Aluminum Association Chinese Foil Circumvention Concerns
Theย Aluminum Associationย strongly supports new steps by the U.S. Department of Commerce to stopย Chinese aluminum foilย from evading existing duties by routing throughย Thailand and South Korea. In its statement, the Association says these imports try to dodgeย antidumping and countervailing dutiesย imposed in April 2018 on unfairly traded foil.
Association President and CEOย Charles Johnsonย commends Commerce for moving to enforce U.S. trade laws. He also notes that the Association plans to work closely with the agency as the circumvention inquiries move forward.
How the Aluminum Association Chinese Foil Circumvention Case Proceeds
Theย Commerce Departmentย will send questionnaires to companies suspected of duty evasion. It will also invite other interested parties to submit information and arguments for the record. After reviewing the data, Commerce will issue aย preliminary determination, likely within a few months, and then continue toward a final decision.
Overall, officials expect the investigation to takeย about one yearย to complete, which matches the typical schedule for these types of cases.
Aluminum Foil Products Under Investigation
The inquiry focuses on a specific type ofย flatโrolled aluminum foil. The foil:
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Has a thickness ofย 0.2 mm or less
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Comes inย reels weighing more than 25 pounds
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Isย produced in Chinaย but thenย finished in Thailand or South Korea
Manufacturers use this foil across many applications, includingย packaging, insulation, and cables, which makes enforcement important for a wide swath of downstream users.
Existing Duties and Trade Shifts
Commerceโs earlierย AD/CVD (antidumping and countervailing duty)ย orders set combined penalty rates betweenย 55% and 176%ย for certain aluminum foil from China. After those 2018 orders, direct U.S. imports of the covered foil from China dropped sharply.
At the same time, exports of similar foil and sheetโgauge products fromย Thailand and South Koreaย to the United States rose significantly. U.S. authorities now aim to determine whether some of these flows simply reโroute Chineseโorigin material to avoid the existing duties.
