U.S. Industry Files Antidumping Duty Petitions Targeting Certain Polyethylene Terephthalate Resin From Brazil, Indonesia, The Republic Of Korea, Pakistan, And Taiwan

On September 26, 2017: U.S. PET resin producers – DAK Americas, LLC, Indorama Ventures USA Inc., M&G Polymers USA, LLC, and Nan Ya Plastics Corporation, America – filed petitions charging that unfairly-traded imports of PET from Brazil, Indonesia, the Republic of Korea, Pakistan, and Taiwan alleging that imports are causing material injury to the domestic industry.  The petitions allege that producers in each of the five countries are dumping PET resin in the U.S. market at sizeable margins.

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 PET resin at significant margins.

The petition alleges the following margins of dumping:

Brazil: 18.76 to 114.84%
Indonesia: 8.49 to 95.06%
Republic of Korea: 58.73 to 103.48%
Pakistan 27.69 to 59.92%
Taiwan: 18.47 to 45.97%

Antidumping 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.

The U.S. International Trade Commission will initiate its investigation into whether PET resin imports from various countries injure the U.S. domestic industry, and will make its preliminary determination by approximately November 10, 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 PET resin.

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 PET resin from the five countries is being dumped (sold at less than fair value.  Commerce will determine whether to initiate its investigation by October 16, 2017.

Retroactive Duties may be required by U.S. Customs if there is an allegation of critical circumstances.  If so, imports arriving after December 5, 2017 may be subject to the assessment of duties.  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: October 16, 2017
ITC Questionnaires Due: Early October 2017
ITC Conference: October 17, 2017
ITC Postconference Brief: October 20, 2017
ITC Preliminary Decision: November 10, 2017

TLD assists foreign producers and exporters, and U.S. importers (those who are ultimately liable for paying the increased import duties) to defend their interests in antidumping duty proceedings. Should you require, TLD will be able to provide you with a detailed proposal along with more detailed background on the antidumping duty investigatory process as well as our proposed team of attorneys and consultants.

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PET Resin

The merchandise covered by these orders is polyethylene terephthalate (PET) resin having an intrinsic viscosity of at least 70, but not more than 88, milliliters per gram (0.70 to 0.88 deciliters per gram). The scope includes blends of virgin PET resin and recycled PET resin containing 50 percent or more virgin PET resin content by weight, provided such blends meet the intrinsic viscosity requirements above. The scope includes all PET resin meeting the above specifications regardless of additives introduced in the manufacturing process.

The merchandise subject to these orders is properly classified under subheadings 3907.61.00.00 and 3907.69.00.00 of the Harmonized Tariff Schedule of the United States (HTSUS).  Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by these orders is dispositive.

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