Under the the five-year (sunset) review process, the U.S. International Trade Commission (USITC) determined that revoking the existing antidumping and countervailing duty orders on certain aluminum extrusions from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. Therefore, the Commission elected to keep current trade orders regarding the import of these products from China will remain in place.
The Commission’s public report Certain Aluminum Extrusions from China (Inv. Nos. 701-TA-475 and 731-TA-1177 (Review), USITC Publication 4677, March 2017) will contain the views of the Commission and information developed during the reviews. The report will be available as of April 17, 2017, as which time it may be accessed on the USITC website.
Background
In 2006, the Aluminum Extruders Council (AEC) began to organize a trade case regarding the import of aluminum extrusions from China following dumping concerns from U.S. extruders. In 2010, consistent with their evaluation that China had moved aggressively to dominate the U.S. extrusion market via unfair trace practices, the AEC filed the trade case.
Preliminary findings of the case were upheld in 2011, when the USITC, by a vote of 6-0, reached an affirmative determination that dumped and subsidized imports of aluminum extrusions from China are a cause of material injury to the domestic aluminum extrusion industry. This clears the way for the imposition of antidumping and countervailing duty orders in May 2011, which will remain in effect for at least five years. The ITC also determined, by a vote of 4-2, that there is a separate industry producing “finished heat sinks,” and that this industry is not materially injured or threatened with material injury by reason of imports from China. Thus duty orders will exclude “finished heat sinks.” The determination was the result of a petition filed March 31st by the Aluminum Extrusions Fair trade Committee, which was represented by King & Spalding.
The Uruguay Round Agreements Act requires the Department of Commerce (DOC) to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the DOC and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (DOC) and of material injury (USITC) within a reasonably foreseeable time.
The Commission’s institution notice in five-year review requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the DOC.
The five-year (sunset) reviews concerning Certain Aluminum Extrusions from China were instituted on April 1, 2016.
Industry Response
The AEC commended the USITC for their unanimous vote today to extend the existing trade orders, noting that the orders have allowed the domestic aluminum extrusion industry to increase production, market share, and employment and have truly brought the domestic industry back from near extinction. Domestic extrusion capacity, production, and employment have continued to increase since the orders have been put in place. Production increased from 848,569 short tons in 2009 to over 1.3 million short tons in 2015. The number of production workers increased from 9,793 in 2009 to over 15,000 in 2015.
“These figures are just some of the indicators that the orders have been effective and evidence that profitability has returned and stabilized in the domestic aluminum extrusion industry. None of this would have been possible without the relief provided by the orders,” said Jeff Henderson, president of the AEC. “We are gratified by the Commission’s vote finding that revocation of the antidumping and countervailing duty orders on aluminum extrusions from China would likely lead to the continuation or recurrence of material injury within a reasonably foreseeable time.”