WASHINGTON — January 17, 2018 — On January 17, 2018, the U.S. Department of Commerce announced affirmative final determinations that producers and exporters of imports of fine denier polyester staple fiber (PSF) from China and India are being unfairly subsidized by their respective governments at double-digit margins, as follows.
Fine Denier PSF Imports from China
| Producer/Exporter | CVD Final Rate |
| Jiangyin Hailun Chemical Fiber Co., Ltd. | 38.00 |
| Jiangying Huahong Chemical Fiber Co. Ltd. | 47.57 |
| All Others | 42.79 |
Fine Denier PSF Imports from India
| Producer/Exporter | CVD Final Rate |
| Bombay Dyeing & Mfg. Co. Ltd. | 13.38 |
| Reliance Industries Limited | 27.36 |
| All Others | 24.80 |
U.S. Customs and Border Protection has been collecting countervailing duties (CVD) in the amount equal to the preliminary subsidy rates in each country since November 6, 2017, when Commerce published its preliminary affirmative CVD determinations in these cases. Importers will be required to continue posting duty deposits at these new CVD rates on the date the final determinations are published in the Federal Register (in approximately one week).
Additionally, Commerce issued its preliminary determinations in the antidumping duty (AD) investigations involving imports from China, India, Korea, and Taiwan on December 18, 2017. Those margins range from 63.26-181.46 percent (China); 2.66-21.43 percent (India); 0.00-45.23 percent (Korea); and 0.00-48.86 percent (Taiwan). The previously announced Chinese and Indian AD margins, adjusted for subsidy offsets to a “cash deposit rate,” are applied in addition to the final CVD rates announced today for those same countries.
Further, the issuance of Commerce’s final CVD determinations for China and India triggers the final phase of the U.S. International Trade Commission’s (ITC) injury investigation into whether those imports are causing material injury to the domestic industry. The ITC reached an affirmative preliminary determination on July 14, 2017 that the domestic industry is materially injured by the unfairly trade fine denier PSF imports. The ITC is holding a public hearing in its final investigation on January 17, 2018, and is expected to reach its final determination by early March 2018. The ITC’s final decision will determine whether AD and CVD orders are imposed.
Background
Three major U.S. polyester fiber producers – DAK Americas LLC, Nan Ya Plastics Corporation, America, and Auriga Polymers Inc. – filed petitions with the ITC and Commerce on May 31, 2017 alleging that dumped imports of fine denier PSF from China, India, Korea, and Taiwan, and subsidized imports of fine denier PSF from China and India, are causing material injury to the domestic industry.
The product covered by the petition is fine denier polyester staple fiber, which is a synthetic staple fiber of polyesters measuring less than 3.3 decitex (3 denier) in diameter. Fine denier PSF is generally cut in lengths of less than five inches (127 mm). Fine denier PSF is similar in appearance to cotton or wool. It is typically converted either to yarn for weaving or knitting into fabric or to a non-woven textile prior to the end-use application. Woven applications include the production of textiles such as clothing and bedding linens, for example. Non-woven applications include the production of household and hygiene products such as cleaning wipes, baby wipes, and diapers.
The petitioning companies are represented by Kelley Drye & Warren LLP.
Posted January 18, 2018
Source: Kelley Drye & Warren LLP
