[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:
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Company Ad Valorem net subsidy rate
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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
[[Page 18524]]
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