Commerce Department Finds China Sold Aluminum Foil At 49 To 107 Percent Less Than Fair Value
Last Monday, the U.S. Department of Commerce announced that it will impose penalties on aluminum foil imported into the United States from China. The department determined that exporters from China sold aluminum foil in the United States at 48.64 percent to 106.09 percent less than fair value. It also found China is providing unfair subsidies to its producers of aluminum foil at rates of 17.14 to 80.97 percent.
As a result, the Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of aluminum foil. According to American Metal Market (AMM, subscription required), Commerce will levy a country-wide anti-dumping rate of 106.09 percent for Chinese foil. It also set separate rate of 84.94 percent for cooperative respondents in the anti-dumping investigation.
As the department explained, the final step in this case is for the United States International Trade Commission's (ITC) to determine whether imports from China are a cause of material injury or threaten to materially injure domestic producers of certain aluminum foil. The ITC is scheduled to make that determination on or about April 12, 2018.
In a statement last March at the outset of the Commerce Department’s investigation, Metals Service Center Institute President and CEO Bob Weidner said, “This petition sets an important precedent for attaining the goal of fair and free trade for the entire industrial metals supply chain. As the Aluminum Association has argued, this case is a vital step in addressing Chinese overcapacity. In testimony last fall before the U.S. International Trade Commission, MSCI called for tougher government action to halt unfair and illegal trade practices by China, including currency manipulation, that have harmed the U.S. aluminum industry.”