As a recent development in the case regarding circumvention of antidumping and countervailing duties by China Zhongwang, on Friday, the U.S. Department of Commerce determined through preliminary investigation that Zhongwang used heat-treated 5050 alloy aluminium extrusions to avoid duties, a press release from Aluminum Extruders Council confirms.
DOC concluded that this alloy grade was never intended to be used in extrusion applications and that it was an activity targeted at avoiding higher duties.
Commenting on the determination, Alan H. Price, counsel to the Petitioners and chair of Wiley Rein’s International Trade Practice said, “We are gratified by Commerce’s preliminary determination to take steps to shut down what has been a significant avenue of circumvention for Zhongwang and other Chinese producers.”
Mr. Price indicated that China Zhongwang “once again refused to participate in this proceeding.” According to him, the petitioner’s evidences showed that Zhongwang began circumventing the duties through various counterfeiting means as soon as the orders went into effect.
“The Department’s determination is a step in the right direction to correct Zhongwang’s blatant attempts to cheat and evade the orders,” Mr Price added.
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“The AEC is pleased to see this decision from the Department of Commerce, said Jeff Henderson, President of the Aluminum Extruders Council, which made a petition to the Commerce for investigating the matter. “We know Commerce has worked hard on this case, and we thank them for that.”
U.S. Department of Commerce preliminarily determined that 5050 alloy aluminium extrusions are circumventing the antidumping (AD) and countervailing (CVD) orders on Aluminium Extrusions from China. This is regardless of producer, exporter, or importer. The 5050-grade alloy is a rolling alloy and is not used as an extrusion. The alloy must be heat-treated to be used as an extrusion, and this is not a fair practice for this alloy. The Department found that 5050 aluminium alloy extrusions were developed solely with the purpose of evading the AD and CVD duties as this product did not exist in the market during the time of the petition.
Commerce has applied its ruling on a country-wide basis to all Chinese producers and exporters to rule out any unfair practice by the Chinese producers. According to the preliminary determination Customs and Border Protection will suspend liquidation and collect cash deposits on 5050 aluminium alloy extrusions imported by the U.S. on or after March 21, 2016. The final verdict on the circumvention would be out by January 9, 2017.
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