Aluminum Extrusions From the People's Republic of China: Final Affirmative Countervailing Duty Determination

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Federal RegisterOct 3, 2024
89 Fed. Reg. 80526 (Oct. 3, 2024)
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    Department of Commerce International Trade Administration
  • [C-570-159]
  • 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 the People's Republic of China (China). The period of investigation is January 1, 2022, through December 31, 2022.

    DATES:

    Applicable October 3, 2024.

    FOR FURTHER INFORMATION CONTACT:

    Eliza DeLong, 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) 482-3878.

    SUPPLEMENTARY INFORMATION:

    Background

    On March 11, 2024, Commerce published its Preliminary Determination in the Federal Register and invited interested parties to comment. On May 23, 2024, Commerce published an Amended 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 the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination with Final Antidumping Duty Determination, 89 FR 17394 (March 11, 2024) ( Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM).

    See Aluminum Extrusions From the People's Republic of China, Indonesia, Mexico, and the Republic of Türkiye: Amended Preliminary Countervailing Duty Determinations, 89 FR 45634 (May 23, 2024).

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

    A summary of the events that occurred since Commerce published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum. The Issues and Decision Memorandum is a public document and is made available to the public 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 People's Republic of China,” 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 China. For a complete description of the scope of this 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 that were submitted by parties in this investigation, are discussed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, see Appendix II to this notice.

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

    See Preliminary Determination PDM at 6-34.

    Verification

    As provided in section 782(i) of the Act, in May 2024, we conducted verifications of information submitted by Sanhua (Hangzhou) Micro Channel Heat Exchanger Co., Ltd. (Sanhua) and Suzhou Dayer Mechatronic Hi-Tech Co., Ltd. (Suzhou Dayer) for use in our final determination. We used standard verification procedures, including an examination of relevant accounting records, and original source documents provided by Sanhua and Suzhou Dayer.

    See Memoranda, “Countervailing Duty Investigation of Aluminum Extrusions from the People's Republic of China: Verification of Suzhou Dayer Mechatronic Hi-Tech Co., Ltd.'s Questionnaire Responses,” and “Countervailing Duty Investigation of Aluminum Extrusions from the People's Republic of China: Verification of Sanhua (Hangzhou) Micro Channel Heat Exchanger Co., Ltd.'s Questionnaire Responses,” dated May 31, 2024.

    Changes Since the Preliminary Determination

    Based on our analysis of the comments received from interested parties and our verification findings, we made certain changes to the subsidy rate calculations for Sanhua. For a discussion of these changes, see the Issues and Decision Memorandum.

    All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually examined, excluding any rates that are zero, de minimis, or rates based entirely under section 776 of the Act. In this investigation, Commerce calculated an individual estimated countervailable subsidy rate for Sanhua, the only individually-examined exporter/producer in this investigation for which Commerce is calculating an estimated countervailable subsidy rate. Because the only individually calculated rate is not zero, de minimis, or based entirely on facts otherwise available, the estimated countervailable subsidy rate calculated for Sanhua is the rate assigned to all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

    Final Determination

    Commerce determines that the following estimated countervailable subsidy rates exist:

    As discussed in the Preliminary Decision Memorandum, Commerce has determined that the following companies are cross-owned with Sanhua, pursuant to 19 CFR 351.525(b)(6)(vi): Zhejiang Sanhua Intelligent Controls Co., Ltd.; Zhejiang Sanhua Automotive Components Co., Ltd.; Shaoxing Sanhua New Energy Automotive Components Co., Ltd.; Shaoxing Sanhua Automotive Thermal Management Technology Co., Ltd.; and Sanhua Heat Exchanger (Zhengzhou) Co., Ltd.

    Company Subsidy rate (percent ad valorem)
    Qingdao Sea Nova Building * 168.81
    Qingyuan SinoGar Aluminum Co., Ltd * 168.81
    Sanhua (Hangzhou) Micro Channel Heat Exchanger Co., Ltd.; Zhejiang Sanhua Intelligent Controls Co., Ltd.; Zhejiang Sanhua Automotive Components Co., Ltd.; Shaoxing Sanhua New Energy Automotive Components Co., Ltd.; Shaoxing Sanhua Automotive Thermal Management Technology Co., Ltd.; and Sanhua Heat Exchanger (Zhengzhou) Co., Ltd 14.56
    Shenyang Yuanda Aluminum Industry Engineering Co., Ltd * 168.81
    Shenzhen SinoGar Aluminum Co., Ltd * 168.81
    Wenzhou Yongtai Electric Co., Ltd * 168.81
    Wuxi Rapid Scaffolding (Engineering) Co. Ltd * 168.81
    Yekalon Industry Inc * 168.81
    All Others 14.56
    * Rate based on AFA.