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New Antidumping and Countervailing Duty Petitions on Polyester Textured Yarn from China and India

Unifi Manufacturing, Inc. and Nan Ya Plastics Corporation, America (petitioners), on October 18, 2018, filed antidumping (AD) and countervailing duty (CVD) petitions on imports of polyester textured yarn from China and India.

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of polyester textured yarn.

Scope

The merchandise covered by these petitions, polyester textured yarn, is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate). Polyester textured yarn is produced through a texturing process, which imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption, insulation, and the appearance of a natural fiber. This scope includes all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of plies, finish (luster), cross section, color, dye method, texturing method, or packing method (such as spindles, tubes, or beams), and regardless of end use.

The merchandise subject to these petitions is properly classified under subheadings 5402.33.3000 and 5402.33.6000 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.

Alleged Dumping Margins

The petitioners allege the following dumping margins:

  • China: 67.93 percent
  • India: 40.50 percent

Estimated Schedule of Investigations

  • October 18, 2018 – Petition is filed
  • November 7, 2018 – DOC initiates investigation
  • November 8, 2018 – ITC staff conference
  • December 3, 2018 – Deadline for ITC preliminary injury determinations
  • January 11, 2018 – Deadline for DOC preliminary CVD determination, if not postponed
  • March 18, 2018 – Deadline for DOC preliminary CVD determination, if fully postponed
  • March 27, 2019 – Deadline for DOC preliminary AD determination, if not postponed
  • May 16, 2019 – Deadline for DOC preliminary AD determination, if fully postponed
  • September 30, 2019 – Deadline for DOC final AD determination, if both preliminary and final determinations are fully postponed
  • November 14, 2019 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines
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About this Author

Douglass Heffner, International trade lawyer, Drinker Biddle
Partner

Douglas J. Heffner litigates customs and international trade matters including antidumping duty, countervailing duty and safeguard cases. He represents foreign companies in Canada, Europe, Japan and Mexico, as well as domestic producers in industries that range from high-tech to heavy industry, to consumer and industrial goods. He also represents trade associations, government agencies and embassies in a broad range of matters.

202-230-5802
Richard P Ferrin, International Trade Lawyer, Drinker Biddle
Counsel

Richard P. Ferrin advises clients about international trade regulations, particularly antidumping and countervailing duty proceedings at both the administrative and appellate levels. He advocates for his client in global “safeguards” proceedings and on customs matters involving classification issues and country-of-origin determinations. Richard has represented foreign manufacturers, foreign exporters, and U.S. importers in antidumping and countervailing duty proceedings before the U.S. International Trade Commission, and in judicial review of administrative actions at the U.S. Court of International Trade, U.S. Court of Appeals for the Federal Circuit and North American Free Trade Agreement binational panels. In addition, Richard advises importers on how to minimize antidumping duty liability.

202-230-5803