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November 14, 2018

US probes polyester yarn imports from China and India

The US Department of Commerce has launched new investigations into whether polyester textured yarn from China and India is being dumped in the US, and if producers in those countries are receiving unfair subsidies.

By Hannah Abdulla

The US Department of Commerce has launched new investigations into whether polyester textured yarn from China and India is being dumped in the US, and if producers in those countries are receiving unfair subsidies.

The antidumping duty (AD) and countervailing duty (CVD) investigations are in response to petitions filed by Unifi and Nan Ya Plastics Corp America on 18 October. 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 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 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.

Should the investigation find dumped and/or unfairly subsidised US imports of polyester textured yarn from China and/or India are causing injury to US industry, the DOC will impose duties on those imports in the amount of dumping and/or unfair subsidisation found to exist.

Preliminary determinations for the cases are scheduled for 19 January 2019. The DOC will instruct US Customs and Border Protection to start collecting cash deposits from all US companies importing polyester textured yarn from China and India if it finds dumping and/or unfair subsidisation is occurring.

Final determinations by the DOC in these cases are scheduled for 27 March 2019.

Earlier this year, a similar investigation into imports of fine denier polyester staple fibre from suppliers in China, India, Korea and Taiwan led the US Department of Commerce to impose anti-dumping tariffs on the products.

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