U.S. Department of Commerce Investigates Potential Illegal Entry of Aluminum Packaging

The United States Department of Commerce has launched a nationwide investigation to determine whether certain shipments of disposable aluminum containers (such as trays, receptacles, lids, and molds) entering the country from Thailand and Vietnam are illegally circumventing antidumping and countervailing duties imposed on similar products originating from China.

According to the Aluminum Foil Container Manufacturers Association (AFCMA), these products are allegedly being assembled or finalized in Vietnam and Thailand using aluminum foil manufactured in China, representing a maneuver to evade trade measures imposed on May 8. These measures arose from complaints of unfair competition.

John Herrmann, attorney for AFCMA, expressed his satisfaction with the Department of Commerce’s decision:

“. U.S. manufacturers should not be forced to compete with products that are sold below fair value and subsidized by the Chinese government. The formal opening of these investigations is a positive sign that the authorities will rigorously enforce the measures in place”.

In the coming weeks, the Department of Commerce will send questionnaires to companies suspected of evasion, allow the submission of evidence by interested third parties, and issue a preliminary determination. If evasion is confirmed, the affected products from Vietnam and Thailand—imported since the date the investigation began—will be subject to the same antidumping and countervailing duties already applied to Chinese products, which exceed 500% in some cases.

Herrmann also highlighted a recent Department of Commerce tool that would allow these tariffs to be extended retroactively to shipments that have circumvented the rules through other countries.

Among the AFCMA member companies that support this action are:

• Durable Packaging International (Illinois)
• D&W Fine Pack, LLC (Illinois)
• Handi-foil Corp. (Illinois)
• Penny Plate, LLC (New Jersey)
• Reynolds Consumer Products, LLC (Illinois)
• Shah Foil Products, Inc. (New Jersey)
• Smart USA, Inc. (New York)
• Trinidad/Benham Corp. (Colorado)

The products under investigation are single-use aluminum containers made primarily from laminated aluminum. This includes packaging of various shapes and sizes, with smooth or wrinkled surfaces, and is mainly used in the food sector: preparation, packaging, baking, grilling, reheating, take-out, or storage, although they may also have other uses.

The law firm Kelley Drye & Warren LLP represents the AFCMA in this process, through attorneys John M. Herrmann, Paul C. Rosenthal, and Joshua R. Morey.