Skip to main content

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 primary aluminum.  There may be a way for us to address the circumvention issues via the 232 Investigation and avoid misguided policies that would place tariffs on primary aluminum imports.

In other news, the DOC has launched the 6th Administrative Review of our orders.  This is the process by which Commerce reviews existing tariff levels and determines if any changes need to be made.  At this stage of the review, the DOC will be sending notices to Chinese aluminum extruders that export to the U.S. asking them for their most recent production and sales data.  Last month we reported that the preliminary decision in the 5th Administrative Review announced new, and higher rates. They will announce their final decision around Christmas.  If they stay with their preliminary announcements, the new rates will be a combined 106%.

Our industry has invested tremendous resources in this case.  We should all take a moment to reflect on how far we’ve come, and how successful we have been.  Given our recent successes, we have plenty to celebrate.

Comments

Popular posts from this blog

Chinese Extrusion Transshipments through Vietnam

In recent months there have been a growing number of reports about aluminum extrusions being imported into the United States from Vietnam.  This recent spike comes at a time when the AEC is watching such reports and import data very carefully.  Given the current policies of the Government of China to export their way out of their self-created overcapacity problems, the AEC is becoming more concerned about the prospect of transshipments from Chinese extruders through Vietnam.

AEC members are asked to contact Jeff Henderson with any reports gathered from the field regarding Vietnamese extrusions coming into the U.S.  All reports will be treated in strict confidence.  It must be determined whether or not there is a pattern in what is being imported.  This pattern could appear in end use markets being targeted, names of the companies exporting product from Vietnam, types of extrusions and finishing, etc.

So, please let Jeff know what you are seeing in the field.  He can be reached at 847.…

Special Report: Details Behind the China Zhongwang Case Filing

As noted in our post from October 23, the Aluminum Extruders Council filed a Circumvention and Scope Clarification case against China Zhongwang (ZW).  Mounting evidence from private investigators, testimony from former employees, data from online import and export databases, and anecdotal evidence from a variety of reporters and other sources made it quite clear that ZW has consistently and systematically been exporting aluminum extrusions that are simply welded together into what are essentially aluminum slabs.  While they claim these so-called ‘deep-processed’ extrusions are aluminum pallets, there is no evidence that ZW or any of its U.S. based operations market such a product.  It is simply incomprehensible that a company would export hundreds of millions of pounds of these extrusions into the U.S. without even marketing them.

The feedback we’ve received so far indicate that ZW intends to do with these extrusions what they have done in Mexico and Vietnam with similar schemes: sen…

Circumvention Has Become Biggest Issue with AEC Fair Trade

Our trade case continues to be extremely active, especially with the big news generated from the Dupre Analytics report.  There are several issues to report that are changing with each week.

Administrative Reviews The Department of Commerce (DOC) has still not published the preliminary results from the 3rd annual administrative review. As you may recall, the rates published in June were incomplete and contained a major error.  The DOC says they will come out with those rates in October, but it is looking like they may not do that, and instead, just publish their final numbers in December.
The fourth administrative review has begun.  The DOC is selecting mandatory respondents now.  They rejected our request to select ZhongWang (ZW).  Their reasoning is that ZW is not the exporter of record in the trade data, so they can’t justify selecting them.  Therefore, it is likely we will see some of the same Chinese extruders we’ve seen before.

Scope Issues We lost a couple of decisions involv…