U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Twist Ties from China
For Immediate Release
July 17, 2020
Contact: ITA Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether twist ties from China are being dumped in the United States, and to determine if producers are receiving unfair subsidies.
The petitions were filed by Bedford Industries, Inc. (Worthington, Minn.).
In the AD investigation, Commerce will determine whether imports of twist ties from China are being dumped in the U.S. market at less-than-fair value. The alleged dumping margin is 72.96 percent.
In the CVD investigation, Commerce will determine whether Chinese producers of twist ties are receiving unfair government subsidies. Commerce will investigate 15 subsidy programs, including tax programs, government provision of goods for less than adequate remuneration, grants, government provided loans, and China’s allegedly undervalued currency. This is the second petition alleging currency undervaluation that Commerce has received since February 2020, when Commerce published a rule for addressing such claims in coordination with the Treasury Department.
U.S. law provides that Commerce shall initiate an AD or CVD investigation if the petition alleges the elements necessary for the imposition of the duty, is accompanied by information reasonably available to the petitioner supporting those allegations, and is adequately supported by the domestic industry. After initiation, Commerce investigates and evaluates the claims in the petition based on evidence and arguments submitted to Commerce.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of twist ties from China materially injure or threaten material injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The petitioner estimated the value of twist ties imported from China in 2019 at $4.15 million.
During Commerce’s investigations into whether twist ties from China are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determination by August 10. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for September 21, and the preliminary AD determination scheduled for December 3, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing twist ties from China, as appropriate.
Final determinations by Commerce in these cases are scheduled for December 7, for the CVD investigation, and February 16, 2021, for the AD investigation, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 266 new AD and CVD investigations – a 241 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 529 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits those companies’ production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.