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USITC OK’s Antidumping Polyester Investigation

The United States International Trade Commission (USITC) has determined that there is a reasonable indication that a U.S. industry was materially injured by imports of polyester textured yarn from Indonesia, Malaysia, Thailand and Vietnam because they allegedly sold in the U.S. at less than fair value.

As a result of the USITC’s affirmative determinations, the U.S. Department of Commerce will continue its investigations of the imports, with its preliminary antidumping duty determinations due on or about April 6.

Polyester textured yarn is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate) and produced through a texturing process that imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption and insulation, and is meant to give the appearance of a natural fiber.

The investigation began when a petition was filed by U.S. polyester textured yarn spinners Nan Ya Plastics Corp. America of Lake City, S.C., and Unifi Manufacturing Inc. of Greensboro, N.C., on Oct. 28 claiming that the imports were “dumped” on the U.S. market below fair market value and was causing harm to their businesses. The petition listed 36 U.S. importers of polyester textured yarn from those countries and 26 exporters combined from the four countries.

U.S. imports of polyester textured yarn from the four countries was valued at $38 million in 2019. Another $103 million worth of the product was also imported last year, according to USITC, with Mexico, India, Indonesia and Malaysia the leading sources.

The USITC public report, “Polyester Textured Yarn from Indonesia, Malaysia, Thailand and Vietnam,” will contain the views of the commission and information developed during the investigations. It will be available after Jan. 11 and can be accessed on the USITC website.

While the USITC determines whether the U.S. industry is materially injured or threatened with material injury by the imports under investigation, the Commerce Department determines whether the alleged dumping or subsidizing is happening, and if so, the margin of dumping or amount of subsidy.

If both Commerce and the USITC reach affirmative final determinations, then Commerce will issue an antidumping duty order to offset the dumping or a countervailing duty order to offset the subsidy.