U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Aluminum Foil from Armenia, Brazil, Oman, Russia, and Turkey
For Immediate Release
October 20, 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 aluminum foil from Armenia, Brazil, Oman, Russia, and Turkey are being dumped in the U.S. market, and to determine if producers in Oman and Turkey are being unfairly subsidized.
The petitions were filed by the Aluminum Association Trade Enforcement Working Group and its individual members, Gränges Americas Inc. (Franklin, TN), JW Aluminum Company (Daniel Island, SC), and Novelis Corporation (Atlanta, GA).
In the AD investigations, Commerce will determine whether imports of aluminum foil from these five countries are being dumped in the U.S. market at less than fair value. The alleged dumping margins are as follows:
• 45.65 percent for Armenia;
• 63.05 percent for Brazil;
• 57.74 percent for Oman;
• 62.18 percent for Russia; and
• 34.27 percent for Turkey.
In the CVD investigations, Commerce will determine whether producers of aluminum foil in Oman and Turkey are receiving unfair government subsidies.
For Oman, there are eight alleged subsidy programs, including income tax programs, preferential lending programs, a grant program, and the provision of land and electricity for less than adequate remuneration.
For Turkey, there are 25 alleged subsidy programs, including tax programs, investment incentive schemes, lending schemes, the provision of land and natural gas for less than adequate remuneration, grant programs, and research and development incentive programs.
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 aluminum foil from Armenia, Brazil, Oman, Russia, and/or Turkey 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.
The 2019 imports of aluminum foil from the countries under investigation were valued as follows:
• $21.6 million for Armenia;
• $68.4 million for Brazil;
• $48.1 million for Oman;
• $59.0 million for Russia; and
• $82.9 million for Turkey.
During Commerce’s investigations into whether aluminum foil from these countries are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations on or before November 13, 2020. 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 determination scheduled for December 23, 2020, and preliminary AD determinations scheduled for March 8, 2021, 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 aluminum foil from these countries, as appropriate.
Final determinations by Commerce in these cases are scheduled for March 8, 2021 for the CVD investigation, and May 24, 2021 for the AD investigations, although these deadlines may be extended. If Commerce finds that 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 293 new AD and CVD investigations – this is a 266 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 540 AD and CVD 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.