AE 2021 UP2: Aluminum extrusions
Conclusion of normal value review

Background

In its last proceeding^{Footnote 1} on certain aluminum extrusions from China, with respect to the dumping portion of the re-investigation, the CBSA was of the opinion that the domestic prices of aluminum extrusions in China were still being substantially determined by the Government of China (GOC) and the aluminum extrusions sector in China was still operating under conditions where the prices were not substantially the same as they would be if they were determined in a competitive market. As the conditions of section 20 of SIMA were found to exist, the normal values for the exporters that provided a complete and reliable submission were determined using an alternate methodology under a ministerial specification, pursuant to subsection 29(1) of SIMA.

The normal values determined were based on the monthly average settlement price of aluminum as reported on the London Metal Exchange (LME), plus added to these LME prices were amounts for the i) conversion costs of the aluminum into a finished aluminum extrusion product, ii) administrative, selling and all other costs and iii) profit (the LME methodology).

With respect to the subsidy portion of the re-investigation, as the GOC provided an incomplete submission, the CBSA, under a ministerial specification, pursuant to subsection 30.4(2) of SIMA, issued individual amounts of subsidy for the exporters that provided a complete and reliable submission.

The amounts of subsidy determined were based on the total amount of benefits found for the exporter distributed over the total quantity of goods to which the benefits are attributable.

Periods of investigation

For this review, the dumping and subsidy Period of Investigation is from January 1, 2019 to September 30, 2020.

Normal value review process

At the initiation of the review, the CBSA sent accordingly the Dumping and Subsidy Requests for Information (RFIs) to all of the parties involved in the transactions in order to solicit information on the costs and selling prices of the goods, and on subsidy programs. The information was requested for purposes of updating the normal values, export prices and amount of subsidy applicable to the subject goods exported to Canada.

All parties responded accordingly to the CBSA’s RFIs, notices of disclosure-related deficiencies, deficiency letters and supplemental RFIs (SRFIs). Furthermore, the CBSA granted extension requests filed by three respondents.

As part of the review, counsel on behalf of eight Canadian producers of aluminum extrusions (the Domestic Extruders) submitted comments prior to the close of the record and filed a case brief.^{Footnote 2} Counsel on behalf of The Hillman Group Canada ULC (Hillman Canada) also provided a case brief.^{Footnote 3} Subsequently, reply submissions^{Footnote 4} were received by the Domestic Extruders and Hillman Canada.

The main focus of the representations provided by the Domestic Extruders relate to the incomplete or otherwise deficient responses filed by Hillman Canada, Test Rite, Hangzhou Grand Import & Export Co., Ltd. (Grand), Haiyan Jiamei Hardware Manufacturing and Technology Co., Ltd. (Jiamei) and Wujiang Longma Aluminum Co., Ltd. (Longma) to the CBSA’s RFIs, SRFIs and deficiency letters.

In addition, the Domestic Extruders submitted that the various programs (i.e., grants, reduced income tax rate, etc.) are countervailable, and these subsidies received by Grand, Jiamei and Longma are specific.

The Domestic Extruders concluded that the responses from all of the respondents must be rejected, and the ministerial specification under section 29 of SIMA^{Footnote 5} must be applied in this review.

In its case brief and reply submission, Hillman Canada submitted that the responses to the RFIs and related documentation received from all parties to the review are complete. It further indicated that unless a subsidy is specific, it is not subject to being countervailable and concluded that it appears that none of the subsidy programs in question give rise to any countervailing duty for Grand, Jiamei and Longma.

Both the Domestic Extruders and Hillman Canada touched as to the identity of the exporter under SIMA.

The representations provided by the Domestic Extruders and Hillman Canada were given due consideration by the CBSA prior to the conclusion of the review.

The CBSA considers the responses to the Dumping and Subsidy RFIs and to other CBSA requests made by Hillman Canada, Grand, Jiamei, Longma and Test Rite to be substantially complete for purposes of this review. The CBSA also considers that the subsidies received are specific and countervailable.

Determination of the Normal Values and Amount of Subsidy

Specific normal values and an amount of subsidy for future shipments of subject goods have been determined for the exporter, Grand. These normal values and amount of subsidy are effective today, March 3, 2022.

Pursuant to the dumping ministerial specification, the normal values are based on the LME methodology, and to the subsidy ministerial specification, the amount of subsidy is based on Grand’s submissions.

The normal values and amount of subsidy determined as a result of this review may be applied to any requests for re-determination of importations of subject goods that have not been processed prior to the conclusion of this review, regardless of the date that the requests were received.

Exporter responsibility

Please note that exporters with normal values are required to promptly inform the CBSA in writing of changes to domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods. If there are changes to the exporter’s domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods, and where the CBSA considers such changes to be significant, the normal values and export prices will be updated to reflect current conditions. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters do not properly notify the CBSA of any such changes, do not adjust export prices accordingly, or do not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments will be applied where such action is warranted.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping duty and countervailing duty liabilities. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to SIMA measures and be provided with sufficient information necessary to clear the shipments. To determine their anti-dumping and countervailing liabilities, importers should contact the exporter to obtain the applicable normal values and amount of subsidy. For further information on this matter, refer to Memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established under the Special Import Measures Act.

The Customs Act (Act) applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed. For more information on how to file a request for re-determination, please refer to the Guide for Appealing a Duty Assessment.

Information

Any questions concerning the above should be directed to:

• Telephone:
• Joël Joyal: 343-553-1586

Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca

Appendix 1—Product definition

Definition of subject goods

Products excluded from the Canadian International Trade Tribunal’s (CITT) Findings/Orders

• aluminum extrusions produced from either a 6063 or a 6005 alloy type with a T6 temper designation, in various lengths, with a powder coat finish on both the interior and the exterior surfaces of the extrusion, which finish is certified to meet the American Architectural Manufacturers Association AAMA 2603 standard, "Voluntary Specification, Performance Requirements and Test Procedures for Pigmented Organic Coatings on Aluminum Extrusions and Panels", for use in exterior railing systems
• aluminum extrusions produced from a 6063 alloy type with a T5 temper designation, having a length of 3.66 m, with a powder coat finish, which finish is certified to meet the American Architectural Manufacturers Association AAMA 2603 standard, "Voluntary Specification, Performance Requirements and Test Procedures for Pigmented Organic Coatings on Aluminum Extrusions and Panels", for use as head rails and bottom rails in fabric window shades and blinds where the fabric has a cross-sectional honeycomb or "cellular" construction
• aluminum extrusions produced from a 6063 alloy type with a T5 temper designation and forming part of the Vario System™ 20, 30, 40, 45 and 60 series line of profiles, or equivalent, having a length of either 4.5 or 5.8 m and a straightness tolerance of +/-1.5 mm or less per 6.0 m of length, for use in those parts of mechanical systems and automated machinery, such as gantry systems and conveyors, where precise linear movement is required
• aluminum extrusions produced from either a 6063 or a 6463 alloy type, having a length of 3 m, with a hand-applied gold and silver leaf finish, for use as picture frame mouldings
• aluminum extrusions produced from a 6063 alloy type with either a T5 or a T6 temper designation, having a length of between 20 and 33 ft. (between 6.10 and 10.06 m), with a powder coat finish, which finish is certified to meet the American Architectural Manufacturers Association AAMA 2603 standard ("Voluntary Specification, Performance Requirements and Test Procedures for Pigmented Organic Coatings on Aluminum Extrusions and Panels"), for use in window frames
• heat sinks imported under tariff item No. 8473.30.90 and weighing 700 g or less and
• aluminum extrusions produced by China Square Industrial Ltd. from either a 6063 or a 6463 alloy type with a T5 temper designation, with a profile or cross-section which fits within a circle having a diameter of 100 mm, for use by MAAX Bath Inc. in the assembly of its shower enclosures, specifically identified in the Appendix of the Determination and reasons issued by the CITT on February 10, 2011, in Inquiry No. NQ-2008-003R. The list of these excluded products can be found in the Appendix of CITT Anti-dumping Injury Inquiries

For the excluded products listed above that require a finish which is "certified to meet the American Architectural Manufacturers Association AAMA 2603 standard", the importer must be able to provide evidence that their goods meet that standard.

Tariff classification numbers

The subject goods are usually imported under the following tariff classification numbers:

1. 7604.10.00.30
2. 7604.10.00.40
3. 7604.21.00.10
4. 7604.21.00.90
5. 7604.29.00.11
6. 7604.29.00.19
7. 7604.29.00.21
8. 7604.29.00.29
9. 7604.29.00.30
10. 7608.10.00.10
11. 7608.10.00.90
12. 7608.20.00.00
13. 7610.10.00.10
14. 7610.10.00.20
15. 7610.10.00.30
16. 7610.90.10.00
17. 7610.90.90.10
18. 7610.90.90.20
19. 7610.90.90.30
20. 7610.90.90.90

This listing of the tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.