DOC Imposes Antidumping Duties On Chinese Polyester, Staple Fiber Shipments

The US Department of Commerce (DOC)
has made a preliminary determination that Chinese producers and exporters of polyester staple fiber
used generally for stuffing have been selling their product in the United States at prices ranging
from 4.39 percent to 44.3 percent below fair market value. Accordingly, the DOC will instruct US
Customs and Border Protection to “suspend liquidation of entries” of the products in question and
collect cash deposits or bonds fixed according to preliminary assessments. Final determination by
the DOC is expected by the end of February 2007, and by the International Trade Commission (ITC) by
mid-April 2007.

The DOC and ITC initiated the antidumping investigation in July 2006 after three US staple
polyester fiber producers — Charlotte-based DAK Americas LLC, Lake City, S.C.-based Nan Ya Plastics
Corp. America and Shrewsbury, N.J.-based Wellman Inc. — filed a petition charging the Chinese
producers with “dumping” the subject products on the US market at prices below fair market value.
According to statistics provided by the DOC, the volume of such imports from China more than
doubled from 2004 to 2005, from 71.3 million tons to 194.9 million tons; and the value grew from
$29.7 million in 2004 to $93.3 million in 2005.

“[The] announcement by the Commerce Department signals a return of fair pricing and
competition in the marketplace,” said Paul C. Rosenthal, lead counsel for the petitioners and
managing partner, Kelley Drye Collier Shannon, the Washington-based office of international law
firm Kelley Drye & Warren LLP. Rosenthal anticipates final antidumping duty margins will be
higher than the preliminary margins.



January 9, 2007

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