The Aluminum Extruders Council filed a new petition with the US Department of Commerce on Tuesday, asking it to find certain Chinese-produced aluminum extrusions converted in Vietnam to be subject to existing US antidumping and countervailing duties.
The extrusions in question are those produced by China Zhongwang Holdings Limited and its affiliates.
In June 2017, Commerce found that some 6xxx series aluminum extrusions were subject to existing antidumping and countervailing duties on extrusions from China. According to the AEC, after the decision, Zhongwang began shipping pallets into Vietnam before exporting them to the US, avoiding American duties.
"The Aluminum Extrusions Fair Trade Committee's petition provides evidence that Zhongwang's affiliate in Vietnam is changing the shape and form of these Chinese extrusions in minor ways and exporting them back to the United States and claiming the origin is Vietnamese, to circumvent the orders," the AEC said in a statement.
The AEC's petition includes Vietnam-based producers that follow similar practices.
"The petition is a country-wide allegation that would apply to other Vietnamese producers that also convert the circumvented Chinese aluminum extrusions before exporting to the United States. The evidence suggests that substantial quantities of Chinese aluminum extrusions are being shipped to Vietnam directly from China as well as from various transshipment points across the globe for conversion," the AEC said.
In December, the council recommended a 100% tariff on all Chinese aluminum imports as a remedy to the ongoing Section 232 investigation, calling China "the greatest risk to the future of the US aluminum industry."
Commerce initiated antidumping and countervailing duty investigations for imports of common alloy and aluminum sheet products coming from China on November 30, the first time since 1991 that Commerce has self-initiated this kind of investigation.
Commerce also issued affirmative preliminary determinations for countervailing and anti-dumping investigations on aluminum foil from China, finding countervailing subsidy rates between 16.56-80.97% and dumping margins of 96.81-162.24%.
Aside from ongoing investigations into Chinese products, Commerce is also in the midst of the Section 232 investigation, which aims to determine if aluminum imports threaten national security. The probe could result in the introduction of tariffs, duties or other measures. Speculation arose recently that a decision is forthcoming, causing the Platts US Midwest Premium to tick up, reaching 9.75 cents to start the week.
