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AD/CV: China Aluminum Extrusions

The International Trade Administration has initiated an antidumping duty investigation to determine whether imports of aluminum extrusions from China are being, or are likely to be, sold in the U.S. at less than fair value; and a countervailing duty investigation to determine whether manufacturers, producers, or exporters of aluminum extrusions in China receive countervailable subsidies.

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The ITA has also determined to delay its decision on a currency undervaluation allegation in the CV duty investigation. (See note below.)

Comments on CV Respondent Selection Due May 4

For the CV duty investigation, the ITA expects to select respondents based on U.S. Customs and Border Protection data for U.S. imports during the period of investigation. The ITA invites comments regarding the CBP data and respondent selection in the CV duty investigation by May 4, 2010.

Comments on Scope of AD/CV Investigations Due May 10

Comments on the scope of all of the AD and CV duty investigations are due by May 10, 2010. (See scope below.)

Comments on Product Characteristics for AD Questionnaires Due May 10

The ITA is requesting comments from interested parties regarding the appropriate physical characteristics of aluminum extrusions to be reported in response to the AD questionnaires. This information will be used to identify the key physical characteristics of the subject merchandise in order to more accurately report the relevant factors and costs of production, as well as to develop appropriate product comparison criteria.

Comments on product characteristics to be reported in response to AD questionnaires must be submitted by May 10, 2010. (Rebuttal comments are due by May 17, 2010.)

AD Q&V Questionnaires Due May 11

For the AD duty investigation, the ITA will request quantity and value (Q&V) information from all known exporters and producers identified with complete contact information in the AD petition. The Q&V data received will be used as a basis to select the mandatory respondents.

Q&V questionnaires will be available at http://www.trade.gov/ia/. Completed questionnaires are due by May 11, 2010.

AD Separate Rate Applications Due June 28

The ITA also requires exporters and producers seeking separate rate status in the China AD duty investigation to submit a separate rate application no later than June 28, 2010. The separate rate application will be available at http://www.trade.gov/ia/.

The ITA requires that the respondents submit a response to both the Q&V questionnaire and the separate rate application by the respective deadlines in order to receive consideration for separate rate status.

The ITA will also calculate combination rates for certain respondents that are eligible for a separate rate in this investigation.

Comments on Targeted Dumping Due July 23

Any interested party that wishes to make a targeted dumping allegation in the AD investigation may submit allegations by July 23, 2010 (i.e., no later than 45 days before the scheduled date of the ITA’s preliminary determination).

(Note that in December 2008, the ITA issued an interim final rule for the purposes of withdrawing the regulations governing targeted dumping analysis in AD duty investigations. See ITT's Online Archives or 12/15/08 and 01/15/09 news, (Ref: 08121525) and (Ref: 09011535), for BP summaries of the interim final rule and extension of the comment period.)

Scope of the AD/CV Investigations

The merchandise covered by these investigations is aluminum extrusions which are shapes and forms, produced by an extrusion process, made from aluminum alloys having metallic elements corresponding to the alloy series designations published by The Aluminum Association commencing with the numbers 1, 3, and 6 (or proprietary equivalents or other certifying body equivalents).

Specifically, the subject merchandise made from aluminum alloy with an Aluminum Association series designation commencing with the number 1 contains not less than 99 percent aluminum by weight. The subject merchandise made from aluminum alloy with an Aluminum Association series designation commencing with the number 3 contains manganese as the major alloying element, with manganese accounting for not more than 3.0 percent of total materials by weight. The subject merchandise made from an aluminum alloy with an Aluminum Association series designation commencing with the number 6 contains magnesium and silicon as the major alloying elements, with magnesium accounting for at least 0.1 percent but not more than 2.0 percent of total materials by weight, and silicon accounting for at least 0.1 percent but not more than 3.0 percent of total materials by weight.

The subject aluminum extrusions are properly identified by a four-digit alloy series without either a decimal point or leading letter. Illustrative examples from among the approximately 160 registered alloys that may characterize the subject merchandise are as follows: 1350, 3003, and 6060.

Aluminum extrusions are produced and imported in a wide variety of shapes and forms, including, but not limited to, hollow profiles, other solid profiles, pipes, tubes, bars, and rods. Aluminum extrusions that are drawn subsequent to extrusion (drawn aluminum) are also included in the scope.

Aluminum extrusions are produced and imported with a variety of finishes (both coatings and surface treatments), and types of fabrication. The types of coatings and treatments applied to subject aluminum extrusions include, but are not limited to, extrusions that are mill finished (i.e., without any coating or further finishing), brushed, buffed, polished, anodized (including bright-dip anodized), liquid painted, or powder coated. Aluminum extrusions may also be fabricated, i.e., prepared for assembly. Such operations would include, but are not limited to, extrusions that are cut-to-length, machined, drilled, punched, notched, bent, stretched, knurled, swedged, mitered, chamfered, threaded, and spun. The subject merchandise includes aluminum extrusions that are finished (coated, painted, etc.), fabricated, or any combination thereof.

Subject aluminum extrusions may be described at the time of importation as parts for final finished products that are assembled after importation, including, but not limited to, window frames, door frames, solar panels, curtain walls, or furniture. Such parts that otherwise meet the definition of aluminum extrusions are included in the scope. The scope includes aluminum extrusions that are attached (e.g., by welding or fasteners) to form subassemblies, i.e., partially assembled merchandise.

Subject extrusions may be identified with reference to their end use, such as heat sinks, door thresholds, or carpet trim. Such goods are subject merchandise if they otherwise meet the scope definition, regardless of whether they are finished products and ready for use at the time of importation.

Exclusions from the scope. The following aluminum extrusion products are excluded: aluminum extrusions made from aluminum alloy with an Aluminum Association series designations commencing with the number 2 and containing in excess of 1.5 percent copper by weight; aluminum extrusions made from aluminum alloy with an Aluminum Association series designation commencing with the number 5 and containing in excess of 1.0 percent magnesium by weight; and aluminum extrusions made from aluminum alloy with an Aluminum Association series designation commencing with the number 7 and containing in excess of 2.0 percent zinc by weight.

The scope also excludes finished merchandise containing aluminum extrusions as parts that are fully and permanently assembled and completed at the time of entry, such as finished windows with glass, doors, picture frames, and solar panels. The scope also excludes finished goods containing aluminum extrusions that are entered unassembled in a kit. A kit is understood to mean a packaged combination of parts that contains, at the time of importation, all of the necessary parts to fully assemble a final finished good.

The scope also excludes aluminum alloy sheet or plates produced by other than the extrusion process, such as aluminum products produced by a method of casting. Cast aluminum products are properly identified by four digits with a decimal point between the third and fourth digit. A letter may also precede the four digits. The following Aluminum Association designations are representative of aluminum alloys for casting: 208.0, 295.0, 308.0, 355.0, C355.0, 356.0, A356.0, A357.0, 360.0, 366.0, 380.0, A380.0, 413.0, 443.0, 514.0, 518.1, and 712.0. The scope also excludes pure, unwrought aluminum in any form.

HTS classification. Imports of the subject merchandise are provided for under the following categories of the Harmonized Tariff Schedule: 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.

The ITA notes that while HTS subheadings are provided for convenience and customs purposes, the written description of the scope of the investigations is dispositive.

- ITA's preliminary AD duty determination due by 09/07/10

-ITA’s preliminary CV duty determination due by 06/24/10

-International Trade Commission's prelim AD/CV injury determinations due 05/17/10

John Hollwitz (AD) (202) 482-2336
Patricia Tran (CV)(202) 482-1503

ITA AD notice (FR Pub 04/27/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-9743.pdf

ITA CV notice (FR Pub 04/27/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-9742.pdf

ITA fact sheet available at http://ia.ita.doc.gov/download/factsheets/factsheet_prc-alum-extr-ad-cvd-init-042110.pdf

BP Note

The petitioners in the CV duty investigation allege that the Government of China intervenes in the foreign exchange market by buying dollars and artificially bidding up their value to ensure that the renminbi (RMB)/dollar exchange rate understates the value of the RMB vis a vis the dollar, which is similar to an allegation currently under consideration in the pending coated paper CV duty investigation from China.

The ITA states that at this time, given the unique nature of the alleged subsidy and the complex methodological issues that it raises under the CV duty law, it has determined that additional study of the allegation is appropriate before a decision may be made.

(See ITT’s Online Archives or 03/01/10 news, (Ref: 10030120), for BP summary of a Senate letter urging Commerce to consider the currency manipulation allegation in the coated paper investigation.

See ITT’s Online Archives or 04/05/10 news, (Ref: 10040505), for BP summary of the Treasury’s delay of its report to Congress on China’s currency intervention.)