[Federal Register Volume 85, Number 200 (Thursday, October 15, 2020)]
[Notices]
[Pages 65351-65354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22802]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-791-825]
Common Alloy Aluminum Sheet From South Africa: Preliminary
Affirmative Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Extension of Provisional
Measures
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 South Africa is
being, or is likely to be, sold in the United States at less than fair
value (LTFV). The period of investigation is January 1, 2019 through
December 31, 2019. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable October 15, 2020.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Brendan Quinn, AD/
CVD Operations, Office III, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-4243 or (202)
482-5848, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on April 7,
2020.\1\ On July 29, 2020, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
October 6, 2020.\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
[[Page 65352]]
included 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 http://enforcement.trade.gov/frn/. The signed and the electronic versions of
the Preliminary Decision Memorandum are identical in content.
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\1\ See Common Alloy Aluminum Sheet from Bahrain, Brazil,
Croatia, Egypt, Germany, Greece, India, Indonesia, Italy, Republic
of Korea, Oman, Romania, Serbia, Slovenia, South Africa, Spain,
Taiwan and the Republic of Turkey: Initiation of Less-Than-FairValue
Investigations, 85 FR 19444 (April 7, 2020) (Initiation Notice).
\2\ Common Alloy Aluminum Sheet from Bahrain, Brazil, Croatia,
Egypt, Germany, Greece, India, Indonesia, Italy, Republic of Korea,
Oman, Romania, Serbia, Slovenia, South Africa, Spain, Taiwan and the
Republic of Turkey: Postponement of Preliminary Determinations in
the Less-Than-Fair-Value Investigations, 85 FR 45576 (July 29,
2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Common Alloy Aluminum Sheet from South Africa,'' 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 common alloy
aluminum sheet from South Africa. For a complete description of the
scope of this investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce'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. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this investigation,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ As
discussed herein, Commerce is preliminarily modifying the scope
language as it appeared in the Initiation Notice. See the revised scope
in Appendix I to this notice. The Preliminary Scope Decision Memorandum
establishes the deadline to submit scope case briefs. There will be no
further opportunity for comments on scope-related issues.\7\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Common Alloy Aluminum Sheet from Bahrain,
Brazil, Croatia, Egypt, Germany, Greece, India, Indonesia, Italy,
Republic of Korea, Oman, Romania, Serbia, Slovenia, South Africa,
Spain, Taiwan, and Turkey: Scope Comments Decision Memorandum for
the Preliminary Determinations,'' dated October 6, 2020,
(Preliminary Scope Decision Memorandum).
\7\ Case briefs, other written comments, and rebuttal briefs
submitted in response to this preliminary LTFV determination should
not include scope-related issues. See Preliminary Scope Decision
Memorandum; see also ``Public Comment'' section of this notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value (NV) is calculated in accordance with section 773 of the
Act. For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
All-Others Rate
Section 733(d)(1)(A)(ii) of the Act provides that in the
preliminary determination Commerce shall determine an estimated all-
others rate for all exporters and producers not individually examined.
Pursuant to section 735(c)(5)(A) of the Act, this rate shall be an
amount equal to the weighted average of the estimated weighted-average
dumping margins established for exporters and producers individually
investigated, excluding any zero and de minimis margins, and any
margins determined entirely under section 776 of the Act.
Commerce calculated an individual estimated weighted-average
dumping margin for Hulamin Operations (Pty) Ltd. (Hulamin Operations),
the only individually examined exporter/producer in this investigation.
Because the only individually calculated dumping margin is not zero, de
minimis or based entirely on facts otherwise available, the estimated
weighted-average dumping margin calculated for Hulamin Operations is
the margin assigned to all other producers and exporters, pursuant to
section 735(c)(5)(A) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Hulamin Operations (Pty) Ltd................................ \8\ 8.98
All Others.................................................. 8.98
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register.
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\8\ See Memorandum, ``Antidumping Duty Investigation of Common
Alloy Aluminum Sheet from South Africa: Analysis of the Preliminary
Determination Margin Calculations for Hulamin Operations (Pty)
Ltd.,'' dated concurrently with this notice.
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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 estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) The cash deposit rate for the respondent
listed above will be equal to the company-specific estimated weighted-
average dumping margin determined in this preliminary determination;
(2) if the exporter is not a respondent identified above, but the
producer is, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for that
producer of the subject merchandise; and (3) the cash deposit rate for
all other producers and exporters will be equal to the all-others
estimated weighted-average dumping margin. These suspension of
liquidation instructions will remain in effect until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in accordance with 19 CFR 351.224(b).
Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance.
Interested parties will be notified of the timeline for the submission
of case briefs and written comments at a later date. Rebuttal briefs,
limited to issues raised in these case briefs, may be submitted no
later than seven days after the deadline date for case briefs.\9\ Note
that Commerce has modified certain of
[[Page 65353]]
its requirements for serving documents containing business proprietary
information until further notice.\10\ 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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\9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\10\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020); see also 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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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, 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 intends to hold the hearing 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.
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 a request by exporters for postponement of the 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.
On September 9, 2020, pursuant to 19 CFR 351.210(e), Hulamin
Operations requested that Commerce postpone the final determination and
that provisional measures be extended to a period not to exceed six
months.\11\ In accordance with section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce
will make its 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.
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\11\ See Hulamin Operations' Letter, ``Common Alloy Aluminum
Sheet from South Africa: Request to Postpone Final Determination and
to Extend Provisional Measures,'' dated September 9, 2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, then 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 aluminum sheet from South Africa 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 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: October 6, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are common alloy
aluminum 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.
The use of a proprietary alloy or non-proprietary alloy that is not
specifically registered by the Aluminum Association as a discrete
1XXX-, 3XXX-, or 5XXX-series alloy, but that otherwise has a
chemistry that is consistent with these designations, does not
remove an otherwise in-scope product from the scope.
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 this investigation 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, H-39, 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, 7606.12.3096, 7606.12.6000,
7606.91.3095, 7606.91.6095, 7606.92.3035, and 7606.92.6095. Further,
merchandise that falls within the scope of this investigation may
also be entered into the United States under HTSUS subheadings
7606.11.3030, 7606.12.3015, 7606.12.3025, 7606.12.3035,
7606.12.3091, 7606.91.3055, 7606.91.6055, 7606.92.3025,
7606.92.6055, 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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. Scope Comments
VI. Discussion of the Methodology
A. Comparisons to Normal Value
1. Determination of Comparison Method
2. Results of the Differential Pricing Analysis
B. Product Comparisons
C. Date of Sale
D. Export Price
E. Constructed Export Price
F. Normal Value
1. Comparison Market Viability
2. Level of Trade
3. Cost of Production Analysis
a. Calculation of COP
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b. Test of Comparison Market Sales Prices
c. Results of the COP Test
G. Calculation of NV Based on Comparison-Market Prices
VII. Currency Conversion
VIII. Recommendation
[FR Doc. 2020-22802 Filed 10-14-20; 8:45 am]
BILLING CODE 3510-DS-P