On Might 31, 2023, the Coalition for Truthful Commerce in Procuring Baggage, consisting primarily of Novolex Holdings (“Novolex”) and the union staff on the U.S. paper buying bag manufacturing amenities, filed antidumping (AD) and countervailing responsibility (CVD) petitions towards Paper Procuring Baggage 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 can be 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 would possibly shift their manufacturing to those international locations.
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 buying luggage (polyethylene retail provider 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 one more of its merchandise from import competitors.
The AD duties on plastic luggage 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 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 definitely will enhance the price of paper buying luggage, it’s unsure whether or not these duties will do something to cease that development in 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 offered to the USA 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 “menace of fabric damage” to the home trade. Each companies should make affirmative findings of damage or menace 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 not less than 4.5 inches and depth of not less than 2.5 inches.
Excluded from the scope are:
- Multiwall sacks and luggage;
- Paper sacks or luggage which can be of a 1/6 or 1/7 barrel dimension (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 related woven cloth and (ii) which can be completed with folded tops or for which tied knots or t-bar aglets (made from wooden, metallic, or plastic) are used to safe the handles to the luggage; and
- Reward luggage marked for retail sale which can be 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 beneath US Harmonized Tariff Schedule (HTS) subheadings 4819.30.0040 and 4819.40.0040. The HTS subheadings are offered 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 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 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 Workers Convention
July 17, 2023 – ITC preliminary dedication
October 28, 2023 – DOC CVD preliminary dedication (assuming prolonged deadline) (8/24/23 – unextended)
December 27, 2023 – DOC AD preliminary dedication (assuming prolonged deadline)
(11/7/23 – unextended)
Might 10, 2024 – DOC remaining dedication (prolonged)
June 24, 2024 – ITC remaining dedication (prolonged)
July 1, 2024 – DOC AD/CVD orders issued (prolonged)