US DOC finds subsidization on aluminum extrusions from China

Posted by tjdetai on December 22nd, 2015

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On August 31st 2010, the US Department of Commerce announced its affirmative preliminary determination in the countervailing duty investigation of imports of aluminum extrusions from the People's Republic of China.

Additionally, Commerce has determined not to investigate the alleged undervaluation of China's currency, the RMB as a countervailable subsidy because the Petitioners' allegation did not meet the statutory standard for initiating an investigation. Commerce's decision was reached after careful study of the multi-faceted and complex allegation in this case.

For the purposes of CVD investigations, subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

Commerce preliminarily determined that Chinese producers or exporters have received countervailable subsidies ranging from 6.18% to 137.65% ad valorem.

As mandatory respondents Liaoyang Zhongwang Aluminum Profile Company Limited or Liaoning Zhongwang Group, Miland Luck Limited and Dragonluxe Limited, did not respond to the Department's request for information, each received a preliminary adverse facts available net subsidy rate of 137.65% ad valorem.

Two voluntary respondents, Guang Ya Aluminum Industries Company Limited, Foshan Guangcheng Aluminum Company Limited, Guang Ya Aluminum Industries Limited, Kong Ah International Company Limited and Yongji Guanghai Aluminum Industry Company Limited and Zhaoqing New Zhongya Aluminum Company Limited, Zhongya Shaped Aluminum HK Holding Limited and Karlton Aluminum Company Limited received preliminary net subsidy rates of 6.18% and 10.37% ad valorem respectively.

All other Chinese producers or exporters received a preliminary net subsidy rate of 137.65% ad valorem.

As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.

The petitioners for this investigation are: The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and the Aluminum Extrusions Fair Trade Committee.

The merchandise covered by this investigation is certain aluminum extrusions which are shapes and forms produced via an extrusion process of aluminum alloys. The major alloying elements in the subject merchandise are manganese, magnesium and silicon. These products are generally US Department of Commerce | International Trade Administration used in construction applications and are incorporated into window and door frames and sills, gutters and solar power frames. They serve as parts for cars, trucks and both structural anddecorative elements on boats. They also serve as furniture parts and in a variety of other consumer and industrial goods.

Imports of the subject merchandise are provided for under the following categories of the Harmonized Tariff Schedule of the United States: 7604.21.0000, 7604.29.1000, 7604.29.3010, 7604.29.3050, 7604.29.5030, 7604.29.5060, 7608.20.0030, and 7608.20.0090. The subject merchandise entered as parts of other aluminum products may be classifiable under the following additional Chapter 76 subheadings: 7610.10, 7610.90, 7615.19, 7615.20 and 7616.99 as well as under other HTS chapters. While HTS subheadings are provided for convenience and customs purposes, the written description of the scope in this proceeding is dispositive.

From 2007 to 2009, imports of aluminum extrusions from China increased 90% by volume. In 2009, imports of aluminum extrusions were valued at an estimated USD 514 million.

Commerce is currently scheduled to make its final determination in November 2010.

If Commerce makes an affirmative final determination and the US International Trade Commission makes an affirmative final determination that imports of aluminum extrusions from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue a CVD order. The ITC is scheduled to make its final injury determination on or about December 30th 2010.

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