U.S. Department of Commerce Issues Affirmative Preliminary Determination in the CVD Investigation of Imports of Rubber Bands from China and Negative Preliminary Determination in the CVD Investigation of Imports of Rubber Bands from Thailand


Tuesday, July 3, 2018

Today, the U.S. Department of Commerce announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of rubber bands from China finding that exporters received countervailable subsidies of 125.77 percent, and announced the negative preliminary determination in the CVD investigation of imports of rubber bands from Thailand finding that exporters received de minimis subsidies of 0.23 and 0.37 percent.

Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of rubber bands from China based on these preliminary rates.  Because the subsidy rates calculated in the Thailand investigation are de minimis, Commerce will not instruct CBP to require cash deposits from importers of rubber bands from Thailand.

In 2017, imports of rubber bands from China and Thailand were valued at an estimated $4.9 million and $12.1 million, respectively.  

The petitioner is Alliance Rubber Company (AR).  

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration.  Since the beginning of the current Administration, Commerce has initiated 118 new antidumping (AD) and CVD investigations – this is 30 percent more than the 91 initiations in the last 529 days of the previous administration.

Countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair subsidization of imports into the United States.  Commerce currently maintains 448 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is currently scheduled to issue its final CVD determinations on or about November 13, 2018.

If Commerce makes affirmative final determinations, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determinations on or about December 28, 2018.  If Commerce makes affirmative final determinations in these investigations and the ITC makes affirmative final injury determinations, Commerce will issue CVD orders.  If Commerce makes negative final determinations or 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 provided on the record. 

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.

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Last updated: 2018-07-03 14:16

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