global-trade-and-supply-chain
December 11, 2023

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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