FACT SHEET

Commerce Preliminarily Finds Countervailable Subsidization of Aluminum

On August 31, 2010, the Department of Commerce (Commerce) announced its affirmative

preliminary determination in the countervailing duty (CVD) investigation of imports of aluminum

extrusions from the People’s Republic of China (China).

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Additionally, Commerce has determined not to investigate the alleged undervaluation of China’s

currency, the RMB, as a countervailable subsidy because the Petitioners’ allegation did not meet

the statutory standard for initiating an investigation. Commerce’s decision was reached after

careful study of the multi-faceted and complex allegation in this case.

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For the purposes of CVD investigations, subsidies are financial assistance from foreign

governments that benefit the production, manufacture, or exportation of goods.

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Commerce preliminarily determined that Chinese producers/exporters have received

countervailable subsidies ranging from 6.18 percent to 137.65 percent ad valorem.

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As mandatory respondents Liaoyang Zhongwang Aluminum Profile Co. Ltd./Liaoning Zhongwang

Group (collectively, the Zhongwang Group Companies), Miland Luck Ltd., and Dragonluxe

Limited, did not respond to the Department’s request for information, each received a preliminary

adverse facts available (AFA) net subsidy rate of 137.65 percent ad valorem.

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Two voluntary respondents, Guang Ya Aluminum Industries Co., Ltd., Foshan Guangcheng

Aluminum Co., Ltd., Guang Ya Aluminum Industries (Hong Kong) Ltd., Kong Ah International

Company Limited, and Yongji Guanghai Aluminum Industry Co., Ltd. (collectively, the Guang Ya

Companies) and Zhaoqing New Zhongya Aluminum Co., Ltd., Zhongya Shaped Aluminum HK

Holding Ltd, and Karlton Aluminum Company Ltd. (collectively, the Zhongya Companies)

received preliminary net subsidy rates of 6.18 and 10.37 percent ad valorem, respectively.

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All other Chinese producers/exporters received a preliminary net subsidy rate of 137.65 percent ad

valorem.

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As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border

Protection to collect a cash deposit or bond based on these preliminary rates.

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The petitioners for this investigation are: The United Steel, Paper and Forestry, Rubber,

Manufacturing, Energy, Allied Industrial and Service Workers International Union (PA) and the

Aluminum Extrusions Fair Trade Committee (representing member companies from Ohio,

Minnesota, Florida, Georgia, California, Utah, Maryland, Illinois, and Texas).

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The merchandise covered by this investigation is certain aluminum extrusions which are shapes

and forms produced via an extrusion process of aluminum alloys. The major alloying elements in

the subject merchandise are manganese, magnesium, and silicon. These products are generally

U.S. Department of Commerce

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International Trade Administration

used in construction applications and are incorporated into window and door frames and sills,

gutters, and solar power frames. They serve as parts for cars, trucks and both structural and

decorative elements on boats. They also serve as furniture parts and in a variety of other consumer

and industrial goods.

Imports of the subject merchandise are provided for under the following categories of the

Harmonized Tariff Schedule of the United States (“HTS”): 7604.21.0000, 7604.29.1000,

7604.29.3010, 7604.29.3050, 7604.29.5030, 7604.29.5060, 7608.20.0030, and 7608.20.0090. The

subject merchandise entered as parts of other aluminum products may be classifiable under the

following additional Chapter 76 subheadings: 7610.10, 7610.90, 7615.19, 7615.20, and 7616.99 as

well as under other HTS chapters. While HTS subheadings are provided for convenience and

customs purposes, the written description of the scope in this proceeding is dispositive.

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From 2007 to 2009, imports of aluminum extrusions from China increased 90 percent by volume.

In 2009, imports of aluminum extrusions were valued at an estimated $514 million.

NEXT STEPS

Commerce is currently scheduled to make its final determination in November 2010.

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If Commerce makes an affirmative final determination, and the U.S. International Trade

Commission (ITC) makes an affirmative final determination that imports of aluminum extrusions

from China materially injure, or threaten material injury to, the domestic industry, Commerce will

issue a CVD order. The ITC is scheduled to make its final injury determination on or about

December 30, 2010.

PRELIMINARY SUBSIDY RATES: