Aluminum Extrusion Smugglers Caught

Five defendants—who pled guilty to charges of smuggling aluminum extrusions into the United States in August 2014—are scheduled for sentencing later this year.  Aluminum extrusions have antidumping and countervailing duties assessed for relevant imports. These five individuals were indicted based on their alleged conspiracy to knowingly and willfully circumvent the process in order to avoid the duties.  According to the indictment, the defendants were purchasing aluminum extrusions from China, transshipping, repackaging them, and then falsifying the origin as Malaysia.

Antidumping duties (ADD) and countervailing duties (CVD) are additional duties imposed on goods entering into the U.S. that are being sold below fair market value.  Antidumping duties are put in place when a country is found dumping goods, which means they are selling it for less than they would in their own country.  Countervailing duties are used when an exporting country’s government is subsidizing exports allowing manufacturers to sell for less.  These duty increases are instituted because, in both ADD and CVD cases, the importing country’s market is negatively affected by the applicable imports.  

If you have any reservations or questions about ADD and CVD or if you would like information on any other trade compliance matter, please contact Allyn at (239) 489-9900, or you can email us at sales@allynintl.com.

Reference: CBP.gov