New Trade Cases Filed for Aluminum Extrusions from 15 Countries, Promising Additional Complexity and Liability for More Importers

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Oct. 5, 2023
By: David G. Forgue

As many importers are aware (often to their surprise and disappointment), there are long-standing AD/CVD cases against aluminum extrusions from China. The cases have been very difficult for importers to navigate, since they relate to a manufacturing process, rather than specified products. New products that are produced by that process seem to arise every week.

On October 4, 2023 a new petition was filed that could spread this joy to importers from 14 other countries while also adding more products to the coverage from China. The petition covers imports from China, Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates, and Vietnam. All of the countries have antidumping claims against them, while Indonesia, Mexico, China, and Turkey also have CVD claims.

So, what would be covered? Hold on tight, because it’s a LOT. Summarized, the proposed scope is:

• aluminum extrusions, regardless of form, finishing, or fabrication
• whether assembled with other parts or unassembled
• whether coated, painted, anodized, or thermally improved
• aluminum extrusions are shapes and forms, produced by an extrusion process
• made from aluminum alloys having metallic elements corresponding to the alloy series designations published by the Aluminum Association commencing with the numbers 1, 3, and 6 (or proprietary equivalents or other certifying body equivalents) (with more detail about chemistry for different designations)
• country of origin of the aluminum extrusion is determined by where the metal is extruded (i.e., pressed through a die)
• extrusions that are drawn subsequent to extrusion (drawn aluminum) are also included in the scope
• the types of coatings and treatments applied to aluminum extrusions include, but are not limited to, extrusions that are mill finished (i.e., without any coating or further finishing), brushed, buffed, polished, anodized (including brightdip), liquid painted, electroplated, chromate converted, powder coated, sublimated, wrapped, and/or bead blasted
• aluminum extrusions may also be fabricated, i.e., prepared for assembly, or thermally improved. Such operations would include, but are not limited to, extrusions that are cut-to-length, machined, drilled, punched, notched, bent, stretched, stretch-formed, hydroformed, knurled, swedged, mitered, chamfered, threaded, and spun
• Performing such operations in third countries does not otherwise remove the merchandise from the scope of the investigation
• merchandise that is comprised solely of aluminum extrusions or aluminum extrusions and fasteners, whether assembled at the time of importation or unassembled, is covered by the scope in its entirety
• the scope also covers aluminum extrusions that are imported with non-extruded aluminum components beyond fasteners, whether assembled at the time of importation or unassembled, that are designed to be a part or subassembly of a larger product or system (only the aluminum extrusion portion of the merchandise described in this paragraph, whether assembled or unassembled, is subject to duties)
• the scope also includes aluminum extrusions that have been further processed in a third country, including, but not limited to, the finishing and fabrication processes described above, assembly, whether with other aluminum extrusion components or with non-aluminum extrusion components, or any other processing that would not otherwise remove the merchandise from the scope if performed in the country of manufacture of the in-scope product
• although HTSUS codes are NOT deciders of scope, the petition does list roughly 125 tariff codes as being potentially subject to this proposed Order

That’s a LOT. There are also exclusions from the proposed scope that may be relevant if Order are issued. They are:

• assembled merchandise containing non-extruded aluminum components beyond fasteners that is not a part or subassembly of a larger product or system and that is used as imported, without undergoing after importation any processing, fabrication, finishing, or assembly or the addition of parts or material, regardless of whether the additional parts or material are interchangeable
• specific products of designations commencing with 2, 5, or 7 with specific chemistry properties
• aluminum alloy sheet or plates produced by means other than the extrusion process, such as aluminum products produced by a method of continuous casting or rolling. Cast aluminum products are also excluded. The scope also excludes unwrought aluminum in any form
• certain collapsible tubular containers
• certain rectangular wire
• any product covered by the current China extrusions case.

With respect to products from China, it seems likely that some products that are currently not in scope could be in the scope of the new petition. Specifically, the “finished goods kits” that have been found to be out of scope appear likely to be in-scope under this proposed language.

With respect to next steps and timing, the filing of the petition is the very earliest step in an AD/CVD case. Following the regulatory guidelines for investigations, the next step will be the Department of Commerce to initiate (or not) an investigation by October 24, 2023. Assuming it is initiated the International Trade Administration should make its preliminary injury findings by about November 18, 2023. For any countries for which there is a positive injury determination Commerce would issue its preliminary findings on dumping around March 12, 2024 (although this date will almost certainly be extended). A final Order, if issued, would likely be in the Fall of 2024.

Do not hesitate to contact any attorney at Barnes, Richardson & Colburn, LLP if you have any questions about antidumping timing, scope, or impact on your business. We can help you track the case, evaluate your potential liability, and start planning to mitigate impact.