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USITC Reaches Unanimous Decision in Case of Poly Imports from China, India

The U.S. International Trade Commission (USITC) reached a unanimous affirmative decision in the final injury investigation on imports of polyester textured yarn from China and India.

As a result of the USITC’s final affirmative determination, the Commerce Department will publish anti-dumping duty (AD) and countervailing duty (CVD) orders covering the imports involved in the investigation. The AD and CVD orders are expected to be published in early January 2020.

The orders will put into place the Commerce Department’s final dumping and subsidy margins that were published on Nov. 14. Importers must post cash deposits for each shipment of the subject imports. Importers’ liability could increase or decrease depending on the extent of dumping and subsidization the Commerce Department finds when it conducts a review of the level of dumping and subsidies, which is expected to take place in 2021.

The USITC did not find “critical circumstances” with respect to imports of certain polyester textured yarn from China. Those imports will no longer be subject to retroactive AD and CVD duty deposits that were first imposed in the preliminary determinations.

Petitioners are closely monitoring whether polyester textured yarn from China or India is being shipped through third-party countries and then entering the U.S. market, according to Kelley Drye & Warren, an international trade law firm that represents the petitioning companies–U.S. synthetic yarn producers Unifi Manufacturing of Greensboro, N.C., and Nan Ya Plastics Corp. of Lake City, S.C.

The companies had filed petitions with the Commerce Department and the USITC in October 2018, alleging that dumped and subsidized imports of polyester textured yarn from China and India were causing material injury to the domestic industry. The Commerce Department initiated the investigations in November 2018 and the USITC preliminarily determined in December 2018 that imports from China and India are causing injury to the U.S. domestic industry.

The product covered by the investigation, polyester textured yarn, is synthetic multifilament yarn produced through a texturing process that imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption and insulation.

U.S. imports of polyester textured yarn totaled $78.1 million in 2018. The top suppliers were China, Mexico, India, Indonesia, Malaysia and Taiwan.

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