CBP Upholds Finding of Evasion of AD/CVD Orders on Aluminum Sheet From China
CBP's Trade Remedy Law Enforcement Directorate recently upheld on review a finding that AA Metals evaded antidumping and countervailing duties on common alloy aluminum sheet from China, it said in a decision following an Enforce and Protect Act administrative review. AA Metal submitted the request for review in May after CBP issued an April determination of evasion (see 2204070042). The investigation followed a March 2020 EAPA allegation by Texarkana Aluminum against AA Metals, alleging that AA Metals entered common alloy aluminum sheets of Chinese origin into the U.S. via transshipment through Turkey to evade AD/CVD duties on aluminum from China.
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CBP found that evasion did occur through AA Metals' purchase of re-rolled aluminum sheet from Turkey. Because the thickness of the sheets was very close to the maximum thickness covered by the scope of the orders, CBP referred the decision on scope to the Commerce Department. Commerce concluded that the scope of the orders required that both the aluminum sheet input exported from China to Turkey and the aluminum sheet further processed in Turkey and exported to the U.S. meet the physical description of the scope to be categorized as covered merchandise. The aluminum sheets re-rolled by the Turkish company PMS Metal were covered by the scope of the orders, Commerce said.
In its review request, AA Metals argued that CBP's finding was "premature" because AA Metals can challenge Commerce's scope decision at the Court of International Trade and that listing Turkey as the country of origin is inconsistent with CBP’s "substantial transformation" rules. "There is no dispute that if Chinese-manufactured finished common alloy aluminum sheets were shipped directly from China to the U.S., they would fall under the AD/CVD orders," CBP said in its review analysis. Commerce determined the sheet exported from China to Turkey by PMS meets the physical description of the scope of the orders and "substantial transformation" rules aren't relevant for purposes of determining whether merchandise falls within the scope of an AD/CVD order, CBP said. The governing statute allows CBP to extend its EAPA determination deadline for 60 days only under certain circumstances, including a referral to Commerce, but not pending a court ruling, CBP said.