U.S. Polyester Producers Applaud U.S. International Trade Commission's Affirmative Final Determination on Imports of Fine Denier Polyester Staple Fiber from China and India

WASHINGTON, Feb. 16, 2018 /PRNewswire-USNewswire/ -- The U.S. International Trade Commission (ITC) announced a unanimous affirmative determination today that subsidized imports of fine denier polyester staple fiber (fine denier PSF) from China and India are causing injury to U.S. producers. As a result of the ITC's final affirmative determination, the U.S. Department of Commerce (Commerce) will issue countervailing duty orders on fine denier PSF imports from China and India at the final subsidy rates announced in those cases on January 17, 2018.  Those orders are expected to be effective on or around March 9, 2018.

Fine Denier PSF Imports from China

Fine Denier PSF Imports from India

Commerce is also currently conducting antidumping duty investigations on fine denier PSF imports from China, India, Korea, and Taiwan.  In December 2017, Commerce announced affirmative preliminary antidumping margins in those four cases, and will announce final dumping margins by May 24, 2018.  At that time, the ITC will make final determinations whether dumped fine denier PSF from China, India, Korea, and Taiwan caused material injury to the domestic industry.  If affirmative – as the domestic industry expects – Commerce will issue four antidumping orders by mid-July 2018.

The ITC's record shows that imports of fine denier PSF from the all four countries surged into the U.S. market between 2014 and 2016, and were able to capture sales and market share from the domestic industry by undercutting U.S. producers' prices.  "We are very pleased with the ITC's decision, which reflects the lost production, sales, and profitability experienced by domestic fine denier PSF producers as a result of unfair import competition," said Paul Rosenthal, of Kelley Drye & Warren LLP, counsel to the petitioners.  "The trade relief provided by the two countervailing duty orders that will be imposed is critical to the future of the fine denier PSF industry in the United States," he said.

Background

Three major U.S. polyester fiber producers – DAK Americas LLC, Nan Ya Plastics Corporation, America, and Auriga Polymers Inc. – filed petitions with the ITC and Commerce on May 31, 2017 alleging that subsidized imports of fine denier PSF from China and India, and dumped imports of fine denier PSF from China, India, Korea, and Taiwan, are causing material injury to the domestic industry. 

The product covered by the petition is fine denier polyester staple fiber, which is a synthetic staple fiber of polyesters measuring less than 3.3 decitex (3 denier) in diameter.  Fine denier PSF is generally cut in lengths of less than five inches (127 mm).  Fine denier PSF is similar in appearance to cotton or wool.  It is typically converted either to yarn for weaving or knitting into fabric or to a non-woven textile prior to the end-use application.  Woven applications include the production of textiles such as clothing and bedding linens, for example.  Non-woven applications include the production of household and hygiene products such as cleaning wipes, baby wipes, and diapers.     

The petitioning companies are represented by Kelley Drye & Warren LLP.

SOURCE Kelley Drye & Warren LLP