Skip to main content

Growing Threat From Vietnam, Malaysia

For those of you who attended last month’s Annual Meeting & Leadership Conference, you are well aware of the growing threats we are seeing in the market.  While our own case continues to hold up nicely, there are a variety of issues involving trade enforcement that are becoming the front-and-center issue of our trade orders.  To that end, our lead attorney, Robert DeFrancesco, discussed the opportunities that may arise from the new administration.  Afterwards, we participated in our annual Town Hall and discussed these growing threats and how we may be able to approach Washington with the hope of more help.

Story after story from the members in attendance discussed the increased shipments from Vietnam and Malaysia, and their impact in certain markets.  For many of us, it sounded like “deja vu all over again”!  However, we do have a variety of options, and in the weeks to come we will be exploring those options.  With the new administration beginning to discuss trade and trade policy, we seek to be a part of that discussion in order to address these challenges sooner rather than later.

Aside from trade enforcement, there are other key issues awaiting decisions.  We expect a final determination from the Department of Commerce (DOC) regarding the 5050 alloy circumvention case.  In its preliminary decision, the DOC ruled this as a circumvention scheme.  We fully expect them to stay the course in their final determination due to be released soon.  Also, we filed another scope clarification about the so-called pallets.  In this round we are asking the DOC to call the 6000-series alloyed extrusions in these chunks of aluminum as covered by our orders.  We are confident they will do so.

The fifth administrative review is coming to an end, and there is only one company that has responded.  With the sixth administrative review slated for early summer, it will be interesting to see how the DOC reacts if NO Chinese companies come forward.  If that is the case, it creates a great argument for us that the duties are obviously too low, or else companies would be coming forward to seek a lower rate.  We’ve used this in the past, but in the next round it may be more persuasive.

Be sure to keep up to date on developments on our website, AECFairTrade.org.

Thank you for your continued support!

Comments

Popular posts from this blog

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…

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…

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…