Commerce Department issues affirmative preliminary countervailing duty determination on Chinese aluminum foil

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U.S. Secretary of Commerce Wilbur Ross has announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of aluminum foil from the People’s Republic of China, preliminary finding that Chinese exporters of aluminum foil received countervailing subsidies 16.56 to 80.97 percent.

The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of aluminum foil from China based on these preliminary rates.

“The United States is committed to free, fair and reciprocal trade and will continue to validate the information provided to us that brought us to this decision,” Ross says. “The Trump administration will not stand idly by as harmful trade practices from foreign nations attempt to take advantage of our essential industries, workers and businesses.”

Commerce calculated preliminary subsidy rates of 28.33 percent ad valorem for Dingsheng Aluminum Industries (Hong Kong) Trading Co. Ltd. and 16.56 percent for Jiangsu Zhongji Lamination Materials Co. Ltd., the two companies that ultimately participated in the proceeding.

Loften Aluminum (Hong Kong) Ltd. refused to participate in this investigation. Manakin Industries LLC claimed to only be an importer; however, the Commerce Department says its analysis revealed that Manakin Industries LLC and Suzhou Manakin Aluminum Processing Technology Co. Ltd. (Suzhou Manakin) worked jointly to export Chinese aluminum foil to the United States. In addition, the department requested necessary information from Suzhou Manakin regarding its Chinese suppliers, but this information was not provided. All three of these companies’ preliminary subsidy rates were thus determined entirely on the basis of adverse facts available because of their failure to provide necessary information requested, the Commerce Department says.

In 2016, imports of aluminum foil from China were valued at an estimated $389 million.

This marks the first time that The Aluminum Association Trade Enforcement Working Group has been a petitioner in an enforcement and compliance trade case.

This countervailing duty case against aluminum foil from China is independent of the Aluminum 232 investigation, launched April 27, 2017, to consider whether aluminum overcapacity, dumping, illegal subsidies and other factors threaten American economic security and military preparedness, the Commerce Department notes.

Unless the final determination is postponed, the Commerce Department is scheduled to announce its final CVD determination Oct. 24, 2017.

If it makes an affirmative final determination of subsidization and the U.S. International Trade Commission (ITC) makes an affirmative final injury determination, the Commerce Department will issue a CVD order. However, if the Commerce Department makes a negative final determination of subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.