DOC Announces Decision on Chinese Pallets

The U.S. Department of Commerce (DOC) determined that pallets imported into the country from the People’s Republic of China (PRC) made of 6xxx-series aluminum alloy are covered by U.S. duties.

This decision will apply to all Chinese exporters and producers that may choose to launch a similar scheme, according to the Aluminum Extruders Council (AEC).

“Finally, we agree with the petitioner that the scope ruling should be applied to all extruded aluminum profiles from the PRC consisting of series 6xxx aluminum alloy which are cut-to-length and welded together in the form of a pallet, regardless of producer or exporter,” the Council said in a statement. “We also note that our analysis above is not contingent on any specific company, but rather, focuses on the description of the product at issue provided by the petitioner. Additionally, information on the record suggests that Zhongwang’s affiliate network is growing, thereby creating the opportunity to evade the orders. Therefore, we find that all 6xxx series pallets, regardless of producer or exporter from the PRC, are covered by the orders.”

In early December 2016, the DOC declared that Zhongwang’s pallets are merely aluminum extrusions made of 1xxx alloy, cut-to-length and welded together in the form of a pallet and plainly subject to the existing antidumping and countervailing duty orders on aluminum extrusions from China. In March 2017, the AEC asked Commerce to expand its finding to include the 6xxx pallets.

“We are very gratified by the victory [Wednesday],” says Alan Price, head of the Trade Practice Group at Wiley Rein LLP. “Since the orders have been in place, Chinese producers have engaged in an effort to evade the antidumping and countervailing duty orders on aluminum extrusions. [This] decision will help to address some of the most egregious evasion.”

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