CHINESE manufacturers accused of dumping aluminium products on the Australian market are seeking to have the dumping notice overturned in the Federal Court.

The legal action is expected to examine the close links between Chinese enterprise and government, and what constitutes a ''public body'' in China.

After Australian aluminium producer Capral notified the Australian Customs and Border Protection Service four years ago of suspected dumping, customs identified more than 300 importers of Chinese aluminium products.

It concluded products had been dumped with margins ranging from 2.7 to 25.7 per cent, and subsidised with margins from 3.8 to 18.4 per cent. Capral had suffered a notable fall in sales and had been forced to lower its price to try to match the Chinese prices.

PanAsia Aluminium (China) Ltd and Tai Shan City Kam Kiu Aluminium Extrusion Co Ltd were identified in a group of seven importers which accounted for more than half the goods imported. Customs imposed countervailing duties of 13.6 per cent and 7.4 per cent.