US Initiates AD and CVD Investigations on Chinese Imports - Global Trade Magazine
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  February 24th, 2018 | Written by

US Initiates AD and CVD Investigations on Chinese Imports

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  • Ross: Trade cases allow US companies to gain relief from dumping and subsidization of imports.
  • In AD investigations, Commerce determines whether imports are being sold in US at less than fair value.
  • In CVD investigations, Commerce determines whether foreign producers receive government subsidies.

US Secretary of Commerce Wilbur Ross has announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether certain plastic decorative ribbon from China is being dumped in the United States or if producers in China are receiving unfair subsidies.

The investigations were initiated based on petitions filed by Berwick Offray, LLC of Berwick, Pennsylvania. The dumping margins alleged by the petitioner range from 74.34 to 370.04 percent. The subsidy programs alleged include preferential lending, tax incentives and export assistance, and the provision of plastic inputs by the Chinese government at below market prices.

In 2016, imports of the plastic decorative ribbon in question from China were valued at an estimated $18.1 million.

“When a trade case is initiated it begins an open and transparent process that allows American companies, workers, and communities to gain relief from the market-distorting effects of injurious dumping and subsidization of imports,” said Ross. “The department will act swiftly, while completing a full and fair assessment of the facts, to ensure that US businesses and workers have a fair chance to compete.”

In the AD investigation, the Commerce Department will determine whether imports of certain plastic decorative ribbon from China are being dumped in the US market at less than fair value. In the CVD investigation, the Commerce Department will determine whether Chinese producers of certain plastic decorative ribbon are receiving government subsidies.

If the Commerce Department determines that certain plastic decorative ribbon from China is being dumped into the US market or that China is providing government subsidies, and if the US International Trade Commission (ITC) determines that dumped and/or unfairly subsidized US imports of certain plastic decorative ribbon from China are causing injury to the US industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.

During the Commerce Department’s investigations into whether certain plastic decorative ribbon is being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the US industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before February 12, 2018. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with a preliminary CVD determination scheduled for March 22, 2018, and preliminary AD determination scheduled for June 5, 2018, unless these deadlines are extended.

If the Commerce Department preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct US Customs and Border Protection to start collecting cash deposits from all US companies importing certain plastic decorative ribbon from China.

Final determinations by the Commerce Department in these cases are scheduled for June 5, 2018, for the CVD investigation, and August 20, 2018, for the AD investigation, but those dates may be extended. If the Commerce Department finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the US industry, then the investigations will be terminated and no duties will be applied.


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