FINE DENIER POLYESTER STAPLE FIBER FROM CHINA, INDIA, KOREA, TAIWAN, AND VIETNAM U.S. Industry Files Antidumping Duty & Countervailing Duty Petitions

On May 31, 2017: U.S. polyester staple fiber producers – Dak Americas, Nan Ya Plastics, and Auriga Polymers filed petitions charging that unfairly-traded imports of fine denier polyester staple fiber (“FDPSF”) from China, India, Korea, Taiwan, and Vietnam alleging that imports are causing material injury to the domestic industry. The petitions allege that producers in each of the five countries are dumping FDSF in the U.S. market at sizeable margins and furthermore that exports of FDPSF from China India are being unfairly subsidized.

Dumping occurs when a foreign company sells a product in the United States at less than its normal value. Petitioners allege that various foreign manufacturers are dumping FDPSF at significant margins.

Countervailable Subsidization occurs when a foreign government provides programs and incentives that likely provide unfair subsidies to producers of FDPSF from various manufacturers. Petitioners allege that China and India are providing countervailable subsidies to producers in those countries at, as yet, unknown levels.

The petition indicates the following margins of dumping:

Country Margin of Dumping
China 88.07-103.06%
India 21.31-29.70%
Korea 27.16-45.23%
Taiwan 29.32-53.81%
Vietnam 64.73%

Antidumping & Countervailing Duty Proceedings
Antidumping investigations involve two separate parts: an evaluation by the U.S. International Trade Commission of whether U.S. producers are being injured by reason of the imports, and a calculation by the U.S. Department of Commerce of the margin of dumping of individual exporters.

Countervailing investigations also involve two separate parts: an evaluation by the U.S. International Trade Commission of whether U.S. producers are being injured by reason of the imports, and a calculation by the U.S. Department of Commerce of the margin of subsidization of individual exporters as well as an examination of the programs provided by the individual governments.

The U.S. International Trade Commission will initiate its investigation into whether FDPSF from the subject countries injure the U.S. domestic industry, and will make its preliminary determination by approximately July 14, 2017. Importers, producers, and exporters can participate in the U.S. International Trade Commission’s evaluation by filling out and sending in a questionnaire response about production, importation, and sales of FDPSF.

The U.S. Department of Commerce will evaluate the petition to determine whether it contains allegations and evidence that is reasonably available to the Petitioners indicating that FDPSF from the subject countries is being dumped (sold at less than fair value) in the United States, and whether FDPSF from China and India is also unfairly subsidized. Commerce will determine whether to initiate its investigation by June 20, 2017.

Retroactive Duties may be required by U.S. Customs if there is an allegation of critical circumstances. If so, imports from China and India arriving after May 31, 2017 (the date on which the petition was filed), but before the date of the preliminary countervailing duty determination (which can be as early as approximately August 24, 2017, may also be subject to the assessment of duties. This means importers will be required to pay cash deposits on merchandise currently on the water. TLD has developed effective strategies to reduce potential liability for such shipments.

Estimated Timeline:
Based upon the filing date of the petition, DOC and ITC will issue their preliminary decisions on approximately the following dates:

DOC Initiation June 20, 2017
ITC Questionnaires Deadline Early June 2017
ITC Conference June 21, 2017
ITC Post-Conference Brief June 26, 2017
ITC Preliminary Decision July 14, 2017
DOC Deadline for Quantity & Value Response Estimated late July 2017
DOC Respondent Selection Early August 2017
DOC Questionnaires Issued/Responses Due Mid-August to October 2017
DOC CVD Prelim August 24, 2017 (unextended – The case will likely be extended by at least 60 days)
DOC AD Prelim November 7, 2017 (unextended – the case will likely be extended by at least 50 days)

Contact TLD today with any questions.

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PROPOSED SCOPE OF THE INVESTIGATION
FINE DENIER POLYESTER STAPLE FIBER

The merchandise subject to this proceeding is synthetic staple fibers, not carded, combed or otherwise processed for spinning, nonwoven and other uses, of polyesters measuring less than 3.3 decitex (3 denier) in diameter. The subject merchandise may be coated, usually with a finish, or not coated. Subject fine denier polyester staple fiber (“fine denier PSF”) is generally used for yarn spinning for woven and knit applications to produce textile and apparel products, for non-woven applications to produce wipes, medical/hygiene products, and other personal care items, and for
other end uses.

The following products are excluded from the scope: (1) PSF equal to or greater than 3.3 decitex (more than 3 denier, inclusive) currently classifiable in the Harmonized Tariff Schedule of the United States (“HTSUS”) at subheadings 5503.20.0045 and 5503.20.0065, which is often used in “fill” applications; and (2) low-melt PSF defined as a bi-component fiber with an outer, nonpolyester sheath that melts at a significantly lower temperature than its inner polyester core (classified at HTSUS 5503.20.0015).

Fine denier PSF is classifiable under the HTSUS subheading 5503.20.0025. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under the orders is dispositive.

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