Posted at 7:07 PM
Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) investigations to determine whether imports of Polyethylene Terephthalate (PET) Resin from Brazil, Indonesia, the Republic of Korea (Korea), Pakistan, and Taiwan are being dumped in the United States.
“The Department of Commerce will ensure a full and fair assessment of the facts, and, if the rules are being broken, will act swiftly to halt any unfair trade practices,” said Secretary Ross. “The U.S. market is the most open in the world, but we must ensure U.S. businesses and workers are treated fairly.”
These AD investigations were initiated based on petitions filed by DAK Americas, LLC (Charlotte, N.C.), Indorama Ventures USA, Inc. (Decatur, Ala.), M&G Polymers USA, LLC (Houston, Texas), and Nan Ya Plastics Corporation, America (Lake City, S.C.) on September 26. Indorama Ventures USA, Inc. is not a petitioner with respect to the Indonesia investigation.
The estimated dumping margins alleged by the petitioners range from 18.76 to 115.87 percent, 8.49 to 53.50 percent, 55.74 to 101.41 percent, 25.03 to 43.40 percent, and 14.67 to 45.00 percent for Brazil, Indonesia, Korea, Pakistan, and Taiwan, respectively.
The Commerce Department will determine whether imports of PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan are being dumped in the U.S. market at less than fair value. If the Commerce Department determines that these products are being dumped into the U.S. market, and if the U.S. International Trade Commission (ITC) determines that dumped U.S. imports of PET resin from Brazil, Indonesia, Korea, Pakistan, and/or Taiwan are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping found to exist.
In 2016, imports of PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan were valued at an estimated $51.7 million, $35.7 million, $24 million, $34.1 million, and $109.8 million, respectively.
Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through October 17, 2017, the Commerce Department has initiated 70 AD and countervailing duty (CVD) investigations – a 46 percent increase over the previous year. Commerce currently maintains 412 AD and CVD orders which provide relief to American companies and workers impacted by unfair trade.
Click HERE for a fact sheet on these initiations.
During the Commerce Department’s investigations into whether PET resin is being dumped into the U.S. market, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before November 13. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with preliminary AD determinations scheduled for March 5, 2018, unless these deadlines are extended.
If the Commerce Department preliminarily determines that dumping is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing the subject PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan.
Final determinations by the Commerce Department in these cases are scheduled for May 21, 2018, but these deadlines may be extended. If the Commerce Department finds that products are not being dumped, or if the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to “antidumping” duties.