Famous Chinese aluminum foil producer Shantou Wanshun Package Material Stock Co said that its subsidiary, Jiangsu Zhongji Lamination Materials, is suing U.S. over trade duties that the U.S. Government imposed on its shipments.
In a statement to the Shenzhen Stock Exchange, the Shantou Wanshun Package Material Stock Co said that the Jiangsu Zhongji Lamination Materials has filed the lawsuit against the U.S. over anti-dumping and anti-subsidiary duties at the U.S. Court of International Trade. According to Zhongji, the U.S. imposed a countervailing duty of 17.14 percent and anti-dumping duty of 37.99 percent to Zhongji's aluminum foil products early this year.
Wanshun Board Secretary Huang Wei said that the total duties of 55.13 percent to the Zhongji's aluminum foil products were the lowest among the Chinese foil producers. In hindsight, it can be surmised that the U.S. is probably taking some of its arguments into account.
"But there are still some unreasonable elements inside," Huang said.
Huang cited that the U.S. has compared the prices of Chinese aluminum foil products that of South Africa. In its affidavit of complaint, Zhongji mentioned that Bulgaria could have been the more appropriate choice.
Huang said that she hopes that the U.S. will remove the twin duties. The lawsuit made no mention that the company is asking for damage fees.
"We will still export to the United States," Huang stated. She added that their clients and customers are still with the company and are still buying their products despite the double duties set by the U.S. She said that it is their affordable prices that make their customers stay with them.
Based on the website of the U.S. Court of International Trade, Zhongji filed a case against the U.S. last June. Cited in the stock exchange filing are associated defendants Aluminum Association Trade Enforcement Working Group, JW Aluminum Company, Novelis Corporation and Reynolds Consumer Products.
Last March 23, U.S. President Donald Trump surprisingly imposed a huge 10 percent duties on aluminum imported products from China and other countries. Notably, aluminum has been one of the primary trading products of China and U.S. with the latter citing China as the world's biggest producer of metals.
The imposition of broad import duties by the U.S. to China's aluminum foil products has sparked a bigger trade dispute between China and U.S. Last week, U.S. President Trump declared that the U.S. will impose a US500-billion tariffs to all Chinese imported goods. This further escalates the boiling trade war between these two mega-countries.
