New AD/CVD Petitions: Paper Buying Baggage from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam

On Might 31, 2023, the Coalition for Truthful Commerce in Buying Baggage, consisting primarily of Novolex Holdings (“Novolex”) and the union employees on the U.S. paper procuring bag manufacturing services, filed antidumping (AD) and countervailing responsibility (CVD) petitions in opposition to Paper Buying Baggage from 9 nations. China is the most important exporter of the topic procuring baggage, adopted by Vietnam and India. Though the opposite named nations have import volumes which can be fairly small, it seems that a few of these nations had been included in these petitions due to the potential that Chinese language producers may shift their manufacturing to those nations.

It was in all probability only a matter of time earlier than this case was filed. The primary petitioner on this case, Novolex, beforehand had filed a number of AD circumstances on imported plastic procuring baggage (polyethylene retail service baggage); first from China, Malaysia, and Thailand, adopted by one other spherical of AD petitions on plastic baggage from Indonesia, Taiwan, and Vietnam. Novolex additionally produces paper baggage and now as soon as once more seeks to make use of U.S. commerce legal guidelines to attempt to defend one more of its merchandise from import competitors.

The AD duties on plastic baggage could have helped preserve unfair plastic bag imports out of the U.S. market.  However these AD duties couldn’t revive market demand for plastic baggage as state legal guidelines banning plastic baggage helped completely shift client desire from plastic to paper baggage. Now some states and cities are beginning to ban or impose taxes on single-use paper procuring baggage.  Though AD/CVD duties actually will enhance the price of paper procuring baggage, it’s unsure whether or not these duties will do something to cease that pattern in the direction of utilizing fewer paper procuring baggage.

The U.S. Division of Commerce (“DOC”) and U.S. Worldwide Commerce Fee (“ITC”) will conduct investigations to additional study the allegations made within the petition. DOC will examine whether or not the named topic imports are being bought to america at lower than honest worth (“dumping”) or profit from unfair authorities subsidies. ITC will examine whether or not the topic imports are inflicting “materials damage” or “risk of fabric damage” to the home trade. Each businesses must make affirmative findings of damage or risk of damage (ITC) or of dumping or subsidies (DOC) to ensure that AD/CVD duties to be imposed on the topic imports.

Scope

The proposed scope definition of this case

Paper procuring baggage with handles of any sort, no matter whether or not there’s any printing, no matter how the highest edges are completed (e.g., folded, serrated, or in any other case), and no matter whether or not the tops may be sealed. Topic paper procuring baggage have a width of not less than 4.5 inches and depth of not less than 2.5 inches.

Excluded from the scope are:

• Multiwall sacks and baggage;
• Paper sacks or baggage which can be of a 1/6 or 1/7 barrel measurement (i.e., 11.5-12.5 inches in width, 6.5-7.5inches in depth, and 13.5-17.5 inches in peak) with flat paper handles;
• Paper sacks or baggage with die-cut handles, a regular foundation paper weight of lower than 38 kilos, and a peak of lower than 11.5 inches;
• Buying baggage (i) with non-paper handles made wholly of woven ribbon or different comparable woven material and (ii) which can be completed with folded tops or for which tied knots or t-bar aglets (product of wooden, steel, or plastic) are used to safe the handles to the baggage; and
• Present baggage marked for retail sale which can be bodily bundled into the saleable unit previous to importation such that every bundled unit consists of a minimum of three particular person baggage and not more than 30 particular person baggage.

The paper procuring baggage are labeled beneath US Harmonized Tariff Schedule (HTS) subheadings 4819.30.0040 and 4819.40.0040.  The HTS subheadings are supplied for comfort and customs functions, whereas the written descriptions of the scope definitions are dispositive.

See the total proposed scope definition (right here).

Alleged AD/CVD Margins.

Petitioner calculated estimated dumping margins for the title nations:

Cambodia: 44.29% – 221.36%

China: 133.80% – 324.24%

Colombia: 65.04%

India- 88.56%

Malaysia:  173.38%

Portugal: 26.71% – 204.54%

Taiwan: 44.76% – 50.13%

Turkey: 12.51% – 45.29%

Vietnam: 63.67% – 128.81

Petitioner didn’t present any particular Chinese language or Indian subsidy margin calculations.

Named Exporters/ Producers

Petitioner included a listing of corporations that it believes are producers and exporters of the topic merchandise.  See connected checklist right here.

Named U.S. Importers

Petitioner included a listing of corporations that it believes are U.S. importers of the topic merchandise.  See connected checklist right here.

Estimated Schedule of Investigations.

Might 31, 2023 – Petitions filed

June 20, 2023 – DOC initiates investigation

June 26, 2023 – ITC Employees Convention

July 17, 2023 – ITC preliminary willpower

October 28, 2023 – DOC CVD preliminary willpower (assuming prolonged deadline) (8/24/23 – unextended)

December 27, 2023 – DOC AD preliminary willpower (assuming prolonged deadline)

(11/7/23 – unextended)

Might 10, 2024 – DOC ultimate willpower (prolonged)

June 24, 2024 – ITC ultimate willpower (prolonged)

July 1, 2024 – DOC AD/CVD orders issued (prolonged)