Aluminum Extrusions from the People's Republic of China · which also cluim€d lO have had EolriEs...

June 3, 201J

MEMORANDUM TO:

FROlvl:

SUHJF.CT·

SUMMARY

UNIT!i!C STATeS E:le!"AI'ITMI!!NT CF CQMMEO>lCEi lnt.,rn 11tlon01 I Tr11cla Aclml nl•tr<rt:lon w~~~,;~oon, D.C. :202130

Paul PiquadG Assistant Secretary

for Import Administration

Christian Milish cf.b'vl Deputy Assistam Secretary

A-570-967 AR: 11112/10-4/JO!J2 Public:- Document !A i\D/CVD 08: PS/Dl\1(

fl\r Antidumping and Countervailing Duty Opel ations

Decision Memorandum for Preliminary Results of Antidumping Duly Admimst,afive Re'<iew: Alumint1m Extl'll~ion~ from the People's RepubUc of China. 201011::!

In l'esponse to req1w<>ts li"<Jm interested pm1i~s- the Department of C ommcrcc (''the Department") i o; ~onducting an <tdlll i nistr<lti l'e nov i~" nf the antidumpitlg dllty ( .. AD") order 011 aluminum ~xtrusions from lhc People's Republic or Chin~ ('"f'RC''). rhe period or revtc" (''POR ") ;, Nove111ber 11. 201 0. thnmgh April 30. 2[) 12. We preliminarily deknuine tbat sales hav.c not be><n mad~ hdow r..ormal va!ne ("'C-IV'') by un~ nmm.blory resr<nl<knt particiymting in the revinY. Kromet International, Inc ("Kromd') We also pr~liminanl; dctctminr !hat an additional t{nll expn•ler.<- Gold Mo\ml>lin ln!emalional DevelopHlent I .imited, Shenzhcn Jiuyuan Co., Ltd. Sincere Profit LimitcC,and Skylin~ bhibit SyskmJ (Shanghai) Co., Ltd.-- have demonmmted that they are entitled to a sepan1te mte. \Ve further dctcrmi ne that nine exporters, including on~ of the two mandatnry reopondents GEJung Ya Alnminnm Industrial Co .. Ltd, (··(hiRng Ya"). Fo,;han Gmngchcng Aluminum Co., Ltd. ('·Guangcheng"), Kong i\.h International C\l., l.td. ("'Kong Ah"'). and Guang Ya Aluminium Industries (Hong KC'ng) Ltd. ('"Guang Ya llK"l 1 cnlle~tively "Guang Y u Group""): GtlUngdong Zhongya Aluminum Co .. Ltd .. ('"Zhongya "), 7.hnngya Shaped Aluminium (HK) Holding Ltd. r·.Sh,!pcd Allmtinunl"). m1d Karlton Almninnm Co .. Ltd. ("Karl ton") (collectively '·Lhongya"); anJ FoshM Nm.Jmi Xinya Altunimun & Stainle~~ Steel Prorluct Co., I td. ( 'Xinya"') (collectiw ly ~unang Y a Group/ZhongyaJXinya "") h"v~ no I d~monsttaled lh<>l !hey are entitled to separate I'Ute:;. and hnve U'i~\gned them the tate for thG PRC-widc ~ntity.

If tl1~~e pr~liminary results ~readopted in our final !"<'Sltlts of r~vie\\, we will instruct U.S,

Customs and Border Protection (''CBP .. ) to ~~seso AD~ on all appropriate entries of subject merchandise dmin¥ the POR. Interested parties ar~ invited to l'Omm~nt on these pt•el i111 inary

results. Unl~ss othenvise ext~11ded, IW int~nd ln i8,ue final results no later tban 120 days from the date of publication oftlti> notice, pmsuant to section 7 51 ( a)(J )(A) of the T nri ff Act of 1930, as amendeU (''the Act")_

s~ckuround

On July I 0, 20 12. th~ Depamuent published a not1ce oJ' opporlunit y to r~l!llest an administrative revi~w "I' the AD order nn aluminum e\tl1lsions from the PRC tOr the POR November 12, 2010.

through Apri I 3 0, 20 12. 1 Un 1\pnl 13. 20 12, the Departm~nt received requests for r~vicw of 6S compHnks.' In its Initiation Notice, the Department notified the public th~l it may limit the number of rcspondcnt5 t'or indivi(lml ex~n1inaticm in tbis aJministrmi vc review and that. i I' so, the Department intended to >e>lcct respondents bused on CBP cbta for entries- of s\tbjc'ct merch~ndise i!llO the llnited States Juring the POR. How~vcr, th~ Dcpanmcnt ttoteU in 1Ls

rckas~ of CDP import dma under aUmini.,lmtJV~ prot~cthe order (" APO-') to all interested panies on Octoher 15, 20 12. thut inccmoisicncics itl tho CBP import data made it impossible to rank potential rcspond~nt~ based on the volume of Sllbjectmcrchandisc, as described under

section 777 A( ~)(2)(ll) ofrhe Act.1 Ac~ordingl y, g"·~n the~n·a~e-specili~ drcumstances, we did

nm use [he CBP in1pun clatu alone to identify respondents fol' individual examination anti additionally issued Quantity and V~luc ('"Q& V'') qttestl()JliJail'e:i to 27 companies thut showed emile$ or ~ubjecl nwrch~nclise in the CDP d<tta.4 The Dcpartmem reed ved an tlddili"'ml l<'n

C,l& V l[ltcstionnair>' rcsponocs from companies to whicb i L hwl not sent a (j& V questionnaire. but

' S<e Anli<lwnpiny or CuwrM·vcoi/i,g ll"(f' O•·der. Findlilg, w Sl/.\'i'"'"ld ''"'P-<I•~miull; Owor/Lmil) l u "'"I~"'' AJmiJri.w,rw~ Rev'""\ 77 FR 2.<679 (May l. 10 l~J. ' See I" (I i<" ;,,., rf. J nl !ihrmring "' ('_,_, rrnr <1 \ · '"'/ ing _.; dnwri.l V"<lti"e R<lof('w C/1 uf Req 11 &W jot llci.>i'iS.\inlr, m I'm· 1, 77 I ~ -1~56.1 (Jllly 10. 10 I~) ("!Jti/1(1/iGJI .Votic·e"). On• Wltl)Jfltl~ ""'ned in the it~itiation notice. Zltaoqui11g ,\,io -~ luminum Factor;_ ""' rr<tl in I 'oct '"•)ttc<tcd lOt' mvic" oJtd is lh~refot-. tlO! "ndor I'~View in tlli< proce~~ing ' S•• <h< Memorandum to tile Ptle "R""pondem Selection nnd Roloasc of C",\lum,> ond Bnrdor l'mtocllon {C'Ilf') Qllt\') Reilllts.'' dmed O"iubor !5. 2Ul2, ' \\·-o <eot Q&V questwmwir<'5 ln. (I) '.cr~ lmpott end Expor< Corp.· (2) Chatl£'-""" Cl>e<ng;heo~ !-,,••pGrotnr l c> .. Ltd., (3) Donggnan Goldeu Tiget· flmdwure tntlu"cial Cu _ I "I.; HI ()~lwmio Tedmologks China Ltd.: < S) Fesha" Yong 1.1 .lt•n Al<J. l.td,; ((,) Fo.<hOJ1 Gllaogt:i•ong AhtllliiiUUl Co_ Ltd.; (7)Gu•t11gdoog Whltlpool Elocrrkol ilppliJnCO> Co. Lid.; (8) Gul\11g Yo Allll\tinll<ll [m!U.<trial Cn., ltd.;(!!) l-langzhou X111gyi Molal Prmlli<"l> ["_, Ud; ilO_il[onyung Ak.,his Co., Ltd,; <_II) I long Kon~ Gr<e [kmic Appl'""'-" So leo Lilmted; (111 Jiongsu Clmngfo R<'frigetmion Co., Lid.; (!3) Ji"ing Jockson Tmvol Product' Co., I td.; ( 14 J Juslberc Co .. Ltd.; ( 15) ~lelilllck Uroup Co . l.td.; ( 16) Mid eo !ntomadon,11 Tmdlng Co .. Ltd.: I 17) Shangllfll T ongta1 Pt eciso Almninum All~) Mnnu Lactllt i01g Cu. Ltd .. (IS) Shctdtcn 1-lud><m T echnolos_l Devetopmem ( o .. Lid.: (19) Sh<ttzhen Jittyu"~ Cu .. I td. (-'~" ")iii}'Wa" <n, l.id-" nHO ·~hen,llon Jillytkotllmpo<L ond E.\ pun Cu., I OLd_"); (201 Smccro Profit I imited. (21 j Sky! in<' E.'hibit s:-,.cms !Silar.ghuil c., .. UJ., 1:') Tol,hou Lifung ,\1onnfuoturing Curp<>mtiun: (2J il niGn lndu<IL}' (Asia) Co .. I t\J: 11~1 L'Q\1 Te<imolog;- lHc.: (2)) X in 1\-c, Alumin01m Comp•ny I lmited_ Guan~ flnng Xin Wei Aluminum Produm Cu .. Ltd., onJ X in \hi Alumimtm Co, UO; C'61 Zhcjiatog Xlnlc•n> lnJu"') Cu _Ltd_ and 1)7) 7hongya Sh•pod ,\[umioium lfll~t !lolding Limited_

which also cluim€d lO have had EolriEs of subject mcrchandi.!w." Orw ~ompan/' to which a Q&V questionnaire was sent, Foslmn Yong Li Jian Alu Ltd .. did not submit a response.

On Januaty 2.:1. 20 1 3, base<[ upon the Q& V questionnaire re:;ponses. the Department select~<.! for re,·iew the t\•,-o entities accnnnting: for tbe largest volume or export~: 0Lwng Y a Group/Zhongya!Xinya and Kt'L>met." On Jauumy J I, 20 1 3. we ~xtemled the time limit fot· thepreliminary results of review by 120 days, pursuant to section 731 (al(3 )t_A) oflhe Act. to June 3. 2013. 1 On I'ebniaJ)' 26. 201J, i\larch20. 2013, ani! Mmch 21, 2013, we received respon3es to Se~tion A. C <tnd D. ret;pectively. from Kwmd. On March 5.10! 3, March 26. 2013. and :VIarch 20. 2013. we rccciY<Cd responses to s~~tion A. C nnd D, respectively. from Zhongya. B~t"een March 14, 20 13, Rlld IV!ay 14. 20 lJ, 11-e iooued supplemental questionnaires to Kromet and 7ho~gya o~d received timely responses from Kromd and Zhongyu, [ [(lwever. Zhongya r~'pondcd only in part lo our wpplementJl questionnaires. Orr Murch 4, 20 13. lhe Guan!; Y a Group submitted a letter to the Department in which it sMed thm it would nat participate in this udministrutivc review.1 Between March 4. 20 l3, ancl Ma; 20. 20\J, the Aluminum Extntsions Fair Trade Committee .9 ("'Petitioner") submitted comme~ts. H>

Scope of the Order

The merchandise covered by th~ order is aluminum extlusions which. are sh.~pes and forms, produc~d by an ~xtnnrion process. made from aluminum ~lluy" h~ving metHllic elements corresponding to the alloy ~erie' de~ignations publiohcd by The Alumimm1 Associ<ttion conm1encing with tile numbers l. 3, aml6 {or p1aprietwy equivalents or other certi.t';iing body equivalents). Specifically, th~ subject merdumdise made .frum aluminum alloy with an Aluminum A.~Hocintion Heries design:rtion commencing "itl1 the number 1 contain-; not less than 99 percent aluminum by weight. The stJbject mc1'thandisc made from almmnum alloy ,.,; th an A ilnninnm c\ssociatirm series designation. commencing ,_-jrb the nu•nbcr 3 com~ins mang~ncs~ a.< the major alloying dement, l'ith manganese accounting .tilr not mor~ lhHn3,0 percent oftot~l materials by wdght. The subject merchandise is made from an aluminum alloy with an A lcnninum A~'0ciation series d,;signmion ~OlllHKncing with the number (i contains mag.tlcoium

' 'l'e11 componie• tlloll''q".-terlreview. Gur w whwh we <lid not >enO a Q&V Gil"Stionnoire. SilhtniTted Q& V I'OSponsc< Thcoe componic,; were: I l) Kr{)lllOI: (2) lhulwi t<un,in~ldi Jolcctric,ll Eyuip111cnl Co._ !.ttl.: (3) A Hied ,>,Ioker Lim il•xl; { ~) flO AODA: t 5) llJUi. Dingloc T ecllnology (TionJ 111) Co .. Ltd.; (6) ~uzhou ~;ciVt-lOngJI Pr CcL<,on I''ITC'o .. Lid.: (7) Glubot PMX: (3) Fo<hm1 ;./aolmi Xilt~a Aluminum & Sl,oinle,; Slo<l Pmduot('u, I td.: 19) Tianj in JinmBo Import & bpon Cmp .. Uot.: ""J ( I~) Chan~7lwu Tcnglong A11tll P"rl\ Co .. Llcl. '' S<~ ~lomommium In Melt >Sa G. Skiunel' "Selection of Ro:opundcnlo tOr tl1e Fir» Admim.<!L'ari,·e Review of tho A"tiJumping Dnty Or<le1· Oil Ahnnimmt E., In" inns from th~ People'; R<pilblic or Cilillu," dmed JnoHmn· 2~. 20 I 'i. 1 S<'e Mem<>r"mlum 10 Chri,lian Mor.~h 'Aluminum btru'i""' f1lLm tile l'o<lplo's Republic of China: r:--a~n<iun <Ji' Dc-,Jiim: lilt l'rdi.niu"'l Rcluil> of Anlidu111ping l)uty ArlH1i10i>lnllivt R<:vic,;," dat~d Januar; 3 I. 20 13. " See Guang Yo Group lone•· I he Department --Guang Y I!<GuongciJellg Withdraw" I os " lo.ol1lldat01)' R<>ro11dt11t" doted .~ltltch -l-, 2013 ' Tb~ Aluminum EWu>ion• foil' I '"d~ Cmnmit~·o i< cnmpt ""d of Aerolite L\TrusioH Company; Ale."" 1dri" Lm"'ion Company; !l.,1ada A lun1imun of florida. lnc.: \\'ill iam L Emmell Company, Inc.: Frontier Ahm1inum Corporotion> Ftltn'"l lndlts!rios Corjl(ltatiOO: ~l)<ko i\l11minum Notth Americo. lrlc .. Kai,;c,· At lim in11m CuL'jJ(ll otivn; t'mtllo E'.lrltsion Comp,ny: Sop• L-:,tmswl1.'. lnc, ond Wo<rcm ~~lrustons Corpmatio01. '" On Mav 20, 20 t3. Potiliuncr SL1bmltted >ll all~ga1io01 of ''Middle Man Dumping:' Seo' letter to I he Depom11<11! . .. Aluminum CxtnJSions from tl1o Peopl<' Repnblic <>l' China: ~lidrlle·nan Dumping i\llogaliun,-- dated .~lay "0. 20\J, Howc,·a. dt.e to rho pro,imit; ofthi' '"bmi,ionlo the prcliminar:. rcsah>. 1hc Department dne< not mote a detcnninmi011 on tllot ilme nt lili< lime I he" Dtj:MIImcnl inlemh, IHme•er, to comi<i<l' the isstle fur rhe lin.ll r<>t1lt>

J

and silicon as the major alloying dements. with m~gnesium a~wunting for at least 0 I per~~m but not mor~ tlmn 2.0 percent of total materials by weight. and silicon accounting fDr at least 0. I pe1cent but no! mme tl1an .l.O p~~em Ll r !ol~J mateL'iltl~ by weight. Tile Sllhject aluminum cxtrusiDns me pmpcrly identified by a foHNiigit nlloy s"rics without dtlt~r a decimal point or leading letter. Jllustrati ve e_\ample-; li-mn among the app1 o;.;imutcly 160 registered alloys that may ch~mcterizc th~ subject mer~lmndisc ar~ a; follow,;: 1350. JO!H, tmd 6060.

Aluminum ~xtrusion> me produced nnd imported in a wide vm ier:y or ~hapc~ and fomJ~. induding, but not limited to. hollow profiles. other solid profiles. pip~s. tubes. bars. and rods. Ah1minum cxrru~ion~ thaL nre <lr~;;n 'uhseqnEnt to exttllsion (drawn 11lum lmuu) are also included in th~ swpc.

Aluminum extm•ions ar" produ<:~>() and imponed v. ith u voriety of fini ~hes (both ~Olllings ~nd :mrfacc treatments). and types of fabricmion. llm tv pes of coatings and treatm>:nts ~pplied tu >uhject aluminum extmsion> include,lmt <lt'e no\ lim.itcclto'. extrusions thm are mill fmished (!.~ .. without UllY coatin[\ or fi11thc1' fir1iohing). bru~hell. bnl"fed. pol ;,hed. anodi7ed (induding bright· dip anudi_.;cd). I iquid puinted. or powder coated. Alulllintlm cxtntoion~ may also be fabri~nt~cl, i e _ prcpawd lOr assembl J. Such op~ratioiL> mwltl include, but nrc not limited to, extru~ions tl1~: arc cuHo-kngth, nmchined, drilkd. punched. notclJC<:i, Dent, stn:tchcd. knurhL swcdg~d, 111i tered chuml'ered. threaded, <md spun. Tlw ~ubjccl mcrclmndi$e includes aluminum extntsions that at·~ finish~d (coated, painted, ~/c.), hbrlcatcd, or uny combination lh<ircof.

Subject alumilltiiU cxtmsions lllU)" be dc~cril:rcd at the time of importation ns pHtls lOr fin~] fi11i•hed prodm:L~ that arc n'~embkd afier imporm\ion, including:, bttt not lim ired to. window fmmes. door ii·ame>. ~ol>1r panels. cunain wall~. 01' ll1miture. Such pm1s tlmt otherwise meet the ddlnition ot' alllminllm ~xtmsiom; arc mcludcd in the ~cnrre- The ~cop~ i1\clude,; tb~ ul umint"n e'<tn"i0n component,; Lh"t are attadwd (~,g .. by wdd it<g or fMtcne• '1 lu form suba~s~mbli~'· r.v _ pmrially -as~cmbkd m~rd1~nd i>1~ un]eg, nnported liS pmt of th~ finished good> ·kit' ddlned ftll'ther below, The scnpe does nolinclltde the non-ulumimun extmsion compun~llls 01' ;ubn;,emblic'> or subject kits.

Subj~ct ~.\tJ usi0115 tlh"l.Y be idelltilic·d m Lh ref~r~JK~ \JJ lh~ir end u~e.. snch ~s fence rcl.<to. electrical conduit«. door !hresholds. c~rpd trim. 01 h~al ,]nb (that do nnt uk"X:l th~ tinishcll hc;LI si>tk ~•du~ion~ry longcqge he!Llw] Such goods ar~ subject rnerdmtldioe it" they othtr;;is~ mcl·i til~ scope ddini tian. n:gardk's ol" \\ lictbcr tli~y ar~ rcatl;. fN tl.~<' at the tim~ o I" importutitm.

The iollowing aluminum cxllu>ltJil products lil e c"dudcd: alttminwu <:xlmsions mud~ frlllll nluminum alloy ll'ilh an Aluminum Association scrks dcsignatiou; cunnn'tlcing •vlth l]w

number 2 ;tnd COIIl:lin ing in c~ee"s Llf \ .5 percent r;oppet by wdght; allltmnum e:nm:;iot\S r.mdc li·om alumiii\Llll nlloy \1 illt ~n Al\1111 i num J\ss0ciation :;~ries tleslgnati<W C<lllllll~tu;ing "it11 tile twmber 5 ;ontl containing in n~ess of 1.0 pen::ent nmgtwslum by 1110ight: ~nd aluminum extnt>ions madt !'rum alumimuu alloy with an Al\llllimlm ,.;.s~ocbtinn serie" desigwllion commencing with the number 7 nnd containing in ~.X<:~:i" u!' 2.0 percent zin~ by "~ight.

The swp~ nlsn cw lu(lcs fini ~hc·d mc-rch:mJ ise Cl'ntaininJ!- aluminum ~·->.tn"ic'n' u' parts that ar~ l'ull) <mJ p~Ull<m~ntl_l- ii%emhld an,\ c<Jmplet"d ,n th~ time of ~ntry. ~uch as finish~d "inde~v.-.,

1vith glass, doors with glass clr vinyl, pklure frames witb gln3S pane nnd bncking material. und 5rJiar panels. Tile scope also excludes ftnishffi goods containing aluminum cxtnL~ion~ that me entered unass~mhl~d in a ··tini~h~d goods kit." A 11nished goodo kit is w1dcrstood to mean n packaged combination of parts tilal contuins, Rl the tim~ of importation, all ot"the necessm·y parts It> rully ~ss~mble a final finished good and reqL<ires no fu11her finishing or fabricmian, ~ucb as cmting m· punching. and is U%~mbled ·as is' into a rlnishetl p!Odlid. An imported pmduct will not be conside-red a ·finished gooJs kit" and therefore e~cluded from tbe scope of the investigation mere I~ by including fas.tencrs such ~s ,;cre"s. b<Jits, ('/<'. in the packagi'l£ with an alununum c~tl"llsion product_

The scope also cxchtdes uhu11immt alloy ~heel or plotes produced by mh~r tban the ~xtru~ion pr<:>ce>'. such as <1ltm1int1m wo,ht~t3 produced by t1 method CJfcusting. Cnst ulummum prot!u~u arc properly ld,:ntiticd by linor digit'< with a dcccimal point be-tween tl~ third und fourth digit. A letter may also precede the fom digit~. The following Aluminnm Association desigmttinns are i'epr~oentutiv<:: of aluminum alloys ti.Jr castiug: 208 0, 2.95.0, 308 .0, 355.0, ('355.0. 356.0, A356.0. A357.0, 360.0, 366 0. 380.0, ,\)80.0. 413.0. 44J.O, 514.0 518.1. and 712.0. rhe scope ~lso excludes pure, tHlWroug[H aluminum in uny form.

The scope also cxciLidcs coildpsible tuhular contairmrs composfd o i"mclalhc ~lements ccmesponding tn alloy code 1 0801\ as designated by the Aluminum Association where tl1e tubular container (excluding the nozzle) meets each of the t(Jil<)wing dimen~ional chatact~ristics:

- (l J length ofJ7 mm or 62 mm, (2) outer diameter ofll.O mm or I 2.7 mm, and p) 'i'all thickness not exceed'•o~ 0.1} mm.

AlsLJ cxduded from the scope t1 r the order are tinislletl l1cat sinks. f'inisb~d he<lt sinks are fubricun:d hent sinks madv ti·om aluminum extrusion5 the design and production or ,,rhkl, <1 ,.,,

orguniud nround meeting ccrt•1in sp~clli-:d thtnnal l'~rf,1nnance 1 .oq L<iremems nml "lu~h IM;,; k~n full)', 11lbeit nor IW~~~:;arily indivicluully, rested to compl)' Vri tb snch rcyuirements.

Import> of the subj~ct m~n;han([loe an~ provi~cd t(>r 11mkr tb~ !lJ llmv!ng cmegorks or the Jlarmoni7ed Tmi ff Scltcduk u I-I be United Swt~s ('·1-rJ'S"'): 761 0. t 0.00. 761 0. 90.00, 71J 15 .l 030. 7615.10.71. 7615.10.91, 71JJ5.1910. 7615.19.30, 7615.19.50. 7615.19.70_ 7{;)5.19.90. 7615.20.00. 761 0.99. I 0, 7616,99 50. R479 .89. 98. 84 7'< 90.94. R513 .'111.211. <J-tO.l. I li. 00. 9-IIB.:!O.OO, 760,1.21.00.00. 7604.29 .l 0.00_ 7604.29.30. l 0. 760·1 .2'J.Jil51J. 7604.29 ,50_3 II, 76114.29.50.60, 7603.20.00-.30. 761JS.21tOOHO, 8302, I 0 .30.00. 8302. 10.60.30. 8302, W.61l.t10. HJ02. I ll.f>IL90, 8102.20.00 00, 830~.30.30. 10. 8302.30.30.60. 8302.-t I ._10.00. 830:2.41 .61J.I 5. 830:~.41.60.-1 :>. ~J(r2.4l .60 .50, ~.102.41.60 .• ~0- ~31l2.42.30. I \1, 830" .42 30. 15. 83 02.42.30.6S _ R302_49 _OQ.J 5. SJOJ .4%0 4 5. SJOJ-40.00.5 S, 8302.49 _60.R '>. Wl07 jll 00.00, 8302.60. 'liJ.IJO. R_10:5.l 0.00.50. 8_106.3 0. 00 .00. ~4l ~.99 .80.05. 841 S. 9'1 .80_:50. 84 18.99 .8il,60. 8419.90.1 O.tltl. ~4 2~. '10.00.40. 8-179.90.35 .00. 8486.90.00.00, tH 87. 9il.llli.SO. 8503 .oo. 95.20. 8516. 90.50JJQ. 8516. 90.SO, 50. 8703 80 65. 90. 'l<iil I . 90.50.8 I. 941}.), 'II), I 0.4!). 940J. 90. I 0.50. 9403.90.1 0.85, 9403_ 91125.40, 9403 '90.25.80, 9401.90J[.O .05, 94{)3. 90.40.1 o. 9403. 90.40.60. 9403 .90 .. 'i0.0~, 'J.JOJ. 90.511. l 0. 9403. 90.50.80. 9403. 90.MJ.05. 'J41rl. 9tJ.60. I 0. 9-103.90 60.80. 9403 90. 70.115. '1-IIH. '10, -/0. I 0. 9403-90.711.30. <J40J .90.80.! 0. 94rn. \In ,g(l_l 5. 'J.IOJ_ 90 .80.20. 9403 .90.80.Jil. 'l-tDJ. 90.&0.41 , 9403.90.80 .5 I . 940'\. 91).80.6 L ')506.51.-tO.OO. 9506.51 60.00, 9 506.59..10..10. <J51JG. 70.2!J. '!ll, 9.'iiJG. 9 LOO.l n. 'J501i 9 L00.20. '-1511(>. 9 I .00. JO. 95fl6. 99 .05. l 0. 9506.99 .05.]0.

9506. 99.()5.30, 9506.99 _(5 .00. 9506. ')'l.10.1Jll, 9506. 9?.25.80. 9506.9').28.00. 9506.99' 55.00, 9506.99.60. SO. 'l507 .30.20 .00. 9507 .30.~0.00. CJS07 .30.60.00. 9507 .90.60.00. and %03. 90.80 .. 'iil_

The subject merchandise cnk'red u:; pans of <>ther alliminum products mny be dussi ftablc under the tUllowing addi timml Chapter 76 subh~ading:;: 761 0.10. 7610.90. 7615.19, 7/i 15 .10. and 7616.99 as '"'II as und~1 other HTS ch,lpter~. In addition. fin evaporutar coils may b~ c lassifiabk lltld~r H'l'S numbers: 8~ 18.99 .EO.SO anJ 8418. 99.80.60. While !-ITS ~ubheadings nrc provided for conveoiene" and customJ purposes. the wrilletl description of the scop~ uf th~ order is dispositiv~n

Parti~l Re~cis~ion ol' Admini~lrHtiw Rc,·iew

l'urstlant to 1 9 CfR 351.213{ d)( l ). Llw Dcparll\lCnl will rescind an HdOl inLslrntiw review, in whok or in part, iJ' th~ pmly tlml retl'"'~teU the review withdraws its re<:juest within 90 days of the date ot' publicatiotl of the netic~ of initiarion of the te~ue-;ted re1·iew. Bdw~~n September 4. ~0 I ~- nncl O~tuGer 9. ]() 12, the I )epnnmenl recei vcd timd:- ''ithdmwab of the req uc~t~ JUr rev ic'W for 19 ~ompHnic~. Of thc~e cnn1pHnks, .'\Jmm A lumininm Co., I .Ed., C'ltangshu Ch;mg~heng Alttminum Pmdt tcts Cu .. Ltd .. l'itlggtto A~ja i\ luminum CG., Lid., antl Taishan Cit) Kam Kiu Aluminum Extmsion Co __ Ltd_ h'wc a separmt> mre fwm a .;ompleted prior segment of thi~ proc~~ding; ~ccordingly, we fit~ rescinding thi~ r~l'ie" witllJ'I:>pCt! IO the,;~ tOm eompanie.'>.

w~ note that there arc add itwnal compnnk3 for which all 'cview requ~'ts ''ere <vithdr,wm within (he 90-dny period. The,;e addi tittn<il C<'lllpanico tOr which ull reviC'\\- requests were v-. ithdrawn do not have ~ separate rule from n completed prior ~c~ment of this proceeding and tllll" continue to be part of the .PRC·'"idc entity. tt 1h: PRC~<vid~ ~oti ty is nntkr r~view l'llr these pn~JiJ-;, in•ry re,~IIIK Thus. we are not re~cinding this revi<)W with respect 10 those companies, but the Department will make a dctcnnination wi tl1 r~>p~cl to lh~ PRC -wide ~mit)' in holh 1!1~ prd imimtl)' re>nlls w1d the finul r~suhs t'c-r this udministrmivc review.

Seo ·II1Jmi11w!J [</f IJSIQ<lS ji·um Ill" /\""/'/,• \ li<'l'"l'/', ,~1 r_ ·;,,,, ,J,Ifi,ilm,pi'lg Dr~n ( lr_l,.,. 76 FR 3(16j(l I .\ln.' :'6 ~Olli["Om',•t--1.

I' The"' enmp.1nie> oro I ]J C"lo.<r Sk) Inc. t:'l f<15han Ci1; '"-Janhoi I lungjia Alt~mitJ<Lm Allu~ C~ _I <J . l.i) UuOJig<lnng (>;ontm l·oudstuffs Imp .• ~ Exp. c,, __ I hl; I-ll llomce t\,ia Limited ar.d ofliliato>: (51 Kwl>hOilliialll I 1glll \lei" I T eoho\liOC'l ( <l .. L!lL; I 61 Mide,, A;\'-( -<'LlJitiuuinu !:~nipmcHl Co .. L~L- (7 I 'itJC< S"H~)W Sm~"l''''" 1'1<'. I L<l.: 1 S) N i<lec Sank)-<l tZheja,;g J Cm]JOr.nion: 1 ql 1-;ingbc> C<Jostor huem;,livowi Co __ l,t,l,. 1 tb 1 Slmllghni llnn~>h<"g ~Ictal (II L S!12ngiloi Shen ll"11g Imp. & txr. C~. Ltd: I 12) ~ihui Shi Guo Yau Alurnmum Co .. 1 tJ.. I 1.11 ~ll>l<all JRt' lmporr & l:"xpon Co .. Lt<l: 1 I II ~II<LrldGrlg HH:,hon~ Pestic1Je Muchiner.l ~ u.: i 15] '\ ianj Ill ljao~l.' Nlmf.mot=> Mdal Mate< i•l' Co .. L"l.

,,

DISCUSSION Or TI-lE iVlETl-lODOLOUY

Afi)!Jali<lll and C'ollap~ing

In the investigation. the Department f<mnd llwt the elllitie> COIHprising the Ouung Y u Group, and rh~ entities comprising New Zhongya13 , were altiliHted pllr~ttanL to se~tinn~ 771 (33){A) ami (Fl o[ the Act, mnl that the Guang Y a Group!t\ ew Zhon~)'" arul Xin)'a wew alliliatnl pursuant lu secti1m~ 771 (:\3)(1\) und (F) of the Act. O~sed on our finding that the Guang Ya Group. New Zhongya and Xmya '"'re each ovmed b)' a ntember oftlt<: Kwong'·' t;1mily, we conduded thut the own~rs of Guang Y a Group, New Zhongya and Xinya are m~ml>ets or a ti1mily gr<Jl!ping. 1; Further. we found that the O\\llership by the family groupi112 satisfied the rcquircmcm ot" <llrili"tion pursuant to ~ection 77 t (33)(F) ll(" the Act, becat1SE all of the companies within the Quang Ya Group, New Zhongy~ and Xinya w~re under th¢ common control oflhe Funiily grouping. Further, by virltle of the common ownership of tbc thrc~ cn\itks, famHy members on (he bna1"d" of director.~ o t' at ielllt two of the comp<mics, eviJ~nce ol' financial tr,msuctions b~twcen t\\0 of these .;ntities, and the fact that all cntitie~ produ<:e and/or exp<)r1 m~rch~ndi>~ under wnskleration. w~ Ji:rmtd tlmtthcrc existed the signlticant potential for nwnipulmion such th~l the Guang Yn Gmup, New Z.hnn!!.ya and Xinyil ~hottld he tl"eltted <tS a single ~ntity ill accordance with 19 CFR 351.401 (t). 1~

In the CtuTcnt reviow, the D~panm;mt re-exmnined this is~u~ and i>oued a supplemental qu~stionnairc, \1 here the D<.<pm·tmcnt requested thai ZIJongyn n:vlew th~ In vesligmion Collup~i ng ,\lemo, which we ~tl~ohed to the supplementill questionm1ire. Tite Department reqtte"ted !hal Zhongya describe all changes during the POR in OWtlcrohip, managem~11t, opel atinn£ ('"especially with respect to tmnsactions!relati<mship> among the .-:nmp>tnies comrdsing the coll~p,;ed elll ity"), ~nd dtm~ges in merclwndlsc produced. .Zhongya replied llim the G uang Yn Ci roup d1<l not wopcrat~ or 1 cply ILl i l" requ~su 101 th!!i in tOt mat ion, :md that Xiuyo. nLerel}

" In LIIO in'-"" I~Llinn qf lhio t"'"· I he O<pmt,•r Gll"ng<lc•og Zhongya _\lun1inlLn> Co., f_ld , L "ferrod W her <in '" "liLniLgya" was t1m11d .. Zhaoqin~ Now ~lwngya Aluminum Co., Ltd.," ond rofer<~\llo '" •-Now Zl"'ng;-a."" Subocquonl LU Lhc '"""'ugu!lm1 Lllo D!lpOriHh'llt uoud01Ciod • dlOngcJ ci•~lLnW!OI)OO L oYi~w nml deto• mined lilol ZhmLj)O i'i th"' """"''Of m inki"C>IIO No~; Zhon;:.1 "· S<"e Al11111i111Lm ~:"',."';""' {i-um !he Pc·<~ple!!. !O,.p11blh· "f (")jj_,,,_. Find ,~eml!.' u{Cik•"R"d Clmmor/<Lm ,.,. R,.,.,.w. 77 [-[{ 349:Jn CS•p<O<nb,•r (,_ !0 l!). 1 ' The 1l.ULk "l( """~·- ;, abu ;oJLLeLhHc3 spelled ·"!-;t:an~" in the invc>li~olitm ""<l Lhi> rnk11 _ r!nLh ""m" roft:L" '" do. somo filmily. ".\"c" Almninlll11 ~xlrllsions tlom the Peoples Republic nf Chintl: Finnl DeiCmtimUiuro N'Sab LLI r_.,, Than Fo1r v,,I<Oc. 7(, FR I S52-l(ApLil-l, 201 It t'"ll!v~sug"rioll Fmdf'); se,• ,r!w M~mor,ndum w Chri"ia" Mmsh, · ,\dnnuimmiw Ro< ;,,, of Alum in <1m EAim.<ion> ftom the Ponptc·'< Republic• of Chma: Dctcn.,imllioll Rc_ganliLJ~ Mnti,<tioll ""'I Colt"p>ing of G11;m;~ Ya .-\Juntinh11n l<><ill>lri<> Co. L1d .. t·u;hon GH<Ln#hcng AluntHHtnn Co . l 1<1 .. Kong Alt hHemUILM"I Cu . Lltl_ und Guung Ya A lumin.ium lnrlustr[o, (I long f(ong) l.irl.; GLL,mgrlong Zhongyn Alu1ninum Cu .• LlJ .. Zhongy;t Shnpod AluminiLtm (I IK) HoiJhjg Ud .. Karlwn Altnninunt cw .. LIJ, ontl X"'Y" Alnminun1 & Stai11lc" Steel P"mduol Co _ Ltd. (c~lkclivcly ·'Guang Yn Oro11p"/.hol1g_)'l!IX101)".1')."" dated J11no :t. 2~t J ("'AR l Collnp<iiLJ; ;\kmo·~ at Altnchmenl I --lnw>eigallon uf AlumitJULL1 E.xtrLISmn' from the People"> i<op<1blic of China: f111ol Detontllnatinn Re2ardin~ <\(tlliarion and Co!lajdn~ of("'""~ Y ,, ,-\ lm01i11iUm lmlu,lrio_, ( o . I .111 . Fo<hon ( itmngchcng .<\!unnniu1u Co .. l.IJ . Kong AIL lnLtrna,kmal Cn , l t<i,. ;nd (iHoLLg Y" '' lun.,ninm I nd""'"'"' (lion~ 1-(nnul I td .. /J"'"'Iing N<w llwrlgyu Ahnnimnn Co .. Ltd., Zhongy~ ~hoped Alum inLum UIK l llul<li"~ Ud., t-.:11rl!lli\ Altuninult1 Cu .. Utl.; and X in;" riiLnnimi!ll & Srainl"s Sled l'rnduo: C"o .. Ltd., "' dat«i MorelL '~· 10 I I ("" c\tlocbmonl I· lnw"i~adon Coll"t";"~ Mor1t<L"') <0\ 5. ti. ,,u S. '' s,,,, A !I. I Collnr''"~ .\lcmo "' .\ll~chmcnl I lm·c,rlgollon [\>li"l'"">l Mer.Hl "' I iL

7

pro~ itl~<.l certi llcations regarding its management aml owner.; hip infonnation, ,- F unher, neither the (iuang Y ~ Gmup nor Xinya responded directly to tlte Department" s supplemental

• • IS l[U~SllO,mHlf~.

\Ve rind tlm.t th.; '"~oTJ contimtes to support ~ <ktenninutioll that the Gum1g Y a Group, Zh011gy~ and Xinya arc attlliatcd pursuant to ~ccdon 77 lj33)(A) ami (F) <lfthe Act thruLigh th.; Kwong: fm11 ily grou~ing and &ilO<tld be collnpsed into a single entity in accordance with 19 CFR J51A0l(f). - It l~ uncunl€S!c<l by any patty that Kwong litmily members cominuc to own the Guatlg Ya Owup and Zhongya; fmthcr there is no dispute that Kwong family members continue to sit on the b<Jlll'd of Ji reel"'' or ~acb ~umpany .20 Regarding Xinya. though Zhongya has chimed ·that there no longer is Kwong iilmily own~r~hip u ['Xinya. 1-hnngya hu• plit fot1h no evidence to support (hese contentions other than signed statcmrnts that purpnrl to have bc~n stgned by company olliGials representing Xinya. which has declined to respond directly ro the Depurtment.11 Xinya made these very Bame agsertions in the inveotigation. and we foun<.l at veri lkation lhut st•ch claim; w.ore unwprc'rttd." rhere is nG evidence on ·the record of this admittistmtlvc review to support [hong~ a· s dnim other than theoe twu sliltement~. We hm·e accurded SLICh ~vic.lenc~ it% w~ight than confirmed record C\ idcn~~ imlicming tbatth~ Kwung frunily gmupiog contlrm~s to ha' c ncur total ownership uver the G11ong Y ~ Group. New ihongyu and Xinrl, and that each emity produces mcrchrmdise und~r comiJ;,xation in this ~dministratiw review. _!

Wt 'llso (lnJ lh<il tfle record tontinueo tq ~upport n-,ating the Guang Y a Group, Zl10ngya. and Xinya as a single emit)", in nccordance with 19 CFR 351.40 l(l), based on the signili<:<mt p(ll!;mial fnr manipulation. Reganling the lEvel nf cummon awncrship, ;ee 19 CFR 351 .40 I ( f)(2)(i), the record indicate.~ that the K v,ung family groupmg ~ontimtcs to hold ncarl)" 100 percent commoa 011·acrship oftllC Uuang Ya Group, Zhong)'!!, and Xinp. J.l Regar<.ling the c:;tent !c) wh Lch manugerial empl<l'}'<:"" or bomd members of one firm sit on tltc board of directors of>m aililiat<.:d lirm, see 10 CFR 351.40 l ( ll{2)(li). the r~cord i ndic·ut~' tlmtthe K won!! (llmi I) men1ber.< c<mti~1ue to sil on tlle board~ and ha>e mmmgcmcm posl!ions at the Gwmg Ya Group and Zhongy:~. 1' R~garding tk Pl'~s~n~~ ci!' int~t I >1 iac<l "perations. see 19 Cl·JZ 35l .401 ( f)(1)(\i i j. the Depnrtment's e1idence is limitetl ~o a result oflh~ Guang Y a Group· s tmtl Xill)a · ~ Jl!ilurc to

,. s~~ l.l>ryng)'O :'lur-pkmental Qno,,tionooire Re;pon<e, <l,ttd 1\rl'illC, 10 I 3 '" s~, hi 1'' Soc ,1 1<:. 1 Colt:tr»ing Memn at .J "S¢1! Zhungya·a Scoriun A Rospoll>e, date<] .Yt<ILCh ;, 2DlY. Ul puge 17: "'" <lil'o Al<:.l CollopsWg ~tomo at A<t•ehnwnt I o: 5·3. ",\'cc id ,,1 page, 1-03 .. nC lb'J. "'s~~ AR I Collajl>ll'g )if<lllO ol ,\t"!Chmolll 1: lr11e"igation Collapsing Memo ar page 10 " s~e Zhongya '< S•ction A rcovrlll>e" "'I"'&"' I 7 """ lS: .t.-e al.<o Gn"ng Y.1 < "'P'"'' m~o aprl1c •t1011 doLed Septen1her Ill. :WI .1 "' pago 1. ilem 6; Gllan~chen~'' ,.pororo mlo applioatiun at E'hibi1 3 {Cmitica!C ol App10Yal. lw>irk» >Wpd ar<d E\llibii '· i\rtr~l"s of A"oci.IIiun at ortide, 7 ond B. "S'¥Gllong y~·, sopncot' ntc application dat<d ~eplemb•t tO: s~e Zlmng)'o',, Section A ResporlSC tbtoDilg fomii)' is the '·porson .. ,iolnti)' m1 11Tn~ nnd cnntrolling tho Gu""g Y a GTMp. Zlwn~·'"· arKi X in) a. S'". e ~-. Chlm lll<i!<'d /s~co'anuram pom 1h~ People·,, Repul-!tc u(Chinc~. l4 ted. Rc~. 685 75 IDectolbc·r 1~. 1009 ). ""U accompenying t""" an~ l.lecisio11 Y1elll9fntlduFn at cmnmont l. " See Zho;1gyn'' Sectio" A Rospmhe. ct.1ted /l>Jaroh 5, 10 I 3. Ul j>tlgc· 209; '"~ r~lsu GtOOngch<ng· s sepBTa!e r:ll<

•ppho:!lion. dotoJ Scp<omb<"I" I 0. 2012. ,tl l G o11d Gua11g Y ,-, "'i""''" rme applkaTion. clmod Scp!Cillber l U. 2U l2. OL l5.

Ct!Opcruw am! \<1 intOnnatiun i"rmn the inY~~tigution iridicating that Xinya has previously mndc payments to tlic owner of Zhongya.'"

ln light ot'the ubo,·e. wnontinue Ell lind that GLJ;mg y,l. Zhongyu ~nd Xinyn should b~ ll"<:'\ted a~ a single e11tity for the pmposcs ofthc Dcparun~nt" s amtl ysi" in th~~e rrel iminmy rewlts." 7

The Depmtment consider~ the PRC to he a non-market economy ('"NME'") country. J~ ln ao;Ct!tthmce with section 77\ ( 18l(C)( i) of tl1e Act, a determination thm a foreign country is an NME country shall remain l11 effect urrtll !'eVOked by the adminislet ing authot"ity. Therefore. we wminue to treat th~ PRC as an Nlv!E country for pmposcs ot"thcw preliminary rc;;u[l~.

In the lni tiation N uti~~. th<: D~pmunent not died pmtie:; of the appltc.'lrion process by "ilich ~-'poners and prmlLtcers may obtain o;~pmwe-r·,JW st\11~1~ in NMJ:. pn.><:eedirrgs. ,., fhe proce~s r~quire<; nponer<; tu submit n ~epamt~ mte appli~alion ('"SRA "') m. wh~re an ~~porter -a]) ~ady hm; 11 s~pamle rate, a o~parate t•ate certificaticm. The standard for eligibility tOr a separate rat~;, lvlK·th~r a firm can Ucmonstraw at\ absence of both de jw~ und de .fin· to gowrnmem ~untrol twer its expatt activities. In tilu instant review, the D~partmem recdl"~d limely-til..:d SR.'I.s fmm 37

, .. g"'" All I Culh'p'i"g .VIc"'" ,a Allaelunem r: bwe;,igatim1 \ "<>llupsmg ~ !omo at Ill. •: Fnr a pH>prrol~l )" Oi>Oiy,;,, nf ;~is ;,_ue see ,\l<mmondum to CIU"islian M~r>l•. '· Admini<U<11 iw Rc¥ie11 <>f Alumuo\1111 C A!ru<itm< J(um lloo l'mplc\ Rep.,hlic of Chim· Dol~L 1H'11'li10J1 !!ega. ding A ffilialiM an<l Cotl"P'in:\ \Of Guan~ Yo Alumiui1un lndust<ie< Co. 1.1,["' Fo;han CiUaiigdott1gAluminiUm Co .• Li.J. Kong AI! bttctL10iioL1~1 Co .. I td .. and Guang Ya Aluminium lnJU,trle< tHong Kong) lt<l.; Gum1gdong Zl10ll~'YU Aluminum Co .. Ltd .. LhOH['..\a Si1.1ped Atumitli\lm (!IK) !folding Ltd .. Km·lw" Aluminum Co .. Ltd.; and fo<han Nan hoi Xinyn Aluminum & St>1inle" S\o,( ho~nol Cll .. l.!d (wlkc!l\eh ""(in,\1\g Ya Groui>"Zilong)a Xin;a"'l.' dntod June 3. ~U I J. ".\",•,•. e ;; .. C,•rlilil1 Kirdmn !ppU.mn' Shacl/11!, "'"'&d.< F mm ''"" {',•opl< ·., R<1'11i lie o/ Chma f'rclimiiJOf"l" /1,·,,/t, •>fth,• Fi1 '' . l<imll>l.>"l•"af/\",• /l,•m'""· /'1 dmliiMJ" II"-"·!,-.\/""· in Pa1·r "".! hu"""cm of Time• l.imirs{nr rh,• I ""II R.•w/1,·. 7/, I"R fi27f>5. 6Dh l-68 (October I I, :'0 I I). undwngod i11 I",·r!(lll1 A",l<),m AtlpiiW>c,· Sh~!.-ing ,md /!,wli..' !'tom tlr,• l'e"plo ·., lle;mbhc "{Cirin". 1-"i!WI llt·oulr.\ .md P<11"1wl R"""Mi"rr ~f Fin! ·11Jl!dll!>!piug Dill\" idmmiJII mio•" Fn·i~•o•. 7! FR ] I >3·1 tA~rii I I. :'0 I').

"• .\",,. /m,;,,.;,,l! 1"<>11<'<". 77 rR ,,: -105M.

componks.-'U For tile two mandatory rcspomlenl,, Gmmg: Ya Gwup/Zhongya!Xinyn sllbruittnl three SRA.s (Gunng Ya Gro11p submitted (wo SI~As (une fo•· Uuang Ya uml anolhcr for Guungcheng I and Zlwngya SHbmitt~J one :-iRA I ;mJ Krnmd Sllbm itted nne SRA. R~quc't li>r review of un~ ~om puny J h~t S\tbmitlcd an SRA. Kunshan Giant Light Metal Tecilnology Co., Ltd. '"" "~tbdrawu. J

1 Tluec• SRA> "ere suhm in~d hy companie~ for which re\·iew was nevc1 requested: /\llicd P.."iuker l.td .. Uumtgch~ng, and Uuang:llong Huaclmng Aluminum Fnctur) Co .. T td. Becuus~ no review wn~ req ~tested fm Allied ,\ (Qker l.td .. or GuangdQng HuacJmng Aluminum hwto1 ,, Co .. Ltd .. the D~pnnmcm is not COiJ;;i<i~rin~ rh<: SH.As of these cnmpauics for separate·rmc stntus. flecau~e Guungchcng was previously fmmd to b~ pan of the Gunng Y a Gwup. ~ cmnpan} that ""S '~!JU<"ied li>r review, we will consider ito S RA in rills review. Th~ Dcparrmcm received timcly -filed scparatc rate cenili~ations from two wmpani<";: A I nan Aluminium CD., l.td. and 7.hong:;h~n Gold ll lotmtnin Alumi1tium Fadory Ltd. Ho11 cwr. tlw 1 ~ljtLCSl lbr r~vi~w of Aln<lli AIU1l"linimn Co .. Lid .. 11 "~ withdrawn.l:'.

T 11 en I) ""'"en >qr.notlt• rate ~pplicunt> ~till untie!" I"<'VkW SLtbmitteJ an SRI\ that did not d~monstrate a sale or ''ntry ot' >ltbjc~l merdllmdist dming the POR. '" evidem:ed by a (" BP <::nlr)

'" I ile 1"1 <c~arnte·l .11~ appl~emio"' aoo li·um: t II Aero lmp,•rl and L 1~on Carp : (Cl Aliiod ~lake\ Lilnitod: (~I CI\UflgL!IQ!l Chafl~til<'"g EI'Opnt'ILnr \ ·,,_ I td· [.l) Chon~zhuu t eng•oog ~uto l'mh Co. I td.; (51 D<1ngguan 1\oJa l\hl111i11uno Cu, L~l: l<i) l)nnggmn (iulden rig<l ll~•dwm·o liHI!lSltiO' ('o. Ltd.: 17) l\ynamk Tedmolol'i" China. UJ,; (~I l"0;ltan Gttnngchen; 1\lLomim>m Co, ltd.: 1'!\ liluhe.l P:I-IX (f)ungg"""l en .• Lid .. I JOt II''"~ Kung Urw Fl<cori, o\~rh"nc~< ~"l,•s I '"!lied: ( I I) (ilOang,!ong I luaobon~ Alwnim"n I a~lnry ! '"·· ild ; II}) GuM:;•i<>ll•.: \\ hi• ipuul Uocu icnl Appli,1JlCt.; Co. Ltd.: 1 I J) Gllallgd<m~ Zllong;,o Ahtm mum C""lJ'·'"~ \.imtted. Zhanqftlg ;,,.., lhongy:t A lnmilllllll C" . I tci. 7hungya ~l1apo.i Atummlllm 1111\ I ftnldi11,~ I imitcd: 1 t .j Hiu,mg Ya A homimmo ln<ill>lrbl Co .. L1J.: ( 15) Hm1gzlwu Xing)•i Metal P1udt~tl> C", Ltd.; (161 linoy<mg ille<>bis C<J .. Ud: ( 17) llemm N~\\ Kel~a~ F.lect.-iml Aprtia"ce.< Co . l.t<l ; j t H) IDE\" Dicgl<e T 'chnology ( [ ionjin) Co .. Ltd.; { 191 J iong>Jt Cil•··~f.l lkti"igcmLiOll l"l' . ltd : (~ill n,.,,;,.g J~<'A'c" T""": l'i\j(luc\< ( <} • Ltd : i.! 11 Jt"lilOI c Co . Ud . (221 Kr,>nl<t lntotnatinnat IH<: IJ3l Kun'h"n \ii>JJ11 t ighL ~lotal I ochnoln~.' Co. l1rl.: 11·11 ~lotoltek Gro11p CumpHn) Lim itod: I ! 5 I Mid<· a I!IIOmational l"rn<lill~ Conlpano UmiLoJ: (261 Slmtlgltoi I ""gi"i p,,,;,e •I ltllnim•Lvolopment Co .. L!d : {181 SheolLiten J iiiV\""' C n .. I tJ. (,'~" Sbo.,?hctl li"Y""" Import '""I C\porl Cv .. L:J ), {2'l> Sincere Prolll UmitcJ, (Jt:tl Sk; line E'bibiL SO"""'' 1 ~lmngt1ao) (" o., Ltd.; (111 Su?lll'U Nt\\ Hnllgji l'reciJiGn P11n C n .. Ltd.; 132} Taizlwu l.il~ng .\o1onulilcturing Corp.; 1]3) ·1 inqjht Jinmau lmpon & L')ll'l"t Corp .. Lid.: (J•I) Li11inll lil<lum; IA>i,1) Cu. Lintitod; {.1511 Xm \hi ,\lmllim•m Compo11y l.imLtcd. n'""'~ Dnlll< X'" Woi ,\ ltwlil\Hm p, nduc" Co .. IJJ .. ,aoJ X in II oi A IUL\liltt•m Co .. 1.1<1 •. 061 lilcji.Ho~ :\in long IL.Jli,Lr) l"<l .. l.LJ.: rllltl I 37 J li<!IJ Mnuntaio; I""' IHLiinllol I )o\ elopment I itniLeJ ' .\e,. Bmoo!IOillO M rg. Cn .. !r-c.", lei WI lu Tile Dep.IHII\el\1 "'W <lMI.11\01 of R''itte;; t(,r Ro,ie\\ of ku";lia" l<~•ml L>ght ,\·tot,ll rechoHJIGg) Co .. !J.d. !""Giam"" ) ... dmoLi OC!ubcr 8, 2111]. '' ·'"" E kctrolux :-..~i!h ilm,'mo. Inc leltcL tel the Dcra•«noE>l"" 1\"iti•d• """; otr''"l""" IC·r ,\dminisn ati<e R" ie~1 :· <IJ•O<l Sop•oml>"' "'· CL!i "·

'"

summary form (CI3l' Form 750 l )_ by showing a suspended .-\DICVD ~ntryY On May 14. 20U. the lkpanment issued a supplemental tjUestionnaire to these parties and requested ;~n explanation as to why their re~pcttiw SRAs did not pertain to a ~uspended ADICVD en tty and requested that the S R Applicanto submit sales Joctunentmion for dtc first suspended AD/CVD $1l]e made during til~ POR. Therefote. fnr these preliminary r~sulu. tlw Depnrtm~nt is not able to make a determination whether the~~ compunies are eligible for a seramte rate. We will continue tu con,id~r this issue for the final nsttlts, alt~r ana1)7ing tl1c n:sponscs from tbe.~e companies to onr :VIay I'L 2013_ ~uppkmcnta! •Juestionnaire.

Four additional s•·paratc mtc applicants and Kmmet have all stm~d that they are wholly tOrcignm\lled ~meqJJ isco or located in a market ~conomy, are juim vcnrur~s between Chine~e and lbt'l'ign companies. or at'c wholly Chi nesc·O\YI\ed mmptmie<- · 1-h~l'cfon:, the Dcpnnnwot must mmlyze whcth~r th~sc respondents an:' wholly foreign-owned or located in a market <:COI\OillY as cl~inwd nr demonstmt~d an absence ofbmh de jur~ ond d~ {aem governmental control nvtr export activit,~s. HS npprcpriute.

!n pro~-eedings im olving NMLl colmtries, th~ Department has a rebuttable pr~sumptiot\ tlw <11! companies within the country ~re subject to government control and thus should be a~-s<;>oed a single AD mtG. It io the Depmtment' 5 policy to t1Saign all ~xpnrters of m~rdmndisc subject to inve~ti~atkm in illl t-::Vlli ~O\tlltry this sing!~ i'Hle unle,% an exporter can d~monstrate that it is sufficiently inclep~nd~nt $OilS to be entitleli w u scpmat~ rill~ Exponers c<m demonstrate this independence through the abscrtce of b0lh de jun and d~ jCrcro govctnmenlal contm1 over expon acti vitk~. The Dep>ll'tment unal)'zos each emily cxpmtlng the ~ttbject merchandise 1.llldii.'r a te~t nrising lrnm F'iH<J/ Det~rminatio" n} Sales a/ Le.<",< J h(m Fair l'<dl!e: Sparklors }Yom tl1e l'Mfi[~ ',, Republic ofChiiW, 56 FR 20588 (May 6, 19')1) (''S)Jorid<!r.1·"), ao lltrther developed in /o'inaf Der~rmilmn'o11 r~fSales Ill /.1!.« l/1<111 Fair Vahw- Sili~on Car bid~ from i!r~ P~opf~ 's Rqmh/ic· 1!/ Chirw. 5'l fR ::0~3S5 ('vlay 2. \99--1-) ("\SilicPI! C<irbhM'"i- In "-LCOl dam:~ 1\-ith the s~pam!c·r:tt~s criteria. the Dep~11ment assiglls oepardk rate~ in N ME ~nses on! y if r~spondents can dcmonstrme the ab,;cl)c~ o 1· holh d~ jrrra and de fiJCio gov~mm~ntal <O<Jt\lrnl nvcr expol't activities_

" The,;, 2 7 <Olnp-'Oi" oro. (I) i\<J G Import and hp~l 1 Cnrp.; \") Jllilod Mak<r Limited: (J I Clldn~7.1JQJI CIJUn~.zllen~ E•np<W'MI' Co , I .1<1 . (.)) Cil''"~'"" Tell\;long Allin Pons Co .. I I cl .: 151 Dnn~:;'""' ,\od·,, Alnminnm Co._ Ltd, (61 Dongg""" Golden Tig<r llarrl11'1re tndOJ>lriul Co .. I L<L; t1) D)-1h11llic T<dllh>lugb Cilill:l Ltd .. (gl (1\obJl I'M X (llmlg~uaill Co , I J<l.; 1 ~I (ircc ~k<tdc Appl iaocos, lllc_ of" llwhoi; (I ~I (illoll~ilon~ Whirlpool Ehlrio"l i\p~lianoes Co .• LIJ.; 111) Km>gzll~u Xing)'i Meml Prodlli:l; Co .. Li.J.; I 12) 1-l;oll)''"!> ,\Jcnbi• Co., lid .. (13) tlo11an Now Kei<mg Electrical ,\nptiollc<' Co .. Ltd.; t H! IDEX Dingloc Tochnology !TiaJ\iill) Co._ Lid_, 1151 Jbng"' C'loallp,fa Rofrig<rolion Co __ Lld ; ( 16) Ji,xiog Jaok<n<l Ti\\> d l'•"<l<hLm C~ _ LtcL; (I 7)1llslll~''< Co .. Umite,]; (I g) M~l\ll!ek GrOll)> (-Q •• I .td ; i I 'II lJiirloa ltllomalioml Trading (\) . Ltd.; l.!!lt Shon~IMi (-.,.,glH; l'roei;c Mumim1m AtiO)' Maaufacl01ring Cu., LtJ: (:' I) Sllenzlle11 lllldSall ToclHlOI<'gy [kwlupmenl Cn , Lld.; (121 Suzlw~; N'"''' l[,,ngii P10cisiu" rm C-o-. Ltd.: 1~-'1 l nicholl I il[,,~ MmwC'I<-·«u·ing C<>J"i'·' 1! I J rimojia nnm1n tu1pmt & bP<11 1 ('o,·p_, Ltd_ C5J t ·nMl ilhltHr} I A,i,ol Cn., U1nitcd: (26' X ill \V~i .~ l~minHnl ( ompnn;- Lin I itc<l. t_;.,,lll~

Dong X in Wd ,\l,mm<JOl /'rncluct• Co .. ltd .. """ X in\\·,; /IJumimtm C'<1 .. Lui.; ,uo110111 '; le~or "1\lumimm1 l:x!JLi>iuOI> f""" tl10 Penph' ·' ll<p<Lbl ic ofChi01n: Snppbne'n"l (JlJestinnmirc- Sepornlc Rot~ \ppliculi<ln." ddl<d M'i:-- I I 201_1,

II

s~rarnte-Rm~ Reciri~rtr~ '-'

11ll'u~ s~.rarme tat<: ~pplicants and Krom,·t pw\ ulcd ~vidence in <heir SRA, that the~ :"e \>holly owttctl by individuals m companies located in ~ market ewnomy c·,\[io'') { colkctively ··ForeignOwned SR Applicams"). 36 Therefore. because they"'" wlmlly fmeign-owncd 0!' locmed in a markd economy. anti'"'" have no evidoOnce indicuting tlmr they arc under the ~ontrol olthe l'R.C u scpurute·r~te anal\ sis is not necessary to determine whether Lh~'e compan ics <li'C independent li·om ~0\-~rnment c~ntrol. lJ Ac~ordinslY. we lmw prehminarily granted u <cpamtc r~to to tlte;e l'uur companies,

Joint Venlmes Bdwe~n Chinese ilmi F(1reign Compnnks or Wholly Clrin~,.,..owned Comp<lni~s

On~ oep•tntte r~te appli cunt, Shen1'h~<t Jiuyuon Co., IJJ. (aka Shell.Zhen .ltlljl.mn I mpon and [xpurt Co, Ll~) (''Jiuyuan"}, $Latcd th11l il is n \\·holly Chlncse-0\'nled company. Th~rdC>re Lh~

lkpr.rtmcnl must ;mal)Lc whe-~her this r~-,;rcmdc'nl ~an d~mon.>l<'dl'-' lh~ ;tbsc~>~c; '' ( buill dcjure all<l de.flrc·itJ gov~•nmeJJt~l (\lntrol <)Vel' e~p<l\1 uctiYitics.

Abo~ nee of De Jw·e Control

ll1e D~p~l'ln1ent consider> the fOllowing d,, }1rre ~ritnia m Jctcrm ining wb~ther nn indi;·id\tal company 111ny be gramc~ a separate rate: ( I J an ahsen~e of restrictive stipulntions associated with un individual e~portd ,o bltsiness and export licenses: (2) any l~gi'ltilive ~nactmcnts dec~ntral izing comrol of" Clll11jl!lnics; and (3 ) olhcr formal m~a,;mes by tl1~ gowrnnwtll J:l~c~lltral iring ~ontrol uf L"Dmpanie~. See Stl(lrkf~I'S, 5G F R at 205~9.

Th~ <'Yi<icu~c pl'O\ id~d by Jmyuu" s<~ppc>rts n pt~liminmy fin~irrg of dept! e nbs~ ill'~ ol' governn•entnl cotllrol ba5cd 011 the following: { I J ~n ab.,~nL""e or rcstritth'~ ~tlpul;uions dOl(,~ln!cd l>tlh th~ in,Ji\ ichtal cxporwt·s · htL~ine% Jnd e~pllrt liccHscs: (~ I there· '"" "I'Pl'~"ble kgisl :JI i' e <'~actmcnts dccontr~~ii11g ctmtrn I n1' the tom pan ies: m1d (3 1 nn~ there are formal l\l~<i~lltc:s b) the g(J\'Ctnment d~c-eniwli~iiW nlllll'OI of companies .

. ·\b~em:~ of LJe F(l<.'/11 ( ontro!

·1 ) picnll) . the Depmimem conoidcrs four l[tclvr' i 11 cv~luatin,g whdher e;tch r~~ponJ~nt jg '"hjc·~t to de (ird(J gnvemm~nt Cllntml LJI' it' <'~]Jolt functtou~: ( IJ wh~thcr Lhc• cxpml prices a1" seL b; or arc subject !o the appro1·aJ or a gc•1w1un~nt agency~ U) wheth~r the respondent ha; autl~>Hil) ln n~goli~te anJ _,ign C<!ll irucis and other ngrc,·m~uts: (3) "h~lhc1· Lh~ rc::p<ln<knt lms ll\llO!IOillY ti·OJn \11~ guwnmwnt in making dc•tisions regording til~ sck<.:tion nt tmtnag~tnenl; and

" I li <<'Jl<Lr.llo-r.lk opplicanl' r<cch i>lg " '"il"'"''' '"" are h<"h!- rd;,notJ tu o~llectil cl~ '" !he ·St( RocirionE;," tl11' i11ciudo' the oppropriate mandoE~rY r<<pomiom;

I ho i'l't<I~0-0\<ncJ SR ·\pplioms ah': {I) 'iincoE'<' I'«' til Linmecl:' 'I >kc lw L:'hil''' '\~''''m< l~l""'~hoi) ( o. I ,tel.; ,mel < ,1) Hllll \jnld t>fOlllll,1iiL lo>h:rnoduJJ,\1 lJt>.-l<•!'El\''"' T .1mitod ' S,•,:. <! y .. . luJtc·e 0! 1'1'1•11 DeJeJ'I!H/1,1/i>m r~/ -~<1/,·, <II /_,•,<'< / ir<~Jt Faw i'<li"< l'i'c'<JIIIl.' ,\[.m,IJ\·<11'<11• · !"'"' 1hc f'.•,;p(o \ R<'!'llhll•' '{C!Ji>l,l. 64 FR lllt14. lt I <J-1-u;; , lJ<cember 2U l 1N1i t 11t1ere I he ,._,,pnndom 1\ ,,; \\·hoi I) flli~L~n-01\l"'d and, lltll,, <iUOiil1«1 fw ;o <cpmL(e Laic I

( 4 J whell!er the n:opondcnl retains the proceeds of 11:; expor: s~lcs and m~kcs indcp¢mJent decision8 regarding disposition of profits or finoncing of losses.'~ The Department has tldennined thm nn analysis of d~ facto control is l:ri tical iu determining whether respondents ~r~. tn fact, ~ubjecl to a degree of gov~mmcnt control which would prcclttdc the Department from assiLming separnte rates.

In tills review. Jiuyuan asserted the following: (I) th>i! the export prices arc not selby. and ar~ m>l subject to, lh" <~ppn.w.ll or· <1 govcmmental agency; (2) they have authority 10 negolime and sif,'ll contrnets and other agreements; (3) they have ~11lonomy from the govemment in making dcei!l.ions r~g~rd ing the selection of management; and ( 4) they retain the pn'"~~<h uf their uxport snks and mnke independetll dedsions regarding disposition of pro lit:; or finnn<:ing urlc"so·s. Addiri<>Jwlly, Ji1<yuan 's respnnoc indk<ttes tha: its pricing during the POR does not invohe wordinatiOLl a1JU:mg ex~urt~rs.

Evident~ plac~d on the record o{ tlm re\ 1~w by Jiuytmt> <.lemonstrates i\0 ahsencc of de jurr and de fiu:ro govemment contml with respect to th~ir respective exports ol- the mcrdmndis~ under n:\'kw, ill <l<;<:nrrl.l!t<;e with the ~ritcriu identified in.))J<Irk/as and Sfli,•"" Carbul<'. Thercfnrc. "·e are prdimimrily grunting_~~ S<~parate rate to thi~ entity.

Rate IC>r Scpnm~5!:Rl!.tc Recipl~nts

The >tutut(> and the Dep~rtnwnt 's regLJlations d() not addre~s th~ establi~hment of a mte to be applied to individual respondents not sdeeLed lOr "xaminaliun wh~u 11w D"Jlm-lment limit~ i L~ e:wminntion in an admini~trutive re,·iew ptusumtt to 1ection 777 A( c)(.~) of the Act. Gcnemll y, tile Depnrmwm I nob to seoti<:>n 73 5( c)(5) of the A~t. >i~·llich provides insm1ctions for calculating th~ all-otll< .. "ro rate m m1 invr~tigation, ti.lr guidr,noe when t;~kulnting lite rate fur r10sponclems whidt \V•J did I"! I ex~mi 1\''' in 1m ?.dmi nistrmiw ~~''icw. Sectio11 7:\5( ~I( 5'i(A) llf the "'~' ~rtic\Jb!e' u preference thm we ure not to calcubt~ arr all·others rate using rates wht~h arc zero. de minimi.>" or ba~cd entirely on filets avmlable_ Acc<>nlingly, the Department' .'1 usual prnctite has btcn to ii'>Grag•: thr; \n;agllt~d·~vemgc dumping margins tOr the sd~cted cmnpani~~. e~dmling r~t~s tllal m~ ~oro. de mloimi.<, Dr bn;;ed entirely on f>\Cts nvailabl.:. ''' Scctiotl 7 J5( c)(5)(B) of the Act also provides thm, whmc all rates ~rc zcru. d~ minimis, or h~scd entirdy on fact:; uv;~iklhk we nwy \IS~ "any reasonubk m<:lhml"' tOr assigning the all-others mtG. including ''iJVcraging the estimutcd weight~d ·u,·ernge durnping m~1 gin:-. d~rcrmin<'d f,,. rh~ expurt~r, ami proclu~~rs tnUividu,Jil y inveodigat~d.''

In pre' lOLls adntindmlivc reYi~\\S, th~ IJep~ttmcm h:1s determined that a "J"e~sonabk mdh,,d·· lo u~e whm the rates for the r~spnlld~nt~ sdcck"<l [(Jr indi' 1dual ~:<mnin~tlon arc nrv, de• minimis. or based entirely on tflcto a,-~tlaillc. is to assign scpar;Jte-rat~ rccipicm,; Lilt: a' cr:1~C ,,f the lllOSI recct>tl y-detennln<xl wcightcrl·vvcr:Jgc dumping mnrgins that nrc not zcm. d~ mi11imi<. nr h~sed entirely on Jrtd> available_ The;e J:cles n;ay b.c fmm th~ inVt>tigalion, a prior

'' S"'c .~ilium (to""""- SQ fR ·" :!C5~1,.~-. _,,,, all!• -"'""'" ,. '1 i'"i,wl Dc~<•>·mi"'"'"" <•1.\;,;,,,. m {_,_,, lhuot I,.., I(!!,, i"r<l,(.l!yl A in•f<,( 11'1111 <ire 1\-,plo• '< //, '1'"/o/" u!Chi""· l'i'! t H 2'5~4. 2~5-!5 (_\t,,y .•, t "'15). '" .1.·• T!<~ll T!.~ami~' wul Pam Tlt~!·,•offl, "" F1 W!ce. 'idn!<1!t). fl,dr, "-'!'"" .rd tile 1 ;,.,,,1 /<."11q.i""' ,_.,,.,[ !i, ., rclr,, u( I Jt!•d'""l''"-" I l11 I) , i1b11 i '" '" ari r ·e R'."'"le w , ""'' N,' • , w "'" c{ I&> i ,., • ·' " r ['em_ ' J fR 5 C ~ C .', j ::' '<:'.I !Sc'fEOml<er I I "l•JO~I. Hod "'"''ll11'"" l "'~ !"'"" ond f!e.:Binn ~tom0m11dllm ,>t C'''"'"""' I(,

;u.lministrative teview, or a new shipp<:r mvicw .'1" If any <uch separak·rat~ rec:ipiem b.1d its own ~akulated rat~ that i~ contempor~neou~ with or more rccellt than such prior deten11i n~d wte~, llow~\·er, the Department hos oppl!cd SlWh incli\· id~1l rate !0 the sepnrate-mtc redpi~m. inclltding when that mtcl> zero or de miuimis."'

I 11 tht.< aJmini•tmti ve re1 iew, 110nc of the ,;cpurm~-ratc r~cipients h~d its r>wn cQlculated rJle tbat is contcmporattcous Wllh the inve<tigntiou, Accordingly. we have condud~d in this admini.•tmti ve t"eview thm n reasouahlc mdlhnd fill" determining the rate for ~epnr~te-mte r~dpwnl.> is In >JS~ib~l the rute assigner! to the separate-rate recip1ents in the irwe~tigalion of thi> case. Pursuant to tills method. we huv~ as8it,'lled a rnte of32. 79 p~rcent to th~ s~pru·ate-rate r~cipients.

Tile I'JlC.wid~_I;:utity

Ten companies lOr wbid1 review w;t.s J ~quested did not sub mil ~ currrplete SRA <ll" a separaJ~ rate ccrlificutiotl."' I\nth~nnorc, tb~ rcn>rJ indicm~s that Glm.ag Y u Group and Xiny&, of th~ Guang Y a lin,up.'Ziwngy:1· X in yo entil;,c, ·chtl tiO! r~spond ttl rh~ Oepmtm~nt · s qn~->tic11111nirc. \\"hen a mamlatory rc:;pnndcnt rci'u.~e~ ttl f11IIy re>pontl to the Department"s <Jll~s!il)!lll<lir~, it b our practic~ lo find that tlie party has not d~momb.ntetl its Eligibility for J ~ep<1ratc 1"<1lc.·'! I:Jc~aus~ these ten entities ;mJ the Gu~ng Y a Group/Zhongya.'Xinya entity have Hllt dcmommatcd tltm they are eligible far separate tAl~ status, the Dep<111ment is [Jrelimtnnrily considcrmg tl1~m to be pnrt of th~ PR C -wide entity. n~eaus~ we UBt~n.nine liW 1he;,e I I comp~nfes me part of the PRC cnlity, tht PRC' entity is Llndoor rovie11 _ hln<uuJJt t<J seGtion 776( u)(2) of the 1\ct, \W t\ll"ther thlli th.'\1 hecau~e llw PRC entity (indudinp: the companies discu,~ed ahow) failed to rcspOtld to the D~partment ·~ q ue~tinnnaircs, withheld Gl" tililcd lo prnvid" i11 fom1ath'n in n timdy manner or in th~ tbrm or 111:11\tliT ITIJUcstcd by th~ D<>pw·tm~nt. submitted infonuJiwn that tmuwt be ,-cl·itieJ. '" llth~l' ,vi~e imjleG.ad th~ ;w•c~~dJn.r. ii t> apprul'l"iak ll• a;o,;gn a we :ght~d ,\Wnltcc dw:;pu1:; mar'-in tu th" f'RC cmit,·ming fudo utlwrwisc nnibbk

;•· Scr , e.g . Co-mm ~}.,_,,,., frill "'''<II'"' :C!.,o""'l-' 1--, ""' rit.• P-·opi,-", R<p'<N1• · "_/ ( MHt~ l'!dunil"""' /i,·"dts m1J Prdmwlmy !'<mid! R.;<cF11n11 oi"FI/i!J .-llt/rd!H"!'WJI iJI<h" .ldmmi~tmllw !1n·•~"·· li> FR ~-B~. 8 P~ !Fe],,-.,_,". I+. Cll II >, uncil:tn:;Wl m Admrws" "'" o /?ct•i,~'' o{( 'em1in r,-""'" Wm "'"""'"' Sl" im!' F,-,_,,, lire Pc•.,;•l•\· Rcpul>llc vi """" Fi11al R.•<ed!> rmd Panird R,,,n.<.lirm a{ .)ltllrlrllllj!hJ.> Dwy A<lmilliiD·mh-e Re-.-i,,,., ~0 l R 51940 (1\Ugll>< I'), "Ill II: '"" '''-'" .{,lmiJI.i£/JYJ/1\"e R,~-;.,,. ai Cmain Fmo,•IJ Wm·'" ·'"i•'l" Slt~·m1p J-iwJJ til<' /',·up},•'s 1/,•pu/rlic o(L -,-'"'"' I· ilwl R.,w/1.\ mul PrJ! nall<c":i., ,;,, oj ·(,mdw>~!'il'-~ nw.'." ,Mmrlli>rr mivc lr.eL '"""- ~ 5 rR ·1'141/>. 49-l(i,> 1 -'"'~""' I ; . CillO), >i!d -1"'"''"'' i"r,od., 11 "-'''"m" L1rl v Unir,•d -''"'"'· Tl4 F. Sur>i'· 2d 1286 1(-11 !Oil). '' .1.-,·. ,. g . /-"no"flr•1 air>!" Cnn,)i<h Tail .II<'--'' fi-om ill•" {',•opl<·",- /~:puhlrc· of Cirfr;,;· Fm.li //_,_,.[,, ,.r IW!r/,,"!'U:<: JJtoi} Adnrtm•IUJ!h ~ il<o>"l>'"" unJ llc'><."i»irm o_FI/,L"ir'" {II Pm .-. ~' FR ' I :\"!9. ! l.i 1(1-) 1 !Apr. I to. 2~ I C). " T!lco.c c'<l.<LlpJ.JHC> '"' (i J .\cri'<'o ln<~rmrir>mll luc<•<f~ta•.cJ_ [.:' 1 Cl=~"""" Ch.rns(;, ]''"' er ~lo••hinerv (" o .. Lh! : 11) r,,_,],,,, <;iullld< A."-rte~~ l'ht.-ic•el --lpptina,•c'> Cu._ I td HI r~<ho" Y~n~ I i ];"" Al•1 I ld, l"l lil«>!lgLhc•u 0 lin~c:m D1c-Ca"hrg Hmdwa<t' P"'d""'·' ( <' • lid,: (ti r Jm'<n~ T,\i.'i" \{ctol Pr,>dt.Ob f"" . Lld.: C,"J :;,,Jl]l Chmc• .-\luwiuurtL Ca .. Ltd. iS) ~Je~1Uek :>te•lll lm!<r"f)" I lJ : t'JJ lhejwH~ Zhengle \;~)>.lp 1 o . I lei.; '"'J (Ill) llmh.1i !~H>l\ul,el.OL Elcc<rk•l F<[uLpn>.•ntC.-.. i..<J. - ,\•-'<" lmiR<!l•"' .\"''"'· "'" J'R lLI -lrJ5'>b t""l "' "'I'• 'nor< o1>d r1·ndu,·,•c; wllU s<rllmH ~ "'>'"'"'" -ra« '""'" appl"o!L0n ''' ,·cruficat\\>1\ ond 'uh<eg•mVI)• 01 ,, 'oko<orl :L• mond:rtor) r~·punJcnt<, tho>o "W''' '"', all-i pl-c•cln,·or< 11il! '"'

l·•nter· be eli~ihle f0' '"r·""l'' fllc -"''"" lLLLk" liLq r q•0r\<l '~ oil port< ~f<be '•'"''""""·''"' ,, nm1d~"'') '"-'P' ·.nd,·oh "'1

,,

.-\cconling to ~~ction 776ibl of the Act, if1he Department rinds that an inlcr~stcd p~ny E1ils to cooperate by not acting to th~ b~~t of its ability 10 comply \lith tey-ue.,ts ti:n· information. the Depm·tment muy use an inf~r~ncc that is aJverse to the interests of that party in >el~cti n:~ fl'l'lll the lacts oth~nvise avaHuble. ~• c\dvcrsc inll>rem;es are apprnpliat~ "'In ensure tlmt the party doe~ not obi~ in a more favorable restth by failing to cooperate than if it had .:onperatcd fi1lly .'''15

r \11 tbennurc, ;,affinnative cvidcttcc of had liti lh Dll the purl of a respondent h ll<lt required before th~ Dcpartm~nt may make a•t ad \'ers~ inft::rcnc~,''1' B~cau'e tlle PRC-wid~ entity (indoding Utum g_ Y a Gmn p'Zhongya/Xiny<t w~ the utile r dght companie~ nott\l ·,tbo>e) f~ilcd to respond tn the Depnrtmet\1 's requests for information, we prelimimtrily find thnt the PR C -wide entity thil~d to coopnate by not acting to the bc~t of its ability in this proce~ding. within the meaning of ~cction 776( b) o 1· th-o A\:L Th~efor,·, an ad vct~e inl~renl'e is warnmted in sd~cting: from the t:tcts otll~rwise available."

lu J~dding which f~cts w \l>"~ ll'\ AI-' A. ;~~li<m 776[ h) of the c\ct and 1 <) CfR 3 :i 1.3081 ~ )( i ) authorize th~ Dcpurtment In rely on infonnnl ion clcri v~d li om: llthe petition: 2) R tina I determination in rhc inwsrigation: 3) any p1·evious review or de1~nnin~tion; llr 4 J ::my infmma!illn ptac"d on tile record. Th<C Department's practice. when sokcting an AF A rate fn:"n mnong the·~bssibl~ ~oqrceo uri11fonnmion, has been to en>ul~ thur the rate is sufficiently mlverse "as ro ~ffectume d1e statutory pUrposes of rhe adverse facts available rule to inclnc<: t-cspondcnts to pwv'td~ tile D~partment with cornplmc am.! tlccumre in[CJnoution in a tbndy lllilllnec'~~ The Depa1tmenr s pmctice also ens tires "that the party does not obtain a more fnvorable rest• It by failing to cooperate rllan if it had ""')perote(! fully.';'" Accordingly, the Department hns nssignod rhe ral~ oi"33.2Rpercont ro the PRC entity a.< AFA Thisrorc \\as tile [R'liti<ln l',tte in the in wstlg~tinn. Jnd ;,: the high<"~t r~r;: in the proceed mg. w

'' See. "g_, .\'"fi'-'' rif Fmo/1/,o,u{/£ u(Amid"'"l"'~' Dun· rdml<~.\11""/iw /~"''''""- S'la/111.!>.< C:re,,l /!,,. /J-,1111 111il1a, '0 I"R 5·i02.i. \41l~;l.;!6 1 Soprombor I J, ~DI!5): '"" <1ho 'wrice u!'l'm,lff_lcl,!rmbr,lli"H •!/-';"/"' '" [g,,,- I baH /-,w I ;,{,,• '"'" l'irlill .\~y;"m'e C1·iuctil lij"<'WII.Ilw"'es C<irhnll all(/ I 'er/(lm ,II!,,, .. \t.,d II ;,-" llm/ }r""' /!,·,u/_ (, l FR 15792. 55"/<J-1-96 ( Augu<r JO. JOO:':J_ ".I"J< SAA <H R)O_ 1" Se1' _-lmhhmrJiing Dwit:.\, Cmm/<11'<111111!; llllll<'.>: f-il><tl R1dc\ 62 FR 2"1196. 11J~O (Moy I Q, I ~Q7); '"" a/ 7 F __ \d I ')1: •. IO~~ (Po,l. CH·. ]OOYJ ( ·s;PI"'"" 1-,. Sc'l' .\'ipf!v•l, 337 I JJ '" 13~].gj_ "S,•,', ,• g .. r 'ei'IUi11 Pu/,•'-'>ier SWt!/.: f rh,•i- /i-<•111 ~""'''' { iM/IIe,,u/15 'If 1ho ~/l()j. :!nUo -l!llid,npin,-, l!rll!' l<lmr'IIWcliJL'<' Rcvk•lL'. T2 FR 6%6J, 6'96l•·l-b5 I DOL:C'!Uhc'l Ill. ~0071 (select ill!' tho pctitiun J'Oic. n.o ,Jdjmlod m 1l1o

initia1io11 of the le« than fai1' value inW.\1ig•th1Ll. '" tho AF,\ rate]: Cerr.1i!i lf"armW,lf<O' Sl!rlmp jiwm ill,• /'eot!le ·,, II~'PII N ic 4 C/1i11d \ '11i ... , 'il 1-uw//l~m/ /_, and R, ·sdJ'Jo ;, 11 ' in 1\ll'f, '>{ 21)11-/-.l 006 A nfi ,/wnp ill)< IJ11( 1 _ I <f,,, iiJi>ll-a/1 ,, , · <1/ld \eLL .IJil/1'<'1- RcVI<!U''- )] FR 510-l'J. S:l!i:> I IS<j'L I 2 C()IJ71 (<>"lgnjng lh< p<litiul1 r,lte lilllll I he> IOss·lh:m-liLir\ :ole1o invto<tigotion "-< the AF.->, m1n '' .\'e.• <;.\_\at SJ!J: "" ,/,., Fh>.ril!n•l·ll!/!t,,lr•'IJ •/ S.,b ,, /_,.,_, '''"" f,;l." I aluc- Cc'''"'" h•cu' -'"'1,--,,,:d !r '"'""''"'.,. Shrii!Jf' from /;Inc d. 69 FR 16CJ iD. ?h~ I~ II )ee<mbtJ :!3, CD0-1 J, ' .. 1>~>'<''"'<""''11 Fin,J/. 76 FR lH IE!li

C orrobomtion

Secuon 776{tl oUh~ Act pwvitlc, tlml. v.hen the Deparlm~nt relies on '"condary in~lmnarinn in using th~ fa~ts otherwise available. it umst. to the ext<.:lll ~racticabk. corrolwmlc that infonnation fi<Jm independent .IOlll"C~~ that are reasnnahl) at it• di~pmul. We haw i llt~rpreted "Cllfroborme ·• llJ mean that we will. to the ext em practicable. examine the reliability nnJ f>'levane~ of Lh~ in rcmnation '"bmitted 51 A~ total A Fil. I he I kpanmem hos selected the highest adjusted petition talc li"om tlu: tn vusti~;aliun ur 33.28 perc~n(. ;: lu accordun~e 11 itlt section 776( c) ol" the .\ct. we ~orroborated om Af'A rak by comparing lt to the lndividual dumping margins which we cukulntcU till" tl1~ coope1uting mnndatory rc~pot1dent in thi" ru:iministrativc review. Kromct. \Vc ll>und tli~t the mte or 33.28 percent had probmiw vnluc because· tt "''""' in the '~ngl' of the individlt:11 dumping margins wflich 11 ~ c~kulatcd fOI" !\ romd Accc>rdingl}·, IW fonnd dmt th,: rate of 33.::'8 percent i~ con·oborated "ithin the illeaning of ~ection 776(c) (If the Act.

Sumwat.:: Country and S un·ogalc Value Dutn

(Jn fdm!ill")' U. 2013, tbe fkpurtmcm sem imcre>ted pm1ks a letter imitittg comnwnt:; ~n smrugalc• cum11f"y ~l'l~etion ami Mtrtogatc valut (''SV"") t!aru.~3 Th~ Dep>Ml;emreceil·ed swrogate countr.'" ~nd S V comments Md data ti"tllll Krmnct ant! P~tiLion~r.' 1

Surl'll~ate C'oul\lr~:

\!r hen til<:: l.kptl!'lment is iiJvestigntiug ·unports hum m1 t\ME ~ountry. £~dion 773(c)( I) ot' the Act dir£ds i I to ba"' NV, in most circumstances, on the NM f' prodt1ccr's (a~tors of production ('"FOP"). valued in a <UtTogalc ~v1E counn") <Jr CO\UHI"kS C01lsideted to be ;tpwopriate by the Department. In accordance >vi th scdit•n 77 3( c l{ ~) or the Act. ir. valuing the FOPs, the i)cpanment ~h~ll lllilin-_ to the ~xtem pn>sihl~. th~ price.~ or cos(s of l'OI's itt one or more MF c'c1Uillri,"; 1 hnr me: (I) m ~ ln·cl c>l'<:conom ic {k'W loptllc"nl compm·~~le tn that of the i'."\.1E (0\ltltl')'; <tnd (21 significant I" odttc~r8 c>f compm<lbk mcn;handisc." 'I 'he lkpm1mcnt Uct~rmineJ that CuiG;nbia. CostH Rica.lnJon~~icl. til~ Philippine~, SonLb Afri(.1, and Thi;ilnnd ~re countries whase per cupit" grms nntio11..1l mcomu:, ("(j;\']"") m~ cLlmp,uabk to Lhc P RC i u

<< Sec .\ ulic, <ll ;,,,/ D, lcrmuwll<"l ,>,fS,do> <1/ [J.\.\ Thc~n f,.'ir I ,.t,.c·. C "'"''''" n,./.1-R,Jid F/,)I·R"I!<d' ·,, }•,11-l}""lil.l' ''"·,•! {",·,.Jt~,·t.\ ('""''' R1·a.11. r,_; F R :<:<.<~. '\;6~ (Fohi'\I,H} -1. !.1!111) 1: <Oc'. ,. g. lo!f'en·d Ruih•r B''"'''''X·' o·JJ<i f' '"'" J1,e,.,,,(. i'im"<hed """ l njind"•d F1 '"" J,rran. ami l<ip<"l'ccl N nil e1· li """'" 1 g 1. I nm· /1 Ichc.' •'I' I, ,. ,. 1 I 11 Uuwido /) ""'' ,.,_,., , 111d ( '''"'!"""' "·' Til<l"em: Fr,:m ./".''"": r 'dim ilt<•CI" R el'IIIIS u(. I > 111J• 1111 ping /)u I)" . .J dm mi, 1 r ''"'"' II<" , · i<'"" ~'!" / 1'<11' 1 ;,,! { ,:r/" ""'' um of. .J <11" m .' ·"~"<"'' •c R,•\ · 1".! .,.,, 0 I rR 5 7 .N I , 5 7 J 9 ~ ()".. '" ""'~" r 6. I ')<lj't "h'"": ,\,,iw o} ·lmc'll<lid l'rc!Jmil>•ll.'. D<"IC!I'''"""''""

'cf.\",de.\ '" }.,,,., '1/;,m J·i1ir ?"11/uc. 76 I' R 3C3 tJmH"u) J, 20 111. '· ~~~ the DopmHllOOt", l.et<er to All !u1ere>1ed Par11o' ··r;," AllnHni'tl.1tl'.,' l{"k" ,,(' lllc Ao"J"'npirlg ll"'·' D1\ier on ·\.luminum bln><iam ll'Cill tl'" People's Ropubhc ui C lliua· Ret]liOS! lOr l ·'"""''"'' m1 the ~eleetioll nr a Smn>'l"'O l'"""''l "lid Sum>gate V.!lllo,."" Lbterl F ebnmf\ I ) .. 111 13.

'"' Regard in~ lh,, >okctitHI uf "u·w~oto cmmtry. sec Polilioncr· > Martl1 I. 2Q 13. "'"",.'·';'"'- .«e aho l'ell!icln•''" l Marcil S, 2011. wlliUE>>ion clardj.iag IIJ<• '""'"· '"'' "'"" ((rnmoi'.< Mnl"<:h 4. JU 1.1. <uhmi" ion,,_,. "''"' 1'elilinno1 Apnl <1. ~U I .i o\'bllll,\1 c~mmen!S. "''" al.ro '-"'""'.' April 3. 201 0. 1 dllMal '"'""""'"'' l(cg,Hiing t!le '"b<inn ur ~\" o: "c Kr""'"'' ·' \l01 ch ~9. ~0 11. ;nOLl\i.> ;inn. ,, . ., ,i/,,. P.:lllioJ<cr"s ~torcll ,9. :'l' I ). ;ui'llli"io". '•"'" <If,, hrome( < .-\pl il ~ 20 IJ. r~i>utrol c,>mmorm. S<V alw Petllt<>l\c'i" s ,\pd! ~. 21113 ro~tnul <•'11111\0""· '' .\c•e Jrnr"rt ,.\din'"'"'·"ioo l'olic; Jlclloun Q4 I ' c;ofl·~l" ~"' f.c<moruy ""' W~"" C 'm""·' ~dooii<111 F"""'·' 1 \larch I :'[Jf>-\ J 1""/'•rh.:> If"//""" '1-i i'"l.

lri

terms of economi~ de-~-clopment.'" The somc~s of the SVs w~ have u~e\l in this 11...,.iew arc dbcm~~d under tile '·Normal V Hlmi' section below.

P~titiNter argues that Thuiland is the most appropriate surrogate country be~ause it is a significa~ll pmdnc~r of merchnnJise that i" idt:Jltical or comparable to the merchamJi"e under review.5

' \4ur~nver, Petitioner contends thm Thnilund has the best nvailnblc information upon which to tm~e th~ calmbtion of S V s. In addition, Petiti0n~r argue" th,tt lnd<mesia, Cnlumhin. or South Africn may al;m be suitable altern~ti,es to nwilnmL

K mmet ~rgues that the Philippines is the most uppropriatc .llrrrog:ute conntr~- bccausG import da\li_ Jiumthe country me more 'pe<:ift<: to Kmmers alnminum inputs.;~ In addition, KTamet daims thm qu~lity datu with which tu value l'OPo ar~ available from th<l Philippin~~. indudtng_ nntlliple Unandnl statements.

As expldin~d m L)llr Surrogm~,C,mntry lv[enmrandllln (which 1~ hereby ndopt~d hy this memonmdum), the DcparllltClll considcts Colombia, Co~to KicJ, Indonesia, tile PhilippiJN.\, Svuth Africa. :md Thailand ull m be c.Jmparnble to the PRC in tenns of ecor~omic dcvelopmcnL''-' Acconlingl y, nn\css we rind that lliJ of the countries dete\'tnincd to be equally e<:Onumically comparable ar~ npt signitlcunt producers of c·ompurable merchandise. ~re not re.li~blc ,Mtrccs of publldy-.twUable SV dnta, OJ' ~r"' not suitnble for usc ba~cd on o!ber tuasoM, we will rely on data Ii:om one of these countries."" 11ter!'li.ne, w~ \Consider all six countri~s idcntlli~d in tbe Smmgate-Countr)' ,VIetnomndtllll "" having met this prong of I be «IITogate country selectlm1 criterio.

s~etion 773{ c II-+ )(B J ol- the Act '~'Jllir.:~ thG Dcpu1 tme11t to value roPs in a surrogate country that is ~ siFnif:e<utt producer l'I' CIJI11)lmal,Jc me· rei tandi>c. While the leg;i>bti ve histor•; provilk' lhm the 1erm "~igni fkum prutlucer" inelmks any mumry thm is n Sl gnltkan( "nel ~xportet· ."~1 i1 docs not pr-;:·c'IIILJe rdian<:c on ~drlitional or altemntiw me tries- \lorcov<:r. neither the M<tlll\0: nm the [)~pmtm~m' '> regui;Hiun~ pru> id~ funhc'r gui<ianc<: Oll what may be conoide!'ed comparabk m~rclmndi~c. Gi \'en Lhe absent~ nf any de~ nit i"n in the sl~tul~ or L ~:;ulatio"'- the Depar\nWil\

looks to other sources such as the Policy Bulle! i11 IJ-1 I t(or g_uidancc nn dd1ning compnrahlc

'"S"" McmD"UJl<m LU lugct)e DC!;Il·l" "R«tLJCsl for n I 1><1 tl(qtllrogete Cuumrie> ,;,· "" ,\Jmini~lr.Hll'' Rc'"" nl' the ,\mi<lumping D<ll) Ot dor "" Alutninum [_'(frusimu th>111 ohc l'~<>rt.·•, Rop11blic <>f I 'hm" i"Ch ir.a-·)," d"'"d !!Louar:- "· 2111 J (' Suttogate·Cmnm-y .\l<•momnd11m')" 2. -_- So" Pctitiuner'> MJL'<:h ''- ;w lJ. \lll'ro~.ttc '"'"""' """'""'"' ,ubmiosim< "' 2. 00

&e Kwmet'' :.1 :mh 4. 20 11, sutrnlJ~" coul1tt'Y COLlH\t<'HI ,ubmission "' ] ,,, S<!c' f.:t'UI\\Ol '> April g, 10 { J, rcbutlol <ll! <\lg>HC c"llrl\!')' C!ll\101<'111 <\tbmi55iOtl ~I ~. "0

See. •'-X .. ( 'eJ'/<'i" Steel Wlwd< Fmm rite /',•ople ·, fi,'/)llblie o(l 'hma_ •\'w1ce of/', dimi"''"' {J~t, '''""""''"" "/ s.de.\ "' [_,., n,,, ,.-,m· l'ahoc•, I' til'/ mi. 11/imhlfil'e f'•·d"''"'"'''' LlCI<'I""I/1/trii<JIJ .,(( "ral, ·<If Cu Cl/niSI•m,·,.,, ,,,,,/

/'o.<W<>IIc'm,•W oj'FJJwllk<<I"INili<J!/i"'· 76 FR 61700_ 6 77DS t;\\twmb<r 2. 21) Ill. lltll.'ilellgo<1 in Co•·wm ."r,•d IJ'/,cd' Fnm1 the 1\••pl c '> keruhi~c· <!(Chin,,- :\""''•' •d fill<iiiVkutmullivu o(S<il<< .11 {_,,,-, fh.m F,li, l"cdu,- ut.l /',wid lJiiulf<~li>'C I •ua/1 ''''"' wln~li<m <!/ Cril~c·"l Circum_</,uk·c.,, 17 FR I 7n2 I ('li•rch '). 2tJ 1:11.

"'See lonlOrc"c'e Rcpon !<>I he [Q~S OmnibLL• T,·ad• & l'cmtpelil'W""" AcL i I l\, [lop.~" 100-_i "(>. ,,( 5')f) i198Si.

m~rchandisc. The Polict· Bulle/in U~. I stHt~s that ''in all cases, if identical m~rdmndise is produced, the cmmtry q~alifte~ o> o producer of comparable m~rchanclise.'""' Conversely_ if identic~! merchandise is not produce(], then a country producin~ wmpamble merchandise is sufficient in ~electing a sum.>gate counn-y ."3 further, when sckcting a smrogate country. th~ ~tatute r~qm re.s the Department to ~on.<id~r the compmability ot" the mcrchaudis~. t\Ot the comparability of the indnstry. '''

""In cases whcm !h~ JclentiGal merchandise is not prvdLL<:ecl. the Oepurtmem nuJst determine if other merchandise that is comp~l~blc is produced. 1-low tb~ Department clo~s thb d~penU:; on the suhj~cL merchandise.''65 In tl1is regard. the Dep~rhnmt cecognizcs that an) an~lysis of comparable merchandise must be done on a ca,e-by-case bask

In other ~a~cs_ however, where lltere m·e major inpn~~- i.~ .. inputs that are sp~dalized or dedicated or used intensi 1 ely, in the production of the Htl~ject merchandi'~- e g. proce,~etl agricultlll'al, uquutic and mineral products, compmablc m.::'rchandise should b~ idcntiticd narrowly.()]] th~ baois ofn cnmparison of the mujo.r inputs, including energy, 'vhere approprime.""

fltti.her, the stltute gr~nts the Llepllt't11leot discretion to ~X1imin~ 1•ariou~ dutu onurces fot Uct~m1i1 ,; ng the beot nvai!,Jble inlimnacion,61

In thi '> ca.<e, the r".;orU >hm-.., that all uf th~ potential surrogate ~O\Jntrics id~tJ.tilicd in the Smrogatc-C ountry M~morandmn hu•·~ sigtliti~ant ~-~pons of wmpuruble merch~ndise. ''~ ThLts, because none uf the potenti;Jl SWJOgate ~ollntries have been dc:6nitivdy disqualillcJ thl'OLigh the above amlpis, the D~punmem looh to tho; av~ilability ofSV data tw ckknninc rhc most appropri~tc ourroga<~ cuuntry.

Data/\. l"ailabi_jiJy

When "-' aluating SV data, til~ DcpN!'llll~nt <.:0Ll;;iJcrs _,e,·~ral foct(ll"l inclL•ding whetll~l' ill~ S \' ~nta Are jWblidy uvailabk, <:ontempowntous "·irh the POR. rtpre>enlillll'e ol"btWH.l·marh~1 a1·era~co.lium an appmp1iat~ >tm·o~ate C'OUilll")- mx alld d\ity-~xdusivc. and sp~cJlic· to tl1c

"" .\'~c /'uii<T IJ11/i8iJ; 0./ I .L! ?. 1'' /d. l'oli,j' IJu/1,,//n 0-1. I al'o strr.too thnt "if «HNc'ot in~ o produ<:ef of tdcmic•lmt'l t'bandJ>o bd> In tbta

<liliiculib. lhc' upc1 Jliu;" I""" ""·' W<hitkf uJLLrllties '"'" prod11oe a 1ll onrlot '"'"I'"') uf '""'""Jbl~ '"'"'f'Jraltie morolt~ndise'" /,1, nt nOt<(,_ " Soe Soh"c'"' .!clll}i'ulll 1hc People·, {(q•11Mic o{Chrll,/ Fm"l 1/.eou//, ,~- ·lllfiJLrmpiit'' Dull Admm;;·li .,,;,-., 1/et"/c, •. " fR 6061-1. O.ii\16 (Deoemio01 I<. I Q97) {" {Tjo impose n t·e~uit~llwm olml mcrchunJi'o ";"" be pmJuoed b) <he '""'" proc•ss 011<l •hMo the <O!Ilc en,["'" to be considelc'd compo..ahle IIOUid b< contt'nl') to ~I< intent or'lhe '"lUte."). "' See .~vi":;· EJ ul 1.-/m II I I n: C.

'" '"" '"'"' l. ,, Sec ,,·cliun 1731' 1 ot'rhe Act: ""' "'·'" ;lml"'' rm·d Cik"/1•. Co. ,. L i1i1cd ·'''""'· I 66 I .JJ I J~ 3. I J 17 Jfod. CiJ. 19991, ''See l'etiliotlw'; Stll'rogme-L"mtniL".\ ~elect;o,, C '"'""'''"' m E.>h1bit I

input.(," There is no hier;uch~ an1ong these criteria. I! is !he Departmem'~ prJcllce to c~tr~li.lll)"· consider the ;w;tilabk evidence in light of the partkulnr facts of each industry when undertaking its anal v&is. "' B~cauoc ncllh~r data nor ~Lil:tcwak linancial sl<>lenlen\s ni~t on the recot~l lOr • • Colombia. Costa Rica. South Africa, or Indonesia, we did not consider these countries further for primary ~urmgnte-cmmlq-;d~ction pu• pnses. Thai l<md and the Philippin~s have data available. and parties to rhe pro~""ttdi.ng placed !lnanci<tl stat~m~nts l"rom e~d1 of th~se cnl111tries nn the record Df this r¢view71 I [owEver. ns discussed below tmdcr ··Factor Vuluations.'" the Department ha.~ prdimirmril)· dd~lminnl that mme ot" the Thai flmmdal statements arc useable fur tlw purpose.~ elf determining the snrrogalc tinancial ratws.

Furthe1. Thai import data "·ith re~pc~t tl> ~lumimun. a primary inpttt in the proUuc!ion of subj~d m~rchamlise. ar~ I~s<: "Pe~iti~ to th~ input to<ed by K rc\U1~t tiMn arc data !ium the Plllliprin~s. Spccitlcnlly. for the valuation of KromGt"; Gonsumption ol" aluminum "'ingots." "Petitioner SIJbmitted Thai data liom llTS <:~tegory 1601.10 -''Aluminum, 11ot alloyed,, unwroug;ht."" Howc~er. Philippine data prol'idc adtlilinn"l spedtidty. as ~videnccd by the description of HIS c~trgory 761) 1.1 I .OO.IJO.IJ I - ''Ingot 1 and pigs... Kmmct ha:; reported Lhc ~on~mnpti1m vi' dlumi nLLm ingots i11 oddition t(> n lumimuu billets. 72 ,\s a comcquc'nr:e. tlw Deparlm~nt finds tbm tile HTS catt:gory de~aibing ··ingots 'md p1~"" in the Philippines pmvid~< the best qunlit;; data to nduc th~ most significant inp\U imo subject nwrclmndise.

The Department finds that the Pltilipplnes is the appt opriilk sunugatc WLtnlr)' ro use in tills re•iew in Jccord~mce with se.::ticm 773(~)(4) ofthu Act. The Department has based it.~ decision on the following tbcts: (I) the Pltilippine' is Rt u level of ecnnomic development comparabk to that of the PRC; {~1 the Philippines i~a significant producer of compnrabk m~•chandise; (.!) 1he Philip pin~~ bag tile best 'ltmlity data m-ailabk l;>t aluminum ingot~ atrd billets. th~ n1o$t 'ignificnnt input.) intn the <ubje<;t m~rchondis<:". and ( 4i as explain~(] h~low in "Factor \"i.iludtio~~:· dt~ ['hilippin~o i~ ilk' "ole eoumr::· lOr \";hi eh In' ha,·e \ISt:able UHditcd ourrog~tc· flnunciBI ~tatenwnt~. As a cott:;equetl~~. tile Philippines provick~ the best oppm !unity to L\SC quality. publicly-avai1ohle dam to vnlue FOPs

D~te ofSule

19 C Fl\ 3 5l.4U Hi) ,ta,~s that:

In identifying the i.b!c of sale of rhe >ubj~ct ll\CI dmndi:;~ nr liJrci~n like product. d1c Secrctnry normally· will usc tile date of invoic~. ns r~CcJrd~tl in tlw e.,;pr>ncr ,,. prndt1C~r · s rc~mds kept in th~ orditlar; eour>~ of l1\tsith:ss. H~w~\tr. tht S~~rdmy lllay ttsc a dat~ ,nh~r than the d~te u I" im oicc if the Secretary is satisticd

'" See . • • .• ~ . Ccl"l,liJ< :lsi•·alc<l Cal"hmr f'"""lli><" !',•op/,• ., /(,ymh/rc "/ Cl!ill<l. ::t!/11-Ci!/1. /· itm/ilesu/t.< a( lmidW!t!•ll!!i /JW)' .-1 dmmi.<~rllliw lie\" I<'"·' . 17 FR 6 7> J7 ('luvcmh<"l ~. ~0 I~). rmJ '"'"U!ll[Mnying IS'u" '"J lkchi~11 ~t<"lll<JL"a•tJum a< 8. TIS,"' I'CJiic:r· 81dl.-ti11 U/.1,

., Petili~n<r nlae<<l rile finanobl """""''''''' of ihr<•' 'thai "'""l'"'li<< "" til<" 1WurJ ul"'"" "' ~c·w· '"" Pc 11lio11cr"' SurrugrlLC· V <Lhtc C"nHlWnl>: Kronwt pl.rccd the• llnancial ""tomc11J> of lwo «OJllpank> rrom tile Pbilippiucs ~" tire '.;c<>rd of <hi< reviov, -~"'' Krnmol'> S"!N2Mo·l',1hJ~ t · omn~<nl' ·See Krol\lCL"; I) re>poll•o Umcd ~t.u·d, 1". "() t3

I "

that H di!rerent dHt~ beller refle~ts tile date on which the e~porkr or proJu~~r establishes the material terms ofsnle_'l

After examining the qucstionnair~ responses <rnd rbe IHies documentation Krome! placed on th~ record. we prdiminarily find that we shoultlliJJlow our regulatory pr~sumption und "'~the invoice date as th~ Jute of sale for Kromefs sales of sttbj~ct merchandise. Whik Kromer has argued [Gr the use of its shi pmem dat~. we have detennined rhat hecau•e the record indicates thm prices ch~nge•l <1iler the d11Le oF shipment, the l~ter occurring commercial in;oi~~ W.;te is the Uaho on 11 hich the tnms of sale \\ere set. 7'

Compmi~on~ tn Nonnnl Valtte

To de!e1 mine whether Krnme( ~ sale,; of aluminum extrusions to the Uni!e<l Stale~ we1 e mad~ at

less than fllir vnhw, we compared Kromet'o expo1t price ('•LP~), or eonstmctcd cxpor! pric~ c·c LP .. ) to 1'-;V, as described in the ··J:xporr Price and Constructed Export Pt ice·· and ··N onnal Value·• 'ectiou~ hdow_

Pursuant to 19 C!'R .151 414icJ(l) (2012). the Depat'lm~nt cakubt~~ individual dumping mmgins by comparing weighted-average "1-<'V s to weighted-average expo11 prlcGs ("EPs··) or CEI's (the avera_ge-to-avemgc CA·X·) method) Lmless !he Secretary determines that another mdhud ts appr\}priale in n particular ~i Llliltion. In AD investigmions, the Doparuuent examines whether to compare weighted-avcrngc NVs to the EPs Dr CEPs nf individillll transactions (I he average-to-transaction ("A-T'') method) ns an altemative eompari~on method \L>ing an analysis con~btem with section 777A(J)(l)f8) <:>flhe Act. Although section 777Atd)( !)(B) of the Act dGcs not ~trktly gowm the Dep~rtmcnt' s c•xamim1ti \lll of th io qu~<tim1 in the CGnte:>.-t of administrative rc1·icwA_. th~ Dep<ntment [inds that til~ issut ari~ing un~cr I CJ CFR 351.41"1(c)( I J m adminislmti vc rcvicv;s is, in f~cl. unnlogum, tn Lhe i"Lle in AD investigations.." ill recent im e'tigalinns. th~ Deparlm~nl otppl ied a ··di fformlial pricing,. arraly~is tOr ddcnnimng "hL·!hu application of A-T comparisons is appropriate in a p;;trticul~r sit11ation pmsunnt to 19 C FR 351.414( c )(l ) an~ con:;;;lent 1'1-it~ ~ecttnn 777 At d)( l )I D) or tht /\ct. 7~ Th~ De]lintment find' the

" S<e 1 ~ CFR JS l . .JO I \1): '"" abu ;\'olh'" ''' Final Dc•termiwltc," •!I .\~>/._, •II I e<' n""' I ai.• I w'11e cmd Veg<lin·e Fill"! DetmnmO/iOI' of C!'itJc,lf Omwtswwes. Cemwr hv=e/1 cmJ Cmmed lrannwdla Shrimt> Fmm Thai/au•/_ 0" t· K 769 I 8 (ll"<cemb<r ]3, 2UU·l ). and accOittpM) m~ lsstoe< and Dec\5\QO 0-lomaf'ndtrm m Cmnmenl I U. Allied TtrhP ,,.,d ( 'mutw ''"'P r· I 'mt.,l Si.tt,•r. l.l:' F, ~upp. !d I 0~7. 111~0·1 (J!J2 iC! T 200 I ) I uplwiJing I be Dql>LI'\menrs l'ebHii.oble poosmnp1ion rha< iul'uicc date [, I he aprropriore date o( sale I. -, 5c,• Krnnl<t'' SllpplonlOlHal A ro<pnaoe da<<d AprilS, at pogc, I·~. '' Se~ /J,iN !Joul"i11g-' "'"'!'uri> Then!<>/ From l't<II!Ce, ( ;"""'"''!'· and /tal)•· /· m,i/l<e<ull.\ of.-l'llidumpillg Dui\.-I.Jmr~uS/1'"/iw k«'i•H·s: ~nUl COli. 17 f'i( 7 3415 (I)~<Citlbor I 0, ]0 12) . .. , s~~ Meowr,nl" lo Pan I l'lq\lado, Al>i,talll SW'da1) fOr lmpmt A<imini;lmlion, n 001 Ah~elali tlouaradio. Uireo<or of MYCVD Oper:rl1o11< Ofncc -+, onrirbl "Lo» Than ['a it· ValllC lm<,lig;lti"" "' Xonthan Gmn )i<Jil1 Auwia: Post·Pt·dlmin"''' ,\nalym awl Colculnlior> M<nwr'llldon•"- "I.e» Tlwn Fai1· Valne lnvosrigmic•n n[ X'""~"' Glllll fron1 tho P<oplo'; Rop"blic_ o1Thi11a; Post-PrellllliO<Ir.' ,\n<11y;b um! Caln1b!ioll ~lcmorandllm t(>r Nein1ooggu 0 ufeng 13iOl>"CimulugitJ Cu .. Lid. (oln lllliOI M<>llgolia Fllf<ng fJiot<dhlUiogi<; ( o., [ Jd.)an4 Sl;on<lon~ l'ufca~ Fermen(llLjon Co_. LtJ · ana ··Le>< Thau Fair Valu< hl\esli~mkm of Xamlwn Gnm ti-ul\1 the P.;,·>ple's RepL<blLc p[ China: l'o,I-PI·ctunino[\ ~L\OI) ,;, ,rnd C Jkld<Hit>n tkllHll at; dum fn1 IJ,"n"" ll1nrhemic•ll crl;· .1(! rlord O.l;"d' 4_ 20 I 1

ditTereminl pricing anulysis us~d in those recent ittvestigations muy be insmtctive ll1r purposes of examining whcth~r tll apply an ahenwtive cllmpurisotl method in thi.> adminisLrati \'e review The Llepal'lm<:'nt will continue to develop iiS apptO<tch in this <Jl'ea based 011 wmml'nts rcc~ived in thi' ant! other procceclings, and \lll the Dcpartmcm' s atlditiooal ex.petien~e with addressing the polcllliul maskingQf dumptng that can occtJI' when the Dcpat1m~llt uses the A·A mctlwd in cakubting weighted-averagG dumping margin_,.

The diffcrenttal pridng analysis us~d in th~su pl'eliminnry results requires a lin ding of a puttem of EPs (or CEPs) tOr compm·ablc m~rdmndi~c ~hut differs significantl')' nmong pltrdmsers, re~itms. 01· time pe• iods.1·, 1 f such a patlcrn is, l(wnd, th~n the diffel'<!llliol pridng mwlysis evaluate~ whether ~Hch di ITereoces r.Jn be taken into account when usmg the A-A method to cakttlatc· th<.: wdghtcd-~vcragc dumping nwrgin. The differcntinl pricing :maly~1s ttsecllwre eYa!uates all purchasers, regions, am! Lime period.< to determine whether a pmtcrn of prices that di I"J~r signi lkantly "'"'isb. The "nal)•sis incorpomtcs default group dctlnitions tOr purchasers, n>glons. time periods. and compamhl~ merch.,ndise. Purchasers arc basrd on th~ r~p<lrt~d ~onsolidmer.l ~ustomer cmle. Regious ar.-: defined uoing the reponed destin.uion .:od~ (i.e .. zip codeo) ,,nd a1 e grouped inlll r~J;iuns buscU upon smndord definitions pub I i~lled by the lJ .S. Cen:;m; [lureau. Time p~riods aw rldi n~d by the quarwr within tllC POR being examined ba.~~d 11po11 the reported date of snle. Fol' puq:mses of analy"ing sales transactions by purchaser. region aml tim~ p~ritJd, Cllmparable men~hmlc'lis~ is considered using th~ prudud ~Q~Inll nnmber illld any charact~ristlcs of lllC sales, other than p~n'\:hoser. region and time period, that the D~partm.:nt liSCO in nmking compari~on~ hetwe~~ El' (Or CEP} and NV for the indlvld1ml d\UT\ping margins.

In the lirst stag~ <Jf the differential pricing nnal: ,;, used h~re. the ''-Cohen ·s d test" is ~pplkd. Tit~ Cohen' o d test is ~ g~nerully recognized ~Latistic~l me~sure of th~ cx.tQnt uf the dUfercncc hd"een the mean <\ r a le'l gmup on~ tile mean oi' o ~om pari~on gnmp. f'ir'l fbr compare hk m~rdmmlis~ .. Jltc Collm '1 ,/ lc'S! i.\. ~ppli~d wh~n \It~ t~~~ ~m! cumparison group~ ui' J~ta each h~v~ lltieJst two observ~tions. :md when th~ ;ale~ qunnli!y for the compmison gmujJ accounts li>r at kast tiw percent ill' thee total sal~> quantity of tile comparable merchandi.~. Then, the r. oiK'll- s d codtici~nt is calculnt.-:d !<l CY!Liuat<.· !he e."<len! !<l whk:1 th~ ncl pri~~' tn a p:u1iculm pmc has~r. region ur time p~riod diiT~r sign i lkumh ii·\Jnl the n~\ P' ice~ o t' all lllb~r saks of C<1111[l<lmbk mcrdmnc1ise. The extfnl of the\>e dif!i;r~nccs can b~ quami tkJ hy """' oi' !111 ~~ ii.~~J thr<;shulds defined by the Cohen· s d t~~t: 'mall. m~JilHn (}\" l~rge. OJ' these tlucsholcL;, the large tht c\'>liold pn.••, ide~ th~ strcmge.~t inJi<:~tklll tiM I th~rc is a ,;ig:ni fic:mt Ji rfercncc hct v. cr:-n the mnw~ ur th<: Lest anJ compmiSolt gwllp~. 11 hi le the sm:lll thrcshQ]t\ prm 1Uc·, the· wc"k~st indication that s11ch a diffct-enc~ cxiots. Fur this a!lalysi~. th~ difference was t•on:;i(kr..:d ,i~ni li,;am if tltc cakl!luted Cnkn '" d codlidenl 1~ uqnal to "' excceU~ I he lmg~ (i.e .. 0.8 1 threshold.

Nc:~.t. the "ratio te,t'' aso~~5e; th~ t.\l~nt ll (' tli~ signi r'icam price difi;,,-;,nccs t'o,- ,,II $:lie~ n;; llt•'liSur~d lw (])c C oll~n· s d test. I r thG vall!~ <Jl. oak~ tu ptircha;as, r~g,on.<. i!nd !i m~ p~riods tllal p~s:; til~ C <>h~n's d test ~ccoum tC1r M perc em or mol"' ofth<O \,lltw ol'total sale,, the~ the

-' ,I< nnleJ ahm e_ d11i:,r<o<iol pridns '"" .,,,.,( in I'(' cell I '"""'ig.t<"'"-'- ll \\''" alon "'''" in '"'' '""'"' ontid11111pi";: ,IHl) aJ•nini<lmlh ~ ,·ovie\\ of poi)OSlcr ol~pk lil\o1 II'"'" l ,1i11,111. ,';e~ 1'•-'IJ'<'·''''r .l'ldf'le F{f,,,,. li'"'" I""''""" f't·c/{mindiJ Rc·_,u/1\ oj Amidw11pi1tg Dm,'. tdm!,, '" '''" ,• ~, .. ,.;,-., - Jll//._'0/2_ n FR I )(,] 7 (:\-1,,' h ~c. :'1) I ) J .llhl

·""''""f'-'".l'ill:~ i'lemion \1ellWI'flnd<""·

idcntilicLI puttern nf prices that differ signJllcantlv supports the consideration of the applicmion oft he A-T method to- ull sui e.< ~s Utl aherntttive to the A-A method. If the valLte ofs~Jes to purdwser~. r~gians, and time periods that pass the Cohcu·s d test ac.:wunts .for more than 33 per<:tnt and Jess than 66 pen::ent of the val lie of !Oial sales. then the result~ support consideration of the application or an A-T method to those ;ale" ide11til"ied a; passillg th~ Cohen· s d lest 'b an alt~mativc to the A·A method. and application of the A-A mtthod to those sales identified as not pns•ing the Cohen ·s d te~t lf 3.1 percent or k:;s of the value .ofl<1tal oales passe' the Cohen's d tc.\t, then th~ results or the Cohen's i11 the first stage (i e., the Coben'o J t~st and the ratio test) demonstrate the existence of a patt~m of prices that diiTer ~igni fi<:anlly s11cb that an ~lternati•·e eo1npnri o;on llletlmd .should be considered, then in lh~ se~und stag~ or th~ tli m~rential pricing analvsis, we examine whctb.cr \Jsing only the A·A method cun appropriately RCCOIItlt for such differences In considering this queotion. Jhe Depurlm~nt tests whdher using an alt~rnativ~ method. b~~etl on the re5\dt~ or lh" Cohc·n' ~ d am] ratio tests described ~bovc, yield$ n tnQrutingful diff<:J't:rlCf in tile wci~htcd· average dumping margill JS L(>Jnpa1-ed to tiM resulting tium rh~ u~~ of the A·t\ method ,,~I). [f !he cbl'lb cm;c bd vvc::n the 1 wo catculations i£ m~:tning!\Jl. thi; tlemcm~lrmeo Lh;tt t],,., A ·A method cannot acconnt for dltTerences such as those observed in this analysis, and. therefore. an altemative method would ,be approprwte. A difference in the weighted-average dwnping margins is considct·cd meAningful if l) th.er~ is a 2:i percent relative change itt the weighted· ;~vcrage dumping rna.< gin bel we~n !he A -A mcthotl and the appmpriate nltemathe method where buth rates. ~l'e above tlte d~ 111i11ii11is thl'eslwld. or ~ 1 the resulting wcightcd-avcl'ag~ dumping m~rgin move-; acm;s the de m;>Jimis lhresh.old.

lntcrc'stcd parties may prcscm nrgnmcnt$ l1l rdatiun to ihc abc•,c-Jcscribccl cliffc.r~ntial pricing "Pl'I'OJC h u>erl in 1iw-;e prdirnin>u·y r~sult,, i11eludins ·"pmcnts Fn'· nwdifying the g_.-nnp ddin..itio,u us~d in tllis pruc'ccdmg.

For Krum~t. bas~d on th~ results o l'the di ffcrcntinl pticing ~nalysis, the D~partmenl fin<l:; that 6.16 perc~nt ofl<mmel's e~port sales contlrm the existence of<l putt em <>f EPs or CEPs for ~umpumblu m~rdmndise that differ signifi~amly among purchasers, r~gwns. Oi' time periods_'; However. the Dcpmtmcl\l dd~nnin~s tlMt the A·A method can appropriately a~conn\ ll>r ;;uch differences becau~e thct'll is no m~aningl\tl di!T~rencc betwe~n the weighte<i·uveragc dumping mm:gin cokulatcd u"!ng the A·A method and wlu.m using lh~ altcrnativc method. ' 9 Accon:ljngl y. the Department has dctennineJ to u~e th~ ,'..,.\, method in making comparisons of EP {elf CEP) aml NV fur Kromet.''1

l11c Department considers the l' .S. prices of' certain sales by Kromer to be EP~. in accordance w1th o~ctiml Tl2(a) of the Act, lJecnllSC tl1cy 1\'':.re the prk.;.~ nl whkh the 'uhject mel'\:IH1ndioe wa~ fiTSl ,o]d befmc I he date M' importation, by the pmduccr!~.-;,port~r of the S\lbject 111~rch~ndi~e. OUb!d~ of lliG L'nitcd Stnt~& to o~ unnffili;Jtcd purd1ns~r in th~ L'ni t~d S ial<'S. Specifically, Kromet reported sales to- a ccrtni n U.S, C\l~tumt"T "hich wer~ mdde purSllnnt to n supply agreem~nt ami a cnnsig·wnent ogrecmcnt bctwe~n Kromct nnd lhi~ CU'\tomeL 8 1

Accordi•tgly, ns Krom~t IV~s !he party which negotiated uud set lhe mm~rial t~nns of ~ale, w~ hnve used its pt"ice> •o th~ U.S. CllSTQil1Cl' n;; the price at wllkh subje~t merch-andise was ih·s1 sold to un.affilinted cu~lom~r> befm-e the dme of impnrtmion.

In accordan~e with ~ediPn 77~(c)(C')(A) of the Act, \\)WC\' appn.lprit\tc:. we made dedu~tions fr0111 the sturtin]!; price (gross \Ill it pric~) for foreign inl;m~ rreight nnd brukC\ nge <tnd hundliJJg. Where foreign inland fr~lgl•l m- 1\Jreign brok~l'i'h"" and lwndlmg fcc& were' pruvidcd by P RC s~rvi~e pt·nvirler', rwpnid Fer in rcmuinbi. we h&>r'd Lh"-'~ charge; on S\' rnte> tinm tllc' ri;i;ippin~~- <;,-~ ··F!I(\Uf VHluatJ<lt1" ~ectmn bdnw for _fu,11le-nli~c\IOSio~ of S V rates. w:

l\;nh~r, i11 ~nnrd:m~c wlth oGoic<n 771(b) ui' t!;c ,\ ci, w~ ddi n~al~s be~:OIJ"e the saks were made fron1 wardmusc in VCIIlcJry in the C 1Lited Stnte.~ (lfkr the date of unportali(lll. TJw C F r i~ !h~ price ~~ wbidt tb~ stlbjecl mcrcham\io~ j~ nrot <flld (or Hgr~Ed to be ,old) i" the: Unikcl Su1tcs bcfme or after the d;tk ol'

'.\~ ·~ Krmnd Prdi>m<lOry olml;--.i' :VkmnmnOum. da!Od Jur1o J, 2013 (''Kn:moet An"lY"' llkllh' "). \\hid> '" her,·hy ad,pt<d by I hi' m•mamnd-om, m AllaciH;LCllt 5. P"-"'' 1 l -,, S,·,• Pt~)jn;iil•TC Anal),[~ )..kltlOJaud>"m, "l1id1 oe he1~b' :ld,'plc~ \),, lh;c mellJOrqHJum, "' Allachmc·n! 5 _ P"g'' ~-· ''' 111 ihe'c JH'Ciimina•) result<. 1he lltport.ncn< •ppli,:d 1he \\'OlShicd·ilV<> oge rlum1•inQ IIWtgin rokulatl(•JL mdh"cl udop<d '" Antidumpi!!g f'< ~,-c,'dm:;': ( 'f'i,'JIIali<)l! of''"' lf.·igh~c·d-.i '"""!t•' !lumpin~t ,\lm-giJ• om! ·ll'.\'~_,.,.IJ,eJ "ith nwntlll)' "oightcd-"elogc !-·;\'' ond ~ronled nff>m fm ""u-dumpccl oump•~·i<cln' in the cnl<uhll•>n of tho weigllkd-a\ et'"QO dumpu1g lHM;)Lll. <l S,v KJ·c,mel'< Suppl~lnontotl So•:ti,•n .'-. rt>pon'-" d"te<l _.\prll 0 Ci!U. "I '"hi hils l, "·on<'- J h>r fdflhcr di,;;:,,.,,j,,l\ ,r u,;_, '"""· induJing ""Y bu>H"'" propr><'t.ll'} tn!;l,.<Miion_ ",. K;:,,,,ct .-\""1:-,;., Mcnlt' .

. , ln Jetwmninl( tl.c· "''"' "PI''''i>rime <Lmog.u< value, I<> u,e 111 ' ~<~ell <J<~, Ill< Dq'''''"'""'- s >W<cd I'"'"'"'' ,, '" ,,.,c J"'llod-wiJe ptkc """'"t"' p1 '""·' <p,dfK l<> lht• in['LH in ~uesli<'!L rnc o> that are '"' ol '''~"" anJ in,p~n c),tb, !-''ice> tllll ,,.., """'''"'!''''""""''' "it!J I he POR, o11d dma 1h,1< ;, ptiblkly anil•ble .\,,,·, " !<-- U• '"'" c~""' P.>u<-,,', fi',•m til<' P,.,p/c ·, RepJdJI!c <'(Cl!i11a, FliW/ R,•;u.'i> 111"/ l'tmial Re~c·"-''"" o(.lntid!lll<pi"g nw_l' ,ldm11d,n '""'' /kde"'- 'J l- R 38)61\ (July 6. CIJ00J, ;mJ acc0mpa~Yio~ INlO'i ,1n,i[JceisiUH '. kn~11',11lJUtll lll ( .>miBClll )

)_1

impurtallun by or fur til~ account o!' th~ produ~cr or c;cporter o['"'ch men;han\li,-;e or by u seller ~ffiliuted with the producer or cxpo1ter. ton pi!I'Chnscr not nflilinted with the produc·ur or exporter, as atlj~'ted under ~ectlnn~ 772(c) ttnd [d) of the Act.

w~ c:dculuted CEP ha.~ed em delivered prices to l!lmftiliated pm~h<IScrs in the Unit~d Smtcs. 'Se nMk 'ldJ l1Slllll1HS, where nppl!cablc, to the repott~d gross unit )lliCus ftlf hi IIi ilg mljMtmcm8 und early payment diwout\t<;, to ml'ive ut the plice at which the &ubjcct merchandise is lirst sold in the Unit~d Stales to an una!Iiliated cu,tmncr. We m;"le deduction~ fmm the [j_S .. <ales price fol' movement expcmes in u~cordnncc with :;c~tion 772(c){2) of the Act. Thc~c induded, where applic~ble, foreign in land freight li·om rlunt to the port of cxpm1mion, foreign brokerage and handling, ocean fr~ight, mmine insur~nee, U.S. mland fre-ight from pnrt ofimpo1tation to the w;u·d1m1sc, L; .S. freight fi:om warehouse I< I ~li<:((Jmer. U.S. warehousing, U.S. cLJ~I<.nns duty, ""tl U.S. h1 oker~ge and handling. In <lCCOrdance witll section 772( d)( I) of the Ad, Lhc Department cbluctcd. where applicable, commission.l, cr~Llit expcn~e:;, invento1 y ~urryi ng costs, End indirect sclli ng c.\pcnscs from tl1e l) .S. price, n\1 of whicl1 relate to cotruncrc,al activity in the L'nited Stare~. In accrmlance wit11 :;e~tioo 7 72( d) of the Act. we cJI<:ulut~d [(nnnct 's credit cxpcnseo and l!!Venlory Cflll',)'mg costs based on its shorHenn inte1·~st rate. In ad1htion, w~ dedu~kd Cl' I' pro fit in accoLU~nce with s~ctions 772( d)(O) and 77~!.t) of the Act"'

J t\ acc<ll'llancc with section 772{ c)( I )(C) of the .\ct, where appropriate, IW inct·ca~~tl t.',S. pric~ by th~ Cll\>nt~rvuilmg duty· (CVD) rate ~t!rjbutuble to the exporl5\lbsidieo tOurRI i1l lhc !irs! aclministm\i vc CVD review of afnmimllt\ ~xtmshJns from the PRC. ~4

Nomml Value

Sc~tinrl 77)(>.:)( 1) 11Ft he Ac1 pro>ides ihut the Dcpmimntl shall d~termitl~ NV w.sing ~n FOP ntdh<'·t!ulog)' iJ: ( ll The m~rdtrmdi,;c is ~~pultc'ti Ji-,,m "" 1:::'1-IT ,·ountry. ;md C) th~ iilli•t nl'l!i·Jn d,1es not p~n11 it the cakilbti<'>n af NV u~ing homc·m~rket prices, third·cmmtry pric·cs, or con>rruetul valllt.'Urtt!~r section 773(~) ofth~ A~!. Wh~n d~ten11ining l\V in an ~!\-1F context, th~ Deparll>l~lll >;ill hu<c '-'Von H.ll's IJc~n'"'' th<: prc~C!lCC of grwcrnmcnl c<>tlll'oio: u<l l onum U~·Jl~C!~ <>I' th<::i~ ec.Jnomic;; renders price compnri~t'll~ lin•{ th~ cak'1.tlmic>n of produr:tion coots ilLVn[iJ under l'\1! IWrnmlmctlwdo]o[,>ic>. The Dl')Je~rlm~nl's qucstionnailC n;quir~\ that Kmntd Pf<" id~ infn1m"tion re.":>ll ding tlw weightE{I-u\ eoage l"OPs ~cro~> ull tlf tile ~umpany' s plant\ ami o; $Uppli~r'> that pwducL' Lh" l!l~rdlilllttioe tlilckr con~id~tal1<11!, not j not the ['()(>,; fwm Q

8ingk plant or supplier. This methotiology cmurcs thal the Dcpamncn[', cal.::ttlntinn> are as acc\!rlltc ~' l'<'>olibl<:,8; Unckr scchtlll 77 J( <:)( 3 J of the A(\, f'OI'o u~ed by K rornet in the pwdtldinn of ~lnminum extn:siono indude. but arc nut lil1t;:ed tO. (II hmn·, of ]:thor i'~'[llired: {2 1 yuanli lie< of 1 aw m~teri~l:; emplnycd: (:11 i111Kl1.llll0 of en~rgy and other ut ilitico <:nnsum<:tl; nml t4) !~presentative capital costs. Tloc DcpamlwLII hased c-;v on Kmmet's rep,at~d t:op, for ma\eriul5. enefl!~- ond bbPr

I w " dct.H!cd J<s,, ip1i•m ,,[' .1]( .Hii•~<ll•tt'<"'- "'' K,.,,,c, -'-,;,"1''" ~ kmc. ., ~···· id. •' S,•,· , ~ ri"d l1.•io•IJ1fi,"lii<l•l vi So/,., '" /.''" ,-;'"" F<~•-'" I "''"' ,md Crith d C'il\ "'""""' ,., ( ,,."'!'' J/,iiiN/'Ickm; !'!!'<' Fill"'<'-' hom ,;,, Pooj'fc ·, R•]"!Ni, ,,1 CIJ''"'· <\~ ["[( hI )<'5 (0cL~bcl' 2S, .!L'O \I. '"'d •"'C"'"I'·"'-' HI¥ b;S\"' oHtl ll '-"·'" "I ·I I en".,.,, n.JJ•ll> '" (\•m m,·nt J 'i

Krome\ did not r~port certain FOP cluta far a ~mall mnnber of its sales ofsubje~t merchandise. Bet'ot·~ submitting its full ~uestionnair~ respcmse, the ~ompuny requested that th~ Depmtm~nt ~xcusc it from reporting these data us the volmnc of merchandise in1•olwd was insignitlcmu, and becaL•se oiliNining this FOP data WOLdd be di11ku\L~' Wllile the [)cpartment normally requires a r~~pundcnl to report all FOPs invul ~~~ll in the produ~tion of subject men;handise_ the D~partment has, in tbc ]J~J.>t, valued missing 1'01' \lata using facts ~vailubk "here they it\VO[\'C u rdauvdy &mall pmti<Jn eli' s(d~.~. 3' We have i'olloweJ tllUt pructice in this case. and hm e used tllcts avadablc t0 value tills portion oi' Krumct'> ~ales.

[( romet t·epoticd that it g~nerate<l uh1111 inum scrap during the- production of merchandise under considcration.'18 Kromd ~slabllobed 1hat it reintroduced the nlumlmun by-product that it produc~d liuriug tiw POR.'" ThcrdOr~. t'or tltese preliminary result.~, w~ haw gmmed Krome\ u by-prodnct offset ~Jr reintJndtlccd aluminum scmp.

A ;:ignificant ponion of Krotnct's snlcs were furthc'r mtumractureJ or as~embled in n third coum,·y _ ei ~wr C~nadH or f'vk~icl1. Accol'dingly, tht Dtpanmcm included tl1c further marmf>l<_.quring. procesgH!g. and a:<s~mbl y ~o~t~ incun·~d in rhe- thin:J C<illlltry in the !>< V calculmion. as well as the cxpcus~ 0f transpmting thJ.' mrrcl1amlisc li-mn the EtctMy in lh~ PRC to the furdte-r mnnu t3¢turing plm1t in the tltird countl)-.

Factor Valumions

[n accordnncc with section 77 3( c) 0f the Act. l'or sul:ject merchrrndi>e pnxluceli by Krome!. tile llepmtment cakulated NV t>~sed on the FOPs repo1ted by Klunwt and its supplier, Alnm1 for the !'OR. The Depanmen\ u~ed Phifippin~ impon data nnd other publicly avnilablc Philippine ~uun:e'i in order tn cakulme SV;; t<w Krnmer.~ FCW~ Where comcmpMancml~ inlpOJ1 dnwwcro JHJl av;tilabl~. the D<:pal'lll\'.'11~ used import ~81l! tl:tlm Thai land to Hll u~ ccn,tin fOr ~omumptiL>Il_ 'l'o calculate i'iV, th~ Depmim~nt multi plied f.: rum~t's t'.:pOJ1cd pc'r-unit I'Ol's by publiclyav~ilnble SV3.~'1 Tl1c Dcparrm~nfg practice when selc~ting the hest avuilahle infmmntion for valuing 1- 0 r, io to sdeGt. IP the c~teni practicabk, S V o 'I hich arc producHpcci tic, 'cpresenlatiYe of a bma<l markd (1\ ~rilge. pttl>l ic-1; avilihJblc. ~on\~n1 pomncotT> with th,, POlL and exdusiw of ta_.,;es and dntics:n

ll1e t lepar\111,'1\\ adj Ltstcd input pd,:es by including ii·eigbt Lost:;, as ;1pprnpriote. to render them dcltvorc·d price'S. Spccitically, to l'hilil-'pine imjwrt SV> repmr~J \1Ll a co;t, in~mancc, 'illll H-eight bnsis. the Dep;uimem added n surrogate freight co~ I nsing the shoucr of: 1 il tiLe rcportc'l

~. S.'e Lo\!<r from ((romet dat<ri ~!Jr<:h I), :•OU, lilted "1{;"1"0'1 QfKronool l~tontoli"nnlli>e_ to E'<dUdc' t'ertRin Sol«" " See, <'.g., l'h<!IMoltaic Cells FiH11t I [l\( (Octubor 17_ CO I C I 77 I R 63 7~ I "S<•c i(romoL's >Octinu D resrn""' tlJtod Maroh :>2, 2013 :u pngos .1 t-3). '''seeMml':<llihhtJ-J:~. -,., So• Mem<H'H<!<Ium Ln the F 1lc "Fil'>l ,\JmilliSII<lliw Rc•vb; of the A<HiJL>mpin~ I Jut} Ut·d..,,· on Aiunlimllll htru<ion, f1 mn tl1c Pc"plc'< Rcpll~ric .,r Chtno- Fncto• Voluntion .~tornorondorm tOr rlw Prellminat}' i(o"ll'-' <'I' Revie\\ ,-- n.lld <OOOll<T<nt with thi< mommamllm1 r-'Proliminar:, t at lor Valtwtj,,, .1,-[,tlwandmn'' I. Wh1tl1 j, h<'i'cl':.Jdoptod h~ thi, "'~'""l·l>IUwn '" Soe. e.g .. f_/c< rw(f'f"- .II<III,I!J>nO'\<' lli<,o;lc/,· Fmm I he P<'<•;•le \ ll.'l'"b/;,· <>j ( •'Wid. Fimd Dci<'l'minoli<>!l 0/ S"l•'-' "' L.•<-< Ti"m F"i< I"/""- 73 FR ·IS 1<1,\ (,\,1~<1<1 I~. :'Ul\~1. ,ond ,,,.,,Hnp>n)iog 1"<<<'< on,J ]lo.;,ion ~klll"rondllm 'II Commom2.

' . . o.,

Jisw~ce l'rnm the domestic Stipplicr to the factory; or \ i i) the llistttn~e ftom the o~arest ~~up11n to the fRctory. This adfustment is in accordance ''ith the decision of the Federal Circuit in Sigma Corp. v. tlnited srw,,s. ll71·.3lll·1-0l, I+08jFGll. Cil'. 1997). AdditionHily. wh~re ncccosnlJ. the Departnwnt aclju~ted SVs for inflation ~nd exchang<' rules. and the Dcp<!rlm~rrt convened all applicable FOI's to ,1 per-KG basi~.

Furthermore. with regard to the Phi Iippi ne imp,rt-based S V s. we have disregarded import pnecs that we ha,·e reason to believe m 'u~pcctmay be subsit.li7ed. We hm·e reason to believe or snspect that prias <JI' inputs li'on1 Tncloncsia. !ndla. South Kore~. and Thailand m~y hove been subsidized hc~ausc we have f\llmJ in nther pmeeeding1 tlmt these countncs maintain bmaJl y ;<Htilahk. nun-iJulns11'1'-5peci fie ~xpon subsidits. ~~ Therefore it i> reasunabk to infer thclt all l<xpurls tn t1ll markel~·from these <:<:ltLil!ries mil}' be suh;;idiZ?..tl.~' Furth~··· guided by the legi~lnlive hi;;tory, it is the Department's practk-t: not to conduct a formal investigation to ~nsmc that .mch pl'ite.~ are no< sl•hsidized.91 !:\ather, rht Department b;~,e~ it-; ded.~ion on inl(mn~dun thm is avnibblc to it at the time it makes its det~rrnin~tiun. Additimmlly. consist~nt with mtt'

pwclie~, "" diHI'~gnl'ded price~ from KME countric>> ami ~xducled imports labeled u.s originming lfom an "llihp~~iliccl" ~ounlr) !'t'<>tn the aq,rue\e vu] 11~. because th~ D~pat tnt ell! cuuld nul ll€ c~ttain th(>i th<~Y wer~ not from dtlltl' un !'ME COlll)try m a oJuntt-;.· \\'ith geneml export subsidic~." The1dnre, \\e have not used prices fromthc~L cotmtri~~ in calcLtlnting the Philippine impm-.-based SVs.

ln.acccrn.ltmcc 1-1 ith l9 CFR ]51 AOS(c)(l). ihf Depmtment will normally usc publicly m·uilabk inlOrmation to lind an appropriate SV to v~]u~ lOPs, bttl when n pl'OJu~er som·Ges an input fmm a ME aud pays far it in i\1E cmremy. the Department mny value the factot· using tbe actual pt icc paid tOo· th~ input.~r. Kwmd 1Lp0l'l¢d tlwl it pttrd1<1~ed one i nplll. >Cl"<'"~' from ME suppli~ts >tlld

"' s.,,, c' g, L<ll'b'.r;.,M I Tul~t l'igmem .' j fwm /Jidi" Fi!illl 11~'"''' nf tlu- 1-:'pnhi.·d I· n·c··.mlr (.I'<'IIJC/1 /Ievie" <I} 1ire Cmmten•mlillg !J11~' Order, 75 f R 1 J:.n (Morell 19, :w 1 n J. mtd oocompnll.cillg l»u~s and Dedsion ,$cmoro,.dulll at -1-:'; Conal" '. 'lll·!o·l ell~lfl Cm h"n·!}1111hty .\'fee! 1'1'"'' knm ''"/"'"'Sill. /· '""/111!.>1'11.\ "' (,;pedired Sm,ct Hcde"' 7~ FR 45(>0:' ( ·\,gu'l ~- 2!JG.$. :llld octomttonying [.,;ue> and Dccisiu11 \lcm<l• a<>dum at .J; I "''"""'"·'k".\'Miil Cwho" Swd Fl"r l'r·!dlk'll frvm 11Ie 1/,}'lthlic •![ A'""""' t'In,ll f(,-s/1/IS <•I ( ·ow~ro•·wuiul[!; l)lfl,l .ldmim'.>i''·'"''' /l,.,.,c, 'i I FR ~51 C (J.tm"'r:'' 15. 20M) an<l ''"'""'P•"'.' il!g i'>UC> JJlJ IJ<•ci<inll ,V\emoL L\r!du111 ,,. l ' 19-CIJ; 1-'111.11 -(/fil llhi!J•·.• C•!WIIe'l hlil11•:: Dwy Do!"nlwwliuiJ { ·~·rwPI Hoi-/( •lid 1 'w·l""' <,,,,,,, g, /'1 <>diH·rs /·n111 I !,.,;i~n.l. 6(> Fl\ !01 I 0 !October 3. 2(11) ll. oml ,occomi)Oill'ill!;: (S<\10> Olld Oc•ci<illn lvlemnrondmtl at 2.\ ,. s-- \ !>IR'C "( Fmul D<•l<ri!!OI<IIWfl •!/Sale' r/1 L<'l.< !h.,,. I '"'' I (1/W '"'d Neg'""'" Final Oelermill<llll>!l <>{I 'ri/l(',,r Ci!'c'WII.\'Ioilc'C,\. ( '<'l'llfllr c'nior l'elevi.<Mi /l<<'i!'''"''' ,.,.,,m 1/w I'<Mp/; , Republic u(Ci1ind, ug FR 2059~ Llp1'il I(,, C01l4 1. rmd '"u ""I'"") lug h<"~' ""d Dcor;iuu M~mUL'"Ildum m l\>mmenl '!. "' s,,, L't1Jlt'ct'Orlc'C Ropon w tile 1'1~3 Om111bli' T1ad" & lnrolp<!ili>elle.S Ac:, H.l<. l<cp. 1\u, 100-576. uL 5'10 I I qR~J: <• <' ,,[_,,, Jly,·Jimhi<IIJ' {J,ym"i'"'"'"' vi s.,r,., "' Lc.• 1 TIM! F,w· I "h"· WI.! f',,,,,,.,,,,,,,,cnl ufl' ,,.,j Dew"""''",'"' Coale<! Fre' Sh~el 1'<1p.:1 fl<wt rhe /',·,pf,• ·, ii.'J'IIi•/ic ,(Chli!<1, 7 C FR Hl/5&. l07fil I I un.c .;, .21JII 'I qnch•ng·'d in I··!MI Dermumuli'"' of :\,,f<., "' Less Th.m 1- a;c l':r/JJ.' ( '"·"'.{ l·n·,• \IJ,\'1 l'ajw·p·~'" the l'•••y>/,• < 1/q.HiNi,· ~flhi•hl, 7J FR 60631 ( Octnber C.l, 200'/), ,,. Se- .\ n!M ' "[ I' ''dill/ iiW/) ' /)C!o'I'IIW!a/ i< Ill <?i.l'ofes ,11 L c'LI ] h< "' /· (f/1' l",f{ II L' tln<i l'vMf'< !I /,"11/c' ltl <if /- /lid/ Del"'"'""'';,,,.. 1 '1!/cwina/c'd 1.1""' '!I/111NU•'' l'mm rho 1\·•)IJ/,, ·, 1/cfmh/i,· u) ( 'hi11<1, 1•'1 f I~ 7.1294. 75300 1 !J~cemh,·r I(,, ;~,I)-I). lllh"il,LO[!<d 1Ll _\,Ji~c'e of t w,o/ / h>i<'rmmaiJ~n ofSd,·, «11.<.1'., }'!""' 1"11i1· I 'II'''· ( 'fo/,,,..,"'''0 "'":''"""·,,,., !·""'' II~<• p,."l''" 1 ll""pllbk ui CIWI<1. "0 f't( ~-15~21 ~IJ) 10, 200~!. "• .) • o t ~ ( f R ) 5 : ;II) Se< )II I , s, ,,. "i '" ,\'lrd< <'P""'' '-"~"'hh · ( 1 ,, !'""on!<, I Jw ',; 1/!. / " ul Ww :,,, I"" 1 I "" , .I .IWJeJ 76~ I··''' J _; -u. f.lOC·I.:i:ii I fctl. L'it 20D I J 'nfiirmin,; •he I lepolU,cn• ', <>>< ,.[ '""'~" ·b:!>cJ pt ""' '" "'"'' emnm Fill'"

paiJ for tile input i11 a Mlo c 111 rcncy. "' A,curdingl y, we have vnluc1l Krum~t"' coLlsumption of screw~ Lt~ing tile company's reported purcha~e pt·icc> Llr the input. 'll<

The r~~ord ~hows that dat~ in the Philippine hnpon .,tutistics. ns wdll1S lhoo~ Ji-om the other Philippine somce>. are comemponmeous with the POR. product-specitk and tu_~ -exchtsiv~. In those insHmccs wh~rc we could nul obtain pttblicly nvai!ablc Philippine dnta contempornne(ltlS to lhe PO.R \\·ith whkh to value FOP~. we ad_1usted th~ SVs using. wl1~rc approp1 iale. intlation factors derived from the Philippine Producer Pnc~ Index (""PPl"'). a~ p11blished in the !nternatimml Monetary FunJ"s lntenrotional Financial St~tistie~.99 The Depmtment used Philippi tie ! mport Statistks Jfom the Global Tmd~ Atlas ("·OT A'') and other publk ly available Phili-ppine SL)tm:es lo value most raw mata-iah. ener~y. and packing inputs that K romeltt~~d to produce sttbjccl merchandiSe during d1~ POR, cxc~pt wh.ere listed bdclW.

In lhe$e prcliminu1 y t·esult:;, th~ DcpMment ~a!culmetl the li~bor input ming data on induot1 Y" specific labm cost ltnm the pl'illlary surrogat~ cmmuy (i.e .. the Philippines), ns dcscrihcd in LubGr Methmlologics. wn The Department telied un the JLO's Yembollk Cb;tpter GA labor cost data li>r the Philippines for the )-Clll' 200S. bc~uu;;.; this Is the most rct~nt Chapter 6,\ data avnilnble for tlt~ Plulippines_ Th.o Department 11u·tber t!d~n11ined thm th~ two-digit de,cripl ion undei' IS lC- Revision 3-D ("2S-Mamtfadure of Fabricated Mc'lal Prod\iCI~··J h tl1e best aYailable inli.>tm~ttion h~~a11~e i I is sp~cili~ to th~ imlmtry being ~l\Jnliucd and. tllct·cfor~. iB d~l'iwtl fi-om iadustrics that produce comp;·u abl~ merchandise. Accordingly. relying on Chapter 6A o l" tl1e Year book. Lhe Dep~rtmcm calculawd the lnbor inJlUt Ltsing: l3bor cost dam reported by the Philipp'tncs to the !LO und~1· &llb-C \assiftcation 2& of th~ !SIC -Revis"to~ 3-D. ia accordanc~ witl1 ~ection 773tc)( ~J of the Acl. For flu th~r infotmmion 011 the calculation ol' the wage mte, see !·actor Valuation Ylcmomndum_ which i~ hcr~by adopted b_v this memol':mdtUJl_

I ioc· I 1_0 dal!t [wm Clmp;o;:,· (}-\ <lt" th~ Y ~arhcwk. wl1ii-·h I\"'~ "'en !D val tie lalwr_ rL· tl~el' all t'L>c!:: related to lalmr. including Wages. bcneril~, h01ning. I mining. ~tt. Pmsuanl to l_abor Mdll<ldolo~ks. the Depurlmenl 's pr~octice is to co~t~id~J· whether li nancial ratios rclkc l labor '"'l"'m"Co iil~Ltli~ incliidcJ in othi-'f dements nl"tli~ r~spondem's FOI'~ (e.g,. general nnd administra\il'f e.\]!e.nses)."" llw llnancial st~temenK used to cakulutc the surrogate finmwi;li mtiog in tlli~ rc·vinv "ere ,'fltiTtdcntly dGtnil~d 10 ,.]]ow the Dep~rtwent to i5olatG labor l':.:pcnse.i from Dlhcr ex.pcm~> •;ucl1 ~' '(•!ling. genel"<tl. and administrati ~c e.xp~n~c'>. Therefo1 e.· the D~parlnl~l\1 r~vi,~d ito cakulntinn oi tl1c· stnTngHtc tin~nt bl ratioo <'Oilsi~Kn\ "'i 1h 1 ,,lhnr ~kthodoln&il-'~ to ~.xduc!e hem.< incorpGmtcd in th~ bbm wage rat~ data in ClwptCL" 6/\ ut"tht; lLO dGta. '\Sa rcs\lll. bunus.;s and <lther form" of ~ompcns~il'Jon indudeJ in the ILO-s ~-:'t't~t~l.','),~\1!1 lll. W;1g~~ fire 1101' <:.~cludctl tl·om OL<r c;1lwl,1tion of lah.w in the ,;urm"ate ti nanual

.,- Se. [,mmct ',;'Oii~n ll I'O>p!>llo.' cl.llcd i\larch !:' ~011_ "' pa~e ll-1 j """ I .\lllbH IJ-~" S,., Prclilllill'll'} r,'"1or Val\lali<>n McnH>I'anJLLm "' Sc•c· <i/ M ALL.Ld\!11("'" I and ;_

' ' ' ,',c <" • 1111 1./imJf!!" g ,\ Mho<io/ ug r.• ' In I' I' • •.-mi.-"!i'' I"'·.,{,.,'~ \ "" -,\ !, ;1 k,·i I;, M '"''"' ' • I , <I" iHg IIJ. I , ,, I, .,- ' • I rn"h"·'""' 1.,,/•w·. '6 I'R J61lLJ.:' iJ'Hl" ~ I . :!il I I) {"/_uhm 1/.•ih"dui••g""·i' I. , .. , So,• 1<1 a< 1111JQ-l. '"' Sec l'rolj,,;,,,n; (-,,,.,, V:tlt;o\ ;,,, \ok mnrandl1tl1.

We ><lhl~d eb:tricit~ ming: comemporao.em1s l'hllippinc data Jrom "I he Cost o! Do in~ Bu~ine.>S iLl Camnrill~S Sur nvuilable at tile Philippine gavernment's web sile for the pmvim:e:

. .h d . I d · 1 - 1'11 http·/ 1\VW\\· .cnnHII'llleSS\lr.gov.pll. I es~ ala rert~ 111 on y to m u>tna consumplmn_

V.:c VQ]n~d \VU!er llsin~ an :nremgc of the baste rat~s chargeJ b} Th~ Philippines Nlaynil<1d J<>r Ousin~ss Group ll [mostly imlu~trial) tn;er'. Thew rmcs were in cfk~t in20 11 and tl11 J\01 includ~ m~es ur sur~harg;es." 1

W ~ valu~d truck lreight e~pcnscs tc~i ng average tmck mtes from the Confederation of Tn1ck<:rs Association of the Phllippints. lttc. (""CT i\P") !Or 92 d~-~tinati,,n~ wi I bin the l'bi lippines and the 1lri ving distanc~s lu tl1e<;e 9~ d~stinations. w; The CrAP source ES the b~"t m ailahl~ in t(>rmution to vultt~ tmck freight becau~c it i.<; contempmaneuw; "ith the POR. rcprc,;~nts a broad markd a wroge of mui1ipl~ destinutions. sped fie to the input being valued_ and ~ontuins m1merous datu points hy which the Derartnwot waq able to calwlut~ the SV tOr truck ii·eight.

\V e vnl ued b' oke• age and h"'"lling e~ renoes u,;i ng a price I ist of ~.xrort proc~dure' Q~CCS-"'11)' lO cxpon a otumlmdiL~d ~argo of goods inth~ Philippin~,;, as ~ublish~cl in the Wurld JJunl -~Doing BJJsin~ss 20 I:>, J:coaom~ Pro tile: Pllilippi11es publiculLOll. 6

\\' e \·alued m~l"ine insurance using a price quote for JHI v 20 I 0, which. "" obtdinecl from R IG Com;ultanls. R.J G Cvnsultnnlo is n MF. provider of marin~ in:mmncc. W~ i nfl-atcd rlw rate:;; t(J Lhec POR by npplying th~ Philippine PP!. 107

]C) Cl'R J 51.40~( c )(4 I directs the [kpmlmcm lO value overhead, g"!leral. ~nd ru::lm in istr;ni ve expenses t··SU&.'\. ") ond profit using non-proprictar)~ in Lonnntion g~th~r~d from producers of identicn! ur wmp:lwble nwrdmn<.lis~ in the su!Togak eouutry. In tlri~ n:viL~..,. Puilion~r

submitled the- :!0 l l filtroltial _statements lll"th~ l"r>il owing ~"C'mpanics:

~ Sunkno K.anahiro Tlmiland Co. Ud_ (""Stttlbo Thailand· j. a T!mi pnxluc~l' of auw parts owd ~lcc~·;,-,!1 purto ti.sd in in<IH.".tl"iol plum:;:"""

~ Ri;ut Cbtti Alumint ut\1 [193'1) Cn .. l.td. r··Riuu ( 'bai'"). u Thai cmnptlll.l" primari I y ~ngn!,'cd in '·thr; b•ni11co5 : si,-: mllc·d aluminum <:mdt~r ttnd th~ purcha,;~ of equipment nld unci

[tl-> _, t1C\\: anu.

• s.r'.T. Aluminum ['actor\ Cnmpanv J imited 1 ·sc l-l·act0r:."1.a llwt producn ol-HI\tlninum prnducts'Ht · ·

''" ,\h i.l.

"" -'"' "' "''See id """ s~.· ul. ,, . . \·aid

'" S<< Pewinnc(_, 'lnn-n"at•·'ht"" Cummems 01 l>.lubil ~,\, liuk· ! 1 '''" 111 at r,lnbi> ;;~. ;;,n., 1 s,c ,d_ ot E <J""'' -1-\_ note !.

'8

Kromet placed the ltnancial 'tat~ment~ \>f the following companies on the recoccl:

• Alcophil ,\tewl luc. l""Alcophil Mdal'"l. a Philippine producer of metal products 'lcl. 1· II" '"cl n1c u 1ng ur~ nte~tur>~ n lllmnum: an .

• C"urrimao Allum i IHnn Corpormion j'"Currinmo'"). a Philippine tnmmfacturcr of aluminum ,. products. -

We did not liS~ Sunk a" Thuilumf s financial >lal~mcnlS becutc~e: ( 11 as a produc~r o I' auto parts u~ing a metal stumping prodwtion pwcess. 1he company's pr<lduttiun ~-~pet·ienc~ docs not closdy rclat!O to that of Kromct, whh:h u.~es a cnntinuottr; extrttsion pwL-,sS lo produce aluminum extnto.ions; 1 1 1 0 J Slmkao ['lmiland's financial statement~ du not report production and SG&A expenses in slti"Oc\cnt detai I tu ~llow us to calculutc surrogate llnanci>tl rutim; und, ( }) th~ company is notlocat~d in mwprlmary '1HOg(lk cotmlry.

We did ll<l! u0~ Rian Chai·~ tin,llldttl otmemcms becnus~: (I) the cmnpan} ;, J.l a diftCrcutl.'val of imcgration thnn the r~spomlent in this review tiM nrcrates a smcltct·. whcr,,a~ Alnan d'Je~ 110t;1 ll {2) Rian Chai·s finandal slattm~urs do not rt"pOTt pW<htclion ntKI S()&A C\.pcnscs in sullici~nl ddnilto all<Jw us \<1 culculute smrogute financial ratios; and, 131 it is not located in our primm)' smrognte cottntry.

\\ c did nut u~c S.CT Factory's fmancial stul~illetJis kcanse tltcy do ll<ll rcpClrt prodLJction ~nd SG&A e.>::pense.o i11 Sllfficicnt detuil to allow u; l(} calculate 'JtllTOgate (ftmnciul ratios. For e~ampk, th~ stmeme:nts do not detnil labor apen~es. co~\~ of goods sold. adtnimsmnl ve <.'xp~nse'. m sdlinge~'jlens~~- :V[f\1\!0v~r. became we haw usahl~ linancinl st:1lem~nts ft"Oill

!ll\illi pic l'r<ld'I~•'IS of ~'Jmpar:. ble n>c'l elM ndi~~ l\o1n the primm;; 51HT«r:tre- <:mmlry. "c in1c·nd l<l

rqJ lnw the rqmlmory pre fer~m:e slated in 19 CFR .1..) 1.408( c1 <md decline to use this >latclllclll.

\\'~have dd.:rmin~d to uo~ th~ fi1mndnl ~mt~lllL"IlC of Akophil J'.:kwl and Currimao w value ,,vcrhcad, :'.ll&A. u~d pmi1L. Hot h ~ompank1 arc produeoors <JI" cm1~pm~thk ll'·odu~ts. aQd th~t'!O is no l'l'Cord evidenc~ to inUi~ate that dther cnmp;my recei,·cd hen~l1t,; limt the D"P"' tment lmo pr~\ inusl: d~r~rm ined lt1 be cowtlet'\ ai!abk r urthcr. the .tuJit~d tin"ndul st~temcnls li om ,\lcnphillv1d~d anti Cut-rimn" are cnmpkt'" ~ml ~ulft~im>tl)' ddailctl ro disuggregi1te nmterinb. labor. ovcdt~ad. ~md SG&A ~"-P~"o~>-

l'oJ a tcmnp]~k listing ol" all the inruto nnd R dctai l~d disc uo;iOil allllul our S V -;election.>, s~~ I 'actor Valuation Mento rand um. 11 hid1 i:< hereh~ Jdt>plell IJy this nwmnnmdmn.

"' .\"oo Kl<>rnel ·, S""''""'"' Value (" ~>mmcnt; al I '11th II <1. IWi<' I, ' ' See 1,! 111 bllibil Ill~ nme I . '-'""'"l ;\lbmitkU hmb ( ""'"'"" 'o 2V I I ond 2<1 L' ,JuJHe,llln.md.tl '""'"mct11' "' Sec· t·:romtt' ., L"C~lEital SUrrt1galt•·C'm><llr) ,:omtllents at paJ<O 2 ·', ,,, s .. ,. ;,r

2'1

Adjito>llll~ntllnder Sec1im1 77!A{l) Dfthe Act

In uppl; ing sed ion Ti I A( fl u( th~ Act in this administrnth·e re~ iew. the IJcprmmcm has c~amin~d (I) whether a count~rvailable sub~1dv (other than tin export subsidy) has been pmvided with r~op~ct to o class or kind of m~rchandis~. (2) whether such countcrvailablc subsidy lw~ been d~monstrutcd to have: rcdttccd the awt~lge price of import-; of the da~s or kind of merchandise during thG rcl~v~nt period. and t J) whether the Depmtnwm can reasonabl~ c'1imal~ the extent tu which that counlervailable ~ubsidy. in cnmbi nntion with the use of NV det~nnincd pprsuant to s~etion 773( c) of the Act, has inc• cased the 1Wighted «vcmge dumping margin li.Jr the class or kind of m~rt'handis~. 11 ' For a subsidy m~eting th~s~ criteria. tlw stanne t'Cqnircs the D~JliUtrnent tel reduce the AD by the estimaL~d itmmmt ofihe increase in the weighted awmgc- dumping nmruin wl.~c'Cl lo a speciiled cap. 1 1" As a re.~ult of our analy,is_ the Depurtm.,nt is pre I imin~ril:muking adjusommo; to the AD mmgin calCLIIation for K..tvmct in tl(ts review, pursuant to ~eel ion 777 A( f) or tlw ,\<:t, ln the maru1er described bdow. In nwk ing thb ~dj nstment the Department ims ntl! ~onclmled that co•m•rr~m application of N!'vl.E ADs nnd count~rvailhtg duties r:-cvn~--) 11~c~osaril y mnl mtt<>mat icall y 1 ~suits in nverlnpping •emetlies. R~tiler. a ~ nd ing_ that tiler~ is an uvcrla~ ill l'ctn..:ili..:s. atul any resulting <Kli ustmcnt. is ba;~J un a cmc-"-:--t~.w anaiy,;i; uf th~ tot;tlit) of lbct~ on the adminislt'ltiw reCOI"d lOr thnt :;e!,'lllenl of the proceeding as re~uired by 1:1c statute.

Th~ Department examined LT,S. import ~t~tlistic~ from the OTA that indicate ilmt the va1uc of subj~d m~r•l1andisc has deCr~nsed from April:i:O II, lhc month tbat the limtl detcnninati(m intlt~ invc,;ti~alwn urthis cnse publislwd, tlwough Apri I 2tl 11, the end of the POR. 117 Krome! asscned th~t aluminum subsidies impactec( the cost of lllOilltlhctnring ("'COY!") of its suppl1er of >llbje<:t mcrcbundi~~- AI nun, nnd rhm the ctther subsidy Jli"Ogl'l!ms tmder i11vcstigation ( e g , grant programs, 13.\ program,;_, pulicy l~mling, etc,) did not. 1 I! K romet pro.-id~d in ~·ormation indicming tfm the' c;rst <>ftl1e subject merch~ndi:w It pttn::ha'<e' Ji-um Almm i> irnp,Kt~d hy the Cfl.'il ol" allunitntm hilkt>,, ,,, i> the pt·ice that Kromct sells tho; St•bject mcrdlal\tlise tu Jl5 etlstontcr~.' i"

Tbuo, KmmC\ 's ~tlestiorumire t'eS]J011S(.!S indicate a cost-to-pncc linkage ror .an ~!Ltminum S\iboi dy pmg' a= that i tl!pac t• COM.

In tit~ ~rm1puni<m CVD pro~eecling. til<.' Deparuncnt determined progrrun-spcdl1~ rnt~s n t' 011bsidizt·ll ~ lumimun tOr [(mmer. 1 ~· Tl IU5. ~1c Dqmrtment ha~ tl1e ne1:~'"'i'ifll) infL>ImUli1lll 1.-nm th~ comjlmtinn C VI J prncedirtg to mnke th~ adjtlstm~nt in tbi' proceeding ill !he mann~r JescribL·d abm~ llJr purpos~o of thc•sc pr~\i111 i tMry I"<'SUJ\s.

llPI\ ,., ¢r, !<. romct did not propo.><'. ur p1 O\ ick infumiJliun to Clll\:ll]lltJ.;, C011tp<Ul) _,p~d Ik ~slimatcs of the c . ..;tcnt of oubsidy pn~o-through tn P' ice>_ There lore, becm1~t the record indirotcs tlt;H >~1-tr;,l fm:to r.< other Jh~n the co'\ nl' ~1luminum bi I lets impact Kmmc·<' ~ pnce' tn ~tbtom~rs.

1 ; ~'"" "'"'"" Tl1.1t r)l I )I AHCl o1"1t1c ,\ct

' ,. ,•;,.,. '"tion ~77 AI ft!IH:') of•ile .'<.ot '' · '>n• i\H,,chrne"t I rc. rO;, mcmmondnm '" ,\·,._. Krnmoi"> Dcntble R<n;«lb I,Jnostinllnairc Rc<p<;<;<e. <idled ~r": 1. :'0 u n< t-•> ,,. s ••. iJ ·" j • .j_

' •· Se,• A iLLilliOtll\1 I,X0111SiO"> f1 Olll tih? !'cop[~'> R<·pliOilo oi' CiLind_ PrcliHiiJtaL} Rc>ll:l, nl r <>LJILf'"' 1>1ii1ng Dmj A,lmini,lL'<Llil c Rc1 ic\\; 10 I fJ Jlld 20 I L Jmed Jtone 1, :'0 1.1t"".ILLJnimllll hLJ uJi'"" l Vll l'rdirnirlor! Rc->llho""t.

_i.(]

th~ Dcpm tmem is. applying, ins!Gad, a tlocmnented ratio o I' cost-price clmngQs for the Chinese manufactnring sc~wr as a who I~ as the estimuw of the e:-.:tcnt of subsidy pasHhwugiJ. "''

Where nec~ssmy. the Department m.:td~ "'"" enC\ conw>IOilm~ imo U.S. ti<lllm'3, in accordance with sc~rion 77J 1\(al of the Act. based on the exchange mtcs in cf!Cct on the tla~s of the L .S. saks, as certified hy the l'ed~n<l Re.,er<~ Flank .

.... L # -Pmil Piquad.f-- -Assi .,t,nt Sect et:try

for fmport AJm;!li.llWliDn

__ l___?'L~Io.:; /.o1] tDatcl

_i I

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Aluminum Extrusions from the People's Republic of China · which also cluim€d lO have had EolriEs...

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Transcript of Aluminum Extrusions from the People's Republic of China · which also cluim€d lO have had EolriEs...