The US is to begin collecting countervailing duties (CVD) on imports of polyester textured yarn from China and India after ruling that producers in both countries are receiving unfair subsidies.
The decision follows antidumping duty (AD) and countervailing duty (CVD) investigations launched in November last year in response to petitions filed by Unifi and Nan Ya Plastics Corp America.
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The petitions alleged that producers in China and India were dumping polyester textured yarn in the US market at sizeable margins: China up to 68%, and India at 40-130%. According to the two companies, import volumes increased at an astounding rate over the last five years, growing nearly 80% from around 38.4m pounds in 2013 to 68.9m pounds in 2017.
The US Department of Commerce (DOC) suggests there are 20 subsidy programmes alleged in the China countervailing duty investigation, including the provision of low-priced inputs, preferential loans, grants, as well as income tax incentives; and 43 subsidy programmes alleged in the India countervailing duty investigation, including tax incentives, the provision of low-priced inputs, grants, and loan subsidies.
Preliminary investigations carried out by the DOC confirms producers and exporters of imports of polyester textured yarn from China and India are being unfairly subsidised by their respective governments at double- and triple-digit margins, as follows: Fujian Billion Polymerization Fiber Industrial Co Ltd and others at a preliminary subsidy rate of 32.04%; Jiangsu Shenghong Textile Imp & Exp Co, Suzhou Shenghong Fiber Co Ltd and Suzhou Shenghong Garment Development Co at a preliminary subsidy rate of 459.98%; India’s JBF Ltd at 20.45%; Reliance Industries Ltd at 7.09% and all others at 13.82%.
US Customs and Border Protection will now begin collecting countervailing duties in the amount equal to the preliminary subsidy rates for imports from each country.
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By GlobalDataOn 26 June the DOC will announce its preliminary determinations in the antidumping duty investigations involving imports from China and India. Importers will then be required to post additional duty deposits at the preliminary dumping rates.
