US finds subsidised imports of disposable aluminium containers from China hurt the domestic market

The United States Department of Commerce has reportedly found that government subsidies are giving a lot of undue benefits to domestic companies importing disposable aluminium containers, pans, trays, and lids from China. This, in turn, is causing an unfair trading environment for indigenous producers, requiring them to compete with artificially low prices in the market.

So, the Commerce Department has decided to instruct US Customs and Border Protection (CBP) to impose countervailing duties on the products at the time of importation.

The Commerce Department has also proposed this duty be implemented retroactively, meaning importers who procured disposable aluminium containers from China 90 days before the publication of the department’s preliminary determination notice in the Federal Register would have to pay tariffs.

Extending a lot of appreciation to the department’s preliminary determination, Paul Cobb, President of the Aluminium Foil Containers Manufacturers Association, said: “We appreciate the Commerce Department’s preliminary finding that disposable aluminium containers from China benefit from unfair government subsidies and thank the Department for its work on this important investigation.”

He added, “This determination is an important step in ensuring that U.S. producers of disposable aluminium containers can compete on a level playing field against imports from China – not foreign governments.”

The determination comes after a countervailing and antidumping investigation started in early June 2024, targeting the imports of disposable aluminium containers from China. Based on the information gathered, the Department of Commerce has calculated preliminary subsidy margins for Chinese producers of disposable aluminium containers. For instance, margins for Zhejiang Acumen Living Technology Co., Ltd. are 312.91 per cent and for Henan Aluminium Corporation 78.12 per cent.

In the next step, the department will issue a preliminary antidumping determination scheduled on December 20, 2024.