The US Department of Commerce has ruled that exporters from China and India have been dumping polyester textured yarn in the US at sizeable margins.

In a final ruling earlier this month, the Department said exporters from the two nations have dumped yarn in the US at margins ranging from 76.07% to 77.15% and 17.62% to 47.51%, respectively.

It also determined that exporters from China and India received countervailable subsidies at rates ranging from 32.18% to 473.09% and 4.29% to 21.83%, respectively.

Dumping occurs when a foreign company sells a product in the United States at less than its fair value, while a countervailable subsidy is financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.

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.

Based on the findings, the department said it has imposed 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 also ruled to 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 has been 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.

Since the beginning of the current Administration, the Department of Commerce has initiated 187 new antidumping and countervailing duty investigations – a 240% increase from the comparable period in the previous administration.

The US International Trade Commission (ITC) will decide at the end of December whether or not to issue antidumping duty (AD) and countervailing duty (CVD) orders.