On November 18, 2015, twelve U.S. Senators authored a letter to U.S. Department of Commerce Secretary Penny Pritzker and U.S. Customs and Border Protection (CBP) Commissioner Gil Kerlikowske requesting that the agencies fully enforce the existing antidumping (AD) and countervailing duty (CVD) orders on aluminum extrusions from China. The bipartisan group of Senators includes: Sherrod Brown (D-OH), Rob Portman (R-OH), Chuck Schumer (D-NY), Debbie Stabenow (D-MI), Kirsten Gillibrand (D-NY), Jeff Merkley (D-OR), Bob Casey (D-PA), Ron Wyden (D-OR), Claire McCaskill (D-MO), Lindsey Graham (R-SC), Chuck Grassley (R-IA), and David Perdue (R-GA).

The letter states: “[w]e have heard from U.S. companies that Chinese producers are evading the AD and CVD orders and denying American producers the relief the trade cases should have afforded.”  The Senators went on to highlight two tactics they understand Chinese producers and their U.S. affiliates are using to evade the orders.  The first tactic involves welding aluminum extrusions into “pallets” in order to avoid the AD and CVD duties.  The letter states that the “pallets” are too small and not strong enough to be used as commercial-grade pallets and the frames of these “pallets” appear to be aluminum extrusions that are covered by the orders but have simply been welded together in a pallet shape.  The letter also addresses a second evasion tactic where Chinese producers and exporters appear to be avoiding the duties by making minor additions to the alloy content of the aluminum.

Additionally, the Senators reference a petition submitted by the domestic aluminum industry requesting a scope clarification and an anti-circumvention inquiry to address the alleged duty evasion and circumvention.  The letter concludes by emphasizing the importance of strong enforcement of AD and CVD orders and urging the Department of Commerce and CBP to act on the domestic industry’s petition with expediency.

If you have questions about antidumping duties, countervailing duties or the enforcement of such duties, please contact Frohsin & Barger at 205.933.4006 ext. 5.