China Aluminum Extrusions: Commerce Finds Fence Kits Subject to AD/CV Duties
Because of normal practices in the fencing industry, aluminum fence systems are generally not “finished goods kits” exempt from antidumping and countervailing duties on aluminum extrusions from China (A-570-967/C-570-968), said the Commerce Department in a July 22 scope ruling. Despite arguments from fence importer Dynasty Profiles that it planned to import shipments of complete fence kits, Commerce found that the company’s plans can’t overcome the fact that fences are usually shipped as their constituent parts so they can be assembled by distributors to fill individual orders.
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Dynasty’s plan was to import complete fence kits for sale to unaffiliated fence wholesalers. The wholesaler would receive individual customer orders, and once it got enough orders to fill a container Dynasty would import multiple kits and ship them directly to the wholesaler. Each kit would contain all parts necessary to assemble a complete residential fence. As part of its scope request, Dynasty provided a sample packing list and sample invoice to show Commerce how it intended to import the fence kits.
But noting previous scope proceedings and information placed on the record by domestic manufacturers, Commerce found that in all likelihood Dynasty would not be able to import the fence kits whole and would have to resort to selling parts. Fence wholesalers and installers generally maintain an inventory of individual fence parts so they can customize fences to meet the customer’s specifications. Although Dynasty said it would assemble the fence kits to order before importation, fence distributors would not be able to wait the six weeks required to ship a single fence kit from China, much less wait for multiple orders to come in so a container could be filled.
“Therefore, we find that information provided by Dynasty (i.e., example invoices and packing lists of merchandise that might be shipped in the future) is not enough to overcome the weight of the evidence regarding the clear business pattern of the fence industry that [Commerce] has seen in prior scope rulings,” said the agency. Despite Dynasty’s assertions to the contrary, Commerce ruled that the fence kits will not contain at the time of importation all parts necessary to assemble a completed fence, so they don’t qualify for the “finished goods kit” exemption and are subject to AD/CV duties.
Email ITTNews@warren-news.com for a copy of this scope ruling.