Skip to main content

All Aboard! Here we Go!

Earlier this summer I suggested we were sitting in the eye of a storm.  With many decisions regarding our trade case on the horizon, we were busily preparing for the industry changing issues we were hurtling to confront.  Now, here we are.

Over the next few months, the AEC will be involved in topics ranging from circumvention of our orders by substituting 6xxx series alloy extrusions with a so-called 5xxx series alloy, to China’s attempt to be recognized as a market economy thus attaining full status at the World Trade Organization.  The good news is that we are ready, and confidence is high.

Many of you have responded to our trade alerts seeking field intelligence about 5xxx series alloy shipments and new shipments coming in from Vietnam.  Both go to the heart of our claims to the U.S. Department of Commerce (DOC) and the U.S. Customs and Border Patrol.  Your reports are fueling the very investigations that will bring these matters to a positive conclusion for us.  Please keep us informed of any new information you may have on these issues.  We can never have enough evidence!
Our ‘base case’ is in excellent shape.  Earlier this summer, the DOC announced its preliminary results of this year’s administrative review.  The good news is that the rates held at 80% for dumping and 26% for countervailing duties.  This combined rate of 106% is the highest duty we’ve seen since the original orders were issued.  The DOC will announce its final results this December.  We expect them to be very close to what they announced in their preliminary decision.  This year, the administrative review process takes a bit of a back seat to the real work in front of us:  our 5-year Sunset Review.
The Sunset Review is officially underway.  Unfortunately, the International Trade Commission did not decide to conduct an expedited review like the DOC did.  As a result, we will be issuing new workbooks out to members in the fall with data requested by the ITC.  We hope that it is not too much more onerous than what we submitted earlier this year, but we will have to wait and see.  This review appears to be largely focused on ‘like product’ arguments.  Basically, this is where a manufacturer petitions the ITC and asks that their product be excluded from our orders because it is a separate and unique product from extrusions.  We had two such challenges in our original filing.  One was about finished heat sinks and the other was about shower and bath enclosure extrusions.  In that hearing, the heat sink folks won their case, but the shower door manufacturers didn’t.  We will have to wait and see who comes forward this time.  The good news is that there does not appear to be any challenge to our base case.  So, we continue to believe our orders will be extended for another five years.  The data is clear.  Without these orders, our industry will suffer irrecoverable damages from an onslaught of Chinese extrusions.

Beyond these industry specific issues, which we will continue to fight, we have an eye on the macro issues impacting our industry.  Much was said during our spring meeting by extruders about the shrinking domestic aluminum primary market.  Concern was loudly expressed that we needed to do whatever we could to help those that are fighting to save the domestic industry.  So, we went to work this spring and summer to align ourselves with those that are pushing for the same goal.  We have done that by joining forces with the Manufacturers for Trade Enforcement, the China Trade Task Force, and the International Fair Trade Alliance.  Over the next few months, the World Trade Organization and governments all over the world will have to make a decision about whether or not to grant China market economy status.  There are two lines converging:  the free world’s push to force China to stop its policies that lead to over-production and China’s demand to be recognized as a market economy.  No two points could be more contradictory.  It seems impossible to us that China can claim it is market based when it continues to flood the world with products for which there is no market.  Therefore, it is important to the AEC that we help in any way we can to broadcast that point.

Because of the many issues we have Alan Price of Wiley Rein as our keynote speaker.  Alan is deeply involved in the WTO case and knows our industry very well.  I know you will find his presentation incredibly informative.  So, don’t forget to register, and when you do, take on that extra day.  On Thursday the 29th we will have our Hill Day and take our message directly to those that will write the laws we need.

See you in D.C.!

Jeff

Comments

Post a Comment

Popular posts from this blog

Victories and Struggles: Our Mission Persists

 On December 3, 2024, the U.S. Customs and Border Protection (CBP) took action in issuing a forced labor finding against Kingtom Aluminio S.R.L. (“Kingtom”).  This victory for U.S. extruders is a culmination of years of effort between the AEC and United Steel Workers (USW), which started with the initial Enforce and Protect Act (EAPA) allegation filed in 2019.  As a result of this finding, CBP has authorized all port directors to seize imports of aluminum extrusions from Kingtom.   For almost 15 years the Aluminum Extrusion Fair Trade Committee (AEFTC) has worked on a wide variety of trade activities.  In defending the China I case, the AEFTC has navigated the 232 Tariffs and has worked with other organizations on EAPA allegations, along with circumvention and transshipment issues.  Thank you to all who have contributed time and resources over the years!  However, there will be more work to do.  With a new administration and 2025 fast approa...

Section 232 Implications: Get the Latest

 Recently, the AEC released a detailed fact sheet outlining the implications of Section 232 tariffs on aluminum imports, available for review on our website here. This document underscores our ongoing commitment to transparency and informed decision-making within our member base. Previously, we updated the 232 Derivative Products List to include a comprehensive breakdown of HTSUS codes and product descriptions, aimed at providing clarity for our stakeholders accessible here . Additionally, The Bureau of Industry and Security (BIS) within the Department of Commerce established a formal process for the addition of aluminum products designated the USHTS codes. The first window for submission opened on May 1, 2025, and closed on May 15, 2025. After the posting and public comment period occurs the BIS will make a final determination within 60 days. In addition to these regulatory updates, the Trump Administratio...

The 232 Takes Center Stage

The 232 exclusion requests, objections, rebuttals and surrebuttals process continues with the U.S. Department of Commerce (DOC).  Since the exclusion process on aluminum extrusions restarted in June, AEC members have logged more than 500 objections and over 40 surrebuttals with the DOC.  While there have been a few very specific exclusion requests (i.e., hard alloy, seamless tube, etc.), objections have been limited to only one producing company.  As an industry, we have mounted a stellar defense with all exclusion requests receiving three or more objections from member companies.  At this point, there have yet to be any exclusion requests to make it to the final determination and we are hoping to have the first round of results to share at the Fall Management Conference .  However, if we do start to receive results before mid-September, we will make sure to communicate results as they are made available.  The number of 232 exclusion requests greatly decrea...