ITC Rules in Favor of Petition Against Woven Sacks Imports from China
- Published: September 04, 2008
WASHINGTON, DC | US producers of laminated woven polypropylene sacks recently won a victory against dumped and subsidized imports of these products from China. By a 6-0 vote, the US Intl. Trade Commission (ITC) announced its affirmative decision on the petition filed by those converters that will require US importers of laminated woven sacks from China to pay high duties to offset unfair pricing and Chinese government subsidies. These sacks are typically used to package pet foods, bird seeds, and similar products sold at retail. The ITC’s affirmative vote will restore fair competition in the US market, its supporters say.
The vote was the final determination in investigations that began on June 28, 2007, when the Laminated Woven Sacks Committee filed antidumping and countervailing duty petitions with the ITC and the US Dept. of Commerce. The members of the Committee are Bancroft Bag, Inc.; Coating Excellence Intl., LLC; Hood Packaging Corp.; Mid-America Packaging, LLC; and Polytex Fibers Corp.
“The ITC’s decision confirms something that we have known for a long time—dumped and subsidized imports from China prevented us from getting this business off the ground,” says Mike Nowak, president of Coating Excellence, Wrightstown, WI. “We now look forward to working closely with our customers to serve this growing market. This decision will allow us to expand capacity and create new jobs in Wisconsin.”
Isaac Bazbaz, president of Polytex Fibersd in Houston, TX, said, “We are pleased by this decision because it will enable us to compete on even terms in a business that we believe has enormous potential. It will allow us to create new jobs in Houston.”
Joe Dorn, a partner at King & Spalding, the law firm representing the petitioners, said: “Today’s ITC vote represents an important victory for US producers of laminated woven sacks and their workers. It also has broader significance, because it is the first time the U.S. government has decided to impose duties against a textile product to offset subsidies granted by the Chinese Government. The decision sends a strong message to China that government subsidies that lead to imports at unfair prices will not be tolerated by the US government.”
In June, Commerce made affirmative antidumping and countervailing duty determinations with respect to these imported products. Commerce found that the margin of dumping ranged from 64.28% to 91.73%, and that the net subsidy rate ranged from 29.54% to 352.82%, depending on the identity of the Chinese producer. Consequently, import duties in these amounts will be imposed to offset dumping and the unfair advantage of government subsidies given to Chinese producers of these products.
Because the antidumping and countervailing duties apply independently to imports of these products, the combined duties that will result from these measures will range from 93.82% to 444.55% of the customs value of the imported products, depending upon the identity of the Chinese producer.
