Skip to main content

Scope of AEC Orders Gets Major Win

As you know, the success of the AEC’s trade orders against the Chinese aluminum extrusion industry has been built on the scope of our orders.  The AEC orders cover aluminum extrusions including fabricated, finished, and even kitted products as long as the merchandise in question does not make a final complete product.  This scope has enabled us to protect end uses such as curtain wall, door thresholds, window and door kits, and a whole range of products extruders routinely produce.  However, in 2016 the Department of Commerce decided in the side mount valve case that ‘final and finished’ must include sub-assemblies.  This decision caused a shift in the DOC’s views about which products would be covered by our orders.  Consequently, we saw solar mounting systems, as well as several tube, pipe, and pole products be excluded from our case.  This also breathed life into more scope challenges as importers saw a chance to get their sub-assemblies excluded as well.  One such product that fell into this category was appliance handles.

Appliance handles were deemed covered by the orders originally, but manufacturers appealed that decision claiming that because the handles contained end caps they must be considered a final and finished product.  Like in other cases, we won this case in the courts.  However, what made this decision even more important than others was the basis of the judge’s decision.  The United States Court of Appeals for the Federal Circuit decided that an extruded product cannot be excluded simply because the kit in which it is sold contains other parts.  The court ordered the DOC to go back and clarify ‘Final and Finished’ product with the court decision in mind.  The AEC sent a team to meet with Commerce to discuss the courts order and explained how we had seen our very purposeful scope be watered down in the last administration.  We were told that the DOC was already reviewing how it was interpreting scopes, in our case and others, and the orders from the judge gave them a chance to codify those changes.

Well, the DOC released its language on this matter and it is very favorable to us.  Therefore, we have a real opportunity to re-visit earlier decisions to see if we can challenge earlier rulings.  This is a big deal for us.  Time and again I hear from extruders that see business returning after these types of decisions (I’ve seen it the other way, too!).  So, as we look at earlier losses we will analyze the reason we lost and see if the new language from this court decision and Commerce’s recent comments apply.  We will also need to determine if the market opportunity for industry is worth the expense to fight the past decisions.  I am sure there will be many we will want to fight. This is the big development for us in the last month. 

Elsewhere, we just received the preliminary results for the 7th Administrative Review and, as expected, our current duty rates will remain unchanged.  Commerce is scheduled to issue the final results of the 7th Administrative Review on August 16. 2019. Trade enforcement efforts continue, especially in the curtain wall space.  However, there is nothing I can publicly report this month. 

So, in summary, the case continues to go well for us, and it seems clear we actually made up for a little lost ground in light of the scope decisions we’ve won.  Thank you for your continued support!

Comments

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...