The U.S. Department of Commerce has made a preliminary determination that exporters from Taiwan and South Korea sold low melt polyester staple fiber (PSF) in the U.S. at less than fair value, a finding that could lead to anti-dumping duties.
Exporters from Taiwan and South Korea have sold the low melt PSF at 52% and at 0% to 16.48% less than fair value, respectively, violating U.S. trade laws, the Department of Commerce said in a recent statement.
“Today’s decision allows U.S. producers of low melt polyester staple fiber to receive relief from the market-distorting effects of foreign producers dumping their goods into the domestic market,” said Commerce Secretary Wilbur Ross in the statement.
In the Taiwan investigation, Far Eastern New Century Corporation was found to have dumped at a rate of 52%, and that rate was also applied to other Taiwanese exporters of the fiber, the Commerce Department said.
In the Korea investigation, Huvis Corporation was found to have made a preliminary dumping rate of 0.00%, Toray Chemical Korea Inc. 16.48%, and all other producers and exporters of low melt PSF from Korea 16.48%.
In 2016, imports of low melt polyester staple fiber from Korea and Taiwan were valued at an estimated $76.6 million and $26.8 million, respectively.
Should the Commerce Department confirm its preliminary finding of dumping in its final determination, and the U.S. International Trade Commission determines that the dumping has had harmful effects on the U.S. market, anti-dumping duties will be imposed on imports of the product from Taiwan and Korea.
In the meantime, the Commerce Department has asked U.S. Customs and Border Protection to begin collecting cash deposits from importers of low melt polyester staple fiber from Korea and Taiwan based on these preliminary rates.
Per U.S. law, which seeks to protect the interests of U.S. businesses, “foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to anti-dumping duties.”
The petitioner in this case was Nan Ya Plastics Corporation, America.
The Department of Commerce is scheduled to announce its final determinations on or about June 19, 2018.
Through the first year of the Trump administration, the Department of Commerce initiated 84 anti-dumping and countervailing duties cases—a 58% increase when compared to the final year of the Obama administration, the agency said.
Photo: StuartMiles
