On Tuesday, March 5, the US Department of Commerce announced the implementation of preliminary countervailing duties on aluminium extrusion imports from China, Indonesia, Mexico, and Turkey, claiming to protect the business of domestic extrusion manufacturers.
For each country, the Department of Commerce has levied different duties depending on the category of products they offer. For instance, the duty rate for China ranges between 15.41 per cent and 169.66 per cent, for Indonesia ranges between 6.69 per cent and 43.56 per cent, for Mexico between 1.68 per cent and 77.8 per cent, and for Turkey between 1.45 per cent and 147.53 per cent.
The US DOC has imposed the preliminary countervailing duties following the petition signed by the US Aluminum Extruders Coalition and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
The US Department of Commerce will instruct US Customs and Border Protection to begin collecting duties after a preliminary determination is published in the Federal Register in about a week.
In October 2023, the US Department of Commerce initiated antidumping and countervailing duty investigations into aluminium extrusion imports from these four countries. These preliminary duties are just the beginning of a broader inquiry into the subsidy practices of these countries.
More investigations will follow to determine potential subsidies, including new allegations of subsidy and creditworthiness. The final countervailing duties are expected to be imposed later this year, with changes in tariff rates.
“We are encouraged that the Commerce Department has taken preliminary action to remedy the unfair and illegal subsidization of aluminium extrusions from China, Indonesia, Mexico and Turkey,” said Robert E. DeFrancesco, trade counsel to the petitioners and a partner in the International Trade Practice at Wiley Rein LLP.
He added, “The widespread subsidization confirms that foreign governments are willing to provide meaningful and unfair support to boost aluminium extrusion exports, and it is, therefore, critical that Commerce continue to rigorously counter these harms to the US aluminium extrusion industry.”
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