US Commerce expands anti-circumvention inquiry into aluminium containers made with Chinese foil

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The U.S. Department of Commerce has expanded its anti-circumvention enforcement by launching new inquiries into disposable aluminium containers, pans, trays and lids assembled in Indonesia and Malaysia using Chinese-origin aluminium foil.

The country-wide investigations, initiated on August 6, 2026, are the latest step in Commerce's efforts to examine whether Chinese products are being routed through third countries to avoid U.S. antidumping and countervailing duties.

The inquiries were launched after the Aluminum Foil Container Manufacturers Association (AFCMA), together with member companies Reynolds Consumer Products, Durable Packaging International and D&W Fine Pack, filed circumvention allegations on July 1.

After reviewing supplemental information submitted by the petitioners, Commerce concluded that the requests met regulatory requirements and opened formal investigations covering the entire trade flow from Indonesia and Malaysia, rather than limiting the probe to individual companies.

A continuing series of enforcement actions

The latest inquiry follows a series of trade actions that began with the original case against Chinese aluminium container producers.

In 2024, Commerce launched material injury investigations into Chinese disposable aluminium container manufacturers. By March 2025, the agency had imposed antidumping duties of 287.8 per cent on unspecified Chinese entities and rates of 193.9 per cent on more than 20 named companies.

After the orders took effect, Commerce opened its first anti-circumvention inquiry in July 2025, covering disposable aluminium containers finished in Thailand and Vietnam using Chinese aluminium foil. Another circumvention inquiry followed in February 2026. The latest investigations into Indonesia and Malaysia suggest production has continued shifting to new manufacturing locations as Commerce broadened its enforcement efforts.

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Industry representatives say the latest move was expected. AFCMA's counsel, John Herrmann, said last year that the association would encourage Commerce to apply anti-circumvention rules aggressively to deter importers "considering hopping to additional third countries like Indonesia, Malaysia, and Taiwan" - closely reflecting the agency's latest action.

Allegations and possible retroactive duties

According to industry reporting, AFCMA alleges that facilities in Indonesia and Malaysia carry out limited processing, including assembling, stamping and rebranding disposable aluminium containers, while relying on Chinese-sourced aluminium jumbo rolls, intellectual property and container-forming equipment. Under U.S. anti-circumvention law, Commerce considers factors such as investment levels, research and development activity, and the proportion of value added in the third country to determine whether the manufacturing process is substantial enough to fall outside the scope of the original trade orders.

Commerce has also indicated that duties could be applied retroactively to shipments that entered the United States before the inquiries were formally announced. AFCMA has urged the agency to use this provision to discourage importers from accelerating shipments or relocating production before investigations begin.

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What comes next

Commerce will obtain U.S. Customs and Border Protection import data within five days to identify companies for further review. Liquidation of relevant entries will remain suspended, while cash deposit rates will be applied as though the products were already covered by the 2024 trade orders.

Preliminary determinations are expected within 150 days of publication, with final rulings due within 300 days, placing a decision around the middle of 2027.

The inquiries also form part of broader concerns over Chinese aluminium products entering the US through third-country transshipment. The Aluminum Association has separately raised concerns that Chinese aluminium sheet is being routed into the United States through Mexican beverage-can and beer producers.

The latest action also comes during a period of heightened volatility in global aluminium markets, with prices reacting to renewed Middle East shipping disruptions and naval activity affecting international supply chains.

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