New Antidumping Duty and Countervailing Duty Petitions on Certain Paper Shopping Bags From Nine Countries

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Authors: Douglas J. Heffner , Richard Ferrin , Carrie Bethea Connolly

At a Glance

The Coalition for Fair Trade in Shopping Bags filed AD and CVD petitions on certain paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, Vietnam, China and India.
Investigations related to these petitions could lead to increased prices and/or decreased supply of certain bags.
The U.S. Department of Commerce is expected to begin investigations on June 20.

On May 31, 2023, the Coalition for Fair Trade in Shopping Bags (consisting of Novolex Holdings, LLC and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union) (collectively Petitioners) filed antidumping duty (AD) petitions on certain paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam, and countervailing duty (CVD) petitions on certain paper shopping bags 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 subsidization is 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 certain paper shopping bags.

Scope:

Per the Petition:

The products within the scope of these investigations are paper shopping bags with handles of any type, regardless of whether there is any printing, regardless of how the top edges are finished (e.g., folded, serrated, or otherwise), and regardless of whether the tops can be sealed. Subject paper shopping bags have a width of at least 4.5 inches and depth of at least 2.5 inches.

Excluded from the scope are:

Multiwall sacks and bags;
Paper sacks or bags that are of a 1/6 or 1/7 barrel size (i.e., 11.5-12.5 inches in width, 6.5-7.5 inches in depth, and 13.5-17.5 inches in height) with flat paper handles;
Paper sacks or bags with die-cut handles, a standard basis paper weight of less than 38 pounds, and a height of less than 11.5 inches;
Shopping bags (i) with non-paper handles made wholly of woven ribbon or other similar woven fabric and (ii) that are finished with folded tops or for which tied knots or t-bar aglets (made of wood, metal, or plastic) are used to secure the handles to the bags; and
Gift bags marked for retail sale that are physically bundled into the saleable unit prior to importation such that each bundled unit is composed of no less than three individual bags and no more than 30 individual bags.

This merchandise is currently classifiable under HTS item numbers 4819.30.0040 and 4819.40.0040.

Estimated Dumping Margins:

The Petitioners allege the following dumping margins exist:

Cambodia: 44.29% to 221.36%
China: 133.80% to 324.24%
Colombia: 65.04%
India: 88.56%
Malaysia: 173.38%
Portugal: 26.71% to 204.54%
Taiwan: 44.76% to 50.13%
Turkey: 12.51% to 45.29%
Vietnam: 63.67% to 128.81%

The Petitioner also alleges significant subsidies with respect to China and India, although the petition does not quantify the alleged net subsidy margins.

Estimated Schedule of Investigations:

The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):

May 31, 2023: Petitions are filed.
June 20, 2023: DOC initiates investigations.
June 21, 2023:I TC staff conference (estimated).
July 17, 2023: Deadline for ITC preliminary injury determination.
August 24, 2023: Deadline for DOC preliminary CVD determinations, if deadlines are NOT postponed.
October 30, 2023: Deadline for DOC preliminary CVD determinations, if deadlines are fully postponed.
November 7, 2023: Deadline for DOC preliminary AD determinations, if deadlines are NOT postponed.
December 27, 2023: Deadline for DOC preliminary AD determinations, if deadlines are fully postponed.
May 10, 2024: Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed.
June 24, 2024: Deadline for ITC final injury determination, if all DOC deadlines are fully postponed.