On October 4, 2023, the U.S. Department of Commerce (DOC) officially announced the receipt of a request to initiate an anti-dumping investigation on aluminum extrusions and related products imported from 15 countries/territories, including Vietnam.
According to the DOC, the products under investigation, proposed by the Aluminum, Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, include aluminum extrusions and related aluminum products.
The union comprises 14 U.S.-based aluminum casting plants: Alexandria Extrusion Company; APEL Extrusions; Bonnell Aluminum; Brazeway; Custom Aluminum Products; Extrudex Aluminum; International Extrusions; Jordan Aluminum Company; M-D Building Products, Inc.; Merit Aluminum Corporation; MI Metals; Pennex Aluminum; Tower Extrusions; and Western Extrusions.
Case Number: A-552-837.
According to the petitioner, based on data from U.S. Customs, in 2022, Vietnam accounted for approximately 7.6% of the total exports to the U.S., ranking fourth among the top exporting countries to the U.S., following Mexico, Colombia, and China, with 12.9%, 10.2%, and 9.1% respectively.
The petitioner listed approximately 14 Vietnamese companies accused of dumping aluminum extrusions and related aluminum products into the U.S. market.
The alleged dumping margin against Vietnam is 53.75%. The remaining 14 countries/territories face alleged dumping margins ranging from 33.79% to 256.58%. Vietnam's margin is much lower compared to the top 3 competing exporting countries to the U.S.
Imported aluminum products traded in the U.S. market under unfair practices have caused significant harm to the U.S. domestic aluminum extrusion industry and could cause further damage if not promptly addressed. The petitioner's lawsuit contains reasonable information to support these allegations.
Separate documents related to allegations of dumping by the investigated manufacturers, as well as subsidies provided to the investigated manufacturers, are being submitted simultaneously to the U.S. Department of Commerce and the U.S. International Trade Commission.
According to U.S. regulations, there are two agencies involved in an anti-dumping investigation: the DOC and the ITC.
The DOC investigates the act of dumping and is jointly responsible for the investigation results, while the U.S. International Trade Commission (ITC) evaluates the damage to the domestic manufacturing industry. The investigated products are subject to anti-dumping duties only if both agencies issue conclusions confirming both the act of dumping and the resulting damage to the domestic industry and economy.
Anti-Dumping Investigation on Aluminum Extrusions and Products from Vietnam
The next procedures in the anti-dumping investigation of aluminum extrusions and related products from Vietnam include selecting a surrogate country and a reasonable surrogate value. Currently, the U.S. considers Vietnam a non-market economy, although the two countries have recently elevated their partnership, as well as suggesting to the USA to recognize Vietnam as a market economy by Prime Minister Pham Minh Chinh of Vietnam during his visit to the U.S.
The DOC will use the surrogate values of a third country to calculate the dumping margin for Vietnam. In this case, the petitioner proposes using Indonesia as the surrogate country, considering the economic similarities between Indonesia and Vietnam, as well as the similarity in the products under investigation.
It is known that Indonesia is often chosen as the surrogate country in international trade remedy investigations against Vietnam. According to U.S. laws on U.S. trade remedies and international agreements to which both countries are parties, related parties in the investigation have 30 days to comment on the surrogate country before the DOC issues its preliminary determination.
It is anticipated that the DOC will issue a preliminary determination within 140 days from the date of initiating the investigation. This period may be extended for reasonable reasons. The proposed investigation period is from April 1, 2023, to September 30, 2023.
The DOC has 20 days from receiving the request to consider initiating the investigation. On October 24, 2023, the DOC is expected to issue a decision to initiate the investigation and send the investigation questionnaires to exporting businesses. The investigation period typically lasts from 12 to 18 months.
The 15 countries under investigation according to the petitioner's request are: Colombia, Dominica, Ecuador, India, Indonesia, Malaysia, Italy, Mexico, China, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates (UAE), and Vietnam.
Apart from the anti-dumping investigation, the petitioner also requests a countervailing duty investigation on the same products from Indonesia, Mexico, China, and Turkey.
The accompanying documents can be downloaded here.
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.
