The Commerce Department deferred issuing a preliminary determination this week in its antidumping duty investigation of imports of Chinese aluminum foil, citing that more time is needed to analyze China’s non-market economy status.
The Commerce Department on Thursday said it will “defer” issuing a preliminary determination in its antidumping duty investigation of imports of Chinese aluminum foil.
The department said it needs the additional time to “fully analyze information” related to China’s status as a non-market economy (NME) country.
“In all cases, the department conducts a full and fair assessment of the facts,” Commerce Secretary Wilbur Ross said in a statement. “This extension will ensure that the highest standards are followed in this case as we seek to guarantee fair treatment for U.S. workers and businesses.”
Dumping occurs when a foreign company sells a product in the United States at less than its fair value.
The Aluminum Association Trade Enforcement Working Group, a coalition of U.S. aluminum foil producers, filed the petition on March 9 to seek relief from the effects of dumped, as well as subsidized aluminum foil on the U.S. industry.
According to Commerce, more than 230 Chinese companies are identified in the petition. The estimated dumping margins range from 38.40 percent to 140.21 percent.
In 2016, imports of aluminum foil from China were valued at $389 million.
Commerce expects to issue its preliminary determination in its antidumping investigation, including a decision on China’s NME status, by Nov. 30. A final determination will be made 75 days after this preliminary decision, unless postponed at a later date, the department said.
“While a delay on an issue of this importance is disappointing, we understand and appreciate the Commerce Department’s decision,” said Heidi Brock, president and CEO of the Aluminum Association.
“We remain very confident in the strength of our case and were heartened by the Commerce Department’s preliminary decision over the summer on countervailing duties,” she added. “Ultimately, a positive outcome here will be good news for the U.S. aluminum foil industry which supports more than 20,000 total American jobs, and accounts for $6.8 billion in economic activity – not to mention the broader cause of enforcing a rules-based global trading system.”
In August, the Commerce Department announced a preliminary determination that imports of certain types of imported foil were benefiting unfairly from Chinese government countervailable subsidies. As a result of the preliminary subsidy decision, U.S. importers of aluminum foil from China are now required to deposit at the time of import estimated countervailing duties ranging from 16.56 to 80.97 percent of the value of the imported aluminum foil. Commerce is investigating 26 different subsidy programs maintained by the Government of China.
In addition, Commerce initiated an investigation earlier this year into the effects of the rapidly changing aluminum industry on U.S. national security. The so-called “Section 232” investigation, which is part of the 1962 Trade Expansion Act, will consider overcapacity, dumping, illegal subsidies, and other factors to determine whether aluminum imports threaten American economic security and military preparedness. Section 232 gives the president broad powers to adjust aluminum imports, including through the use of tariffs.
U.S. delays Chinese aluminum antidumping determination
