Opportunity to Request AD/CV Administrative Review
for Imports of Aluminum Extrusions


May 1, 2015

In a Federal Register notice of May 1, 2015, 80 FR 24898, 24898 -24900, the Department of Commerce announced the opportunity for parties to request an administrate review of antidumping duty assessments for imports of aluminum extrusions imported into the United States for the period of May 2014 to April 2015 and for countervailing duties assessed on imports for the period of January 2014 to December 2014.

The antidumping cash deposit rate for imports of aluminum extrusion products from China for the period May 2014 to April 2015 for all PRC exporters that have not been found to be entitled to a separate rate is 33.18%, and the Countervailing subsidy rate is 137.65%. If an annual administrative review is not requested for a particular exporter, entries of subject merchandise are generally assessed duties at the rate of deposit at the time of entry.

What Products are Subject to the AD/CVD Orders on
Aluminum Extrusions from China?

Merchandise covered by the orders consists of finished and semi-finished aluminum extrusion products produced by an extrusion process, and made from aluminum alloys having metallic elements corresponding to the alloy series designations published by The Aluminum Association commencing with the numbers 1, 3, and 6 (or proprietary equivalents or other certifying body equivalents).

Aluminum extrusions subject to the orders may be fabricated, i.e., prepared for assembly, and regardless of finish (i.e., coated, painted, etc.). The aluminum extrusions may be described at the time of importation as parts for final finished products that are assembled after importation. Such goods are subject to the orders if they otherwise meet the scope definition, regardless of whether they are ready for use at the time of importation.

The orders include the aluminum extrusion components that are attached (e.g., by welding or fasteners) to form subassemblies, i.e., partially assembled merchandise unless imported as a finished goods kit. The scope does not include the non-aluminum extrusion components of subassemblies or subject kits (and thus a reduction in the value of the importation may be appropriate if the kit includes non-aluminum extrusion components). 

Aluminum extrusions may be entered as parts of other aluminum products and classifiable in HTS Chapter 76 and subheadings: 7610.10, 7610.90, 7615.19, 7615.20, and 7616.99 as well as other HTS chapters; however, the written description of the scope of the order is dispositive, not the HTS classification. HTS classifications are listed in the scope of AD/CVD orders for convenience only, and do not determine whether a product falls under the scope of an AD/CVD order.

The orders exclude finished merchandise containing aluminum extrusions as parts that are fully and permanently assembled and completed at the time of entry, and finished goods containing aluminum extrusions that are entered unassembled in a “finished goods kit.” A finished goods kit means a packaged combination of parts that contains, at the time of importation, all of the necessary parts to fully assemble a final finished good and requires no further finishing or fabrication, such as cutting or punching, and is assembled “as is” into a finished product. An imported product will not be considered a “finished goods kit” if it is merely fasteners such as screws, bolts, etc. in the packaging with an aluminum extrusion product.

If there is a question as to whether an aluminum extrusion article is excluded from the scope, or an importer believes that it is importing a “finished good” or a “finished good kit,” the importer may submit a Scope Ruling Request to Commerce. Only Commerce may issue a definitive ruling that an article is officially excluded from the scope of an AD or CVD order. 

What Are Administrative Reviews & Cash Deposit Rates?

After Commerce issues an antidumping order, importers are required to deposit antidumping duties on subject merchandise that enters the United States. Cash deposit rates are established during the investigation and are used by Customs and Border Protection (CBP) to collect deposits of estimated AD and CV duties owed on the imported merchandise as it enters the country. 

Interested parties may request Commerce to determine the actual amount of antidumping duties to be paid on the entries at the end of the period. Commerce makes such a determination in an administrative review. An administrative review affords interested parties an opportunity to have Commerce review a particular company’s entries, exports, or sales made during the period of review (POR). The outcome of this review determines the actual margin and duty assessments for that period and the future cash deposit rate. With the exception of the first administrative review after the publication of an order, annual administrative reviews cover the 12 months immediately preceding the anniversary month in which the review was requested. 

Why are Administrative Reviews Important to Importers?

If a party does not request an administrative review of the cash deposit rate, that rate will generally apply to the importer’s merchandise that was entered for the period, and the Customs entries will be liquidated by CBP at the deposit rate. (In some cases, however, the rate may be increased years after importation as a result of a court challenge to the deposit rate, in which case, the importer will receive a bill for increased AD/CV duties.) The rate will also be used to establish the new cash deposit rate for the next period. On the other hand, if an administrative review is requested, Commerce will make a determination based on information supplied as to whether adjustments to a specific manufacturer or exporter are appropriate. Based on the information supplied during the course of the review, Commerce can lower the amount of AD or CV duties assessed for the period under review for the particular producer or exporter, and use the new rate as the cash deposit rate for the following period. 

Thus, by requesting an administrative review, an importer can potentially lower the amount of AD or CV duties deposited at the time of entry (and receive a refund) as well as lower the amount of AD and CV duties to be deposited for the period following the review period.

Parties Entitled to Request Administrative Reviews

Each year, during the anniversary month of the publication of an AD or CVD order, a party may request that Commerce conduct an administrative review of the order. 

Once Commerce receives a request for an administrative review (Commerce does not automatically conduct administrative reviews each year), it will generally initiate the review for that supplier. 

Parties that may request administrative reviews include most exporters and producers of merchandise covered by an order and importers of merchandise covered by an order. Additionally, domestic U.S. producers may request reviews of any exporter or producer. Thus, your imports may be subject to review even if you do not request a review.

Parties requesting an administrative review must specify the individual exporters or producers to be reviewed and state why they have requested a review of those particular exporters or producers. (For example, that duty deposits were not reflective of actual rates of dumping or subsidization for imported products subject to the AD/CVD order for the period under review). 

Deadlines for Review Requests

Friday, May 29, 2015, is the last day for interested parties to submit a request for an administrative review for antidumping duty assessments for imports of aluminum extrusions imported into the U.S. for the period of May 2014 to April 2015, and for countervailing duties assessed on imports for the period of January 2014 to December 2014.

Please contact George R. Tuttle, III (george.tuttle.iii@tuttlelaw.com) or Stephen S. Spraitzar (steve.spraitzar@tuttlelaw.com) via e-mail or at (415) 986-8780 if you have questions or would like additional information on how to request an administrative review for imports of aluminum extrusions, or if you have questions on how to request a scope decision on whether an aluminum extrusion is covered by the orders. 

George R. Tuttle, III, and Stephen S. Spraitzar are attorneys with the Law Offices of George R. Tuttle in San Francisco.

 

 

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

 

Copyright © 2015 by Tuttle Law Offices. 

All rights reserved.  Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

 

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