[Federal Register Volume 82, Number 155 (Monday, August 14, 2017)]
[Notices]
[Pages 37844-37846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17113]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-054]


Certain Aluminum Foil From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to

[[Page 37845]]

producers and exporters of certain aluminum foil (aluminum foil) from 
the People's Republic of China (PRC). The period of investigation is 
January 1, 2016, through December 31, 2016.

DATES: August 14, 2017.

FOR FURTHER INFORMATION CONTACT: John Corrigan at (202) 482-7438, AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on March 30, 
2017.\1\ On May 17, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
August 7, 2017.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ 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 http://access.trade.gov, and 
is available 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 accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Certain Aluminum Foil from the People's Republic of 
China: Initiation of Countervailing Duty Investigation, 82 FR 15688 
(March 30, 2017) (Initiation Notice).
    \2\ See Certain Aluminum Foil from the People's Republic of 
China: Postponement of Preliminary Determination in the 
Countervailing Duty Investigation, 82 FR 22646 (May 17, 2017).
    \3\ See Decision Memorandum for the Preliminary Affirmative 
Determination: Countervailing Duty Investigation of Certain Aluminum 
Foil 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 product covered by this investigation is aluminum foil from the 
PRC. For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice as well as additional language proposed by the 
Department. The Department intends to issue its preliminary decision 
regarding comments concerning the scope of the antidumping duty (AD) 
and countervailing duty (CVD) investigations in the preliminary 
determination of the companion AD investigation.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department preliminarily determines that there is 
a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ 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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    The Department notes that, in making these findings, it relied, in 
part, on facts available and, because it finds that one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, it drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\7\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department 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 zero and de minimis rates and any rates based entirely 
under section 776 of the Act. In this investigation, the Department 
preliminarily assigned rates based entirely on facts available to 
Loften Aluminum (Hong Kong) Limited (Loften HK), as well as Manakin 
Industries, LLC (Manakin Industries). Therefore, the only rates that 
are not zero, de minimis, or based entirely on facts otherwise 
available, are the rates calculated for Dingsheng Aluminum Industries 
(Hong Kong) Trading Co., Ltd. (Dingsheng HK) and Jiangsu Zhongji 
Lamination Materials Co., Ltd. (Zhongji). Consequently, a simple 
average of the rates calculated for Dingsehng HK and Zhongji is also 
assigned as the rate for all-other producers and exporters.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Dingsheng Aluminum Industries (Hong Kong) Trading Co., Ltd         28.33
 \8\........................................................
Jiangsu Zhongji Lamination Materials Co., Ltd \9\...........       16.56
Loften Aluminum (Hong Kong) Limited.........................       80.97
Manakin Industries, LLC \10\................................       80.97
All-Others..................................................       22.45
------------------------------------------------------------------------

Suspension of Liquidation
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    \8\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Dingsheng HK: Jiangsu Dingsheng New Materials Joint-Stock Co., Ltd.; 
Hangzhou Teemful Aluminum Co., Ltd.; Hangzhou Five Star Aluminum 
Co., Ltd.; Hangzhou DingCheng Aluminum Co., Ltd.; Luoyang Longding 
Aluminum Co., Ltd.; Hangzhou Dingsheng Industrial Group Co., Ltd.; 
Hangzhou Dingsheng Import & Export Co., Ltd.; and Walson (HK) 
Trading Co., Limited.
    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Zhongji: Shantou Wanshun Package Material Stock Co., Ltd.; Jiangsu 
Huafeng Aluminum Industry Co., Ltd.; and Jiangsu Zhongji Lamination 
Materials Co., (HK) Ltd.
    \10\ As discussed in the Preliminary Decision Memorandum, the 
Department preliminarily finds that Manakin Industries and Suzhou 
Manakin Aluminum Processing Technology Co., Ltd., effectively 
function by joint operation as a trading company. Therefore, the 
rate for Manakin Industries also applies to Suzhou Manakin Aluminum 
Processing Technology Co., Ltd. For additional information, see 
Preliminary Decision Memorandum.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the 
Department will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise 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

[[Page 37846]]

Register. Further, pursuant to 19 CFR 351.205(d), the Department will 
instruct CBP to require a cash deposit equal to the rates indicated 
above.

Disclosure

    The Department 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 this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department 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 issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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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, within 30 days 
after the date of publication of this notice. 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, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230, at a time and date to be determined. Parties 
should confirm by telephone the date, time, and location of the hearing 
two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (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.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: August 7, 2017.
Carole Showers,
Executive Director, Office of Policy, performing the duties of Deputy 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is aluminum foil 
having a thickness of 0.2 mm or less, in reels exceeding 25 pounds, 
regardless of width. Aluminum foil is made from an aluminum alloy 
that contains more than 92 percent aluminum. Aluminum foil may be 
made to ASTM specification ASTM B479, but can also be made to other 
specifications. Regardless of specification, however, all aluminum 
foil meeting the scope description is included in the scope.
    Excluded from the scope of this investigation is aluminum foil 
that is backed with paper, paperboard, plastics, or similar backing 
materials on only one side of the aluminum foil, as well as etched 
capacitor foil and aluminum foil that is cut to shape.
    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 forth above. The products under investigation are currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 7607.11.3000, 7607.11.6000, 7607.11.9030, 
7607.11.9060, 7607.11.9090, and 7607.19.6000. Further, merchandise 
that falls within the scope of this proceeding may also be entered 
into the United States under HTSUS subheadings 7606.11.3060, 
7606.11.6000, 7606.12.3045, 7606.12.3055, 7606.12.3090, 
7606.12.6000, 7606.91.3090, 7606.91.6080, 7606.92.3090, and 
7606.92.6080. 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. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Application of the CVD Law to Imports From the PRC
VII. Subsidies Valuation
VIII. Benchamrks and Interest Rates
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Verification
XIV. Conclusion

[FR Doc. 2017-17113 Filed 8-11-17; 8:45 am]
 BILLING CODE 3510-DS-P