US trade officials rule dumping by Asian bag makers

14 May 2009 23:13  [Source: ICIS news]

WASHINGTON (ICIS news)--US trade officials ruled on Thursday that American producers of plastic grocery and shopping bags were being harmed by similar products being dumped in the US market by Indonesia, Taiwan and Vietnam.

Superbag of Houston and Hilex Poly of Hartsville, South Carolina, filed petitions in March with the Commerce Department and the International Trade Commission (ITC), charging unfair trade practices from competitors in those three nations.

The petitions alleged that polyethylene (PE) retail carry bags from the three nations were being dumped in the US market at prices as much as 51-100% below fair value.

The allegations also contend that the Vietnamese government has been providing subsidies to plastic bag manufacturers there in violation of World Trade Organization rules.

In the ITC ruling on Thursday, the commission held that the alleged dumping is causing material harm to the two US companies that filed petitions and other domestic manufacturers of plastic bags.

The commission’s finding followed a 20 April preliminary ruling by the Commerce Department that the three foreign nations were dumping bags in the US market.

The department estimated dumping margins of 35-60% for Indonesia, 76-96% for Taiwan, and 28-76% for Vietnam. 

With today’s ruling of “material harm” by the ITC, the case now goes back to the Commerce Department, which will determine the extent of damage.

If the department confirms its preliminary dumping margins, the ITC would in turn impose antidumping duties on bags imported from those sources.

For example, a dumping margin of 76% for Vietnam would require US importers to pay antidumping duties equal to 76% of the customs value of the imports.

Attorney Joe Dorn, who represents the US bag makers, said that “Today’s decision is an important step in the process of obtaining relief against unfairly traded imports”.

Final rulings and the assignment of antidumping duties could come as early as September.

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By: Joe Kamalick
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