U.S. Producers of Polyethylene Terephthalate (PET) Resin Applaud U.S. Court of International Trade's Decision to Return Injury Determination to International Trade Commission

WASHINGTON, June 5, 2020 /PRNewswire/ -- On June 4, 2020, Judge Gary S. Katzmann of the U.S. Court of International Trade overturned a determination by the U.S. International Trade Commission (ITC) that imports of polyethylene terephthalate (PET) resin from five countries did not injure the U.S. producers of that product.  As a result of that decision, the ITC will be required to reconsider whether the unfairly traded imports had indeed harmed domestic companies and their workers, as the companies alleged.

In a 42-page opinion, Judge Katzmann meticulously examined the record of the ITC's 2018 final investigation on PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan.  In the opinion, the court reached the well-reasoned and legally-sound conclusion that certain aspects of the ITC's negative determination were not supported by substantial record evidence.  Paul Rosenthal, lead counsel for the domestic PET resin industry, commented, "The domestic producers and their workers are gratified by the Court's decision and are hopeful that when the ITC reconsiders the case, it will finally approve the much needed relief from unfair imports that the industry so desperately needs."

Since 2018, the domestic industry has been without relief from the effects of the significant dumping by PET resin producers in each country previously found by the Commerce Department.  That dumping hurt the sales and profits of the domestic industry and continues to injure U.S. producers that have been denied the remedy they deserve and need.

The ITC will next re-review the record of the original investigation to address the errors identified by the court.  The ITC's remand redetermination is due to the court within 90 days, or by September 2, 2020.  After a 60-day period for comments from all parties in the appeal, Judge Katzmann will take the remand decision under advisement.  The domestic industry is hopeful for a positive resolution to this case with an affirmative injury determination and an AD order in place before the end of the year.

Background

Plaintiffs are DAK Americas LLC, Indorama Ventures USA, Inc., Nan Ya Plastics Corporation, America, U.S. producers of polyester terephthalate (PET) resin and petitioners in the unfair trade case filed with the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (Commerce) on September 26, 2017.  On October 24, 2017, a fourth domestic producer and petitioner, M&G Polymers USA filed for bankruptcy and later put its U.S. assets up for sale.  On September 17, 2018, Commerce found significant levels of dumping by producers and exporters in all five countries: 29.68-275.89% for Brazil, 30.61-53.50% for Indonesia, 8.23-101.41% for Korea, 43.81-59.92% for Pakistan, and 5.16-45.00% for Taiwan. 

The product that is the subject of these investigations is certain PET resin, which is a large-volume, thermoplastic polyester polymer resin, having an intrinsic viscosity (IV) of 0.70 or more, but not more than 0.88, deciliters per gram.  PET resin is primarily sold in bulk form as chips or pellets, which are heated and extruded or molded into plastic bottles, containers, and packaging.  The major end-uses for PET resin include beverage bottles, food containers, and packaging for household, cosmetics, automotive, and pharmaceutical products.       

The domestic industry is represented by Paul Rosenthal, Kathleen Cannon, and Brooke Ringel, Kelley Drye & Warren LLP.

SOURCE Kelley Drye & Warren LLP