Department of Commerce initiates circumvention investigation on 5050 Alloy Extrusions

The U.S. Department of Commerce (DOC) last Tuesday issued its long-awaited circumvention decision in the Aluminum Extruders’ petition against China Zhongwang. The DOC decided that while 5050 alloyed aluminum extrusions are not expressly covered by the scope of its orders, it initiated an anti-circumvention investigation to determine whether imports of 5050 alloyed extrusions have been circumventing the AD/CVD duties.

The Department concluded that, “based on the information provided by Petitioner, the Department finds there is sufficient basis to initiate an anti-circumvention inquiry, pursuant to sections 781(c) and 781(d) of the Act.

The Department will determine whether the merchandise subject to the inquiry (identified in the “Merchandise Subject to the Anti-Circumvention Inquiry” section above) involves either a minor alteration to subject merchandise in such minor respects that it should be subject to the Orders,and/or represents a later-developed product that can be considered subject to the Orders.

The Department will not order the suspension of liquidation of entries of any additional merchandise at this time. However, in accordance with 19 CFR 351.225(l)(2), if the Department issues a preliminary affirmative determination, we will then instruct U.S. Customs and Border Protection to suspend liquidation and require a cash deposit of estimated duties, at the applicable rate, for each unliquidated entry of the merchandise at issue, entered or withdrawn from warehouse for consumption on or after the date of initiation of the inquiry.”

Jeff Henderson, Director of Operations for the Aluminum Extruders Council (AEC) said, “We applaud the DOC’s decision to initiate an anti-circumvention investigation. We look forward to the industry receiving relief from this duty evasion scheme.”