Commerce Finds Polyester Fiber Exporters From China, India Unfairly Subsidized

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Photo credit: Auriga Polymers

The U.S. Commerce Department issued affirmative final determinations in the countervailing duty (CVD) investigations of fine denier polyester staple fiber from the China and India, finding that exporters from those countries received countervailable subsidies of 41.73% to 47.55% and 9.5% to 25.28%, respectively.

The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of fine denier polyester staple fiber from China and India based on these final rates.

“The United States will no longer sit back and watch as its domestic businesses are destroyed by unfair foreign government subsidies,” said Commerce Secretary Wilbur Ross. “We will continue to take action on behalf of U.S. industry to defend American businesses, workers and communities adversely impacted by unfair imports.”

In 2016, imports of fine denier polyester staple fiber from China and India were valued at an estimated $79.4 million and $14.8 million, respectively.

The China investigation involved Jiangyin Hailun Chemical Fiber Co. and Jiangyin Huahong Chemical Fiber Co., while the India investigation included Bombay Dyeing & Mfg. Co. and Reliance Industries Ltd.

The petitioners are DAK Americas LLC and Auriga Polymers Inc. , both based in North Carolina, and Nan Ya Plastics Corp. America of South Carolina.

[Read more about polyester: Emerging Markets Expected to Lead Global Polyester Fiber Growth]

Commerce noted that enforcement of U.S. trade law is a prime focus of the Trump administration. From Jan. 20, 2017, through Jan. 17, Commerce initiated 84 antidumping and CVD investigations, a 62 percent increase from 52 in the previous year.

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The CVD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the U.S. The Commerce Department currently maintains 418 antidumping duty and CVD orders.

The U.S. International Trade Commission (ITC) is conducting investigations to determine whether or not the domestic industry is harmed by imports of fine denier polyester staple fiber from China and India. The ITC is currently scheduled to make its final injury determinations on or before March 2.

If the ITC makes affirmative final injury determinations, Commerce will issue CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.

Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.

In fiscal year 2016, the United States collected $1.5 billion in duties on $14 billion of imported goods, found to be underpriced, or subsidized by foreign governments.

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