The United States Department of Commerce has announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of rubber bands from China. The investigation found that exporters received countervailable subsidies of 125.77 percent.

The department also announced a negative preliminary determination in the CVD investigation of imports of rubber bands from Thailand, finding that exporters received de minimis subsidies of 0.23 and 0.37 percent.

Commerce will instruct US Customs and Border Protection (CBP) to collect cash deposits from importers of rubber bands from China based on these preliminary rates.  Because the subsidy rates calculated in the Thailand investigation are de minimis, Commerce will not instruct CBP to require cash deposits from importers of rubber bands from Thailand.

In 2017, imports of rubber bands from China and Thailand were valued at an estimated $4.9 million and $12.1 million, respectively. The petitioner in the cases was Alliance Rubber Company of Arkansas.

Countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair subsidization of imports into the United States.  Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to countervailing duties aimed at directly countering those subsidies. Since the beginning of the current administration, Commerce has initiated 118 new antidumping (AD) and CVD investigations, 30 percent more than the 91 initiations in the last 529 days of the previous administration. Commerce currently maintains 448 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is currently scheduled to issue its final CVD determinations on or about November 13, 2018. If Commerce makes affirmative final determinations, the US International Trade Commission (ITC) will be scheduled to make its final injury determinations on or about December 28, 2018.  If Commerce makes affirmative final determinations in these investigations and the ITC makes affirmative final injury determinations, Commerce will issue CVD orders.  If Commerce makes negative final determinations or the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.