Antidumping and Countervailing Petition on Aluminum Extrusions
On Nov. 17, the United States International Trade Commission (USITC) released its preliminary findings and announced the continuation of its antidumping (AD) and countervailing (CVD) final phase investigation on imports of aluminum extrusions from 14 countries. The AD investigation on imports from the Dominican Republic was terminated.
Background
On Oct. 4, 2023, the domestic aluminum industry – U.S. Aluminum Extruders Coalition, consisting of 14 domestic aluminum extrusions producers, and the United Steelworkers (USW) – filed an antidumping (AD) duty petition on imports of aluminum extrusions from:
- Colombia
- Dominican Republic
- Ecuador
- India
- Indonesia
- Italy
- Malaysia
- Mexico
- China
- South Korea
- Taiwan
- Thailand
- Turkey
- United Arab Emirates (UAE); and
- Vietnam
and a countervailing (CVD) duty petition on imports of aluminum extrusions from:
- China
- Indonesia
- Mexico; and
- Turkey.
The petition states that imports from these countries are being sold at less than fair value (“dumped”) into the U.S. market and subsidized, causing or threatening material injury to domestic producers.
According to the petition, imports of aluminum extrusions from these countries represented approximately 68% of U.S. imports of aluminum extrusions in the first half of 2023. This case is one of the largest investigations in recent years and expands on the scope of the existing AD and CVD order of aluminum extrusions from China.
Foreign Exporters and U.S. Importers
A list of named foreign producers and U.S. importers are linked below:
Alleged Dumping and Subsidy Rates
The alleged dumping rates are:
Country | Alleged Dumping Margins |
---|---|
China | 376.85% |
Colombia | 165.25% |
Dominican Republic | 28.29% |
Ecuador | 42.79 - 63.21% |
India | 39.05% |
Indonesia | 88.53% |
Italy | 41.67% |
Korea | 43.56% |
Malaysia | 25.89 - 27.51% |
Mexico | 76.68 - 82.03% |
Taiwan | 60.25 - 67.86% |
Thailand | 76.73% |
Turkey | 48.43% |
UAE | 42.29% |
Vietnam | 41.84% |
The alleged subsidy rates are:
Country | Alleged Subsidy Rates |
---|---|
China | Above de minimis* |
Indonesia | Above de minimis* |
Mexico | Above de minimis* |
Turkey | Above de minimis* |
*de minimis = less than 1% for developed countries, less than 2% for developing countries
AD and CVD Investigation Process
Antidumping occurs when a foreign producer or exporter sells a product in the U.S. at a price that is below “normal value” and “dumped.” Countervailing subsidies occurs when governments provide financial contributions that subsidize enterprises or industries to benefit the production, or exportation of goods.
The U.S. Department of Commerce (DOC) conducts an investigation to determine if imported goods are dumped and/or subsidized. The U.S. International Trade Commission (USITC) conducts a concurrent investigation to determine if the domestic industry is materially injured or threatened with material injury by these imports. Both agencies conduct a preliminary phase and if needed, a final phase.
Key Dates and Timeline
If the DOC and the USITC make preliminary affirmative determinations, U.S. importers will be required to post cash deposits in the amounts of the estimated AD and/or CVD duties for all entries on or after the dates of publication of the DOC’s preliminary determinations in the Federal Register.
The DOC will publish country-specific AD and CVD rates, likely based on individual rates calculated for the largest producers in each country. The preliminary AD and CVD rates can change in the final DOC determinations.
Event | AD Investigation | CVD Investigation |
---|---|---|
Petitions Filed | October 4, 2023 | October 4, 2023 |
Commerce Initiation Date | October 24, 2023 | October 24, 2023 |
ITC Preliminary Determinations* | November 20, 2023 | November 20, 2023 |
Commerce Preliminary Determinations | March 12, 2024 | December 28, 2023 |
Commerce Final Determinations | May 28, 2024 | March 12, 2024 |
ITC Final Determination** | July 12, 2024 | April 26, 2024 |
Issuance of Orders*** | July 19, 2024 | May 3, 2024 |
NOTE: Commerce’s preliminary and final determination deadlines are governed by statute. For CVD investigations, the deadlines are set forth in sections 703(b) and 705(a)(1) of the Tariff Act of 1930, as amended (the Act). For AD investigations, the deadlines are set forth in sections 733(b) and 735(a) of the Act. These deadlines may be extended under certain circumstances.
*USITC preliminary determination, Nov. 17, 2023.
** This will take place only in the event of a final affirmative determination from Commerce.
*** This will take place only in the event of final affirmative determinations from Commerce and the ITC.
Questions?
Please reach out to Angela Chiang if you have any questions or let us know if you are potentially impacted by these petitions.
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