Overview
On September 29, 2020, a petition was filed seeking antidumping (AD) duties on Certain Aluminum Foil (CAF) from Armenia, Brazil, Oman, Russia and Turkey, and countervailing (CVD) duties on imports of CAF from Oman and Turkey. The Aluminum Association Trade Enforcement Working Group and its members (Gränges Americas Inc.; JW Aluminum Company; and Novelis Corporation) filed the petition with the US Department of Commerce (DOC) and the US International Trade Commission (ITC).
In Depth
Under US law, a domestic industry can petition the government to initiate an AD investigation into the pricing of an imported product to determine whether it is sold in the United States at less than fair value (i.e., “dumped”) and into the injurious impact of allegedly dumped imports on the domestic industry. A domestic industry can also petition for the initiation of a CVD investigation of subsidization of foreign producers by a foreign government and of the injurious impact of allegedly subsidized imports on the domestic industry. Additional duties can be imposed if DOC determines that imported goods are “dumped” and/or subsidized and if the ITC also determines that the domestic industry is materially injured or threatened with such injury by reason of subject imports.
If the ITC and DOC make preliminary affirmative determinations, US importers will be required to post cash deposits in the amount of the AD and/or CVD duties for all entries on or after the date DOC’s preliminary determination is published in the Federal Register. The preliminary AD/CVD rates can change in the final DOC determination, especially if foreign producers and their governments participate fully in the investigations.
Scope
The merchandise covered by this investigation is aluminum foil having a thickness of 0.2 mm or less, in reels exceeding 25 pounds, regardless of width. Aluminum foil is made from an aluminum alloy that contains more than 92 percent aluminum. Aluminum foil may be made to ASTM specification ASTM B479, but can also be made to other specifications. Regardless of specification, however, all aluminum foil meeting the scope description is included in the scope, including aluminum foil to which lubricant has been applied to one or both sides of the foil.
Excluded from the scope of this investigation is aluminum foil that is backed with paper, paperboard, plastics, or similar backing materials on one side or both sides of the aluminum foil, as well as etched capacitor foil and aluminum foil that is cut to shape. Where the nominal and actual measurements vary, a product is within the scope of application of either the nominal or the actual measurement would place it within the scope based on the definitions set forth above.
The products under investigation are currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7607.11.3000, 7607.11.6090, 7607.11.9030, 7607.11.9060, 7607.11.9090, and 7607.19.6000.
Further, merchandise that falls within the scope of this proceeding may also be entered into the United States under HTSUS subheadings 7606.11.3060, 7606.11.6000, 7606.12.3045, 7606.12.3055, 7606.12.3091, 7606.12.3096, 7606.12.6000, 7606.91.3095, 7606.91.6095, 7606.92.3035, and 7606.92.6095.
Foreign Producers and Exporters of Subject Merchandise
A list of foreign producers and exporters, as identified by the petitioners, is provided in Attachment 1.
US Importers of Subject Merchandise
A list of US importers, as identified by the petitioners, is provided in Attachment 2.
Alleged Margins of Dumping/Subsidization
Petitioner alleges dumping margins of:
- Armenia: 61.96%
- Brazil: 91.27%
- Oman: 65.03%
- Russia: 64.35%
- Turkey: 49.11%
DOC generally assigns duties at these alleged dumping rates to exporters that fail to cooperate with the investigation.
No specific subsidy rates are included in the petition, which is typical.
Potential Trade Impact
According to official US import statistics, 210,297,320 pounds of the subject merchandise, valued at $281,414,405, were imported into the United States in 2019.
Below are the quantities and values listed by country.
| Subject Country | 2019 Quantity (Pounds) | 2019 Value (USD) |
| Armenia | 17,383,155 | $21,594,523 |
| Brazil | 43,677,109 | $68,450,762 |
| Oman | 36,393,464 | $48,148,650 |
| Russia | 46,111,402 | $60,204,705 |
| Turkey | 66,732,190 | $83,015,765 |
Estimated Schedule of Investigations
September 29, 2020 – Petition filed
November 13, 2020 – ITC preliminary injury determination
December 23, 2020 – DOC preliminary CVD determination, if not postponed
February 11, 2021 – DOC preliminary CVD determination, if fully postponed
March 8, 2021 – DOC preliminary AD determination, if not postponed
April 27, 2021 – DOC preliminary AD determination, if fully postponed
September 9, 2021 – DOC final AD and CVD determinations, if both preliminary and final determinations are fully postponed and aligned
October 25, 2021– ITC final injury determination, if DOC’s determinations are fully postponed
November 1, 2021 – AD/CVD orders published
If you have any questions about the petitions, please contact the experienced lawyers in McDermott’s international trade group.