Wauconda, Illinois - The Aluminum Extruders Council (AEC) has filed a petition against China Zhongwang Holdings Ltd. alleging the company has systematically and illegally evaded duties on aluminum extrusions imported into the United States. The alleged scheme involves hundreds of millions of pounds aluminum extrusions that are simply cut and welded into aluminum slabs. Upon entering the U.S. these extrusions are being identified as ‘pallets’ even though the testimony the Council has gathered makes it clear the sole purpose of these extrusions is to re-melt them back into billets. Billet is the starting stock for the aluminum extrusion operation. Extrusion billet may be a solid or hollow form, commonly cylindrical, and is the length charged into the extrusion press container that then is pushed through the die to form extruded profiles that are often cut to length and further processed into final products.
“In late July, the AEC released a statement to the press calling on the United States Government, as well as others identified in the Dupre Analytics report, to investigate issues of transshipment and circumvention by Zhongwang. We have made our case to U.S. Customs regarding the transshipment allegations, and now we are filing our circumvention case with the Department of Commerce,” said Jeff Henderson, Director of Operations at the AEC.
The circumvention and scope clarification case also alleges that China Zhongwang has been exporting 5xxx series alloy extrusions into the U.S. in order to avoid U.S. antidumping and countervailing duties.
Once filed, the Department of Commerce has forty-five days to review and decide whether or not to launch a full investigation. “Given the severity of this case to our domestic industry, we call on the Department of Commerce to investigate this case,” said Henderson.