The US Department of Commerce said Tuesday it had made an affirmative preliminary determination that imports of certain aluminum foil from China are benefiting from countervailable government subsidies.
As a result of the decision, Commerce will instruct US Customs and Border Protection to collect cash deposits based on the preliminary margins from all US companies found importing Chinese aluminum foil.
Commerce said it found countervailable subsidy rates of 16.56% for Jiangsu Zhongji Lamination Materials Co. Ltd.; 28.33% for Dingsheng Aluminum Industries (Hong Kong) Trading Co. Ltd.; 80.97% for Loften Aluminium (Hong Kong) Limited and Manakin Industries LLC; and 22.45% for all other Chinese producers and exporters.
The countervailing duty investigations began March 28 at the request of the US Aluminum Association's Trade Enforcement Working Group, and the period of investigation is January 1, 2016, through December 21, 2016. On April 21, the US International Trade Commission made a preliminary determination that the country's industry was threatened with injury.
Concurrently, Commerce is investigating preliminary antidumping duties, with the determination date recently extended until October 4.
As a result of the petition filing, Commerce is investigating 26 different subsidy programs maintained by the Chinese government.
Commerce assigned the highest rate of countervailing duties to Loften Aluminium and Manakin Industries because the companies "did not cooperate to the best of their abilities to comply with the request for information in this investigation" and "withheld necessary information that was requested of them," Commerce said in the prepared Federal Register notice.
Subject to Commerce's investigation are all imports from China of aluminum foil that is less than 0.2 mm in thickness (less than 0.0078 inch) in reels weighing more than 25 lb and that is not backed, etched for use in capacitors, or cut to shape.
The Aluminum Association, in a statement, applauded Commerce's decision.
"This is an important step to begin restoring a level playing field for US aluminum foil production, an industry that supports more than 20,000 direct, indirect and induced American jobs, and accounts for $6.8 billion in economic activity," said Heidi Brock, president and CEO of the Aluminum Association. "US aluminum foil producers are among the most competitive producers in the world, but they cannot compete against products that are subsidized by the Chinese government and sold at unfairly low prices."
