[Federal Register Volume 85, Number 158 (Friday, August 14, 2020)]
[Notices]
[Pages 49629-49631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17810]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-489-840]
Common Alloy Aluminum Sheet From The Republic of Turkey:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Affirmative Determination of Critical Circumstances in Part, 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 The
Republic of Turkey (Turkey). 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: Gene H. Calvert, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3586.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(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 May 19, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
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
Affirmative Determination in the Countervailing Duty Investigation
of Common Alloy Aluminum Sheet from the Republic of Turkey,'' 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 common alloy aluminum
sheet from Turkey. 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
[[Page 49630]]
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 Application of 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 determination in the companion AD investigation of aluminum sheet
from Turkey based on a request made by 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. (the petitioners).\10\
Consequently, the final CVD determination will be issued on the same
date as the final AD determination, which is 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.
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Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 703(e)(1) of the Act, Commerce
preliminarily determines that critical circumstances exist with respect
to imports of aluminum sheet from Turkey for Assan Aluminyum Sanayi ve
Ticaret A.S. (Assan), but do not exist with respect to Teknik Aluminyum
Sanayi A.S. (Teknik) or for all other exporters or producers not
individually examined. For a full description of the methodology and
results of Commerce's analysis, see the Preliminary Decision
Memorandum.
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 preliminarily found a de minimis
rate for Teknik. Therefore, the only rate that is not zero, de minimis,
or based entirely on facts otherwise available is the rate calculated
for Assan. Consequently, the rate calculated for Assan is also assigned
as the rate for all other producers and exporters.
Preliminary Determination
Consistent with section 703(b)(4)(A) of the Act, Commerce has
disregarded Teknik's de minimis rate. Commerce preliminarily determines
that the following estimated countervailable subsidy rates exist:
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\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has preliminarily found Kibar Dis Ticaret A.S. (Kibar Dis)
and Kibar Holding to be cross-owned, pursuant to 19 CFR
351.525(b)(6)(vi), with Assan Aluminyum Sanayi ve Ticaret A.S.
\12\ Commerce has preliminarily found TAC Metal Ticaret A.S.
(TAC Metal) to be cross-owned with Teknik Aluminyum Sanayi A.S. See
the Preliminary Decision Memorandum.
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Subsidy rate
Company (ad valorem)
(percent)
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Assan Aluminyum Sanayi ve Ticaret A.S.\11\.............. 3.15
Teknik Aluminyum Sanayi A.S.\12\........................ 0.07
All Others.............................................. 3.15
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(de minimis).
Suspension of Liquidation
In accordance with section 703(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 the scope of the
investigation entered, or withdrawn from warehouse, for consumption on
or after the date of publication of this notice in the Federal
Register. Further, pursuant to section 703(d)(1)(B) of the Act and 19
CFR 351.205(d), Commerce will instruct CBP to require a cash deposit
equal to the rates indicated above. Because the subsidy rate for Teknik
is de minimis, Commerce intends to direct CBP not to suspend
liquidation of entries of the merchandise produced by Teknik and
exported by either Teknik or by TAC Metal. However, entries of subject
merchandise in any other producer/exporter combination, e.g.,
merchandise produced by a third party and exported by either Teknik or
by TAC Metal, are subject to cash deposit requirements at the all-
others rate.
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
The date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which the notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of aluminum sheet
from Turkey for Assan. In accordance with section 703(e)(2)(A) of the
Act, the suspension of liquidation shall apply to unliquidated entries
of subject merchandise from Assan that were entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice.
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.
[[Page 49631]]
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.\13\ Commerce has modified
certain of its requirements for serving documents containing business
proprietary information until further notice.\14\ 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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\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\14\ 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 date and time 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 merchandise covered by this investigation is common alloy
aluminum 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 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.
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, 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. Scope Comments
IV. Scope of the Investigation
V. Preliminary Affirmative Determination of Critical Circumstances,
In Part
VI. Subsidies Valuation
VII. Benchmarks and Interest Rates
VIII. Use of Facts Otherwise Available and Application of Adverse
Inferences
IX. Analysis of Programs
X. Conclusion
[FR Doc. 2020-17810 Filed 8-13-20; 8:45 am]
BILLING CODE 3510-DS-P