Friday, December 11, 2020

Polyester Textured Yarn Antidumping Case Moving Forward

On December 11, 2020, the United States International Trade Commission (USITC) determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam that are allegedly sold in the United States at less than fair value.

The Commission’s public report Polyester Textured Yarn from Indonesia, Malaysia, Thailand, and Vietnam (Inv. Nos. 731-TA-1550-1553 (Preliminary), USITC Publication 5148, December 2020) will contain the views of the Commission and information developed during the investigations. The report will be available after January 11, 2021.

On November 18, 2020, the U.S. Department of Commerce announced the initiation of new antidumping (AD) investigations to determine whether polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam is being dumped in the U.S. market.

The petitions were filed by Nan Ya Plastics Corporation, America (Lake City, SC) and Unifi Manufacturing, Inc. (Greensboro, NC).

In the investigations, Commerce will determine whether polyester textured yarn from these four countries are being dumped in the U.S. market at less-than-fair-value. The alleged dumping margins are as follows:

  • 26.07 percent for Indonesia;
  • 75.13 percent for Malaysia;
  • 56.80 percent for Thailand; and
  • 54.13 percent for Vietnam.

If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped polyester textured yarn from Indonesia, Malaysia, Thailand, and/or Vietnam materially injure or threaten material injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping found to exist.

In 2019, polyester textured yarn imports from the countries under investigation were valued at:

  • $12.6 million for Indonesia;
  • $8.8 million for Malaysia;
  • $7.6 million for Thailand; and
  • $4.5 million for Vietnam.

Read the fact sheet on these initiations.

Next Steps:

During Commerce’s antidumping duty investigations of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam, the ITC will conduct its own investigations into whether these imports injure or threaten to injure the U.S. industry and its workforce. The ITC will make its preliminary determinations on or before December 14, 2020. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury to the domestic industry, then Commerce’s investigations will continue, with the preliminary determinations scheduled for April 6, 2021. This deadline may be extended.

If Commerce preliminarily determines that dumping is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing polyester textured yarn from these countries, as appropriate.

Final determinations by Commerce in these cases are scheduled for June 21, 2021, although these deadlines may be extended. If Commerce finds that products are not being dumped, or the ITC finds in its final determinations there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 306 new AD and CVD investigations – a 283 percent increase from the comparable period in the previous administration.

The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 539 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.

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