International Trade Commission Rules That Unfairly Traded Imports of Plastic Grocery and Shopping Bags Are Harming U.S. Producers
Posted on: Thursday, 14 May 2009, 15:57 CDT
WASHINGTON, May 14 /PRNewswire/ -- The U.S. International Trade Commission ("ITC") voted unanimously today that there is a reasonable indication that the U.S. industry producing plastic grocery and shopping bags is being materially injured by reason of dumped and subsidized imports from Indonesia, Taiwan, and Vietnam.
The ruling follows the March 31, 2009 filing of an antidumping petition against imports of polyethylene retail carrier bags from Indonesia, Taiwan, and Vietnam and a countervailing duty (anti-subsidy) petition against imports from Vietnam. Hilex Poly Co., LLC, headquartered in Hartsville, South Carolina, and Superbag Corporation, headquartered in Houston, Texas, filed the petition with the ITC and the U.S. Department of Commerce ("Commerce") on behalf of the U.S. industry producing these products. Commerce initiated the investigations on April 20, 2009.
In its notice of initiation of the antidumping investigations, Commerce stated that there is reason to believe that imports from Indonesia, Taiwan, and Vietnam are being sold in the United States at less than fair value, with estimated dumping margins of 35 to 60 percent for Indonesia, 76 to 96 percent for Taiwan, and 28 to 76 percent for Vietnam. If these allegations are sustained, U.S. importers will have to pay antidumping duties in these amounts on future imports. For example, a dumping margin of 76 percent for Vietnam would require U.S. importers to pay antidumping duties equal to 76 percent of the customs value of the imports.
In its notice of initiation of the countervailing duty investigation on imports from Vietnam, Commerce stated that it will investigate the following government subsidy programs allegedly benefiting producers in that country: two policy lending programs, three grant programs, three income tax programs, and three import and value added tax exemption programs. This is the first time that Commerce has initiated a countervailing duty investigation against imports from Vietnam, which Commerce considers a non-market economy country. If Petitioners' allegations are sustained, then U.S. importers will also have to pay countervailing duties in amounts necessary of offset the subsidies provided by the Vietnamese Government.
Joe Dorn, a partner at King & Spalding, the law firm representing the petitioners, said: "Today's decision is an important step in the process of obtaining relief against unfairly traded imports." Mr. Dorn also led a successful effort during 2003-2004 to impose antidumping duties on imports of these products from China, Malaysia, and Thailand. Those duties remain in place, and Dorn says this new case is stronger than the earlier one.
Commerce will issue its preliminary determination of countervailable subsidies as early as July 24, 2009 and its preliminary determination of dumping as early as September 8, 2009. When those rulings are made, U.S. importers will have to secure payment of estimated duties to U.S. Customs and will face liability for duties on all future imports.
Mark Daniels, Hilex's Vice President of Marketing & Environmental Affairs, stated, "Surging imports at extraordinarily low prices have had a significant adverse impact on our facilities and our employees. With this action, Hilex Poly seeks to level the playing field for all U.S. producers of plastic grocery and shopping bags."
Isaac Bazbaz, a Director of Superbag Corp., said, "This important decision sends a strong message to foreign producers and importers of these products that unfair pricing and government subsidies will not be tolerated but, rather, will be thoroughly examined by the U.S. government."
SOURCE King & Spalding LLP
Source: PR Newswire
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