Anti-dumping and countervailing duties on aluminum foil exported from China

The imposition of anti-dumping and countervailing duties on aluminum foil exported from China is not a new phenomenon. In fact, such duties have been applied by a number of countries and regions over the years to protect their respective domestic industries. As an example, the United States was using anti-dumping and countervailing duties to address imports of Chinese aluminum foil since 2001.

The United States first imposed anti-dumping duties on aluminum foil imported from China in October 2001, determining that Chinese producers had sold the product in the US at prices below their fair value and unfairly putting US producers at a significant competitive disadvantage.These duties amounted to between 50.69 percent and 151.04 percent, depending on the Chinese producer in question and the US importer.The duties were effective from Oct. 2, 2001, to Oct. 1, 2003.

Countervailing duties were also imposed on aluminum foil from China, after investigations by the US Department of Commerce, determined that certain producers had received subsidies from their country’s government in excess of the rates permitted under World Trade Organization (WTO) regulations.The Investigations found that the amount of subsidies ranged from 5.06 percent to 103.41 percent, with some Chinese producers receiving over 100 percent subsidies. Countervailing duties were effective from May 23, 2002, and ranged between 9.43 percent to 115.73 percent.

In April 2006, the United States again implemented anti-dumping and countervailing duties against aluminum foil imports from China. The investigation indicated that Chinese aluminum foil producers were still selling the good in the US at prices below their fair value and receiving unlawful subsidies from their government. As a result, anti-dumping duties between 35.77 percent and 92.81 percent, and countervailing duties between 11.65 percent and 57.07 percent were imposed. The duties were effective from April 3, 2006, to March 31, 2007.

In 2010, there was renewed investigation into aluminum foil imports from China, determining that the Chinese producers had once again been selling the product below their fair value in the US, and receiving unlawful subsidies from their government. As a result, anti-dumping duties between 41.21 percent and 106.-2 percent were imposed, and countervailing duties between 9.41 percent and 50.87 percent were imposed. The duties were effective from April 26, 2010, to March 31, 2011.

Since that time, the United States has imposed anti-dumping and countervailing duties on aluminum foil imports from China on a periodic basis. Currently, the anti-dumping duties range between 8.64 percent and 162.6 percent, and the countervailing duties range between 6.91percent and 50.44 percent. The duties are effective July 29, 2018, to March 31, 2019.

In addition to the United States, the European Union (EU) has also taken steps to protect its domestic aluminum foil industry from unfair trade practices from Chinese producers. In May 2011, the EU imposed provisional anti-dumping duties between 39.3 percent and 64.5 percent on imports of aluminum foil from China. After further investigations, definitive anti-dumping duties between 19.7 percent and 34.5 percent were imposed in October 2011, and were effective from October 28, 2011, to October 27, 2016.

The EU also conducted a separate investigation into subsidies given to Chinese aluminum foil producers, and determined that unlawful subsidies were being given to certain producers, resulting in definitive countervailing duties between 6.6 percent and 10.7 percent in December 2016. The duties were effective from March 21, 2017, to April 1, 2021.

Overall, it is clearly evident that both the US and EU have taken steps to protect their respective domestic aluminum foil industries, through the use of anti-dumping and countervailing duties. Both countries have applied such duties on a periodic basis, and the rates are determined by investigations into the unfair practices.

In addition to the U.S. and the EU, other countries and regions have also taken action to protect their domestic manufacturers of aluminum foil. India, for example, has imposed an anti-dumping duty on imports of aluminum foil coming from China for a period of five years. The imposed duty is applicable on imports whose thickness is less than 0.14 mm and/or whose width is less than 200 mm, with varied rates ranging from 7.5% to 57.3% depending on the particular exporter.

Australia has also adopted anti-dumping measures on imports of aluminum foil coming from China. The applicable anti-dumping duty is imposed on aluminum foil having a minimum thickness of 0.006 mm and/or a minimum width of 150 mm. The cash deposit rates are found to range from 27.2% to 82%. Countries in the Eurasian Economic Union such as Russia and Kazakhstan have also taken similar actions. They have each imposed additional duties ranging from 11.7% to 57.5% on aluminum foil imports from China.

The Association of Southeast Asian Nations (ASEAN) has also introduced anti-dumping and countervailing duties for aluminum foil imported from China. The tariffs are applicable on aluminum foil having a thickness of 0.006 mm and a width of at least 150 mm. Depending on the exporter, the rates range from 27.2% to 83.5%.

In conclusion, the aforementioned countries, regions, and organizations have imposed anti-dumping and countervailing duties to protect their domestic aluminum foil industries from unfairly priced imports from China. These duties range from 7.5% to 83.5% and generally apply to aluminum foil having a minimum thickness of 0.006 mm and a minimum width of 150 mm.

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