U.S. Producers Of PET Resin Applaud International Trade Commission Affirmative Final Determination In Trade Cases Against Canada, China, India And Oman

WASHINGTON, March 31, 2016 /PRNewswire-USNewswire/ -- The U.S. International Trade Commission (ITC) made a final determination today that imports of polyethylene terephthalate resin ("PET resin") from Canada, China, India and Oman are causing injury to the domestic industry. The Commission vote was unanimous, with all six members of the ITC voting in the affirmative. 

This was the final step in the antidumping and countervailing duty investigations and follows the March 7, 2016 determination by the U.S. Department of Commerce ("Commerce") that imports of PET resin were dumped from all four countries and that imports from China and India were also subsidized.

DAK Americas LLC, M&G Chemicals and Nan Ya Plastics Corp. America filed the petition on March 10, 2015, charging that unfairly traded imports of PET resin from Canada, China, India and Oman were causing material injury to the domestic industry.  Imports from the four target countries surged into the U.S. market in recent years, displacing U.S. producers' sales and market share.  The domestic industry stated that this import surge was driven by low import pricing that caused U.S. producers to suffer from reduced prices and profits. 

As a result of the Commission's vote, the Commerce Department will instruct U.S. Customs and Border Protection ("CBP") to require U.S. importers of PET resin from these four countries to deposit estimated antidumping duties at the time of importation as follows:

In addition, the Commerce Department will also impose countervailing duty rates of 6.83 to 47.56 percent on imports of PET resin from China and 5.12 to 153.80 percent on imports of PET resin from India.

"We have maintained throughout this case that the skyrocketing volume of imports of PET resin from Canada, China, India and Oman has injured the domestic industry with aggressive, dumped and subsidized prices. The domestic industry is extremely pleased that the Commission agreed and that these importers will now be subject to the discipline of trade orders to offset these practices," commented Paul Rosenthal of Kelley Drye, the lead trade counsel to the petitioners.

The ITC will transmit its determination to the Department of Commerce, who will issue antidumping and countervailing duty orders shortly thereafter.  Importers of PET resin will continue to be required to deposit estimated antidumping and countervailing duties at the time of entry into the United States. The orders will remain in place for a minimum period of five years and may be renewed in five-year increments.

PET resin is commonly used in the manufacture of carbonated soft drink, juice and water bottles, in food containers and as packaging for household, cosmetic, automotive and pharmaceutical products. 

DAK Americas LLC, M&G Chemicals and Nan Ya Plastics Corp. America are represented in these actions by Paul Rosenthal, Kathleen Cannon, David Smith, Grace Kim and Brooke Ringel of the law firm Kelley Drye & Warren LLP.   

SOURCE Kelley Drye & Warren LLP