China Aluminum Extrusions: 'Finished Goods' Subassemblies Only Out of Scope if They Include Non-Subject Parts
To avoid coverage under the antidumping and countervailing duty orders on aluminum extrusions from China (A-570-967 / C-570-968), a “finished goods kit” must include non-aluminum extrusion components, said the Commerce Department in a final scope ruling that found kitchen appliance door handles imported by Meridian Products to be subject to the order. And this standard also applies to the Commerce Department’s new position on subcomponents as finished goods kits, it said.
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Domestic importer Meridian Products argued that kitchen appliance door handle kits it imports are not subject to the aluminum extrusions AD/CVD orders because they fall under the scope’s exclusion of “finished goods kits.” The door handles at issue are entirely made of aluminum extrusions with holes drilled to attach to kitchen appliances. One model has plastic end caps. Although the door handles are parts of kitchen appliances, Meridian pointed to an October 2012 scope ruling that found subassemblies can be counted as finished goods kits for the purpose of defining what is subject to the aluminum extrusions scope. It said its door handles contained all necessary components to assemble and mount complete handles. And they are only suited for that purpose. Whirlpool and Electrolux each submitted comments in support of Meridian’s position.
But according to domestic petitioners, Commerce should only find products to be excluded from the scope as final finished products if they include non-aluminum extrusions components. The agency should evaluate whether the aluminum extrusion provides the fundamental characteristic to the product, the petitioners said. In this case, the door handles are just extruded aluminum parts, and shouldn’t be excepted from the order’s coverage, they said.
Commerce agreed with the domestic petitioners, finding the kitchen appliances door handles to be within the scope of the aluminum extrusions AD/CVD orders. They are simply aluminum extrusions which are shapes and forms, made of an aluminum alloy that is covered by the scope, the agency said. The fact that their name refers to their end use does not exclude them from coverage. “To consider a product which consists only of aluminum extrusions as a finished goods kit or final, finished good would mean that the exception to the scope of the orders would swallow the scope, because any aluminum extrusion product, as long as it can be identified by end use, could be considered a finished product,” Commerce said.
Email ITTNews@warren-news.com for a copy of the scope ruling.