Commerce Preliminarily Finds Some 5-Series Alloys Exempt From AD/CV Duties on Aluminum Extrusions
The Commerce Department recently issued its preliminary rulings in two much-anticipated scope disputes on aluminum extrusions, holding on March 14 that 5-series alloy extrusions with 1 percent magnesium content are not subject to antidumping and countervailing duties on aluminum extrusions from China (A-570-967/C-570-968). The agency said domestic industry’s claims that 5-series extrusions are merely an attempt to evade duties are better addressed in an anti-circumvention inquiry, which the agency initiated on the same day, according to a notice (here). Commerce also preliminarily determined to set importer certification requirements should it adopt its scope ruling as final.
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Commerce pointed to the scope’s specific exemption for “aluminum extrusions made from aluminum alloy with an Aluminum Association series designation commencing with the number 5 and containing in excess of 1.0 percent magnesium by weight,” as well as its instruction that duties cover “alloy series designations published by The Aluminum Association commencing with the numbers 1, 3, and 6.” Laboratory testing of the extrusions show that the alloys meet the written definition of the exemption, and cannot be found to be subject to duties by the plain language of the scope, said Commerce.
Trending Imports and Kota had requested the scope inquiries in late 2013, the former for 5050 alloy extrusions in the form of fences, and the latter for 5050 alloy extrusions mainly in the form of door stoppers. The Aluminum Extrusions Fair Trade Committee, which originally requested the duties, had argued these 5-series alloy extrusions were intentionally manipulated so that they are in all respects the same as covered 6-series extrusions, being soft enough to extrude unlike other 5-series extrusions. A group of congressmen had urged Commerce to find the 5-series extrusions are subject to duties, in a letter they sent the agency in 2014 (see 14091102).
According to Commerce, the purpose of the scope inquiries is to determine whether Trending and Kola’s products are within the scope of the aluminum extrusions orders, not to determine whether there has been a manipulation of in-scope merchandise. “Allegations that 5xxx series aluminum extrusions are actually chemically or mechanically manipulated 6xxx series extrusions which may circumvent the Orders might be an issue for consideration in an anti-circumvention proceeding," it said.
On the same day it issued the scope rulings, Commerce began an anti-circumvention inquiry to determine whether 5-series extrusions exported by China Zhongwang Holdings Ltd. and its affiliates are circumventing aluminum extrusions duties. The Aluminum Extrusions Fair Trade Committee had requested the anti-circumvention inquiry in January at the urging of Commerce (see 1601060023).
The inquiry will at first cover only heat treated 5-series products from Zhongwang, though Commerce intends to consider whether to expand the inquiry to all Chinese companies, it said. Commerce will examine whether “manipulation in chemical composition and tempering to create an aluminum extrusions product which technically meets the scope exclusion for 5xxx-series but behaves like in-scope 6xxx-series subject merchandise results in circumvention of the Orders as a minor alteration of in-scope merchandise.” Commerce may suspend liquidation and require cash deposits on merchandise covered by the inquiry if it finds circumvention in its preliminary determination.
Meanwhile, if Commerce continues to find 5-series extrusions from Kola and Trending Imports are not subject to AD/CV duties in its final scope ruling, the agency intends to impose importer certification requirements on importers of 5-series extrusions, it said in the preliminary ruling. The visual similarity between exempt 5-series extrusions and covered 6-series extrusions would raise “serious concerns about the potential for evasion of antidumping and countervailing duties,” said Commerce. Importers would not have to submit the certifications as part of entry documentation, but would have to provide them upon request by CBP. If they don’t, their entries would be subject to suspension of liquidation and cash deposit requirements, said Commerce.
Email ITTNews@warren-news.com for a copy of these scope rulings.