a review and did not 
subsequently withdraw its request for review of one company: Yinbang 
Clad Material Co., Ltd.
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Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated a 
countervailable subsidy rate for the mandatory respondent Jiangsu 
Alcha. We determined the countervailable subsidy rate for Mingtai 
Industrial Co., Ltd./Zhengzhou Mingtai Industry Co. and Yong Jie New 
Material Co., Ltd. based entirely on AFA, in accordance with section 
776 of the Act. Therefore, the only rate that is not zero, de minimis, 
or based entirely on facts otherwise available is the rate calculated 
for Jiangsu Alcha. Consequently, as discussed above, we are assigning 
to all other producers and exporters subject to this review but not 
selected for individual examination (i.e., non-selected companies) the 
rate calculated for Jiangsu Alcha.
    Commerce preliminarily determines that, during the POR, the 
following countervailable subsidy rates exist:

------------------------------------------------------------------------
                                          Subsidy rate--  Subsidy rate--
                                           2018 (percent   2019 (percent
                 Company                    ad valorem)     ad valorem)
 
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Mingtai Industrial Co., Ltd./Zhengzhou          * 275.98        * 275.98
 Mingtai Industry Co.12.................
Jiangsu Alcha Aluminum Co., Ltd.13......           36.76           30.64
Yong Jie New Material Co., Ltd.14.......        * 275.98        * 275.98
Yinbang Clad Material Co., Ltd.15.......           36.76           30.64
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* Rate based on AFA.

Assessment Rate
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    \12\ This rate applies to Mingtai Industrial Co., Ltd./Zhengzhou 
Mingtai Industry Co. and their cross-owned company: Henan Gongdian 
Thermal Co., Ltd. In the CVD investigation of aluminum sheet from 
China, we made this cross-ownership finding. See Common Alloy 
Aluminum Sheet from the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination, Alignment of Final 
CVD Determination With Final Antidumping Duty Determination, and 
Preliminary CVD Determination of Critical Circumstances, 83 FR 17651 
(April 23, 2018), and accompanying Preliminary Decision Memorandum, 
unchanged in Countervailing Duty Investigation of Common Alloy 
Aluminum Sheet from the People's Republic of China: Final 
Affirmative Determination, 83 FR 57427 (November 15, 2018), and 
accompanying Issues and Decision Memorandum (collectively, Aluminum 
Sheet from China Investigation). Accordingly, the subject 
merchandise that was produced/exported by these companies entered 
under a single CBP case number during the period of review.
    \13\ This rate applies to Jiangsu Alcha and its cross-owned 
companies.
    \14\ This rate applies to Yong Jie New Material Co., Ltd. and 
its cross-owned companies: Nanjie Resources Co., Ltd.; Shejiang 
Nanjie Industry Co., Ltd, Zhejiang Yongjie Aluminum Co., Ltd. also 
known as Zhejiang Yong Jie Aluminum Co., Ltd., and Zhejiang Yongjie 
Holding Co., Ltd. In the Aluminum Sheet from China Investigation, we 
made this cross-ownership finding. Accordingly, the subject 
merchandise that was produced/exported by these companies entered 
under a single CBP case number during the POR.
    \15\ Yinbang Clad Material Co., Ltd. was not individually 
examined during the POR and, therefore, has received the non-
selected company rate.
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    Consistent with section 751(a)(2)(C) of the Act, upon issuance of 
the final results, Commerce shall determine, and CBP shall assess, 
countervailing duties on all appropriate entries covered by this 
review. We intend to issue assessment instructions to CBP no earlier 
than 35 days after the date of publication of the final results of this 
review in the Federal Register. If a timely summons is filed at the 
U.S. Court of International Trade, the assessment instructions will 
direct CBP not to liquidate relevant entries until the time for parties 
to file a request for a statutory injunction has expired (i.e., within 
90 days of publication).
    For the two companies for which this review is rescinded with these 
preliminary results, Commerce will

[[Page 33652]]

instruct CBP to assess countervailing duties on all appropriate entries 
at a rate equal to the cash deposit of estimated countervailing duties 
required at the time of entry, or withdrawal from warehouse, for 
consumption, during the period April 23, 2018, through December 31, 
2018, in accordance with 19 CFR 351.212(c)(1)(i). Commerce intends to 
issue appropriate assessment instructions directly to CBP no later than 
35 days after publication of this notice in the Federal Register.

Cash Deposit Rate

    Pursuant to section 751(a)(1) of the Act, Commerce intends to 
instruct CBP to collect cash deposits of estimated countervailing 
duties in the amount indicated above for 2019 with regard to shipments 
of subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this review. For all non-reviewed firms, we will instruct CBP to 
continue to collect cash deposits of estimated countervailing duties at 
the most recent company-specific or all-others rate applicable to the 
company, as appropriate. These cash deposit instructions, when imposed, 
shall remain in effect until further notice.

Disclosure and Public Comment

    We will disclose to parties to this proceeding the calculations 
performed in reaching the preliminary results within five days of the 
date of publication of these preliminary results.\16\ Interested 
parties may submit written comments (case briefs) within 30 days of 
publication of the preliminary results and rebuttal comments (rebuttal 
briefs) within seven days after the time limit for filing case 
briefs.\17\ Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be 
limited to issues raised in the case briefs. Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit arguments are requested to 
submit with the argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.\18\ Note that 
Commerce has modified certain of its requirements for serving documents 
containing business proprietary information.\19\
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    \16\ See 19 CFR 224(b).
    \17\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1).
    \18\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
    \19\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    Interested parties who wish to request a hearing must do so within 
30 days of publication of these preliminary results by submitting a 
written request to the Assistant Secretary for Enforcement and 
Compliance using Enforcement and Compliance's ACCESS system.\20\ 
Requests should contain the party's name, address, and telephone 
number, the number of participants, whether any participant is a 
foreign national, and a list of the issues to be discussed. If a 
request for a hearing is made, Commerce will inform parties of the 
scheduled date of the hearing.\21\ Issues addressed during the hearing 
will be limited to those raised in the briefs.\22\ Parties should 
confirm by telephone the date, time, and location of the hearing two 
days before the scheduled date. Parties are reminded that all briefs 
and hearing requests must be filed electronically using ACCESS and 
received successfully in their entirety by 5 p.m. Eastern Time on the 
due date.
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    \20\ See 19 CFR 351.310(c).
    \21\ See 19 CFR 351.310.
    \22\ See 19 CFR 351.310(c).
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    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Notification to Interested Parties

    These preliminary results are issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.213 
and 19 CFR 351.221(b)(4).

    Dated: June 17, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Rescission of Administrative Review, In Part
IV. Intent To Rescind Review, In Part
V. Non-Selected Companies Under Review
VI. Scope of the Order
VII. Diversification of China's Economy
VIII. Subsidies Valuation
IX. Unequityworthiness
X. Interest Rates, Discount Rates, and Benchmarks
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Analysis of Programs
XIII. Recommendation

Appendix II--Scope of the Order

    The merchandise covered by the Order 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 the Order 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 Order if performed in the country 
of manufacture of the common alloy sheet.
    Excluded from the scope of the Order 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 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 these investigations 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 the Order is dispositive.

[FR Doc. 2021-13551 Filed 6-24-21; 8:45 am]
BILLING CODE 3510-DS-P