In a much-awaited ruling, the U.S. Department of Commerce (DOC) announced yesterday, June 14 that the so-called “aluminum pallets” imported from China to USA, made of 6xxx-series aluminium alloy are covered by the scope of their antidumping and countervailing duty orders. The ruling will cover all Chinese exporters and producers that export similar fake pallets to USA. The Aluminum Extruders Council (AEC) expressed their pleasure at the Department’s decision, which would coverall such fake semis.
{alcircleadd}The DOC’s decision states:
“Finally, we agree with the petitioner that the scope ruling should be applied to all extruded aluminum profiles from the PRC consisting of series 6xxx aluminum alloy which are cut-to-length and welded together in the form of a pallet, regardless of producer or exporter. We also note that our analysis above is not contingent on any specific company, but rather, focuses on the description of the product at issue provided by the petitioner. “
The statement also cited China Zhongwang and its fast growing affiliate network which may create opportunities to evade the duty orders. That is the reason they said the order would not be specified to any company but would cover all 6xxx series pallets, regardless of any producer or exporter from the PRC.
In December 2016, the DOC declared that Zhongwang’s so-called pallets are aluminium extrusions made of 1xxx alloy, cut-to-length and welded together in the form of a pallet to disguise the form. They are very much subjected to the existing antidumping and countervailing duty orders on aluminium extrusions from China. In March 2017, the AEC requested DOC to expand its finding to include the 6xxx pallets. The recent decision marked the validity of their allegations.
Commenting on the decision, Henderson, President of the Aluminum Extruders said, “With the DOC’s preliminary ruling identifying heat-treated 5050 alloyed extrusions as a circumvention scheme, and today’s decision addressing the fake pallet issues, the AEC is bolstered in its efforts to work with the Department of Commerce to address all forms of circumvention, transhipment, and scope violations.”
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Alan Price, head of the Trade Practice Group at Wiley Rein LLP, said, “We are very gratified by the victory today.” “Since the orders have been in place, Chinese producers have engaged in an effort to evade the antidumping and countervailing duty orders on aluminum extrusions,” he added.
According to media reports, Customs and Border Protection (CBP) has been investigating if Zhongwang’s affiliated importers have intentionally evaded antidumping and countervailing duties by importing these fake pallets. Mr. Price expected this decision to help in the CBP investigations.
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