The Aluminum Extruders Council (AEC) , through its Aluminum Extrusions Fair Trade Committee (AEFTC), filed a new circumvention petition against China Zhongwang Holdings Limited and its extensive network of affiliates with the Department of Commerce (DOC). The petition asks the Department to find that Chinese aluminum extrusions produced by Zhongwang that are converted in Vietnam before being exported to the U.S. are circumventing the antidumping (AD) and countervailing (CVD) duty orders on aluminum extrusions from China.
The AEFTC’s petition provides evidence that Zhongwang’s affiliate in Vietnam is changing the shape and form of these Chinese extrusions in minor ways, exporting them back to the U.S., and claiming the origin is Vietnamese in order to circumvent the orders. The petition is a country-wide allegation that would apply to other Vietnamese producers that also convert the circumvented Chinese aluminum extrusions before exporting to the U.S. According to the AEC, the evidence indicates that substantial quantities of Chinese aluminum extrusions are being shipped to Vietnam directly from China as well as from various transshipment points across the globe for conversion.
“This is an important step for our industry to continue the fight to close these transshipment and circumvention points and fully enforce the orders,” said Jeff Henderson, AEC president. “These blatant attempts to evade duties and flood the market with unfairly traded Chinese aluminum extrusions must be halted.”
The AEC has asked the DOC to make a quick decision, finding that all imports of aluminum extrusions from Vietnam that have been produced by insignificantly converting Chinese aluminum extrusions are circumventing the AD/CVD orders on aluminum extrusions from China and should be subject to the Chinese AD/CVD duties.
Zhongwang denied the accusations, stating, “For many years, Zhongwang has strictly complied with global trade rules and regulations related to its exports.”
Previously, the DOC determined that Zhongwang had been using heat-treated 5050 alloy grade aluminum extrusions (December 2016) and “pallets” made of series 6xxx aluminum alloy (June 2017) to circumvent AD/CVD duties. According to the AEC, Zhongwang shipped substantial quantities of these pallets to its affiliate in Vietnam, Global Vietnam Aluminum Co., Ltd, to continue to circumvent and evade the orders.
In March 2017, existing antidumping and countervailing duty orders on certain aluminum extrusions from China were extended, with existing AD/CVD duties kept in place.