Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and the Socialist Republic of Vietnam: Antidumping Duty Orders

On December 13, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 70858) [Investigation Nos. 731–TA–1550–1553 (Final)] Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and Vietnam; Determinations

On the basis of the record \1\ developed in these subject investigations, the United States International Trade Commission (``Commission'') determines, pursuant to the Tariff Act of 1930 (``the Act''), that an industry in the United States is materially injured by reason of imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam, provided for in subheadings 5402.33.30 and 5402.33.60 of the Harmonized Tariff Schedule of the United States, that have been found by the U.S. Department of Commerce (‘‘Commerce’’) to be sold in the United States at less than fair value (‘‘LTFV’’).

On December 14, 2021, the U.S. International Trade Administration published in the Federal Register (86 FR 71031) [A–560–838, A–557–823, A–549–843, A–552–832] Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and the Socialist Republic of Vietnam: Antidumping Duty Orders

      The estimated weighted-average dumping margins are as follows:

                                Indonesia
------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
PT. Polyfin Canggih.........................................     * 26.07
PT. Asia Pacific Fibers Tbk.................................     * 26.07
PT. Mutu Gading Tekstil.....................................        7.47
All Others..................................................        7.47
------------------------------------------------------------------------


                                Malaysia
------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Recron (Malaysia) Sdn. Bhd..................................        8.50
All Others..................................................        8.50
------------------------------------------------------------------------


                                Thailand
------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Sunflag Thailand Ltd........................................       14.47
Jong Stit Co., Ltd..........................................     * 56.80
All Others..................................................       14.47
------------------------------------------------------------------------


                                 Vietnam
------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
             Exporter                     Producer            average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
Century Single Entity \7\.........  Century Single                  2.58
                                     Entity.
Vietnam-Wide Entity...............  ....................           22.36
------------------------------------------------------------------------

Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and Vietnam Injures U.S. Industry, Says USITC

On November 16, 2021, the United States International Trade Commission (USITC) determined that a U.S. industry is materially injured by reason of imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

The report will be available by December 28, 2021; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

Last month the Department of Commerce has determined that polyester textured yarn (yarn) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The investigations and determinations relate to four exporting nations, the following dumping rates:

• Indonesia ranging from 7.47% to 26.07% ,
• Malaysia 8.2%,
• Thailand ranging from 14.47% to 56.80%, and
• Vietnam 2.58% to 22.36%.

Polyester Yarn from Indonesia, Malaysia, Thailand, and Vietnam U.S Market

The Department of Commerce has determined that polyester textured yarn (yarn) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The investigations and determinations relate to four exporting nations, the following dumping rates:

• Indonesia ranging from 7.47% to 26.07% ,
• Malaysia 8.2%,
• Thailand ranging from 14.47% to 56.80%, and
• Vietnam 2.58% to 22.36%.

Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and Vietnam; Scheduling of the Final Phase of Antidumping Duty Investigations Pages 33354

One June 24, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 33354) Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and Vietnam; Scheduling of the Final Phase of Antidumping Duty Investigations. The investigation followed petitions filed by Nan Ya Plastics Corporation, America (Lake City, SC) and Unifi Manufacturing, Inc. (Greensboro, NC).

Read more on this case from Agathon Associates HERE

Polyester Textured Yarn Antidumping Investigation

As Agathon Associates reported in December polyester textured yarn antidumping cases are moving forward.

On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29742) Polyester Textured Yarn From Indonesia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.

On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29746
) Polyester Textured Yarn From Thailand: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.

On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29748
) Polyester Textured Yarn From Malaysia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.

On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29750
) Polyester Textured Yarn From the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.

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.

President Trump Modifies AGOA Apparel Eligibility for Mali, and GSP Eligibility for Ukraine and Thailand

On October 31, 2019, the Executive Office of the President published in the Federal Register (84 FR 58567) Proclamation 9955 of October 25, 2019 To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes.

UKRAINE. The proclamation restores the duty-free treatment accorded under GSP to certain products from Ukraine because the country has made progress towards providing adequate and effective protection of intellectual property rights. The list of products restored to GSP eligibility for Ukraine is available at http://ustr.gov/sites/default/files/files/gsp/Products_to_be_restored_to_GSP_eligibility_for_Ukraine.pdf

THE REPUBLIC OF MALI. The proclamation designates Mali a lesser developed beneficiary sub-Saharan African country (LDBC), thus qualifying it for LDBC preferential benefits. This action will take effect thirty days from the signing of the proclamation, November 24, 2019. Mali's AGOA benefits had been restored by Presidential Proclamation 9072 (December 23, 2013) which designated the Republic of Mali as a beneficiary sub-Saharan African country to the AGOA program; however, this Presidential Proclamation did not designate the Republic of Mali as a "lesser developed beneficiary sub-Saharan African country." As a consequence, Mali was unable to take advantage of special rules for certain apparel articles imported from "lesser developed beneficiary sub-Saharan African countries," in particular the third country fabric provision that enables Mali to produce apparel competitively.

THAILAND. The proclamation withdraws the duty-free treatment accorded under GSP to certain products from Thailand because the country is not taking steps to afford workers in Thailand internationally recognized worker rights. This action will take effect six months from the issuance of this proclamation. Additional guidance will be issued close to the date of implementation. The list of products excluded from GSP eligibility for Thailand is available at: http://ustr.gov\sites\default\files\files\gsp\Products_to_be_removed_from_GSP_eligibility_for_Thailand.pdf

If questions contact the Trade Agreements Branch at FTA@CBP.DHS.gov.

2017 Special 301 Out-of-Cycle Review of Thailand: Request for Comments

The Office of the United States Trade Representative ("USTR") is conducting a Special 301 Out-of-Cycle Review of Thailand. USTR requests written comments concerning any act, policy, or practice that is relevant to the decision regarding whether and how USTR should identify Thailand based on Thailand's protection for intellectual property rights or market access Thailand provides to U.S. persons who rely on intellectual property protection.

DATES:

October 20, 2017, at 11:59 p.m. Eastern Time: Deadline for submission of written comments.

October 27, 2017, at 11:59 p.m. Eastern Time: Deadline for submission of written comments from foreign governments.

Pursuant to Section 182 of the Trade Act of 1974 (19 U.S.C. 2242), USTR must identify countries that deny adequate and effective protection for intellectual property rights (IPR) or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. USTR will identify the countries that have the most onerous or egregious acts, policies, or practices and whose acts, policies, or practices have the greatest adverse impact (actual or potential) on relevant U.S. products as Priority Foreign Countries. Acts, policies, or practices that are the basis of a country's designation as a Priority Foreign Country normally are the subject of an investigation under the Section 301 provisions of the Trade Act (19 U.S.C. 2411 et seq.). USTR may not identify a country as a Priority Foreign Country if that country is entering into good faith negotiations or making significant progress in bilateral or multilateral negotiations to provide adequate and effective IPR protection. In addition, USTR has created a ``Priority Watch List'' and a ``Watch List'' under the Special 301 provisions. Placement of a trading partner on the Priority Watch List or Watch List indicates that particular problems exist in that country with respect to IPR protection, enforcement, or market access for persons relying on intellectual property. Countries placed on the Priority Watch List are the focus of increased bilateral attention concerning the problem areas.

An Out-of-Cycle Review (OCR) is a tool that USTR uses to encourage progress on IPR issues of concern. It provides an opportunity for heightened engagement with a trading partner to address and remedy such issues. Successful resolution of specific IPR issues of concern or lack of action on such issues can lead to a change in a trading partner's identification on a Special 301 list outside of the typical period for the annual Special 301 Report. USTR may conduct OCRs of other trading partners as circumstances warrant or as requested by the trading partner.

In the 2017 Special 301 Report, USTR placed Thailand on the Priority Watch List but noted that the United States was prepared to review that status if Thailand continued to take positive steps and made substantial progress in addressing the concerns described in the Report. Thailand has requested that USTR conduct an OCR in light of its efforts to achieve substantial progress.

USTR Reports on Barriers to US Textile, Apparel, and Footwear Exports

The 2014 National Trade Estimate Report on Foreign Trade Barriers (NTE) is the twenty-ninth in an annual series that surveys significant foreign barriers to U.S. exports. This document is a companion piece to the President’s Trade Policy Agenda published in March. The issuance of the NTE Report continues the elaboration of an enforcement strategy, utilizing this report, among other tools, in that strategy. The complete report is nearly 400 pages in length. Below are excerpts from some of the country-by-country reports that may be of interest to the U.S. textile industry.

ARGENTINA

IMPORT POLICIES

Tariffs

While the majority of tariffs are levied on an ad valorem basis, Argentina also charges compound rates consisting of ad valorem duties plus specific levies known as “minimum specific import duties” (DIEMs) on products in several sectors, including textiles and apparel, footwear, and toys...and the government of Argentina has not formally extended them, they are still being charged.

Nontariff Barriers

Argentina imposes a growing number of customs and licensing procedures and requirements, which make importing U.S. products more difficult. The measures include additional inspections, restrictions on entry ports, expanded use of reference prices, import license requirements, and other requirements such as importer invoices being notarized by the nearest Argentine diplomatic mission when imported goods are below reference prices. Many U.S. companies with operations in Argentina have expressed concerns that the measures have delayed exports of U.S. goods to Argentina and, in some cases, stopped exports of certain U.S. goods to Argentina altogether.

In December 2010, Argentina reintroduced an import prohibition on used clothing, which is due to expire in 2015. In August 2012, the Argentine tax authority (Administración Federal de Ingresos Públicos or AFIP) issued Resolution 3373, which increased the tax burden for importers because the taxes are charged after import duties are levied. The value-added tax (VAT) advance rate rose from 10 percent to 20 percent on imports of consumer goods, and from 5 percent to 10 percent on imports of capital goods. The income tax advance rate on imports of all goods increased from 3 percent to 6 percent, except when the goods are intended for consumption or for use by the importer, in which case an 11 percent income tax rate applies.

Customs Valuation

Customs External Notes 87/2008 of October 2008 and 15/2009 of February 2009 established administrative mechanisms that restrict the entry of products deemed sensitive, such as textiles, apparel, footwear, toys, electronic products, and leather goods. While the restrictions are not country specific, they are to be applied more stringently to goods from countries considered “high risk” for under-invoicing, and to products considered at risk for under-invoicing as well as trademark fraud.

Ports of Entry

Argentina restricts entry points for several classes of goods, including sensitive goods classified in 20 Harmonized Tariff Schedule chapters (e.g., textiles; shoes; electrical machinery; iron, steel, metal and other manufactured goods; and watches), through specialized customs procedures for these goods.

Customs Procedures

Certificates of origin have become a key element in Argentine import procedures in order to enforce antidumping measures, reference prices (referred to as “criterion values”), and certain geographical restrictions. In August 2009, AFIP revised through External Note 4 the certificate of origin requirements for a list of products subject to non-preferential tariff treatment for which a certificate of origin is required. The products affected include certain organic chemicals, tires, bicycle parts, flat-rolled iron and steel, certain iron and steel tubes, air conditioning equipment, wood fiberboard, most fabrics (e.g., wool, cotton, other vegetable), carpets, most textiles (e.g., knitted, crocheted), apparel, footwear, metal screws and bolts, furniture, toys and games, brooms, and brushes. To receive the most favored nation tariff rate, the certificate of origin must be certified by an Argentine consulate or embassy. For products with many internal components, such as machinery, each individual part is often required to be notarized in its country of origin, which can be very burdensome. Importers have stated that the rules governing these procedures are unclear and can be arbitrarily enforced.

BRAZIL

IMPORT POLICIES

Tariffs

Brazil imposes relatively high tariffs on imports across a wide spread of sectors, including automobiles, automotive parts, information technology and electronics, chemicals, plastics, industrial machinery, steel, and textiles and apparel.

Nontariff Barriers

Brazil prohibits imports of all used consumer goods, including automobiles, clothing, tires, medical equipment, and information and communications technology (ICT) products as well as some blood products.

Import Licenses/Customs Valuation

U.S. footwear and apparel companies have expressed concern about the extension of non-automatic import licenses and certificate of origin requirements on non-MERCOSUR footwear to include textiles and apparel. They also note the imposition of additional monitoring, enhanced inspection, and delayed release of certain goods, all of which negatively impact the ability to sell U.S.-made and U.S.-branded apparel, footwear, and textiles in the Brazilian market.

GOVERNMENT PROCUREMENT

In November 2011, the Ministry of Development, Industry, and Commerce implemented an 8 percent preference margin for domestic producers in the textile, clothing, and footwear industries when bidding on government contracts.

EGYPT

INTELLECTUAL PROPERTY RIGHTS PROTECTION

Egypt remained on the Watch List in the 2013 Special 301 Report. Piracy and counterfeiting continue to be serious problems, as does the lack of speed and effectiveness of processing trademark applications. Piracy of broadcast content via satellite television operations, lack of enforcement in major cases involving counterfeit apparel and other trademark violations, online piracy, entertainment software piracy, and book piracy remain concerns.

INDIA

EXPORT SUBSIDIES

India maintains several export subsidy programs, including exemptions from taxes for certain export-oriented enterprises and for exporters in Special Economic Zones, as well as duty drawback programs that appear to allow for drawback in excess of duties levied on imported inputs. India also provides pre-shipment and post-shipment financing to exporters at a preferential rate. Numerous sectors (e.g., textiles and apparel, paper, rubber, toys, leather goods, and wood products) receive various forms of subsidies, including exemptions from customs duties and internal taxes, which are tied to export performance.

In February 2010, the United States submitted to the SCM Committee a formal request that the WTO Secretariat conduct a calculation of the export competitiveness of Indian textile and apparel products. The resulting calculation, published in March 2010, indicated that, with respect to textile and apparel products, India had met the definition of “export competitiveness” set out in Article 27.6 of the SCM Agreement. As a result, India must phase out export subsidies for those products over a period of eight years, in accordance with the SCM Agreement. Since the calculation, India has announced some reductions in duty drawback rates for textile products, as well as its intention to eliminate certain subsidy programs. However, India not only continues to offer subsidies to its textiles and apparel sector in order to promote exports, but it has also extended or expanded such programs and even implemented new export subsidy programs that benefit the textiles and apparel sector. As a result, the Indian textiles sector remains a beneficiary of many export promotion measures (e.g., Export-Oriented Units, Special Economic Zones, Export Promotion Capital Goods, Focus Product and Focus Market Schemes) that provide, among other things, exemptions from customs duties and internal taxes based on export performance.

SRI LANKA

IMPORT POLICIES

Import Charges

In addition to the import tariff, there are a number of supplementary taxes and levies on imports. Apparel imports are subject to a 15 percent import duty, an Rs 75 (approximately $0.57) per unit Export Development Board Levy, a 12 percent VAT, a 5 percent Ports and Airports Levy, and a 2 percent NBT.

THAILAND

IMPORT POLICIES

Tariffs

High tariffs in many sectors remain an impediment to access to the Thai market. The highest ad valorem tariff rates apply to imports competing with locally produced goods, including automobiles and automotive parts, motorcycles, beef, pork, poultry, tea, tobacco, flowers, wine, beer and spirits, and textiles and apparel.