Dept. of Commerce Findings on 5000 Series Alloy Imports. November 08, 2016

Last Friday, the Department of Commerce preliminarily determined that Zhongwang used heat-treated 5050 alloy grade aluminum extrusions to avoid duties.  In its determination, Commerce concluded that this alloy grade was never intended to be used in extrusion applications and that Zhongwang had engaged in this activity solely to avoid duties. 

In response to the Department’s preliminary determinations, Alan Price, counsel to the Petitioners and head of Wiley Rein LLP trade group, said that “we are gratified by the Department of Commerce’s preliminary determination to take steps to begin to shut down what has been a significant avenue of circumvention for Zhongwang and other Chinese producers.”

Mr. Price indicated that “regardless of what it has said publicly, rather than address the Commerce’s concerns, Zhongwang once again refused to participate in this proceeding.”  The evidence provided by Petitioners showed that almost as soon as the orders went into effect, Zhongwang began circumventing the duties through this and other schemes.  “Zhongwang has no interest in participating at Commerce and has instead looked for ways to exploit the system from the beginning.  The Department’s determination is a step in the right direction to correct Zhongwang’s blatant attempts to cheat and evade the orders.” 

“The AEC is pleased to see this decision from the Department of Commerce.  We know Commerce has worked very hard on this case, and we thank them for that,” said Jeff Henderson, President of the Aluminum Extruders Council.

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