US Hits China and India With Preliminary Countervailing Duties - Global Trade Magazine
  November 23rd, 2017 | Written by

US Hits China and India With Preliminary Countervailing Duties

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  • Exporters China and India received subsidies of 41.73 to 47.64 percent and 7.18 to 9.86 percent, respectively.
  • Imports from companies that receive unfair subsidies are subject to countervailing duties.
  • CBP will collect cash deposits from importers of fine denier polyester staple fabric from China and India.

US Secretary of Commerce Wilbur Ross has announced the affirmative preliminary determinations in the countervailing duty (CVD) investigations, finding that exporters of fine denier polyester staple fiber from China and India received countervailable subsidies of 41.73 to 47.64 percent and 7.18 to 9.86 percent, respectively.

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.

The Commerce Department will instruct US Customs and Border Protection to collect cash deposits from importers of fine denier polyester staple fabric from China and India based on these preliminary rates.

In 2016, imports of fine denier polyester staple fiber from China and India were valued at an estimated $79.4 million, $14.8 million, respectively.

The petitioners are DAK Americas LLC (NC), Nan Ya Plastics Corporation, America (SC), and Auriga Polymers Inc. (NC).

Enforcement of US trade law is a prime focus of the Trump administration. From January 20 through October 31, 2017, Commerce has initiated 77 AD and CVD investigations – a 60 percent increase over the previous year. Commerce currently maintains 411 AD and CVD duty orders which provide relief to American companies and industries impacted by unfair trade.

Unless the final determinations are aligned with the concurrent AD investigations, Commerce is currently scheduled to announce its final CVD determinations on January 16, 2018.

If the Commerce Department makes affirmative final determinations of subsidization and the US International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue CVD orders. If the Commerce Department makes negative final determinations of subsidization or the ITC makes negative final determinations of injury, the investigations will be terminated and no order will be issued.

Unless the final determinations are aligned with the concurrent AD investigations, Commerce is currently scheduled to announce its final CVD determinations on January 16, 2018.