WASHINGTON — June 26, 2019 — On June 26, 2019, the U.S. Department of Commerce announced affirmative preliminary determinations that imports of polyester textured yarn from China and India are being unfairly sold below their fair value in the United States at significant double-digit margins, as follows.
| Polyester Textured Yarn Imports from China | |
| Producer/Exporter | Preliminary Dumping Rate (%) |
| Fujian Billion Polymerization Fiber Industrial Co Ltd. | 77.15 |
| Suzhou Shenghong Fiber Co., Ltd. | 77.15 |
| Jiangsu Hengli Chemical Fiber Co., Ltd. | 76.07 |
| PRC-Wide Entity / All Others | 77.15 |
| Polyester Textured Yarn Imports from India | |
| Producer/Exporter | Preliminary Dumping Rate (%) |
| JBF Limited | 35.92 |
| Reliance Industries Limited | 17.88 |
| All Others | 17.88 |
Importers have been subject to significant double- and triple-digit duties on these imports since May 2, 2019, when the Commerce Department published its preliminary determinations that the governments in each country are unfairly subsidizing imports of this merchandise. U.S. Customs and Border Protection will now also begin collecting antidumping duties (AD) in the amount equal to the adjusted dumping cash deposits rates for imports from each country. Importers will be required to post duty deposits at these AD rates on the date the preliminary determinations are published in the Federal Register (in approximately one week).
The Commerce Department previously announced on April 19, 2019, its affirmative preliminary “critical circumstances” determination with respect to imports of polyester textured yarn from China. As a result, all imports of polyester textured yarn from China will be subject to duty deposits for antidumping duties retroactively – i.e. 90 days from the date the preliminary AD determinations are published in the Federal Register. Imports from China are already subject to retroactive countervailing duties on yarn imports for all entries made on or after February 2, 2019.
Background
Two major U.S. synthetic yarn producers — Unifi Manufacturing Inc. and Nan Ya Plastics Corp., America — filed petitions with the Commerce Department and the U.S. International Trade Commission (the “USITC”) in October 2018 alleging that dumped and subsidized imports of polyester textured yarn from China and India are causing material injury to the domestic industry. The Commerce Department initiated the investigations in November 2018, and the USITC preliminarily determined in December 2018 that imports from China and India are causing injury to the U.S. domestic industry.
The product covered by the investigation, polyester textured yarn, is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate). Polyester textured yarn is produced through a texturing process, which imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption, insulation, and the appearance of a natural fiber. This scope includes all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of plies, finish (luster), cross section, color, dye method, texturing method, or packing method (such as spindles, tubes, or beams).
Excluded from the scope of the investigation is bulk continuous filament yarn that: (a) is polyester synthetic multifilament yarn; (b) has denier size ranges of 900 and above; (c) has turns per meter of 40 and above; and (d) has a maximum shrinkage of 2.5 percent.
The merchandise subject to this investigation is properly classified under subheadings 5402.33.3000 and 5402.33.6000 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.
The petitioning companies are represented by Kelley Drye & Warren LLP.
Posted June 27, 2019
Source: Kelley Drye & Warren LLP
