U S Department of Commerce : Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Certain Plastic Decorative Ribbon from China

Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether certain plastic decorative ribbon from China is being dumped in the United States or if producers in China are receiving unfair subsidies.

'When a trade case is initiated it begins an open and transparent process that allows American companies, workers, and communities to gain relief from the market-distorting effects of injurious dumping and subsidization of imports,' said Secretary Ross. 'The Department will act swiftly, while completing a full and fair assessment of the facts, to ensure that U.S. businesses and workers have a fair chance to compete.'

These AD and CVD investigations were initiated based on petitions filed by Berwick Offray, LLC (Berwick, PA) on December 27, 2017. The estimated dumping margins alleged by the petitioner range from 74.34 to 370.04 percent for China. The subsidy programs alleged include preferential lending, various tax incentives and export assistance, and the provision of plastic inputs by the government of China at less than adequate remuneration.

In the AD investigation, the Commerce Department will determine whether imports of certain plastic decorative ribbon from China are being dumped in the U.S. market at less than fair value.

In the CVD investigation, the Commerce Department will determine whether Chinese producers of certain plastic decorative ribbon are receiving government subsidies.

If the Commerce Department determines that certain plastic decorative ribbon from China is being dumped into the U.S. market or that China is providing government subsidies, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of certain plastic decorative ribbon from China are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.

In 2016, imports of certain plastic decorative ribbon from China were valued at an estimated $18.1 million.

Click HERE for a fact sheet on these initiations.

Next Steps:

During the Commerce Department's investigations into whether certain plastic decorative ribbon is being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before February 12, 2018. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with a preliminary CVD determination scheduled for March 22, 2018, and preliminary AD determination scheduled for June 5, 2018, unless these deadlines are extended.

If the Commerce Department preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing certain plastic decorative ribbon from China.

Final determinations by the Commerce Department in these cases are scheduled for June 5, 2018, for the CVD investigation, and August 20, 2018, for the AD investigation, but those dates may be extended. If the Commerce Department finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.

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From January 20, 2017, through January 16, 2018, the Commerce Department has initiated 84 antidumping and countervailing duty investigations - a 62 percent increase from 52 in the previous period. The Commerce Department currently maintains 418 antidumping and countervailing duty 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 'antidumping' duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks and production inputs, are subject to 'countervailing duties' aimed at directly countering those subsidies.