Transformer Conductors Made In Canada Still Subject To China ...

Transformer Conductors Made in Canada Still Subject to China Aluminum Sheet Duties, Commerce SaysFebruary 2, 2022 by Brian Feito|AD/CVD

Transformer coil winding conductors from Canada made from Chinese aluminum sheet and exported to the U.S. by Hammond Power Solutions remain subject to antidumping and countervailing duties on common alloy aluminum sheet from China (A-570-073/C-570-074), said the Commerce Department in a Jan. 20 scope ruling. The transformer coil windings are still described by the scope of the orders, and the processing in Canada does not substantially transform the conductors into products from that country.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

Start My Free PreviewLog In To My Account

The scope of the ADD/CVD orders explicitly covers common alloy aluminum sheet processed in a third country, Commerce said. The scope says, “Subject merchandise includes common alloy sheet that has been further processed in a third country, including but not limited to annealing, tempering, painting, varnishing, trimming, cutting, punching, and/or slitting, or any other processing that would not otherwise remove the merchandise from the scope of the Orders if performed in the country of manufacture of the common alloy sheet.”

The conductor is made by slitting the Chinese aluminum sheet to width, and then performing a two-stage deburring procedure, first by pinching, then by forming a bevel. The bevel prevents the conductor from puncturing the insulation with which the conductor is layered inside of conductor windings. But the processing does not chemically alter the aluminum or change the thickness of the sheet beyond what is covered by the AD/CVD orders, and cut-to-length and wound aluminum sheet are specifically mentioned in the scope.

Likewise, the conductors remain in the same class or kind of merchandise as common alloy aluminum sheet for substantial transformation purposes, Commerce said. Slitting is specifically covered by the scope, and deburring is not “an advanced operation in comparison to the operations performed in China,” it said.