If your company imports parts or shapes manufactured from
aluminum extruded in China, your company may be liable for
significant antidumping and countervailing duties.
On May 26, 2011, the U.S. Department of Commerce (DOC) imposed
antidumping (AD) and countervailing duty (CVD) orders on aluminum
extrusions from China. AD and CVD duties are imposed as a special
tariff on imported merchandise to counteract alleged unfair pricing
of imported merchandise and unfair subsidization of imported
merchandise by foreign governments. In this case, the DOC has
estimated AD margins as high as 33.28 percent, and CVD margins as
high as 374.15 percent, depending on the identity of the Chinese
exporter. Any imported product covered by the AD/CVD orders must be
accompanied by cash deposits equal to the combined
applicable estimated AD and CVD margins. Furthermore, any such
imports are subject to potential review at a later date, and the
ultimate antidumping duty owed could be either higher or lower than
the cash deposit rate.
These orders pose significant risks for companies that
import aluminum parts and shapes from China , because the scope of
the orders are extraordinarily broad and may include significantly
machined and fabricated parts that may be imported under tariff
classification codes other than aluminum. Although the primary
target of the orders is aluminum that is extruded into basic shapes
— for example, extrusions for use in window frames or
shower doors — the orders expressly state that that they
cover extrusions that are "fabricated, i.e., prepared
for assembly. Such operations would include, but are not limited
to, extrusions that are cut-to-length, machined, drilled, punched,
notched, bent, stretched, knurled, swedged, mitered, chamfered,
threaded, and spin. The subject merchandise includes aluminum
extrusions that are finished (coated, painted, etc.), fabricated,
or any combination thereof." The AD/CVD orders specifically
state that subject products "may be described at the time of
importation as parts for final finished products that are assembled
after importation, including, but not limited to, window frames,
door frames, solar panels, curtain walls, or furniture. Such parts
that otherwise meet the definition of aluminum extrusions are
included in the scope." The orders also cover "aluminum
extrusion components that are attached (e.g, by welding or
fasteners) to form subassemblies."
U.S. Customs and Border Protection (CBP) administers the AD/CVD
orders at the border. CBP is actively looking at imported parts
of aluminum to see if they are extruded. If so, CBP will require
AD/CVD deposits. As noted above, even though a part is
classified under a chapter of the Harmonized Tariff Schedule for a
part of a finished product, rather than as an aluminum shape or
extrusion, the AD/CVD orders may still apply and CBP may still
require AD/CVD deposits.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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