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Auburn Manufacturing Applauds Crackdown on Chinese Fabric Prices

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Auburn Manufacturing is approving the Department of Commerce’s recent regulations on Chinese high-performance fabric prices.

The textile product manufacturer announced its support for the DOC’s latest preliminary anti-dumping determination, which found some Chinese manufacturers guilty of selling amorphous silica fabric (ASF), a heat resistant fabric used in industrial applications, in the U.S. market at unethically low prices.

ASF imports’ unfair pricing undercuts U.S.-made products, since Chinese producers pocket more cash above the true declared value. After calculating a 162.7% preliminary anti-dumping margin for all businesses, it will order the U.S. Customs and Border Protection (CBP) to regulate Chinese ASF imports and collect cash deposits equivalent to this amount.

Importers now will be required to pay an extra 162.47% anti-dumping duty cash deposit on upcoming entries, in addition to the countervailing duty (CVD) cash deposits the DOC issued on Chinese imports in late June. The DOC also said that 162.7% antidumping cash deposits will be owed to products imported earlier that month as well. The regulations were implemented to combat the Government of China’s unfair subsidies.

“With these provisional antidumping duty cash deposits in place—up to 267 percent with countervailing duty included, we’ll be back on a level playing field, and that’s all we need to compete. Our quality and service are already well above that of the importers, and the market knows that,” Auburn Manufacturing CEO Kathie Leonard said. “The volume of business we’ve lost is only because of unfairly low prices of the Chinese product due to unfair trade practices. With the Department of Commerce’s help, we’ve now confirmed that.”

Auburn Manufacturing is the largest U.S. industrial grade ASF producer. The duties will enable Auburn to continue supplying products to the Navy and other American entities.

Following Auburn Manufacturing’s petition, the DOC examined two Chinese producers. The department rejected all data from one company, after it found that one Chinese producer failed to comply with their investigation by allegedly submitting questionable documents that caused the DOC to request a follow up investigation led by the CBP. The other Chinese producer submitted data that showed greater dumping above Auburn’s allegations, so the DOC fined the uncooperative Chinese producer with a higher margin. Determinations for both investigations will be finalized in January 2017.

“We’re not out of the woods yet, but at least we see some daylight ahead of us. We’ve proved that the Chinese price isn’t a result of cheap labor when making advanced textiles like ours,” Leonard said. “It’s based on unfair pricing by Chinese producers and subsidies provided by the Chinese government to encourage exports—specifically aimed at the U.S. market.”

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