Perfectus Accused of Aluminum  
Dumping by U.S. Department of Justice  
he U.S. Department of Justice illegally import more than 2.1 million  
“The conspirators ultimately de-  
California company,alleging that United States…The‘pallets’ were man- extrusions into the U.S. and evade the  
it avoided paying $1.5 billion in tariffs ufactured by China Zhongwang and/or AD/CVD by disguising the extrusions  
by passing off illegally imported alumi- its affiliates and ‘sold’ to Perfectus by as aluminum pallets. These ‘pallets’  
num extrusions as finished products.  
The complaint, filed September 14, of these intermediary entities are or made of expensive aluminum, making  
alleges that Zhongtian Liu, the founder were owned and operated during the them impractical for real-world use  
and chairperson of China Zhongwang relevant period by members of Liu’s and too expensive to be sold for use as  
DOJ) filed a complaint against a aluminum ‘pallets’ from China into the cided to continue importing aluminum  
several intermediary entities…Many were largely tack-welded, heavy, and  
Holdings Lmt., is effectively the owner family or his close associates.”  
of Ontario, Calif.-based Perfectus Alu- According to the complaint, Perfec-  
pallets,” says the complaint.  
The complaint alleges that Perfectus  
minum Inc., which was formed by the tus’ predecessor entities imported alu- stored the pallets at four separate ware-  
combination of at least seven predeces- minum extrusions until approximately houses with the intent to melt the pallets  
sor entities in 2014.  
The complaint reads,“Between 2011 Commerce issued two antidumping and  
2011, when the U.S. Department of into aluminum billet for sale in the U.S.  
According to the complaint, the plan  
and at least 2014, Liu used Perfectus to countervailing duties (AD/CVD) orders. to melt the pallets into billet was frus-  
Report: Craft Labor Shortage Persists  
in Construction Industry  
he ongoing labor shortage in happens, the cost of construction will offsite prefabrication (11 percent) and  
the construction industry is likely increase,” he said. “At the same virtual construction methods such as  
changing how firms operate and time, it may take longer for firms to BIM (7 percent),” according to AGC’s  
could lead to an increase in the cost complete projects as they cope with analysis. “Meanwhile, 22 percent are  
of construction, according to a new workforce shortages within their working with craft labor suppliers and  
report from the Associated General firms and subcontractor firms as well. 19 percent are working with staffing  
Contractors of America (AGC).  
Higher construction costs and slower firms to fill non-craft positions.”  
Seventy percent of respondents in schedules may serve as a brake on  
an industry-wide survey by AGC said broader economic growth.”  
Labor shortages are also prompting  
firms to try and recruit new workers.  
“In particular, they are working to  
they are having a hard time filling  
Forty-seven percent of firms report  
hourly trade positions, which make up they are increasing overtime hours. attract more veterans, women and  
the bulk of the sector’s jobs. Forty-six percent are doing more in- minorities into the construction in-  
AGC CEO Stephen Sandherr said that house training, and 41 percent are dustry,” Sandherr said. “At the same  
if this trend persists, there will be “sig- increasing their use of subs. time, they are raising wages, increas-  
nificant short-term and long-term impli- Twenty-seven percent of respon- ing benefits and expanding training  
cations” for the broader U.S. economy. dents report getting involved with programs to help recruit and retain  
In the short term, fewer firms will career-building programs at the high workers. Many firms are taking extra  
be able to bid on construction proj- school and college levels. “A smaller, steps to recruit and train workers be-  
ects if they are concerned that they but still significant, portion of firms re- cause they have such a low opinion of  
will not have enough workers to meet port they are increasing their use of the pipeline for preparing new hourly  
their contractual obligations. If that labor-saving equipment (22 percent), construction craft professionals.”  
USGlass, Metal & Glazing | October 2017  
NhAe NCortCh AmAerdicadn CsonCtracetorr tCeirticeatdion C(NAoCCm) anpnouancnedyU.S.  
trated when Dupré Analytics published  
a report in 2015 alleging that Liu, China  
Zhongwang and others were engaged in  
market fraud both in China and the U.S.  
The ensuing publicity caused Liu  
to abandon his plan, according to the  
complaint, and create a new plan in-  
volving melting down the pallets in  
Vietnam and reintroducing the alu-  
minum into the U.S. as a Vietnamese  
product. The Vietnamese aluminum  
would not be subject to the AD/CVD  
Glass Inc. of West Sacramento, Calif., became the 16th company to ac-  
quire certification after going through NACC’s ANSI-accredited program.  
U.S. Glass, not to be confused with USGlass magazine, is a glazing contrac-  
tor serving all of Northern California.  
“This demanding process made us revisit the best practices that we  
have worked so hard to embed within our organization,” says Mark Dutrow,  
president of U.S. Glass. “With all the demands of running an organization,  
sometimes our policies and procedures become stale or outdated, and the  
certification made us not only revisit our existing practices, but backfill with  
ones where none existed previously. I would encourage other firms to pursue  
the NACC certification to not only improve their organization internally, but to  
raise the bar as a whole for the contracting community.”  
The NACC program, launched in 2015, consists of several requirements  
intended to give building owners, general contractors, design professionals  
and other stakeholders confidence that the glass and aluminum installation  
process will be performed to meet the needs of the project.  
Agents conducted surveillance of the  
warehouse where Perfectus allegedly  
stored its illegally imported aluminum  
According to the complaint, Perfec-  
tus hired trucks to move shipping con-  
tainers from its warehouse to a port for  
export. On September 19, 2016, U.S.  
Customs and Border Protection (CBP)  
officers seized pallets suspected to be  
imported illegally.  
A CBP laboratory conducted a chem-  
ical composition test on one of the pal-  
lets. The lab results showed that the  
pallets were made of Series 6 alumi-  
num, an aluminum extrusion included  
in the AD/CVD orders.  
Giroux Glass is Certified  
Great Place to Work’  
iroux Glass Inc. recently was certified as a great workplace by the in-  
dependent analysts at Great Place to Work. The company earned this  
credential based on ratings provided by its employees in anonymous  
“When I first heard that we were certified as a ‘Great Place to Work,’ I was  
so excited, because nothing is more important than the happiness of our em-  
ployees,” says Nataline Lomedico, CEO and president of Giroux Glass. “Given  
the amount of time we spend at work daily is usually greater than the time we  
spend with our families, it’s heart-warming to know they enjoy what they do  
and the people with whom they work.”  
On January 9, 2017, the government  
formally seized 549 of Perfectus’ ship-  
ping containers containing approxi-  
mately 130,000 pallets.  
The DOJ is seeking to enforce the  
forfeiture of the defendant’s property The AeC Responds  
to the U.S. through its filed complaint. On September 15,the Aluminum Ex- Customs and the Department of Com-  
and its members in conjunction with  
A spokeswoman for Zhongwang told truders Council (AEC) issued a state- merce to investigate Zhongwang’s alleged  
Reuters that Liu “does not control and ment responding to the DOJ complaint attempts to avoid paying duties since the  
is not the beneficial owner of Perfec- against Perfectus.  
tus, and therefore he is not in a posi- “We want to applaud the Department son, AEC president. “Furthermore, this  
tion to comment on issues relating to of Justice’s decision to begin civil pro- should be a clear signal to those that seek  
Perfectus.” ceedings against Zhongwang’s affiliate to evade, circumvent, or in any way vio-  
She said that the company denies the Perfects [sic]. Today’s filing is the culmi- late our orders that such activities will be  
orders went into effect,”said Jeff Hender-  
allegations listed in the complaint.  
nation of a concerted effort by the AEC uncovered and prosecuted.” n  
October 2017 | USGlass, Metal & Glazing  

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