PUBLIC VERSION DOC Investigation No. A-791-825 ITC Investigation Nos. 701-TA-___-___ and 731-TA- ___-___ Total No. of Pages: 370 AD/CVD Operations Petitioners’ Business Proprietary Information for Which Proprietary Treatment Has Been Requested Deleted at Exhibits AD-ZA-1 (Atts. 1, 2, 5, 7,), AD-ZA- 2, AD-ZA-4, and AD-ZA-5 PUBLIC VERSION BEFORE THE INTERNATIONAL TRADE ADMINISTRATION OF THE U.S. DEPARTMENT OF COMMERCE AND THE U.S. INTERNATIONAL TRADE COMMISSION ANTIDUMPING DUTY PETITION VOLUME XVI SOUTH AFRICA COMMON ALLOY ALUMINUM SHEET FROM BAHRAIN, BRAZIL, CROATIA, EGYPT, GERMANY, GREECE, INDIA, INDONESIA, ITALY, KOREA, OMAN, ROMANIA, SERBIA, SLOVENIA, SOUTH AFRICA, SPAIN, TAIWAN, AND TURKEY PETITIONERS: THE ALUMINUM ASSOCIATION COMMON ALLOY ALUMINUM SHEET TRADE ENFORCEMENT WORKING GROUP AND ITS INDIVIDUAL MEMBERS W. BRAD HUDGENS JOHN M. HERRMANN DAVID C. SMITH WILLIAM H. CROW II PAUL C. ROSENTHAL GRACE W. KIM EMILY R. MALOOF KATHLEEN W. CANNON MELISSA M. BREWER NEREUS JOUBERT R. ALAN LUBERDA JOSHUA R. MOREY VLADIMIR VARBANOV BROOKE M. RINGEL MATTHEW G. PEREIRA GEORGETOWN ECONOMIC KELLEY DRYE & WARREN LLP SERVICES, LLC 3050 K Street, N.W., Suite 400 3050 K Street, N.W. Washington, DC 20007 Washington, D.C. 20007 (202) 342-8400 (202) 945-6660 Counsel to Petitioners March 9, 2020 PUBLIC VERSION Table of Contents Page I COMMON ALLOY ALUMINUM SHEET FROM SOUTH AFRICA IS BEING SOLD OR OFFERED FOR SALE AT LESS THAN FAIR VALUE .......,.1 A. Introduction............... 1 B. Producers in South Africa."..'. ,2 C. Export Price or Constructed Export Price' .4 D. Normal Value........ 5 E. Antidumping Duty Margin Calculations '. II. CONCLUSION AND REQUEST FOR INVESTIGATION .6 1 PUBLIC VERSION I. COMMON ALI,OY AT, IM SHEET F'ROM SOIITH AF'RICA IS RN,ING SOLD OR OF'F'E,RED FOR AT LESS THAN F VALUE A. Introduction This Petition volume contains information regarding sales at less than fair value in the United States of common alloy aluminum sheet ("CAAS") from South Africa. This volume presents information reasonably available to Petitioners demonstrating that CAAS from South Africa is being sold in the United States at less than fair value within the meaning of section 731 of the Tariff Act of 1930, as amended ("the Act"). See 19 U.S.C. $ 1673. As discussed below, application of the standard antidumping methodology used by the U.S. Department of Commerce ("the Department") demonstrates that producers and exporters in South Africa have sold, or offered for sale, CAAS in the United States for less than fair value. The general and injury information required by section 351.202 of the Department's regulations, 19 C.F.R. $ 351.202, and section 207.I1of the regulations of the U.S. International Trade Commission ("ITC" or "the Commission"), 19 C.F.R. ç 207.11, can be found in Volume I of this petition. Based on information reasonably available to Petitioners contained in this volume, the Department should initiate an investigation of sales at less than fair value of CAAS from South Africa and should impose antidumping duties in an amount that is equal to the amount by which the normal value exceeds the export price or constructed export price' B. Producers in South Africa To the best of Petitioners' knowledge, CAAS is produced in South Africa and exporled to the United States by the following company during the proposed period of investigation ("POI"): a Hulamin Operations (PtY) Ltd. Moses Mabhida Road, P.O. Box 74 Pietermarit zbvr g, 3200 SOUTH AFRICA Tel:27 (0) 33-395-6911 PUBLIC VERSION Fax: N/A Email : hulamin@hulamin. co. za W'ebsite : https ://www.hulamin.com/ known pursuant ro 19 C.F.R. $ 351 .202(b)(7)(iXA), the full names and addresses of all producers and exporters of CAAS in all of the subject countries (including South Africa) is provided in Volume I. See petition Volume Io Exhibit GEN-6 (foreign producer list) and Exhibit GEN-IS (information on foreign producers). Although information about the proportion of total available to exports to the United States accounted for by each listed company is not reasonably petitioners, petitioners believe based on experience in the marketplace that merchandise produced by the identified companies above accounts for most or all U.S. imports of CAAS from South Africa during the proPosed POI.I C. Export Price or Constructed Exrrort Price petitioners have reason to believe or suspect that producers in South Africa are selling CAAS in the United States at less than fair value, with sales of the subject merchandise occurring either before or after importation to the United States. 1. Sources of U.S. Pricins petitioners calculated U.S. pricing for CAAS from South Africa based on information petitioners obtained from confidential sources concerning sales or offers for sale during the proposed POI. See Exhibit AD-ZA'L. calendar quarters r Consistent with the Department's practice, Petitioners have treated the four Decembet 3I,2019, as prior to the month in which the petition has been filed, January 1,2019 - the proposed POI. -2- PUBLIC VERSION 2. Adiustments to U.S. Pricine petitioners believe that exporters sell CAAS both directly to end users in the United States, as well as through trading companies or affiliated sales agents in the United States, including: a Crown Cork & Seal USA Inc. 770 Township Line Road Yardley, PA 19067 Tel: (215) 698-5100 Fax: N/A Email:N/A Website: https://www.crowncork.com/ a Empire Resources Inc. 2115 Linwood Avenue, 2no Floor Fort Lee, NJ 07024 Tel: (201) 944-2200 Fax: (201) 944-2226 Email : [email protected] Website : https ://www. empireresources.com/ a Hulamin North America LLC 100 Fox Chase Drive Weatherford, TX 76088 Tel: (817) 313-6687 Fax:N/A Email : salesnorthamerica@hulamin. co.za Website : www.hulamin.com Ta Chen International Inc. 5855 Obispo Avenue Long Beach, CA 90805 Tel: (562) 808-8000 Fax: (562) 808-8104 Email:N/A Website : www.tachen.com/ Texarkana Aluminum Inc. 300 Alumax Drive Texarkana, TX 75501 Tel: (903) 832-8471 Fax:N/A Email : sales@texarkanaaluminum'com Website:www arkanaal .coml -3- PUBLIC VERSION See Petition Volume I, Exhibit GEN-8 (U.S. importer list). In order to calculate ex-factory pricing for the U.S. sales, pursuant to 19 U.S.C' $ the 1677a(c)(2), (19 C.F.R. $$ 24.23(bX1XA) and24.24(a)), Petitioners have deducted from U'S' pricing, where applicable, the following charges and expenses: ADJUSTMENT SOURCE EXHIBIT Doing Business in South Africa; Foreign inland freight Atts.4 and 5 Goosle Map ^D-Z^-L, Foreign brokerage and handling Doing Business in South Africa AD-ZL-lo ^tt.4 freight and International MAERSK, P.A,F. Insurance AD-ZA-L, insurance ^tt.7 U,S. merchandise processing and U.S. Customs Regulations Att.3 harbor maintenance fees ^D-ZL-1, U.S, Harmonized Tariff U.S. Customs duties AD-Z^ -1, Att. I Schedule Doing Business in the United U.S. brokerage and handling Att.6 States ^D-Z^-L, Doing Business in the United U.S. inland freight AD-ZA-L, Atts.5 and 6 States Imputed credit expenses Federal Reserve Bank Att.9 ^D-ZA-L, imposed by Mark-up U.S. Producers' Experience AD-ZA-1, distributor/importer ^tt.2 These adjustments and Petitioners' calculation of net export pricing are provided at Exhibit AD- ZA-I D. Normal Value 1. Normal Based on Construc ted Value The Department may also determine normal value based on constructed value (o'CV"), including the cost of manufacture, plus selling general and administrative expenses, and profit. see 1g u.s.c. s 1677b(a)Ø); lg c.F.R. $ 351.405, Petitioners do not have access to the actual production costs in South Africa of CAAS because such information is not publicly available' To calculate CV, therefore, Petitioners relied on the cost of production of representative U'S. producers of CAAS as the best information reasonable available. Petitioners have adjusted those in costs known differences between Petitioners' production operations and production operations -4- PUBLIC VERSION South Africa. See Exhibits AD-ZA-2 (U.S. Costs and Consumption Quantities), AD-ZA'3 (Costs in South Africa) and Exhibit (Normal Value). ^D-Z^'4 Specifically, Petitioners relied on the consumption of direct materials, labor, and energy recorded in normal operations by representative domestic producers of CAAS. See Exhibit AD- ZL-3. Petitioners adjusted actual U.S. costs by valuing the direct input quantities consumed using, where available, either import values from Trade Data Monitor ("TDM"),2 values from the 2020 edition of the World Bank's "Doing Business" series, or other sources. See Exhibit AD'Z^'4. Petitioners then calculated the sum of estimated costs for all direct inputs to calculate the cost of manufacture ("COM"). To the COM, Petitioners added amounts for overhead, selling, general, and administrative expenses, profit, and packing, in accordance with 19 U.S.C. $ r677b(e)(2)(B) and (eX3). See Exhibit AD-Z'A-4. Petitioners valued overhead, selling, general and administrative expenses, and profit using hnancial results for one producer of CAAS or comparable merchandise in South Africa. See Exhibit AD-ZA-4. E Antidumnins Dutv arsin Calculations Petitioners deducted the export price or constructed export price from normal value -- using CV as normal value -- to determine the dumping margin for the U.S. sales. This comparison results in dumping margins of 78.25 percent, ad valorem. See Exhibit AD'ZA'í. 2 Vy'here applicable for a particular target country, TDM values that were reported free on board ("F,O.8.") foreign port were adjusted to include "freight-in" to make values cost insurance freight ("C.LF.") port of importation.