U.S. Dept. Of Commerce Slams Duties On Chinese Extrusion Imports To U.S. September 01, 2010

 FACT SHEET

Commerce Preliminarily Finds Countervailable Subsidization of Aluminum

Extrusions from the People’s Republic of China

 

On August 31, 2010, the Department of Commerce (Commerce) announced its affirmative

preliminary determination in the countervailing duty (CVD) investigation of imports of aluminum

extrusions from the People’s Republic of China (China).

 

 

Additionally, Commerce has determined not to investigate the alleged undervaluation of China’s

currency, the RMB, as a countervailable subsidy because the Petitioners’ allegation did not meet

the statutory standard for initiating an investigation. Commerce’s decision was reached after

careful study of the multi-faceted and complex allegation in this case.

 

 

 

For the purposes of CVD investigations, subsidies are financial assistance from foreign

governments that benefit the production, manufacture, or exportation of goods.

 

 

 

Commerce preliminarily determined that Chinese producers/exporters have received

countervailable subsidies ranging from 6.18 percent to 137.65 percent ad valorem.

 

 

 

As mandatory respondents Liaoyang Zhongwang Aluminum Profile Co. Ltd./Liaoning Zhongwang

Group (collectively, the Zhongwang Group Companies), Miland Luck Ltd., and Dragonluxe

Limited, did not respond to the Department’s request for information, each received a preliminary

adverse facts available (AFA) net subsidy rate of 137.65 percent ad valorem.

 

 

 

Two voluntary respondents, Guang Ya Aluminum Industries Co., Ltd., Foshan Guangcheng

Aluminum Co., Ltd., Guang Ya Aluminum Industries (Hong Kong) Ltd., Kong Ah International

Company Limited, and Yongji Guanghai Aluminum Industry Co., Ltd. (collectively, the Guang Ya

Companies) and Zhaoqing New Zhongya Aluminum Co., Ltd., Zhongya Shaped Aluminum HK

Holding Ltd, and Karlton Aluminum Company Ltd. (collectively, the Zhongya Companies)

received preliminary net subsidy rates of 6.18 and 10.37 percent ad valorem, respectively.

 

 

 

All other Chinese producers/exporters received a preliminary net subsidy rate of 137.65 percent ad

valorem.

 

 

 

As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border

Protection to collect a cash deposit or bond based on these preliminary rates.

 

 

 

The petitioners for this investigation are: The United Steel, Paper and Forestry, Rubber,

Manufacturing, Energy, Allied Industrial and Service Workers International Union (PA) and the

Aluminum Extrusions Fair Trade Committee (representing member companies from Ohio,

Minnesota, Florida, Georgia, California, Utah, Maryland, Illinois, and Texas).

 

 

 

The merchandise covered by this investigation is certain aluminum extrusions which are shapes

and forms produced via an extrusion process of aluminum alloys. The major alloying elements in

the subject merchandise are manganese, magnesium, and silicon. These products are generally

 

U.S. Department of Commerce

 

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International Trade Administration

used in construction applications and are incorporated into window and door frames and sills,

gutters, and solar power frames. They serve as parts for cars, trucks and both structural and

decorative elements on boats. They also serve as furniture parts and in a variety of other consumer

and industrial goods.

 

 

Imports of the subject merchandise are provided for under the following categories of the

Harmonized Tariff Schedule of the United States (“HTS”): 7604.21.0000, 7604.29.1000,

7604.29.3010, 7604.29.3050, 7604.29.5030, 7604.29.5060, 7608.20.0030, and 7608.20.0090. The

subject merchandise entered as parts of other aluminum products may be classifiable under the

following additional Chapter 76 subheadings: 7610.10, 7610.90, 7615.19, 7615.20, and 7616.99 as

well as under other HTS chapters. While HTS subheadings are provided for convenience and

customs purposes, the written description of the scope in this proceeding is dispositive.

 

 

 

From 2007 to 2009, imports of aluminum extrusions from China increased 90 percent by volume.

In 2009, imports of aluminum extrusions were valued at an estimated $514 million.

 

NEXT STEPS

 

 

Commerce is currently scheduled to make its final determination in November 2010.

 

 

If Commerce makes an affirmative final determination, and the U.S. International Trade

Commission (ITC) makes an affirmative final determination that imports of aluminum extrusions

from China materially injure, or threaten material injury to, the domestic industry, Commerce will

issue a CVD order. The ITC is scheduled to make its final injury determination on or about

December 30, 2010.

 

PRELIMINARY SUBSIDY RATES:

PRODUCER/EXPORTER SUBSIDY

RATE

Liaoyang Zhongwang Aluminum Profile Co. Ltd./Liaoning Zhongwang Group

(collectively, the Zhongwang Group Companies

 

)

137.65%

Miland Luck Ltd. 137.65%

Dragonluxe Limited 137.65%

Guang Ya Aluminum Industries Co., Ltd., Foshan Guangcheng Aluminum Co.,

Ltd., Guang Ya Aluminum Industries (Hong Kong) Ltd., Kong Ah International

Company Limited, and Yongji Guanghai Aluminum Industry Co., Ltd.

(collectively, the Guang Ya Companies)

6.18%

Zhaoqing New Zhongya Aluminum Co., Ltd., Zhongya Shaped Aluminum HK

Holding Ltd, and Karlton Aluminum Company Ltd. (collectively, the Zhongya

Companies)

10.37%

All Others 137.65%

*

 

 

de minimis

= less than 1% for developed countries, less than 2% for developing countries.

U.S. Department of Commerce

 

|

International Trade Administration

CASE CALENDAR:

EVENT DEADLINE

Petitions Filed March 31, 2010

DOC Initiation Date April 20, 2010

ITC Preliminary Determination May 17, 2010

DOC Preliminary Determination August 30, 2010

DOC Final Determination November 15, 2010

ITC Final Determination* December 30, 2010

Issuance of Orders** January 6, 2011

*This will take place only in the event of final affirmative determinations from Commerce.

**This will take place only in the event of final affirmative determinations from Commerce and the ITC.

IMPORT STATISTICS:

CHINA 2007 2008 2009

Volume (in metric tons) 101,000 81,000 192,000

Value (US$1,000) 369,197 306,824 513,553

Source: U.S. Bureau of Census, accessed through Global Trade Atlas. (HTSUS 7604.21.0000, 7604.29.1000, 7604.29.3010,

7604.29.3050, 7604.29.5030, 7604.29.5060, 7608.20.0030, and 7608.20.0090). The subject merchandise entered as parts of other

aluminum products may also be classifiable under the following additional Chapter 76 subheadings: 7610.10, 7610.90, 7615.19,

7615.20, and 7616.99. These other HTSUS subheadings may include significant amounts of non-subject merchandise and, therefore,

have not been used for purposes of reporting import statistics in the above table.

 

 

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