On Might 31, 2023, the Coalition for Truthful Commerce in Procuring Luggage, consisting primarily of Novolex Holdings (“Novolex”) and the union employees on the U.S. paper buying bag manufacturing services, filed antidumping (AD) and countervailing responsibility (CVD) petitions in opposition to Paper Procuring Luggage from 9 international locations. China is the biggest exporter of the topic buying luggage, adopted by Vietnam and India. Though the opposite named international locations have import volumes which are fairly small, it seems that a few of these international locations have been included in these petitions due to the potential that Chinese language producers may shift their manufacturing to those international locations.
It was in all probability only a matter of time earlier than this case was filed. The principle petitioner on this case, Novolex, beforehand had filed a number of AD instances on imported plastic buying luggage (polyethylene retail service luggage); first from China, Malaysia, and Thailand, adopted by one other spherical of AD petitions on plastic luggage from Indonesia, Taiwan, and Vietnam. Novolex additionally produces paper luggage and now as soon as once more seeks to make use of U.S. commerce legal guidelines to attempt to defend yet one more of its merchandise from import competitors.
The AD duties on plastic luggage might have helped hold unfair plastic bag imports out of the U.S. market. However these AD duties couldn’t revive market demand for plastic luggage as state legal guidelines banning plastic luggage helped completely shift shopper desire from plastic to paper luggage. Now some states and cities are beginning to ban or impose taxes on single-use paper buying luggage. Though AD/CVD duties actually will improve the price of paper buying luggage, it’s unsure whether or not these duties will do something to cease that pattern in the direction of utilizing fewer paper buying luggage.
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 the US at lower than truthful 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 business. Each businesses should 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.
The proposed scope definition of this case
Paper buying luggage 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 buying luggage have a width of a minimum of 4.5 inches and depth of a minimum of 2.5 inches.
Excluded from the scope are:
- Multiwall sacks and luggage;
- Paper sacks or luggage which are 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 top) with flat paper handles;
- Paper sacks or luggage with die-cut handles, an ordinary foundation paper weight of lower than 38 kilos, and a top of lower than 11.5 inches;
- Procuring luggage (i) with non-paper handles made wholly of woven ribbon or different comparable woven cloth and (ii) which are completed with folded tops or for which tied knots or t-bar aglets (fabricated from wooden, metallic, or plastic) are used to safe the handles to the baggage; and
- Reward luggage marked for retail sale which are bodily bundled into the saleable unit previous to importation such that every bundled unit consists of at least three particular person luggage and not more than 30 particular person luggage.
The paper buying luggage are categorized underneath 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 identify international locations:
Cambodia: 44.29% – 221.36%
China: 133.80% – 324.24%
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 an inventory of corporations that it believes are producers and exporters of the topic merchandise. See hooked up record right here.
Named U.S. Importers
Petitioner included an inventory of corporations that it believes are U.S. importers of the topic merchandise. See hooked up record right here.
Estimated Schedule of Investigations.
Might 31, 2023 – Petitions filed
June 20, 2023 – DOC initiates investigation
June 26, 2023 – ITC Workers 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)