Imported Products Containing an Aluminum Extrusion Part or Any Extruded Aluminum Subject to Countervailing Duties – Additional Antidumping Duties On The Horizon

In October 2023, we reported that antidumping (AD) and countervailing (CVD) duty petitions were filed on aluminum extrusions from Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, China, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates, and Vietnam. The investigation against the Dominican Republic has since been terminated. The US Department of Commerce (DOC) is investigating these allegations and announced preliminary CVD duties to be imposed on products from Turkey, Indonesia, Mexico, and China on March 4. The applicable CVD duties effective March 11, 2024, are available here. Preliminary AD duties on imports from the 14 countries are expected to be determined on May 1 (typically announced the following day) and will go into effect shortly thereafter. 

The proposed scope of products that are covered by the investigations is extremely broad and ill-defined. Some changes to that scope are under consideration by the DOC. For now, importers should be aware that if your product contains an aluminum extrusion part or a part that contains extruded aluminum, it may be subject to additional duties as of March 11, 2024. While this result seems absurd, it is a very real possibility. Below, we provide responses to some commonly asked questions regarding this investigation. Be advised that the interpretation of the scope can be quite complex. If you have specific questions on the applicability of these tariffs to your imports, please contact a member of our team. 

1. How do I know if my imported product is subject to the duties, and if it is, how do I calculate the value of my imported product that is subject to the duties? 

The current scope of the investigations covers the aluminum extrusion portion of a product. Even if the aluminum extrusion has been processed in a third country (such as a country not named in the investigations), the aluminum extrusion portion of the product is still covered by the investigations. There are some exclusions from the scope such as for discrete kits entered on the same customs entry form, extrusions made from certain Aluminum Association series designations, products from continuous casting or rolling, cast aluminum products or unwrought aluminum products, among other exclusions.

The importer should review all components of its product to determine whether any aluminum extrusions were used. This will likely require reviewing the bill of materials, schematics, product brochures, etc.

If the product contains any extruded aluminum, duty deposits may be required on the aluminum extrusion portion of a product. The company will need to determine the following: 

• the producer of the aluminum extrusion;
• the country (or countries) in which the extrusion process was carried out; 
• the Aluminum Association Series Designation Number for the extruded aluminum; and 
• the percent of value attributed to the extruded aluminum raw materials (likely this would be a percentage of sold cost).

Documentation on the condition of the merchandise at the time of importation and on how the merchandise is sold, installed, and used after importation may need to be reviewed to determine whether any of the exclusions from the scope are applicable.

The amount of the duties will be calculated based on the value of the product that is subject to the duties and the applicable rate from the producer of the aluminum extrusion. If the product includes aluminum extrusions from multiple countries or multiple producers, separate calculations and deposits will be required for each producer/country. 

2. What if my product was excluded under the original China aluminum extrusions order?

It is likely included under these new investigations. These investigations include products from China and are a follow-up to the much-litigated 2011 AD/CVD Orders on Aluminum Extrusions from China. The scope of products that would be covered by any AD/CVD duties imposed in this new case is much broader than the existing cases against China. Petitioners have specifically written the scope in this case to include products the DOC has previously found to be excluded from the China AD/CVD orders so that those products will now be subject to any AD/CVD duties resulting from these investigations. 

3. What entry type do I use for my product that has an aluminum extrusion portion and who deposits the duties? 

Products subject to AD or CVD duties must be entered as type 03 entries and cash deposits to cover the duties must be made for the subject entries. The importer of record is responsible for entering the product correctly, for depositing the duties, and for ultimately paying the duties to US Customs and Border Protection (CBP) when the entries are liquidated. The liquidation rates for AD or CVD duties can be higher or lower than the deposit rates, and typically are the result of a lengthy administrative review process conducted by the DOC. The importer of record will have to certify to CBP that it was not reimbursed for the duties from the foreign producer. 

4. Are there any opportunities to challenge this decision? 

Yes. The US International Trade Commission (ITC) is beginning the final phase of its investigations to determine whether the US industry that produces aluminum extrusions is being materially injured, or threatened with material injury, from subject imports. Importers and purchasers can participate by completing questionnaire responses, submitting letters or briefs, testifying at the hearing, and taking other action to voice concerns. There may also be an opportunity to file comments on the scope of the investigations with the DOC.

Conclusion

The scope of these investigations is extraordinarily complex, as is how to calculate the value of the aluminum extrusion portion of your product to ensure you are paying the correct AD or CVD deposit. Opportunities still exist to challenge the scope of this case and whether AD or CVD orders are needed to protect aluminum extrusion producers in the United States.

If you have specific questions regarding the applicability of this case to your imports or how best to participate, contact your ArentFox Schiff trade or customs attorney for assistance. Look for an announcement about a podcast by ArentFox Schiff on this topic. An update to this alert will be issued when the DOC announces the duty rates.