U.S. Aluminum Foil Trade Enforcement Concerns
Theย Aluminum Associationย openly supports new actions by the U.S. Department of Commerce to strengthenย U.S. aluminum foil trade enforcementย against Chinese-origin foil routed throughย Thailand and South Korea. The group notes that these shipments attempt to dodgeย antidumping and countervailing duties (AD/CVD)ย imposed in April 2018 on unfairly traded aluminum foil from China.
Association President and CEOย Charles Johnsonย praises Commerce for taking concrete steps to uphold U.S. trade laws. He also says the Association plans to cooperate closely with the department as the antiโcircumvention investigations move forward.
How U.S. Aluminum Foil Trade Enforcement Will Proceed
Theย Department of Commerceย will send questionnaires to companies suspected of evading duties and invite other interested parties to submit data and written comments. After reviewing that information, Commerce will issue aย preliminary determination, which should arrive within several months.
Overall, the agency expects the full investigation to takeย about one yearย before it publishes final decisions. This timeline reflects standard practice for complex trade enforcement cases.
Aluminum Foil Products Under Review
The current inquiry targets a specific category ofย flatโrolled aluminum foilย that:
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Has a thickness ofย 0.2 mm or less
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Ships inย reels weighing more than 25 pounds
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Isย produced in Chinaย butย finished in Thailand or South Koreaย before entering the U.S. market
Manufacturers use this foil in a wide range of applications, includingย packaging, insulation, household products, electronics, and cables. Therefore, any successful effort to bypass duties could impact a broad downstream supply chain.
Existing Duties and Shifts in Trade Flows
In 2018, Commerce set combinedย antidumping and countervailing duty ratesย ranging from roughlyย 55% to 176%ย on certain aluminum foil from China. Following those orders, direct U.S. imports of the covered foil from China declined significantly.
At the same time, imports of similar foil and sheetโgauge products fromย Thailand and South Koreaย increased. Currentย U.S. aluminum foil trade enforcementย inquiries aim to determine whether exporters nowย reโroute Chineseโorigin foilย through these countries to sidestep the existing U.S. duties.
