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Fair Trade Update: Curtain Wall, Door Thresholds & Vietnam

Well, our year is off and running with a bang. Scope issues, Administrative Review, and circumvention top our list in early 2018.

This month we learned that there will be an appeal in the curtain wall scope case.  Permasteelisa and Jangho filed a notice of appeal last week.  It is expected that Yuanda will almost surely file their own notice of appeal by the deadline, which is February 12. The Chinese industry signaled that they would appeal in a recent article in US Glass magazine.   

Additionally, our scope challenge related to door thresholds continues to move forward.  This is a significant case because door thresholds are expressly mentioned as subject merchandise in our trade orders.  So, to lose this application could open the door to many applications clearly covered by our case.  Finally, we continue to await the judges’ (there are more than one judge at the CIT) decision in the appliance handles cases we defended last fall.  We believe we will win.  However, we are mostly i…
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Fair Trade Update: 2018 Preview

This month, our update is more forward looking than a review.  All eyes are on the 232 Investigation and what policy decisions will come from the President when the report is issued to him later this month. The AEC will issue a trade alert as soon as we hear anything in this regard.

This year, most of our Fair Trade efforts will be focused on trade enforcement.  For several months we have collected data and have collaborated with others in an effort to identify those that are working to evade duties through circumvention and transshipment schemes.  Members will see a series of announcements in this area in the coming weeks.  Just last week, the AEC filed a new circumvention petition on Chinese extrusions being circumvented through Vietnam.

Scope issues are still being pursued in the door threshold and curtain wall cases.  Last year’s decision in the curtain wall case in our favor maintains the Curtain Wall Coalition’s winning streak.  However, as we have learned by our past experience…

Heating Up & Settling Down: The Dichotomy of our Trade Case

The agenda for our trade case continues to be driven by transshipment/circumvention issues and the 232 Investigation.  Meanwhile, our ‘base case’ is so quiet that we’ve been able to free up budget dollars from the Administrative Review to finance our circumvention case against Vietnam.

The Administrative Review is now complete.  The final rates determined by the Department of Commerce are 86% for countervailing duty (CVD) and 16% for anti-dumping duty (AD).  The total of 102% is our highest rate since we first filed the case.

Scope issues have calmed down a lot.  In fact, only the curtain wall case, the appliance handles case, and door threshold cases are on the front burner.  Reports from the hearing for the curtain wall case were very positive.  The attorney leading that effort, David Spooner, is quite confident we will win this round.  Of course, we fully expect another appeal from the Chinese.  We are awaiting the decision from the judge in the appliance handle cases and believe w…

Closing the Year with a 232 Bang!

The Trump Administration's 232 Investigation into the national security implications of imported aluminum has roared back to life. Government agencies, elected officials, and industry leaders have restarted this investigation, which had been put on the back burner by the administration as they grappled with the new tax bill.  With the January 27, 2018 deadline for the Department of Commerce to issue its recommendations to the president nearing, we have a lot of work to do to press our case.
During a workshop at our Aluminum Summit in Denver in September we discussed the key issues, the threats from this action, and the opportunity.  It was overwhelming agreed that we owe it to our industry to stay involved.  So, over the coming weeks we will be finalizing our remedy and taking it to D.C. to make our case.  We aim to go back to all of the government agencies we visited this summer and to Capitol Hill where we enjoyed a lot of support for our position.  This is where you can help.  …

WOW! Did he say ‘Billion’?

The biggest news to hit the trade case came last month.  The Department of Justice (DOJ) filed a complaint against Perfectus seeking $1.5 Billion in unpaid duties for the fake pallets exported to the United States.  The DOJ didn’t pull any punches in their submission.  From the complaint, the DOJ stated, “Zhongtian Liu, a Chinese national, is the founder and chairman of China Zhongwang, one of the world’s largest industrial aluminum extrusion companies. Zhongtian Liu controls and is effectively the owner of Perfectus Aluminum, Inc. (“Perfectus”).  Between 2011 and at least 2014, Zhongtian Liu used Perfectus to illegally import more than 2.1 million aluminum “pallets” from China into the United States, as described in detail below.2 The “pallets” were manufactured by China Zhongwang and/or its affiliates and “sold” to Perfectus by several intermediary entities, including Dalian Liwang Trade Co., Ltd., Zhongwang Investment Group, and Yingkou Quianxiang Trading. Many of these intermediar…

It’s Been a Busy Summer

It has certainly been an interesting summer for our trade orders.  We have had several very favorable decisions in our case.  In fact, one might say we ‘ran the table’.  Here is a summary of those decisions.

At the end of June, the Department of Commerce (DOC) issued its preliminary decision in their Fifth Administrative Review of the duties being applied in our case.  In that decision the DOC established a new tariff level of 86% on the antidumping (AD) side, and 20% in the countervailing duty (CVD) case for a combined tariff of 106%.  This is nearly double what was calculated last year.  This is especially impactful in circumstances where kits are being imported.  Because the extrusions are the only item taxed in a kit, or say, a curtain wall unit, the other elements of the kit may be subsidized by the Chinese enough to offset the extrusion tariff on the extrusions.  We have every confidence that the DOC will stick with these numbers when they announce their final determination late…

Fair Trade Update: Running the Table

We couldn’t be happier to announce that the AEC has won its 6000-series alloyed pallet and 5050 alloy scope clarification/circumvention cases against Zhongwang and others.  Just last week, the Department of Commerce (DOC) ruled that 5050 alloyed extrusions will be subject to our orders regardless of producer, exporter, or importer.  Read the full details about the decision here.

Furthermore, the deadline has passed for any appeals on last month’s decision from the DOC on the fake pallets from Zhongwang.  These decisions, which come on the heels of our successful Sunset Review earlier this year, are tantamount to "running the table" this year!

Even so, threats still exist.  We continue to hear reports of possible circumvention and transshipment of extrusions into the U.S. from Vietnam and Malaysia.  Additionally, the Trump Administration’s decision to order a 232 Investigation into the impact of aluminum imports on national security could lead to tariffs on imports of primar…