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.
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
For further information, contact the authors below, or any other member of the Customs and International Trade Team.