The United States is to issue antidumping and countervailing duty orders on imports of polyester textured yarn from China and India after reaching a unanimous decision that they are being subsidised and sold at less than fair value.

The move follows the final injury investigation by the International Trade Commission (USITC) earlier this month.

The US Department of Commerce is now set to publish the AD and CVD orders covering these imports in early January 2020 – putting into place the final dumping and subsidy margins that were published in November.

This will see a 76.07% anti-dumping levy on products sold by China's Jiangsu Hengli Chemical Fiber Co, which was the mandatory respondent in the case, and a 77.15% tariff on other Chinese exporters.

It will also impose anti-subsidy tariffs of 32.18% to 473.09% on China's Fujian Billion Polymerization Fiber Technology Industrial Co, Suzhou Shenghong Garment Development Co, and Suzhou Shenghong Fibre Co, while a 32.18% tariff will be imposed on all other Chinese producers and exporters.

For India, the department assigned a dumping rate of 47.51% to mandatory respondent JBF Industries, a rate of 17.62% to Reliance Industries, and a rate of 17.62% to all other Indian producers and exporters. Subsidy rates of 4.29% to 21.83% were also assigned.

The investigations were launched in November last year in response to petitions filed by Unifi and Nan Ya Plastics Corp America.

In 2018, imports of polyester textured yarn from China were valued at an estimated US$45.5m, and those from India at $21.6m.

According to international law firm Kelley Drye & Warren LLP, which represented the petitioning companies, importers must post cash deposits for each shipment of the subject imports.  

It also warns importers' liability could change depending on the extent of dumping and subsidisation the Commerce Department finds when it conducts a review of the level of dumping and subsidies, which is expected to take place in 2021.