Commerce to Consider Including South Korea, Thailand Under China Aluminum Foil Duties

The Commerce Department will consider imposing antidumping and countervailing duties on imports of aluminum foil from South Korea and Thailand, according to a pre-publication notice released by the agency announcing the beginning of anti-circumvention inquiries covering the two countries.

The agency will determine whether imports of aluminum foil completed in South Korea and Thailand using Chinese-origin aluminum foil or sheet undergo only minor or insignificant processing from their Chinese inputs prior to exportation to the U.S., and circumvent AD/CVD on aluminum foil from China (A-570-053/C-570-054). If Commerce finds in the affirmative, it will include South Korean and Thai aluminum foil under the AD/CVD orders on Chinese aluminum foil, suspending liquidation and requiring AD/CVD cash deposits.

The anti-circumvention inquiries were self-initiated by Commerce, meaning there was no formal request filed by domestic industry for the proceedings. The Aluminum Association nonetheless applauded the decision in a news release July 13. “We commend the Commerce Department for taking this important step to enforce our trade laws,” said Charles Johnson, president and CEO of the industry group. “This decision demonstrates strong initiative and a commitment to maintaining these hard-won gains for U.S. manufacturing. We look forward to working closely with the department to ensure a successful outcome as these inquiries progress,” he said.

“Chinese exports of foil and sheet-gauge products to Thailand and South Korea have increased significantly, and U.S. imports of aluminum foil from those countries produced from Chinese metal have also increased substantially, as Chinese producers have sought to 'work around' the AD/CVD duties assessed on foil exported directly from China to the United States,” the Aluminum Association said in the release.

Should Commerce find circumvention in the preliminary results of these inquiries, it may apply suspension of liquidation and cash deposit requirements for entries on or after the date the agency’s initiation notice is published in the Federal Register (i.e., likely sometime in mid-July 2022), or determine to apply duties retroactively prior to the initiation date, though the agency may not suspend liquidation for entries prior to Nov. 4, 2021.

The initiation notice will likely be published in the Federal Register in the coming days. The final results of the anti-circumvention inquiries will be due 300 days from the publication date of the initiation (i.e., likely in May 2023).