U.S. Importers of 5050-Grade Aluminum Alloy Extrusions From China Now Face More Than a 400 Percent Increase in Duties

International Trade Update

Date: July 31, 2017

Key Notes:

  • Antidumping duty (AD) and countervailing duty (CVD) cash deposits are now required on 5050-grade aluminum alloy extrusion imports from the People’s Republic of China (China) previously not covered by AD and CVD orders.
  • AD and CVD duties can be assessed retroactively on unliquidated entries of these imports dating back to March 21, 2016.
  • AD and CVD duty cash deposits of more than 400 percent will be required on all future imports of 5050-grade aluminum alloy.

On July 26, 2017, the U.S. Department of Commerce (Commerce) issued its final determination in the anti-circumvention inquiry involving aluminum extrusions from China. Commerce held that heat-treated 5050-grade aluminum alloy extrusions imported from China on or after March 21, 2016 are now subject to the 33 percent AD cash deposit and 374 percent CVD cash deposit required under existing AD and CVD orders against imports of Chinese aluminum extrusions.

In May 2011, when the current AD and CVD orders on Chinese aluminum extrusions were imposed, 5050-grade alloy was not yet in commercial use and was not covered by the scope of the AD and CVD orders. After the orders were imposed, Chinese manufacturers began producing and exporting 5050-grade alloy to the United States because it could be imported without the additional duties. By March 2016, imports of 5050-grade alloy were common and prompted the Aluminum Extruders Council, the petitioner that obtained the original AD and CVD orders, to request an anti-circumvention investigation to determine if the product was subject to the 2011 orders. Commerce issued a preliminary decision March 21, 2016, finding the 5050-grade alloy subject to the orders because it was marketed as a product that mimicked aluminum alloys already subject to the AD and CVD orders. On July 26, 2017, Commerce issued its final determination affirming its preliminary decision.

The final determination covers only heat-treated 5050-grade alloys. If importers bring in 5050-grade alloy that is not heat-treated, however, they still must prove that the material is not covered by the AD and CVD orders. Such entries will be presumed to be subject to the orders.

The AD and CVD duties on 5050-grade aluminum alloy can be assessed retroactively on unliquidated entries dating back to March 21, 2016. Cash deposits equal to the AD and CVD duties will be required on all future imports of 5050-grade alloy.


For more information, please contact:

David Schwartz

Mark Lunn

Karyna Valdes*

or any member of our International Trade group.

*Karyna is not admitted to practice in the District of Columbia. She is admitted to practice only in Florida. Her work is supervised by principals of the firm.

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.