The U.S. Department of Commerce announced its preliminary determination that imports of disposable aluminium containers, pans, trays, and lids from China are benefitting from unfair government subsidies. Based on this preliminary determination, the agency will instruct U.S. Customs and Border Protection (CBP) to require U.S. importers of disposable aluminium containers from China to deposit estimated countervailing duties at the time of importation.

Further, based on the Department of Commerce’s preliminary critical circumstances determination, this duty deposit requirement will apply retroactively, with U.S. importers of disposable aluminium containers that entered the United States 90 days prior to the date on which notice of the Commerce Department’s preliminary determination is published in the Federal Register being required to deposit estimated countervailing duties with CBP on those entries.

“We appreciate the Commerce Department’s preliminary finding that disposable aluminium containers from China benefit from unfair government subsidies and thank the Department for its work on this important investigation,” said Paul Cobb, President of the Aluminium Foil Containers Manufacturers Association.

“This determination is an important step in ensuring that U.S. producers of disposable aluminium containers can compete on a level playing field against imports from China – not foreign governments.”

The Commerce Department’s determination follows the agency’s initiation, on June 5, 2024, of a countervailing duty investigation on imports of disposable aluminium containers from China, as well as an antidumping investigation on such imports.

Based on information gathered to date, the Commerce Department calculated preliminary subsidy margins for Chinese producers of disposable aluminium containers, as follows:

Zhejiang Acumen Living Technology Co., Ltd.: 312.91 percent

Henan Aluminium Corporation: 78.12 percent

All Others: 78.12 percent

The next step in these trade actions will be the Commerce Department’s issuance of its preliminary antidumping determination, which is scheduled to be announced on Friday, December 20, 2024. If an affirmative preliminary antidumping determination is issued by the Commerce Department, U.S. importers will be required to post duty deposits on all entries of disposable aluminium containers from China in the amount of the preliminary dumping margins, and will also be required to deposit estimated countervailing duties on imports from China that are covered by the Commerce Department’s preliminary subsidy determination announced today.

The disposable aluminium containers, pans, trays, and lids covered by the Commerce Department’s investigation are produced primarily from flat-rolled aluminium. The covered merchandise includes disposable aluminium containers, pans, trays, and lids regardless of shape or size and whether or not wrinkled or smooth. Disposable aluminium containers, pans, trays, and lids are typically used in food-related applications, including but not limited to food preparation, packaging, baking, barbequing, reheating, takeout, or storage, but also have other uses.

The Aluminium Foil Container Manufacturers Association is represented in these actions by John M. Herrmann, Paul C. Rosenthal, Joshua R. Morey, and Melissa M. Brewer of the law firm Kelley Drye & Warren LLP.