U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Common Alloy Aluminum Sheet from 18 Countries
For Immediate Release
March 31, 2020
Contact: Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether common alloy aluminum sheet (aluminum sheet) from Bahrain, Brazil, Croatia, Egypt, Germany, Greece, India, Indonesia, Italy, Oman, Republic of Korea (Korea), Romania, Serbia, Slovenia, South Africa, Spain, Taiwan, and Turkey is being sold in the United States at less than fair value, and to determine if producers in Bahrain, Brazil, India, and Turkey are receiving unfair subsidies. This is the most petitions filed simultaneously for any single product since 2001.
The petitions were filed by the Aluminum Association Common Alloy Aluminum Sheet Trade Enforcement Working Group, whose members are Aleris Rolled Products, Inc. (Beachwood, Ohio), Arconic, Inc. (Bettendorf, Iowa), Constellium Rolled Products Ravenswood, LLC (Ravenswood, W.Va.), JW Aluminum Company (Daniel Island, S.C.), Novelis Corporation (Atlanta), and Texarkana Aluminum, Inc. (Texarkana, Texas).
Including these 22 petitions for common alloy aluminum sheet, 46 petitions have been filed thus far in FY20. Commerce received 53 petitions in FY19, 56 in FY18, and 77 in FY17. Since January 20, 2017, Commerce has received a total of 228 petitions. This does not include the self-initiation of the AD and CVD aluminum sheet investigations from China, as there were no petitions filed for those.
In the AD investigations, Commerce will determine whether imports of aluminum sheet from these 18 countries are being dumped in the U.S. market at less than fair value. The alleged dumping margins and margin ranges are as follows:
58.45 percent for Bahrain;
17.96 to 27.01 percent for Brazil;
13.79 percent for Croatia;
31.50 percent for Egypt;
37.22 percent for Germany;
61.87 percent for Greece;
122.80 to 151.00 percent for India;
32.12 percent for Indonesia;
29.13 percent for Italy;
36.55 to 44.03 percent for Korea;
15.90 to 58.17 percent for Oman;
12.51 percent for Romania;
25.84 percent for Serbia;
12.95 percent for Slovenia;
63.27 percent for South Africa;
24.26 percent for Spain;
27.22 percent for Taiwan; and,
42.88 percent for Turkey.
In the CVD investigations, Commerce will determine whether producers of aluminum sheet in Bahrain, Brazil, India, and Turkey are receiving unfair government subsidies.
For Bahrain, there are 12 alleged subsidy programs, including preferential loan and interest rate programs, income tax and other direct subsidy programs, grant programs, an equity infusion program, and the provision of land, primary aluminum, natural gas, and electricity for less than adequate remuneration.
For Brazil, there are 19 alleged subsidy programs, including import and payroll tax exemptions, electricity provision for less than adequate remuneration, export guarantees and insurance, and loan subsidies.
For India, there are 43 alleged subsidy programs, including export subsidies, tax programs, less than adequate remuneration programs, grants, and loan subsidies.
For Turkey, there are 21 alleged subsidy programs, including export subsidies, tax programs, government provision of goods for less than adequate remuneration, import substitution subsidies, grants, and government provided loans.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of common alloy aluminum sheet from these 18 countries materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2019, imports of common alloy aluminum sheet from the countries under investigation were approximately valued as follows:
- $240.4 million for Bahrain;
- $97.8 million for Brazil;
- $25.2 million for Croatia;
- $43.4 million for Egypt;
- $287.5 million for Germany;
- $101.9 million for Greece;
- $123.4 million for India;
- $139.6 million for Indonesia;
- $85.3 million for Italy;
- $121.7 million for Korea;
- $195.7 million for Oman;
- $29.5 million for Romania;
- $9.7 million for Serbia;
- $35.5 million for Slovenia;
- $119.1 million for South Africa;
- $57.4 million for Spain;
- $146.3 million for Taiwan; and,
- $123.2 million for Turkey.
During Commerce’s investigations into whether common alloy aluminum sheet from these 18 countries are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry is being injured by such imports. The ITC will make its preliminary determinations on or before April 23. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determinations scheduled for June 3, and preliminary AD determinations scheduled for August 17, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing common alloy aluminum sheet from these 18 countries, as appropriate.
Final determinations by Commerce are scheduled for August 17, for the CVD investigations, and November 2, for the AD investigations, but these dates may be extended. If Commerce finds that the products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 226 new AD and CVD investigations – this is a 197 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 519 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits their production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.