Aluminum Association Files Petition for New AD/CV Duties on Aluminum Foil From China
The Aluminum Association filed a petition on March 8 with the Commerce Department and International Trade Commission requesting new antidumping and countervailing duties on aluminum foil from China. Commerce will now decide whether to begin AD/CVD investigations on aluminum foil that could eventually result in the assessment of AD/CV duties. "We did not come to this decision lightly, but felt that action was needed not only to address the acute challenge facing the foil market but also to signal the industry’s continued commitment to ensuring that trade laws are enforced to create a level playing field for domestic producers," said Heidi Brock, CEO of the association, in an email (here).
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The petition is the first request for AD/CV duties ever filed by the association, it said in a press release (here). It alleges AD rates ranging from 38% to 134%, and that "Chinese producers benefit from 27 separate government subsidy programs." The duties would "apply to aluminum foil that is used in a variety of consumer and industrial applications. Specific uses include household foil, flexible and semi-rigid cookware, product packaging, automotive and HVAC heat exchangers, among other common uses," the Aluminum Association said. “Surging imports of unfairly low-priced aluminum foil from China have devastated pricing in the U.S. market and caused severe injury to the domestic industry,” said John Herrmann, of Kelley Drye, the petitioner’s trade counsel.
The petition is part of a multipronged fight on aluminum overcapacity, said Brock. "We’ve paved the way for multi-country cooperation on World Customs Organization reclassification petitions; and we’ve formed a cross-industry coalition opposing China’s bid for market economy status to name just a few concrete actions," she said. The United Steelworkers offered support of the petition in a news release (here). "This case should be coupled with a broader effort to eliminate unfair trade in aluminum products and across other industries," the group said. "However, until our government finds other avenues to stand up for workers, there is no choice but to use the tools we have. Today's case is a vital part of that effort.”
Proposed Scope
The petition proposes the following scope for the investigations:
“The merchandise covered by this investigation is aluminum foil having a thickness of 0.2 mm (0.00787 inches) or less, in reels exceeding 25 pounds, that is not backed, etched for use in capacitors, or cut to shape. Where the nominal and actual measurements vary, a product is within the scope if application of either the nominal or actual measurement would place it within the scope based on the definitions set forth above. The products under investigation are currently classifiable under Harmonized Tariff Schedule subheadings 7607.11.3000, 7607.11.6000, 7607.11.9030, 7607 .11.9060, 7607.11.9090, and 7607.19.6000. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive." ​
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due by March 28.
Email ITTNews@warren-news.com for a copy of the petition.