Posted at 6:49 PM
Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative final determinations in the countervailing duty (CVD) investigations of fine denier polyester staple fiber from the People’s Republic of China (China) and India, finding that exporters from China and India received countervailable subsidies of 41.73 to 47.55 percent and 9.50 to 25.28 percent, respectively.
The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of fine denier polyester staple fiber from China and India based on these final rates.
“The United States will no longer sit back and watch as its domestic businesses are destroyed by unfair foreign government subsidies,” said Secretary Ross. “We will continue to take action on behalf of U.S. industry to defend American businesses, workers, and communities adversely impacted by unfair imports.”
In 2016, imports of fine denier polyester staple fiber from China and India were valued at an estimated $79.4 million and $14.8 million, respectively.
The petitioners are DAK Americas LLC (NC), Nan Ya Plastics Corporation, America (SC), and Auriga Polymers Inc. (NC).
Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through January 17, 2018, Commerce has initiated 84 antidumping and countervailing duty investigations – a 62 percent increase from 52 in the previous year.
The CVD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. The Commerce Department currently maintains 418 antidumping duty and CVD orders which provide relief to American companies and industries impacted by unfair trade.
The U.S. International Trade Commission (ITC) is conducting investigations to determine whether or not the domestic industry is harmed by imports of fine denier polyester staple fiber from China and India. The ITC is currently scheduled to make its final injury determinations on or before March 2, 2018.
If the ITC makes affirmative final injury determinations, Commerce will issue CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.
Click HERE for a fact sheet on today’s decisions.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.
Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.
In fiscal year 2016, the United States collected $1.5 billion in duties on $14 billion of imported goods, found to be underpriced, or subsidized by foreign governments.