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Fair Trade: October 2010 Update

China Import Update — October 29, 2010

A coalition of U.S. extruders, known as the U.S. Aluminum Extrusions Fair Trade Committee, has been formed for the purposes of evaluating and, as necessary, defending the U.S. aluminum extrusion industry from being manipulated by alleged unfair trade practices from importers. This Committee is not part of the Aluminum Extruders Council, but we do support its work and its goals.

Below you will find updates regarding the petition the U.S. Aluminum Extrusion Fair Trade Committee filed with the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC) for redress from alleged unfair trade practices involving aluminum extrusions imported from China.

Update as of October 29, 2010

(Release from King & Spalding LLP)

This release is issued by King & Spalding: On October 28, 2010, the U.S. Department of Commerce ("Commerce") issued an affirmative preliminary determination in the antidumping duty investigation of imports of aluminum extrusions from China. Commerce found that imports are being dumped, i.e., sold in the U.S. market at less than fair value, at a margin of 59.31 percent. This dumping margin applies to all Chinese exporters of aluminum extrusions.

U.S. importers of aluminum extrusions from China will now be required to post a bond or pay cash deposits of 59.31 percent of the value of the imports at the time of entry. This is in addition to any estimated countervailing duties owed on the entries. On August 31, 2010, Commerce also made an affirmative preliminary determination in the countervailing duty investigation of aluminum extrusions from China and calculated subsidy rates ranging from 6.18 to 137.65 percent of the entered value of the merchandise.

Commerce initiated this investigation in April 2010 based on a petition filed by the U.S. Aluminum Extrusions Fair Trade Committee, a coalition of domestic manufacturers of aluminum extrusions, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union ("United Steelworkers"). The Committee and its supporters account for approximately 80 percent of production in the U.S. aluminum extrusions industry, and additional companies are continuing to sign on to support the effort. The United Steelworkers represent approximately 2,000 aluminum extrusion workers in the United States.

The Committee's lead counsel, Stephen A. Jones, Esq., a partner at the law firm of King & Spalding in Washington, D.C., stated: "The actions being taken today by the U.S. government to offset unfair prices with antidumping duties are greatly appreciated by the petitioning companies and their thousands of employees throughout the United States. The Commerce Department has found a high margin of dumping, and the antidumping duties should restore fair competition to the U.S market. This will give these U.S. companies the opportunity to maintain and expand U.S. production and U.S. jobs instead of continuing to lose market share to unfairly priced imports."

The Chairman of the Committee, Duncan Crowdis, the President of Bonnell Aluminum, Newnan, Georgia, stated, "All our industry wants is for the rules to be enforced and to compete on a level playing field. The Commerce Department's preliminary determination will help to ensure that additional business and jobs are not lost because of unfair competition."

On June 17, 2010, the U.S. International Trade Commission ("ITC") preliminarily determined by a unanimous vote that the domestic industry is materially injured by reason of unfairly traded imports from China. Commerce will now proceed to a final determination, which must be completed within 135 days, and the ITC will make a final determination within 180 days. If Commerce and the ITC each make affirmative final determinations, Commerce will impose an antidumping duty order in the Spring of 2011.

For Further Information, Contact:
Stephen A. Jones, Esq.
King & Spalding
(202) 626-2950