September 15, 2017

Wauconda, Illinois -- The Aluminum Extruders Council (AEC) has learned through a Wall Street Journal report that “the U.S. Department of Justice is alleging that a California company evaded $1.5 billion in tariffs by conducting an illegal effort to smuggle banned aluminum into the U.S.”

The article by the WSJ goes on to say, “The civil complaint signals that U.S. authorities are deepening an investigation into a long-running international aluminum scheme that allegedly involves Fontana, Calif.-based Perfectus Aluminum Inc. The complaint, part of a proceeding to seize assets, alleges that Perfectus Aluminum is controlled and “effectively owned” by Liu Zhongtian, founder and chairman of Chinese aluminum giant China Zhongwang Holdings, Inc. one of China’s biggest aluminum producers and exporters.”

In late 2015 the Aluminum Extruders Council filed a Scope Clarification/Circumvention case against Zhongwang accusing them of violating the Council’s trade orders against the Chinese aluminum extruders by shipping aluminum extrusions into the U.S. disguised as aluminum pallets. The U.S. Department of Commerce agreed with the industry and declared those extrusions to be covered by the antidumping and countervailing duty orders. That decision was not appealed by Perfectus or its parent Zhongwang.

“We want to applaud the Department of Justice’s decision to begin civil proceedings against Zhongwang’s affiliate Perfectus. Today’s filing is the culmination of a concerted effort by the AEC and its members in conjunction with Customs and the Department of Commerce to investigate Zhongwang’s alleged attempts to avoid paying duties since the orders went into effect. The AEC will continue to assist the agencies in their efforts to investigate this matter going forward,” said Jeff Henderson, President of the Aluminum Extruders Council. “Furthermore,” he continued, “this should be a clear signal to those that seek to evade, circumvent, or in any way violate our orders that such activities will be uncovered and prosecuted.”