ARLINGTON, VA – The Aluminum Association is aware of news coverage of a report released by Dupré Analytics, accusing China Zhongwang Holdings Ltd. of defrauding investors through questionable borrowing practices and the inappropriate movement of aluminum products through a global network of related entities.
The implied fraudulent behavior relevant to the aluminum industry involves the import of misclassified and/or trans-shipped semi-fabricated aluminum into the North American market in order to capture and possibly inflate certain VAT tax rebates available to exported Chinese wrought products and to evade antidumping and countervailing duties on certain aluminum products of Chinese origin.
The Aluminum Association is concerned about any allegations of deliberate misclassification of metal to avoid relevant export duties. Such actions, if the allegations are true, would create an unlevel playing field for aluminum producers in North America and around the world, and lead to distortions in the marketplace that have ripple effects across the entire industry.
The Aluminum Association is calling on relevant authorities in China and the United States to investigate these claims, determine if they are accurate and act quickly to intervene if laws are being broken. As global demand for aluminum continues to grow, we must ensure that trade practices and policies provide for a level playing field so that consumers and producers can benefit.
About the Aluminum Association
The Aluminum Association represents U.S. and foreign-based companies and their suppliers throughout the value chain, from primary production to value added products to recycling. The Association is the industry’s leading voice, providing global standards, business intelligence, sustainability research and industry expertise to member companies, policymakers and the general public. The aluminum industry helps manufacturers produce sustainable and innovative products, including more fuel efficient vehicles, recyclable packaging, greener buildings and modern electronics. In the U.S., the aluminum industry creates $152 billion in economic activity. For more information visit www.Aluminum.org, on Twitter @AluminumNews or at Facebook.com/AluminumAssociation.