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By: Kun Zhao, Esq.

On May 26, 2011, the International Trade Commission issued an antidumping duty order and a countervailing duty order against aluminum extrusion products from China (76 FR 30, 650 (May 26, 2011); 76 FR 30, 653 (May 26, 2011), referred to as “the Orders”). The merchandise subject to the Orders includes aluminum extrusions produced and imported in a wide variety of shapes and forms, such as hollow profiles, other solid profiles, pipes, tubes, bars, and rods. Many aluminum products including, but not limited to, drapery rails and rods have drawn the attention of customs officials, who are imposing antidumping and countervailing duties on such products.

Unbeknownst to many importers, the Orders exclude finished goods containing aluminum extrusions that are imported unassembled in “a finished goods kit.” A memorandum from the Department of Commerce dated February 3, 2012 regarding drapery rod kits explained that a finished goods kit is understood to mean a packaged combination of parts that contain, at the time of importation, all of the necessary parts to fully assemble final finished goods and requires no further or fabrication, such as cutting or punching, and is assembled “as is” into a finished product.

The memo further determined that drapery rail kits without including curtains are not a “finished goods kit.” Other memos regarding the scope of the Orders from the Department of Commerce determined that a shower door frames without glass is not a finished good. A retractable awning mechanism kit without textile cover is not a “finished product.”

Thus, the criteria for determining the scope of the exclusion is whether the kits contain all of the necessary parts to fully assemble a final finished good at the time of importation. To ensure that merchandise containing aluminum extrusions is not subject to antidumping and countervailing duty, importers should confirm that:

(1)   The merchandise is packaged in kits and each kit has all necessary parts to fully assemble a final finished good, including non-aluminum parts, such as curtain, glass, textile cover, sheet, etc.; and

(2)   The purchaser order is placed for the kit and not for the parts of the kit; and

(3)   The unit price is offered for each kit and not the breakdown prices for individual parts of the kit; and

(4)   The kit is from one manufacturer or exporting company.