New AD/CVD Petitions: Paper Buying Luggage from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam

On Could 31, 2023, the Coalition for Honest Commerce in Buying Luggage, consisting primarily of Novolex Holdings (“Novolex”) and the union employees on the U.S. paper procuring bag manufacturing amenities, filed antidumping (AD) and countervailing responsibility (CVD) petitions in opposition to Paper Buying Luggage from 9 international locations. China is the most important exporter of the topic procuring baggage, 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 had 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 principle petitioner on this case, Novolex, beforehand had filed a number of AD circumstances on imported plastic procuring baggage (polyethylene retail provider baggage); first from China, Malaysia, and Thailand, adopted by one other spherical of AD petitions on plastic baggage from Indonesia, Taiwan, and Vietnam. Novolex additionally produces paper baggage 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 baggage 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 baggage as state legal guidelines banning plastic baggage helped completely shift client choice from plastic to paper baggage. Now some states and cities are beginning to ban or impose taxes on single-use paper procuring baggage.  Though AD/CVD duties actually will improve the price of paper procuring baggage, it’s unsure whether or not these duties will do something to cease that pattern in direction of utilizing fewer paper procuring baggage.

The U.S. Division of Commerce (“DOC”) and U.S. Worldwide Commerce Fee (“ITC”) will conduct investigations to additional look at the allegations made within the petition. DOC will examine whether or not the named topic imports are being offered to america at lower than honest worth (“dumping”) or profit from unfair authorities subsidies. ITC will examine whether or not the topic imports are inflicting “materials harm” or “menace of fabric harm” to the home trade. Each businesses must make affirmative findings of harm or menace of harm (ITC) or of dumping or subsidies (DOC) to ensure that AD/CVD duties to be imposed on the topic imports.

Scope

The proposed scope definition of this case

Paper procuring baggage with handles of any kind, no matter whether or not there may be 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 procuring baggage have a width of at the least 4.5 inches and depth of at the least 2.5 inches.

Excluded from the scope are:

• Multiwall sacks and baggage;
• Paper sacks or baggage 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 baggage with die-cut handles, a typical foundation paper weight of lower than 38 kilos, and a top of lower than 11.5 inches;
• Buying baggage (i) with non-paper handles made wholly of woven ribbon or different related woven material and (ii) which can be completed with folded tops or for which tied knots or t-bar aglets (made from wooden, steel, or plastic) are used to safe the handles to the baggage; and
• Reward baggage 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 baggage and not more than 30 particular person baggage.

The paper procuring baggage are labeled 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 title international locations:

Cambodia: 44.29% – 221.36%

China: 133.80% – 324.24%

Colombia: 65.04%

India- 88.56%

Malaysia:  173.38%

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 firms that it believes are producers and exporters of the topic merchandise.  See connected listing right here.

Named U.S. Importers

Petitioner included an inventory of firms that it believes are U.S. importers of the topic merchandise.  See connected listing right here.

Estimated Schedule of Investigations.

Could 31, 2023 – Petitions filed

June 20, 2023 – DOC initiates investigation

June 26, 2023 – ITC Employees 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)

Could 10, 2024 – DOC ultimate dedication (prolonged)

June 24, 2024 – ITC ultimate dedication (prolonged)

July 1, 2024 – DOC AD/CVD orders issued (prolonged)