Aluminum Extrusions From Indonesia: Final Affirmative Countervailing Duty Determination

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Federal RegisterOct 3, 2024
89 Fed. Reg. 80536 (Oct. 3, 2024)
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    Department of Commerce International Trade Administration
  • [C-560-841]
  • AGENCY:

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

    SUMMARY:

    The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of aluminum extrusions from Indonesia. The period of investigation (POI) is January 1, 2022, through December 31, 2022.

    DATES:

    Applicable October 3, 2024.

    FOR FURTHER INFORMATION CONTACT:

    Thomas Martin or Krisha Hill, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3936 or (202) 482-4037, respectively.

    SUPPLEMENTARY INFORMATION:

    Background

    On March 11, 2024, Commerce published the Preliminary Determination in the Federal Register . Commerce invited parties to comment on the Preliminary Determination. On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. The deadline for the final determination is now September 26, 2024.

    See Aluminum Extrusions from Indonesia: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With the Final Antidumping Duty Determination, 89 FR 17405 (March 11, 2024) ( Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM).

    Id.

    See Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.

    For a complete description of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum. The Issues and 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 Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

    See Memorandum, “Decision Memorandum for the Final Affirmative Determination in the Countervailing Duty Investigation of Aluminum Extrusions from the Indonesia,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

    Scope of the Investigation

    The products covered by this investigation are aluminum extrusions from Indonesia. For a complete description of the scope of the investigation, see Appendix I.

    Scope Comments

    During the course of this investigation, Commerce received scope comments from interested parties. Commerce issued Preliminary Scope Decision Memoranda to address these comments and set aside a period of time for parties to address scope issues in scope-specific case and rebuttal briefs. Between May 22, 2024, and June 24, 2024, Commerce received post-preliminary determination scope comments from interested parties regarding numerous products and scope-related issues. Between July 20, 2024, and August 19, 2024, Commerce received scope case and rebuttal briefs from numerous interested parties. We made changes to the scope of the investigation from the scope published in the Preliminary Determination, as noted in Appendix I.

    See Memoranda, “Preliminary Scope Decision Memorandum,” dated March 4, 2024, and “Preliminary Scope Decision Memorandum II,” dated May 1, 2024 (collectively Preliminary Scope Decision Memoranda).

    See Memorandum, “Final Scope Decision Memorandum,” dated concurrently with this notice.

    Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs by parties in this investigation, are discussed in the Issues and Decision Memorandum. For a list of the issues raised by parties, and to which we responded in the Issues and Decision Memorandum, see Appendix II.

    Methodology

    Commerce conducted this investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found to be countervailable, Commerce 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. For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum.

    See sections 771(5)(B) and (D) of the Act regarding financial contribution; see also section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.

    In making this final determination, Commerce relied on total facts otherwise available, including with an adverse inference, pursuant to sections 776(a) and (b) of the Act. For a full discussion of our application of adverse facts available (AFA), see the Preliminary Determination and the Issues and Decision Memorandum at the section entitled “Use of Facts Otherwise Available and Application of Adverse Inferences.”

    See PDM at 5-12.

    Verification

    Consistent with section 782(i) of the Act, in May 2024, Commerce verified all information reported by PT Indal Aluminum Industry TBK (Indal), PT Alfo Citra Abadi (PT Alfo), and the Government of Indonesia (GOI). We used standard verification procedures, including an examination of relevant account records and original source documents provided by the respondents.

    See Memoranda, “Verification of the Questionnaire Responses of Indonesia” dated June 26, 2024; and “Verification of the Questionnaire Responses of PT Indal Aluminum Industry and PT Indal Reiwa Auto,” dated June 26, 2024.

    Changes Since the Preliminary Determination

    Based on our review and analysis of the information received during verification and comments received from parties, for this final determination, we made certain changes to the countervailable subsidy rate calculations for Indal, PT Alfo, and for all other producers/exporters. For a discussion of these changes, see the Issues and Decision Memorandum.

    All-Others Rate

    In accordance with section 705(c)(1)(B)(i) of the Act, we calculated an individual estimated countervailable subsidy rate for the two mandatory respondents, Indal and PT Alfo. Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act.

    In this investigation, we continue to calculate a total net subsidy rate for Indal that is de minimis and a net subsidy rate for PT Alfo that is not zero, de minimis, or based entirely on the facts otherwise available. Because Commerce calculated an individual estimated countervailable subsidy rate for PT Alfo that is not zero, de minimis, or based entirely on the facts otherwise available, we have assigned an all-others rate based on the estimated subsidy rate calculated for PT Alfo.

    Final Determination

    Commerce determines that the following estimated net countervailable subsidy rates exist for the period January 1, 2022, through December 31, 2022:

    Company Subsidy rate (percent ad valorem)
    PT Indal Aluminium Industry Tbk; PT Indal Reiwa Auto; PT Husin Investama ** 0.53
    PT Alfo Citra Abadi 6.69
    Alutech * 33.79
    All Others 6.69
    * Rate is based on AFA.
    ** De minimis.

    Commerce continues to determine that PT Indal Aluminium Industry Tbk. is cross-owned with PT Indal Reiwa Auto. See Preliminary Determination PDM at 14. For the final determination we also find that PT Indal Aluminium Industry Tbk is cross-owned with PT Husin Investama. See Issues and Decision Memorandum at 4 and Comment 1.