US Commerce Department uncovers four countries sold aluminium foil at unfairly low prices

On 28^th April 2021, the U.S. Department of Commerce declared its preliminary determinations has uncovered imports of aluminium foil from four countries are being sold at less than fair value (or “dumped”) in the United States. 

Subsequently, the department will instruct U.S. Customs and Border Protection (“CBP”) to require U.S. importers of certain aluminium foil from Armenia, Brazil, Oman, and Russia to deposit estimated antidumping duties at the time of importation.

Tom Dobbins, President and CEO of the Aluminum Association, said: “We are grateful for today’s decisions by the Commerce Department demonstrating Secretary Gina Raimondo’s and the Joe Biden administration’s commitment to addressing unfair trade.”

“Unfortunately, we are all too familiar with foreign producers pouring imports into the U.S. to capture market share previously held by Chinese producers in connection with successful unfair trade actions.  Today’s findings confirm that producers in Armenia, Brazil, Oman, and Russia relied on artificially low prices to increase rapidly aluminium foil exports to the United States, as unfairly traded imports from China withdrew from the market in connection with prior trade enforcement actions.  While we are disappointed in the Commerce Department’s preliminary finding on Turkey, we remain hopeful that the agency will reach an affirmative final determination later this year.”

The U.S. International Trade Commission (USITC) in March 2018 put together a united determination that U.S. producers were materially harmed by unfairly traded imports of aluminium foil from China, leading to duties on such imports. The unfair trade orders addressing U.S. imports of aluminium foil from China induced Chinese producers to transfer exports of aluminium foil to other international markets, while the producers of those markets in return rooted to increase significantly exports of their production to the United States.

Established on information accumulated to date, the US Commerce Department calculated preliminary antidumping margins as follows for the five countries subject to investigation are Armenia -188.84%, Brazil -13.87 to 63.05%, Oman - 4.03%,  Russia -62.18% and Turkey 0.00%.

The Commerce Department’s determination follows the agency’s announcement of its preliminary subsidy determinations on March 1, 2021, in which the agency determined that U.S. imports of aluminium foil from Oman and Turkey benefit from countervailing subsidies bestowed by the Governments of the Sultanate of Oman and Republic of Turkey.

There will be an opportunity for parties to submit briefs to the Commerce Department and to participate in hearings addressing the preliminary determinations.  Following these events, the Commerce Department will issue its final antidumping and countervailing determinations.  The Commerce Department is expected to issue its final determinations for the ongoing investigations in September 2021.  If the Commerce Department and U.S. International Trade Commission reach affirmative final determinations that are consistent with their preliminary determinations, imports of certain aluminium foil from Armenia, Brazil, Oman, Russia, and Turkey will be subject to increased duties – and the prospect of annual administrative reviews that will determine the specific level of duties applicable to future imports – for at least the next five years.

The certain aluminium foil subject to the Commerce Department’s investigation includes flat-rolled aluminium products that are 0.2 mm or less in thickness (less than 0.0079 inches) in reels weighing more than 25 pounds and that is not backed.  The determination does not cover etched capacitor foil or foil that has been cut to shape.  Certain aluminium foil is used extensively in food and pharmaceutical packaging, household foil, thermal insulation, cables, electronics, and heating, ventilation, and air conditioning (“HVAC”) applications and other heat transfer products where properties such as lightweight, resistance to corrosion, and formability are desired.