On May 7, 2024, the U.S. Department of Commerce (DOC) published the preliminary conclusion of the anti-dumping (AD) investigation on extruded aluminum and aluminum products from Vietnam.
1. General Information and Preliminary Conclusion
– On October 24, 2023, the DOC initiated the investigation at the request of the petitioner: The Coalition of Aluminum, Steel, Paper and Forestry, Rubber, Industrial, Energy, Allied Industrial and Service Workers International Union. The period of investigation (POI) for dumping was from April 1 to September 30, 2023.
– On October 25, 2023, the DOC issued Quantity and Value (Q&V) Questionnaires to 13 named companies with complete addresses to gather information for the selection of mandatory respondents. However, only 7 out of the 13 named companies and 31 unnamed companies responded in time.
– The DOC allowed companies to apply for separate rates (typically calculated as a weighted average of mandatory respondents), requiring them to demonstrate the absence of de jure and de facto government control over their export activities. The DOC received 31 applications for separate rates.
– On December 12, 2023, the DOC selected two mandatory respondents. However, on December 26, 2023, one respondent requested to withdraw from the mandatory respondent list due to non-production or non-exportation of the investigated product to the U.S. during the POI.
– On April 19, 2024, the petitioner filed an emergency allegation due to a 36.07% surge in exports of the investigated product from Vietnam to the U.S. from October 2023 to February 2023 (post-initiation period) compared to the prior five months (May to September 2023). The DOC is expected to issue a preliminary determination on the existence of an emergency by May 20, 2024. Under U.S. law, if an emergency is confirmed, the DOC can retroactively apply duties up to 90 days before the preliminary duty imposition date to prevent a surge in exports during the early investigation phase.
– On May 1, 2024, the DOC issued a preliminary ruling on the scope of the investigated products, allowing parties to comment on the product scope until June 5, 2024.
– On May 7, 2024, the DOC published the preliminary determination. The DOC determined a dumping margin of 2.85% for the remaining mandatory respondent. 28 companies meeting the conditions for separate rates will also be subject to this rate. Other companies will face the country-wide margin of 41.84% as alleged by the petitioner.
– On May 10, 2024, the DOC notified U.S. Customs and Border Protection (CBP) to suspend liquidation and require cash deposits at the dumping margins for imports from May 7, 2024. Specifically: (1) For producer/exporter combinations listed in the table, the cash deposit rate is 2.85%; (2) For Vietnamese producer/exporter combinations not listed, the rate is 41.84%; and (3) For third-country exporters not listed, the rate is based on the Vietnamese producer/exporter combination or the country-wide rate, depending on their source.
– The DOC plans to conduct on-site verifications for the mandatory respondent and issue the final determination no later than 135 days after the preliminary determination publication (expected by September 19, 2024).
2. Recommendations for Response
(i) Vietnam Aluminum Extrusion Association: Update relevant producers and exporters about the investigation status.
(ii) Producers and Exporters:
– Continue closely monitoring the case developments; proactively research and understand U.S. AD investigation regulations and procedures; diversify markets and export products.
– Fully cooperate with the DOC throughout the investigation. Any lack of cooperation or incomplete cooperation could result in the DOC using adverse facts available or imposing the highest AD duty rate on the company.
– Consider requesting administrative reviews or new shipper reviews if necessary.
– Regularly coordinate with and update the Trade Remedies Authority of Vietnam (TRAV) to receive timely support.