BROWN ADVOCATES FOR OHIO ALUMINUM EXTRUSION INDUSTRY, CONCERNED WITH COMMERCE DEPARTMENT APPROACH

Date: Aug. 26, 2022
Location: Washington, DC
Issues: Industries

In a bipartisan letter, U.S. Senator Sherrod Brown (D-OH) wrote to U.S. Department of Commerce Secretary Gina Raimondo to express support for the domestic aluminum extrusion industry and to highlight concerns with the established exclusion process. Brown wrote to Sec. Raimondo with U.S. Senators Rob Portman (R-OH) and Mike Braun (R-IN) in response to the Department's request for public comments on Section 232 Exclusions.

"The domestic extrusion industry is unique in both the diversity of products it produces but also in the relative ease of retooling a manufacturing process to produce a different extrusion," wrote the senators. "And, we are concerned that the Department's implementation of the General Approved Exclusions (GAEs) for aluminum extrusions is too broad, having the effect of removing all Section 232 protections for these domestic manufacturers. For this reason, the Department should take the industry's particular situation into account as it works to strengthen American industry and support the domestic workforce."

Full text of the senators' letter can be found HERE and below:

Dear Secretary Raimondo:

We write in response to the Department of Commerce's (the "Department") request for public comments on the Section 232 Exclusions Process (87 Fed. Reg. 7,777) to express support for the domestic aluminum extrusion industry and to highlight the unique concerns they have raised about the established exclusion process for their product.

The domestic extrusion industry is unique in both the diversity of products it produces but also in the relative ease of retooling a manufacturing process to produce a different extrusion. And, we are concerned that the Department's implementation of the General Approved Exclusions (GAEs) for aluminum extrusions is too broad, having the effect of removing all Section 232 protections for these domestic manufacturers. For this reason, the Department should take the industry's particular situation into account as it works to strengthen American industry and support the domestic workforce.

The current generally accepted exclusion (GAE) on aluminum extrusion products makes the U.S. market vulnerable to unfairly priced imported aluminum extrusion products. Specifically, the Department's process effectively requires a U.S. producer to be currently producing an identical specific extrusion in order to object to any individual exclusion request. Because domestic aluminum extruders can make up to 5 million different shapes, it is unlikely that a U.S. producer is currently pressing the exact same extrusion as an importer seeking an exclusion. Aluminum extrusions are often made to order products. It is increasingly difficult for domestic producers to inform the Department that they have the capability to produce a particular exclusion as a result of the Department's processes. In addition, under current policy, domestic producers are effectively barred from being able to object.

To address these concerns, we suggest two changes to the Department's implementation of the 232 exclusion process for aluminum extrusions.

First, the Department should amend the criteria used to evaluate exclusion requests for aluminum extrusion products by requiring requestors to provide information on the maximum and minimum press capability (in tonnage terms) required to produce the extrusion, and the minimum and maximum circle size required for any tooling required for the production of the extrusion. This data will better help the Department evaluate the availability of domestic sources of aluminum extrusions.

Second, the Department should permit domestic manufacturers and their representatives to provide comments and file objections to any exclusion request. Permitting industry representatives to file objections would both improve the efficiency of the overall exclusions process, and minimize the administrative burden on individual American producers.

These two actions would significantly improve the Department's ability to identify potential domestic sources of aluminum extrusions and would better serve the overall objectives of the Section 232 action, better supporting American workers and the domestic aluminum extrusion industry.

We appreciate your consideration of our suggestions and look forward to continuing to work with the Department to ensure that the 232 exclusions process is structured in a manner that helps protect domestic manufacturers from unfair overseas trade.


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