Exporters of fine denier polyester staple fibre from China and India received unfair subsidies, according to first findings from countervailing duty (CVD) investigations carried out by the US Department of Commerce.
The preliminary determinations found that exporters of the fibre from China and India received countervailable subsidies of 41.73% to 47.64% and 7.18% to 9.86%, respectively.
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The Commerce Department says it will now instruct US Customs and Border Protection to collect cash deposits from importers of fine denier polyester staple fabric from China and India based on these preliminary rates.
In 2016, imports of fine denier polyester staple fibre from China and India were valued at an estimated US$79.4m and $14.8m, respectively.
The anti-dumping and countervailable duty probe was launched in June in response to a petition filed by three major US synthetic fibre producers: DAK Americas, Nan Ya Plastics Corporation America, and Auriga Polymers Inc.
US initiates polyester staple fibre trade probe
The Department of Commerce says enforcement of US trade law is a prime focus of the Trump administration. From 20 January through 31 October, it has initiated 77 anti-dumping (AD) and countervailable duty (CVD) investigations – a 60% increase over the previous year.
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By GlobalDataIt currently maintains 411 AD and CVD duty orders which provide relief to American companies and industries impacted by unfair trade. Unless the final determinations are aligned with the concurrent AD investigations, the department says it is currently scheduled to announce its final CVD determinations on 16 January 2018.
If the Commerce Department makes affirmative final determinations of subsidisation and the US International Trade Commission (ITC) makes affirmative final injury determinations, CVD orders will be issued.
However, if it makes negative final determinations of subsidisation, or the ITC makes negative final determinations of injury, the investigations will be terminated and no order will be issued.
