The US Department of Commerce announced on Tuesday preliminary countervailing duties on aluminum extrusions from China, Indonesia, Mexico and Turkey, citing unfair subsidies.
The DOC calculated countervailing duties from each country in the following ranges: imports from China at rates of 15.41% to 169.66%, imports from Indonesia at rates of 6.69% to 43.56%, imports from Mexico at rates of 1.68% to 77.80%, and imports from Turkey at rates of 1.45% to 147.53%.
The US Aluminum Extruders Coalition and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union were petitioners in the case.
Following the publication of a preliminary determination in the Federal Register in approximately one week, the DOC will instruct US Customs and Border Protection to begin suspending liquidation and collecting preliminary duties (in the form of cash deposits) on entries of aluminum extrusions from China, Indonesia, Mexico and Turkey.
In October 2023, the DOC initiated antidumping duty (AD) and countervailing duty (CVD) investigations of aluminum extrusions from the four countries, as well as AD investigations from Colombia, the Dominican Republic, Ecuador, India, Italy, the Republic of Korea, Malaysia, Taiwan, Thailand, United Arab Emirates and Vietnam.
The preliminary determinations are just the beginning of a broader investigation into the subsidy practices of these countries, it said.
The DOC said it is yet to investigate all potential subsidies thoroughly, including new allegations of subsidy and creditworthiness. The final determination, expected later this year, may adjust these rates, potentially increasing the financial burden on importers of aluminum extrusions from these countries.
“We are encouraged that the Commerce Department has taken preliminary action to remedy the unfair and illegal subsidization of aluminum 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.
“The widespread subsidization confirms that foreign governments are willing to provide meaningful and unfair support to boost aluminum extrusion exports, and it is, therefore, critical that Commerce continue to rigorously counter these harms to the US aluminum extrusion industry,” he added.
