[Federal Register Volume 85, Number 158 (Friday, August 14, 2020)]
[Notices]
[Pages 49631-49634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17809]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-896]


Common Alloy Aluminum Sheet From India: Preliminary Affirmative 
Countervailing Duty Determination, Preliminary Negative Critical 
Circumstances Determination, and Alignment of Final Determination With 
Final Antidumping Duty Determination

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 India. 
The period of investigation is January 1, 2019 through December 31, 
2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable August 14, 2020.

FOR FURTHER INFORMATION CONTACT: Benito Ballesteros AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-7425.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended

[[Page 49632]]

(the Act). Commerce published the notice of initiation of this 
investigation on April 7, 2020.\1\ On May 13, 2020, Commerce postponed 
the preliminary determination to August 7, 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 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. 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 Common Alloy Aluminum Sheet from Bahrain, Brazil, India, 
and the Republic of Turkey: Initiation of Countervailing Duty 
Investigations, 85 FR 19449 (April 7, 2020) (Initiation Notice).
    \2\ See Common Alloy Aluminum Sheet from Bahrain, Brazil, India, 
and the Republic of Turkey: Postponement of Preliminary 
Determinations in the Countervailing Duty Investigations, 85 FR 
29930 (May 19, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination: Countervailing Duty Investigation of Common Alloy 
Aluminum Sheet from India,'' 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 sheet from 
India. 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\ we 
set aside a period of time, as stated in the Initiation Notice, for 
parties to raise issues regarding product coverage (i.e., scope).\5\ We 
received several comments concerning the scope of the antidumping duty 
(AD) and countervailing duty (CVD) investigations of aluminum sheet as 
it appeared in the Initiation Notice. We are currently evaluating the 
scope comments filed by the interested parties. We intend to issue our 
preliminary decision regarding the scope of the AD and CVD 
investigations in the preliminary determinations of the companion AD 
investigations, the deadline for which is October 6, 2020.\6\ We will 
incorporate the scope decisions from the AD investigations into the 
scope of the final CVD determination for this investigation after 
considering any relevant comments submitted in scope case and rebuttal 
briefs.\7\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 85 FR at 19450.
    \6\ 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: Postponement of Preliminary 
Determinations in the Less-Than-Fair-Value Investigations, 85 FR 
45576, 45577 (July 29, 2020).
    \7\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
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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 
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, and that the subsidy is 
specific.\8\
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    \8\ 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 Commerce finds that one or more 
respondents did not act to the best of their ability to respond to 
Commerce's requests for information, Commerce drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\9\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, 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 determinations in the companion AD investigations of aluminum 
sheet from Bahrain, Brazil, India, and the Republic of Turkey based on 
a request made by the petitioners.\10\ Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determinations, which are currently scheduled to be issued no later 
than December 21, 2020, unless postponed.
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    \10\ See Petitioners' Letter, ``Countervailing Duty 
Investigations of Common Alloy Aluminum Sheet from Bahrain, Brazil, 
India, and the Republic of Turkey--Petitioners' Request to Align 
Final Countervailing Duty Determinations with the Companion 
Antidumping Duty Final Determinations,'' dated July 17, 2020. The 
petitioners are the Aluminum Association Common Alloy Aluminum Sheet 
Trade Enforcement Working Group and its Individual Members, Aleris 
Rolled Products, Inc., Arconic, Inc., Constellium Rolled Products 
Ravenswood, LLC, JW Aluminum Company, Novelis Corporation, and 
Texarkana Aluminum, Inc.
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Preliminary Negative Determination of Critical Circumstances

    The petitioners submitted an allegation that critical circumstances 
exist with respect to imports of aluminum sheet from India.\11\ The 
petitioners alleged, based on trade statistics, that there is a 
reasonable basis to believe or suspect that critical circumstances 
exist with regard to imports of aluminum sheet.\12\ Based on monthly 
shipment information requested from the mandatory respondents, Commerce 
is preliminarily determining that critical circumstances do not exist 
within the meaning of section 703(e)(1) of the Act. For further 
information, see the Preliminary Decision Memorandum.
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    \11\ See Petitioners' Letter, ``Countervailing Duty 
Investigations of Common Alloy Aluminum Sheet from India and the 
Republic of Turkey--Petitioners' Allegation of Critical 
Circumstances,'' dated July 14, 2020.
    \12\ Id.
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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 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated estimated 
countervailable subsidy rates individually for Hindalco and MALCO, that 
are not zero, de minimis, or based entirely on facts otherwise 
available. Commerce calculated the all-others rate using a weighted 
average of the individual estimated subsidy rates calculated for the 
examined respondents using each company's publicly-ranged values for 
the merchandise under consideration.\13\
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    \13\ See Memorandum, ``Countervailing Duty Investigation of 
Common Alloy Aluminum Sheet from India: Preliminary Determination 
Subsidy Rate for All-Others,'' dated August 7, 2020.
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Preliminary Determination

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

[[Page 49633]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
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Hindalco Industries Limited \14\........................           34.84
Manaksia Aluminium Company Limited......................            4.55
All Others..............................................           29.76
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Suspension of Liquidation
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    \14\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following company to be cross-owned with 
Hindalco: Utkal Alumina International Limited.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash 
deposit equal to the rates indicated above.

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

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

    All interested parties will have the opportunity to submit case and 
rebuttal briefs on the preliminary scope determination. The deadline to 
submit these comments will be established in the preliminary scope 
decision memorandum. Scope rebuttal briefs (which are limited to issues 
raised in the scope briefs) may be submitted no later than seven days 
after the deadline for the scope briefs. These deadlines apply to the 
AD and CVD aluminum sheet investigations, regardless of the deadlines 
of the preliminary determinations in the AD investigations. For all 
scope briefs and rebuttals thereto, parties must file identical 
documents simultaneously on the records of all the ongoing AD and CVD 
aluminum sheet investigations. No new factual information or business 
proprietary information may be included in either scope briefs or 
rebuttal scope briefs.
    Case briefs or other written comments on non-scope matters 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 seven days 
after the deadline date for case briefs.\15\ Commerce has modified 
certain of its requirements for serving documents containing business 
proprietary information until further notice.\16\ 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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    \15\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \16\ 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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    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.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce 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, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The product covered by this investigation is 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 IXXX-
, 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 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-l9, 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, 7606.12.3096, 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.

[[Page 49634]]

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

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Preliminary Affirmative Determination of Critical Circumstance, 
In Part
VI. Subsidies Valuation
VII. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Conclusion

[FR Doc. 2020-17809 Filed 8-13-20; 8:45 am]
BILLING CODE 3510-DS-P