New Trade Case on Imports of Aluminum Wire and Cable from China

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New US antidumping (AD) and countervailing (CVD) duty investigations were filed on September 21, 2018 by Encore Wire Corporation and Southwire Company (petitioners) against imports of aluminum wire and cable from China.

The merchandise covered by the petition includes certain aluminum wire and cable that is generally used for electrical power in residential, industrial, and commercial applications. The full scope of the merchandise covered is set forth below.

The petition includes AD (less than fair value) allegations against China and CVD (unfair subsidy) allegations against China.

The Department of Commerce and the International Trade Commission (ITC) will next determine whether to launch AD and/or CVD duty and injury investigations, respectively, on these products. Commerce will be responsible for calculating the ultimate AD/CVD margins on the imports, while the ITC will conduct a concurrent investigation to determine if the imports are injuring the U.S. industry. If Commerce finds dumping or unfair subsidization in its preliminary determinations, currently scheduled for December 15, 2018 (CVD) and February 28, 2019 (AD), importers will be charged the calculated duties upon the products’ entry in the U.S. market.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know  so that we can provide you with additional information as it becomes available.

The following are key facts about this trade case:

Petitioner: Encore Wire Corporation and Southwire Company

Foreign Producers/Exporters and US Importers:  Please contact us for a listing of individual companies named in the petition.

Alleged AD and CVD margins:  Petitioner has alleged the following AD margins:

  • China –   from 53.2 percent to 63.1 percent

Petition has alleged CVD margins for China above de minimis.

Merchandise covered by the scope of the case:

The scope of the investigations is aluminum wire and cable (“AWC”), which is defined as an assembly of one or more electrical conductors made from 8000 Series Aluminum Alloys, Aluminum Alloy 1350, and/or Aluminum Alloy 6201, provided that: (1) at least one of the electrical conductors is insulated; (2) each insulated electrical conductor has a voltage rating greater than 80 volts and not exceeding 1000 volts; and (3) at least one electrical conductor is stranded and has a size not less than 16.5 kcmil and not greater than 1000 kcmil. 

8000 Series Aluminum Alloys is defined in accordance with American Society for Testing and Materials (“ASTM”) B800.  Aluminum Alloy 1350 is defined in accordance with ASTM B230/B230M or B609/B609M. Aluminum Alloy 6201 is defined in accordance with ASTM B398/B398M.

The assembly may or may not: (1) include a grounding or neutral conductor; (2) be clad with aluminum, steel, or other base metal; or (3) include a steel support center wire, one or more connectors, a tape shield, a jacket or other covering, and/or filler materials.

Most AWC products conform to National Electrical Code (“NEC”) types THHN, THWN, THWN-2, XHHW-2, USE, USE-2, RHH, RHW, or RHW-2, and also conform to Underwriters Laboratories (“UL”) standards UL-44, UL-83, UL-758, UL-854, UL-1063, UL-1277, UL-1569, UL-1581, or UL-4703, but such conformity is not required for the merchandise to be included within the scope.

The scope of the petitions specifically excludes conductors that are included in equipment already assembled at the time of importation. Also excluded are aluminum wire and cable products in lengths less than six feet.

Certain aluminum wire and cable subject to these investigations is properly classifiable under subheading 8544.49.9000 of the Harmonized Tariff Schedule of the United States (“HTSUS”).  The subject aluminum wire and cable may also enter under HTSUS subheading 8544.42.9090.  While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise is dispositive.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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