WASHINGTON — June 27, 2017 — Today, one of the largest U.S. synthetic fiber producers, Nan Ya Plastics Corp. America, filed a petition alleging that dumped imports of low melt polyester staple fiber (PSF) from Korea and Taiwan are causing material injury to the domestic industry. Nan Ya has asked the U.S. government to investigate dumping by the subject imports and injury to the domestic industry, and to impose anti-dumping duties on the imports of low melt PSF from Korea and Taiwan.
The petition alleges that producers in Korea are dumping low melt PSF in the U.S. market at margins of 32.95 to 45.84 percent. The petition further alleges that producers in Taiwan are dumping low melt PSF in the U.S. market at margins of 30.24 to 62.52 percent.
The petitions were filed concurrently with the United States Department of Commerce and the United States International Trade Commission.
The filing is in response to surging volumes of aggressively-priced low melt PSF imports from Korea and Taiwan. Subject import volume increased from 151.4 million pounds in 2014 to 199.1 million pounds in 2016, or by more than 31 percent over that three-year period, and continued to rise in the first quarter of 2017. The imports undersold the domestic industry, taking sales from and exerting considerable downward pricing pressure on U.S. producers.
As a result of increasing volumes of low-priced imports, the condition of the domestic industry has suffered. The domestic industry has experienced declining production and shipment volumes and deteriorating financial performance as a result of the lost sales and price depression caused by the imports. Korean and Taiwanese producers of low melt PSF also continue to threaten the domestic industry with additional injury due to their large and growing production capacity and extensive unused capacity that will be used to export large volumes of unfairly low-priced and subsidized product to the United States. The injury to the domestic low melt PSF industry is likely to continue if duties are not imposed to offset these foreign producers’ unfair trading practices.
“The U.S. companies producing low melt polyester staple fiber have suffered for years against rising volumes of dumped imports from Korea and Taiwan,” said Paul Rosenthal of Kelley Drye & Warren LLP, counsel for Nan Ya. “The domestic industry needs trade relief from unfair import competition so that the business can thrive and continue providing critical manufacturing jobs in the United States.”
Antidumping and countervailing duties: Antidumping duties are intended to offset the amount by which a product is sold at less than fair value, or “dumped,” in the United States. The margin of dumping is calculated by the Commerce Department. Estimated duties in the amount of the dumping are collected from importers at the time of importation. Countervailing duties are intended to offset unfair subsidies that are provided by foreign governments and benefit the production of a particular good. The USITC, an independent agency, will determine whether the domestic industry is materially injured or threatened with material injury by reason of the unfairly traded imports.
Next steps: The Commerce Department will determine whether to initiate the antidumping and countervailing duty investigations within 20 days of today’s filing of the petitions and the USITC will reach a preliminary determination of material injury or threat of material injury within 45 days of today’s filing. The entire investigative process will take approximately one year, with final determinations of dumping, subsidization, and injury likely occurring by the middle of 2018.
Product description: The product covered by the petition is low melt polyester staple fiber, which is a bi-component staple fiber having a polyester fiber component that melts at a lower temperature (approximate melt point of 90° C to 220° C) than the other polyester fiber component (approximate melt point of 250° C). The two components of a low melt fiber can be produced in a core/sheath configuration or a side-by-side configuration. Low melt PSF is generally produced in a range of two to 15 denier (a measure of density expressed in terms of weight per unit length). Low melt PSF is similar in appearance to cotton or wool. It is typically used in non-woven applications in conjunction with other natural or synthetic fibers. The bonding feature of low melt PSF is used to fuse various fiber types together to create batting or shaped, felt-like insulation for uses such as automotive headliners, floors, and trunks, and soundproofing.
Petitioning company: The petitioning company is Nan Ya Plastics Corp. America, Lake City, S.C., represented by Kelley Drye & Warren LLP.
Posted June 27, 2017
Source: Kelley Drye & Warren LLP