Commerce Department Finds Common Alloy Aluminum Sheet from China Benefiting from Government Subsidies
ARLINGTON, VA -- Today, the U.S. Department of Commerce announced its preliminary determination that imports of common alloy aluminum sheet from China are benefiting from unfair government subsidies in connection with the agency’s on-going countervailing duty investigation. As a result, the agency will instruct U.S. Customs and Border Protection (“CBP”) to require U.S. importers of common alloy aluminum sheet from China to deposit estimated countervailing duties at the time of importation.
“The Aluminum Association and its members are pleased with the Commerce Department’s preliminary findings of subsidies and commend Secretary Ross’s leadership in self-initiating this investigation to vigorously enforce the U.S. trade laws,” said Heidi Brock, President and CEO of the Aluminum Association. “This is an important first step to begin restoring a level playing field for U.S. aluminum sheet production. Products that are subsidized by the Chinese government and sold at unfairly and unlawfully low prices create imbalance in a market where the most competitive producers of common alloy sheet – particularly producers in the United States – are at a significant disadvantage.”
Based on information gathered to date, the Commerce Department calculated preliminary subsidy margins ranging from 31.20 to 113.30 percent of the value of the imported common alloy aluminum sheet. In particular, the Commerce Department calculated subsidy margins of 34.99 and 31.20 percent, respectively, for Henan Mingtai Al Industrial Co., Ltd. and its affiliates and Yong Jie New Material Co., Ltd. and its affiliates, which the Department selected for mandatory, company-specific investigation.
In addition, the Commerce Department assigned a preliminary subsidy margin of 113.30 percent to shipments of common alloy aluminum sheet by Chalco Ruimin Co., Ltd. and Chalco-SWA Cold Rolling Co., Ltd., which the agency found to be uncooperative, as they failed to participate to the best of their ability in the investigation after being selected as mandatory respondents.
Finally, the Department calculated a subsidy margin of 33.10 percent for all other Chinese producers and exporters that cooperated in the Department’s investigation, but were not selected for individual investigation.
The next step in this trade action will be the Commerce Department’s issuance of its preliminary antidumping duty determination, which is scheduled to be announced in June. If an affirmative preliminary antidumping determination is issued by the Commerce Department, U.S. importers will be required to post cash deposits or bonds on all entries of common alloy aluminum sheet from China in the amount of the subsidy and dumping margin calculated by the agency.
The Aluminum Association Trade Enforcement Working Group is represented in these actions by John M. Herrmann, Paul C. Rosenthal, Kathleen W. Cannon, and Brooke M. Ringel of the law firm Kelley Drye & Warren LLP.