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CBP Says Aluminum Extrusion Importers Evaded AD Duties; Administrative Review Sought

Five aluminum extrusion importers evaded antidumping and countervailing duties on goods from China by commingling shipments in the Dominican Republic, CBP said in a Jan. 28 determination notice posted by the agency April 27. The finding is a result of an investigation that began following a 2019 allegation from the Aluminum Extrusions Fair Trade Committee (AEFTC) that the companies were evading AD/CV orders A-570-967 and C-570-968. The importers are Florida Aluminum Extrusion, Classic Metals Supplies, Global Aluminum Inc., H&E Home, Industrias Feliciano Aluminum Inc. JL Trading Corp. and Puertas y Ventanas J.M., Inc.

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The importers have filed requests for administrative review and a final CBP decision is due June 10, said Beth Ring, a lawyer at Sandler Travis who represents Industrias Feliciano Aluminum Inc., JL Trading Corp. and Puertas y Ventanas J.M., Inc. “We are hoping the final determination will be based on the 'substantial evidence in the record' that there are no Chinese aluminum extrusions being imported into the United States through the Dominican Republic.” Lawyers for the other companies didn't comment.

Much of the finding involves the role of Kingtom Aluminio SRL, a Dominican Republic company that was named as the manufacturer in several documents. The company's inability to "provide documents demonstrating which materials its paid suppliers provided the company and the discrepancies regarding who the actual suppliers are is evidence of evasion," CBP said. "Furthermore, the evidence on the administrative record shows that Kingtom is a Chinese-owned company, located in the Dominican Republic, run by Chinese workers, using large a number of Chinese supplies, Chinese equipment, and Chinese raw materials, which allows for potential transshipment or comingling of Chinese aluminum extrusions."

While it "was possible for Kingtom to produce aluminum extrusions in the Dominican Republic," CBP said the failure of the company to provide "accurate information" led the agency to its conclusion. "The fact that Kingtom was unable to produce all of the aluminum extrusions it sold during certain months and has strong ties to China all support a finding that Kingtom transshipped Chinese-origin aluminum extrusions."

As a result of the determination, "CBP will suspend or continue to suspend the entries subject to this investigation, until instructed to liquidate," it said. CBP will also evaluate the importers' continuous bonds and "continue to require single transaction bonds as appropriate," it said.

The Aluminum Extruders Council, which oversees the AEFTC, was pleased with the finding. The AEC "has once again identified illegal and unfair trade practices from a Chinese aluminum extrusion company," said Jeff Henderson, president of the AEC in an email in February, before the decision was posted by CBP. "As in other cases, AEC took action to address the issue. So, we are pleased to see this decision. This should put those that are considering illegally importing aluminum extrusions into the United States on notice that you will be caught, and you will be punished.”