Affirmative Final Determination in Tin Mill Antidumping and Countervailing Duty Cases Issued
In this article from The Franklin Partnership, contributing author Omar Nashashibi explores the results of investigations launched in 2023, updated duty rates, and countries subject to continued scrutiny.
On January 5, 2024, the Department of Commerce (Commerce) issued final affirmative determinations in its antidumping and countervailing investigations of tin mill products from Canada, China, Germany, and the Republic of Korea. Commerce has set dumping margins ranging from 2.69% to 122.52% and subsidy rates ranging from 331.88% to 649.98%.
In February 2023, antidumping (AD) investigations were instituted into the import of tin mill products from Canada, China, Germany, Korea, the Netherlands, Taiwan, Turkey, and the United Kingdom along with a countervailing duty (CVD) investigation into products from China. These investigations were in response to petitions filed by Cleveland-Cliffs Inc. and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
Following its investigation, Commerce reached negative final determinations in the antidumping cases of imports from the Netherlands, Taiwan, Turkey, and the United Kingdom and thus these investigations have been terminated. For the remaining cases, it is now up to the U.S. International Trade Commission (ITC) to determine if the domestic tin mill products industry has been “materially harmed or threatened by material injury” due to the imports from Canada, China, Germany, and Korea. The final ITC determinations are expected sometime in early 2024.
Commerce has set the following duty rates:
• Canada – 5.27%
• China – 122.52%
• Germany – 6.88%
• Korea – 2.69%
And the following subsidy rates:
• China – 331.88% – 649.98%
Products covered under the scope of the investigations have been defined by Commerce as:
• Tin mill flat-rolled products coated or plated with tin, chromium, or chromium oxides.
• Flat-rolled steel products coated with tin, known as tinplate.
• Flat-rolled steel products coated with chromium or chromium oxides, known as tin-free steel or electrolytic chromium-coated steel.
The scope includes “all the noted tin mill products regardless of thickness, width, form (in coils or cut sheets), coating type (electrolytic or otherwise), edge (trimmed, untrimmed or further processed, such as scroll cut), coating thickness, surface finish, temper, coating metal (tin, chromium, chromium oxide), reduction (single- or double-reduced), and whether or not coated with a plastic material.”
AD & CVD Investigations Initiated on Aluminum Extrusions
The US Department of Commerce (Commerce) and the United States International Trade Commission (ITC) have launched anti-dumping (AD) investigations on imports of aluminum extrusions from Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, China, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates (UAE) and Vietnam; and countervailing duty (CVD) investigations on the same products from China, Indonesia, Mexico and Turkey
Petitions calling for the imposition of additional duties were filed on October 4, 2023, by the U.S. Aluminum Extruders Coalition, which consists of 14 domestic aluminum extrusions producers, and the U.S. Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW). The 14 members of the Coalition are 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.
AD and CVD orders on aluminum extrusions from China have been in place since 2011 with duty rates ranging from 32.79% to 33.28% and subsidy rates ranging from 8.02% to 374.15%. This new investigation expands the scope under the existing orders to capture various additional types of aluminum extrusions.
Following the imposition of the investigations, ITC made a preliminary determination that there is a “reasonable indication” that industry in the U.S. is “materially injured” due to the import of aluminum extrusions from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam that were sold in the U.S. at less than fair value. The Commission also made an affirmative preliminary determination in the companion CVD cases finding that U.S. industry has been injured or is threatened with material injury due to aluminum extrusions subsidized by the governments of China, Indonesia, Mexico, and Turkey.
Due to the affirmative preliminary determination, Commerce will continue its investigations of imports of aluminum extrusions. Following a postponement of the preliminary determination in the CVD investigations both the preliminary CVD and AD determinations are expected on or about March 12, 2024. Should Commerce also postpone the AD preliminary determination to the extent possible under the statute, it would then occur by May 1, 2024. If final determinations are also postponed, they would occur along with the issuance of AD/CVD orders, in the fall of 2024.
The petitioners allege the following dumping margins exist:
• China – 256.58%
• Columbia – 181.76%
• Ecuador – 43.52% to 64.57%
• India – 35.67%
• Indonesia – 112.21%
• Italy – 37.52%
• Malaysia – 54.87%
• South Korea – 66.43%
• Taiwan – 90.90% to 100.22%
• Thailand – 84.71%
• Turkey – 33.79%
• United Arab Emirates – 39.80%
• Vietnam – 53.75%
No specific subsidy rates for China, Indonesia, Mexico, and Turkey are included in the petition.
Products subject to the scope of the investigation have been defined to include “aluminum extrusions, regardless of form, finishing, or fabrication, whether assembled with other parts or unassembled, whether coated, painted, anodized, or thermally improved. Under the scope, aluminum extrusions are shapes and forms, produced by an extrusion process, made from aluminum alloys having metallic elements corresponding to the alloy series designations published by the Aluminum Association commencing with the numbers 1, 3, and 6 (or proprietary equivalents or other certifying body equivalents).
Specifically, subject aluminum extrusions made from an aluminum alloy with an Aluminum Association series designation commencing with the number 1 contain not less than 99 percent aluminum by weight. Subject aluminum extrusions made from an aluminum alloy with an Aluminum Association series designation commencing with the number 3 contain manganese as the major alloying element, with manganese accounting for not more than 3.0 percent of total materials by weight. Subject aluminum extrusions made from an aluminum alloy with an Aluminum Association series designation commencing with the number 6 contain magnesium and silicon as the major alloying elements, with magnesium accounting for at least 0.1 percent but not more than 2.0 percent of total materials by weight, and silicon accounting for at least 0.1 percent but not more than 3.0 percent of total materials by weight. The scope also includes merchandise made from an aluminum alloy with an Aluminum Association series designation commencing with the number 5 (or proprietary equivalents or other certifying body equivalents) that have a magnesium content accounting for up to but not more than 2.0 percent of total materials by weight.”
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Jennifer Clement is an executive sales and marketing leader specializing in value creation for the C-suite. In her current role at CLA, Jennifer collaborates on strategy with executives of global manufacturing and distribution companies to accelerate results. Previously Jennifer served as a Global Business Acceleration Leader for Complete Manufacturing and Distribution (CMD). During her time with CMD, Jennifer lived and worked in Asia from 2015-2019. Prior to CMD, she spent 10 years in senior care technology. Jennifer started her career at Johnson Controls (JCI) and spent nine years in leadership roles; followed by five years at Rockwell Automation (ROK) leading c-suite strategy and marketing operations.
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