U.S. Polyester Producers Applaud Overall Affirmative Preliminary Antidumping Duty Determinations Announced By The U.S. Department Of Commerce On Imports Of Fine Denier Polyester Staple Fiber From China, India, Korea, And Taiwan

WASHINGTON — December 19, 2017 — On December 19, 2017, the U.S. Department of Commerce announced preliminary antidumping (AD) determinations that producers and exporters of fine denier polyester staple fiber (fine denier PSF) from China, India, Korea, and Taiwan are selling subject merchandise in the United States at less than fair value.

The affirmative AD preliminary determinations mean that U.S. Customs and Border Protection will begin collecting AD duties in the amount equal to the preliminary AD margins in each country. Importers will be required to post duty deposits beginning on the date of publication of Commerce’s determinations in the Federal Register, in approximately one week. The preliminary AD margins are as follows:

The preliminary AD cash deposit rates announced today for China and India will be applied to fine denier PSF imports from those two countries in addition to the preliminary countervailing duty (CVD) rates calculated for Chinese and Indian subsidized producers/exporters.  Commerce announced these affirmative CVD determinations for China and India on October 31, 2017, and those CVD rates have been in effect since publication in the Federal Register on November 6, 2017.  Commerce is expected to reach its final CVD determinations on January 16, 2018, and its final antidumping determinations on May 10, 2018.

“We are pleased with the overall strong antidumping duty determinations in each of these four cases.  The margins support what the domestic fine denier PSF industry has experienced for years – the growing presence of dumped merchandise from China, India, Korea, and Taiwan in the U.S. market,” said Paul Rosenthal, of Kelley Drye & Warren LLP, counsel to the petitioning domestic producers.  “While we are disappointed with the few instances in which the Department of Commerce calculated a low or no margin, we are confident that the Department’s close review of additional evidence leading to the final determinations will result in further critical trade relief for the domestic industry,” he said.

Background

Three major U.S. polyester fiber producers — DAK Americas LLC (DAK), Nan Ya Plastics Corporation, America (Nan Ya), and Auriga Polymers Inc. (Auriga) – filed petitions with the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (Commerce) on May 31, 2017, alleging that dumped imports of fine denier PSF from China, India, Korea, and Taiwan, and subsidized imports of fine denier PSF from China and India, are causing material injury to the domestic industry.

The ITC reached an affirmative preliminary determination on July 14, 2017, that the domestic industry is materially injured by the unfairly trade fine denier PSF imports, allowing the antidumping and countervailing investigations at Commerce to continue.  The ITC will hold a public hearing in its final injury investigation on January 17, 2018.

The product covered by the petition is fine denier polyester staple fiber, which is a synthetic staple fiber of polyesters measuring less than 3.3 decitex (3 denier) in diameter.  Fine denier PSF is generally cut in lengths of less than five inches (127 mm).  Fine denier PSF is similar in appearance to cotton or wool.  It is typically converted either to yarn for weaving or knitting into fabric or to a non-woven textile prior to the end-use application.  Woven applications include the production of textiles such as clothing and bedding linens, for example.  Non-woven applications include the production of household and hygiene products such as cleaning wipes, baby wipes, and diapers.

The petitioning companies are DAK Americas LLC, Nan Ya Plastics Corporation, America, and Auriga Polymers Inc., represented by Kelley Drye & Warren LLP.

Posted December 19, 2017

Source: Kelley Drye & Warren LLP