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The Coalition for Fair Trade in Shopping Bags has welcomed the United States Department of Commerce’s publication of antidumping duty orders on paper shopping bag imports from eight countries, along with countervailing duty orders on imports from China and India.
These orders aim to create a level playing field for American producers and safeguard domestic manufacturing jobs.
Trade Commission Finds Material Injury to U.S. Industry
The new orders follow the Department of Commerce’s determination on May 17, 2024, that paper shopping bag imports were being traded unfairly. Subsequently, on June 21, 2024, the United States International Trade Commission concluded that these imports materially injured the U.S. industry. These actions supplement an existing antidumping duty order on Turkish imports published on May 9, 2024.
The orders encompass paper shopping bags with handles of any type, printed or unprinted. Typically made from kraft paper, these bags are commonly used for carrying retail or restaurant purchases. All producers in the nine investigated countries (Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Vietnam and Turkey) were found to have engaged in injurious dumping or subsidy practices that violate international fair pricing agreements as implemented under U.S. law.
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Political Support for American Workers and Impact on Importers
Senator Sherrod Brown of Ohio expressed support for the ITC’s decision, stating that American workers and companies can compete globally when given a level playing field. The Senator has been instrumental in advancing legislation to strengthen American trade enforcement.
U.S. importers of paper shopping bags from the affected countries will now be required to pay cash deposits to U.S. Customs and Border Protection based on the value of future imports. For instance, an importer bringing in $100 worth of paper shopping bags from a supplier with a 60% combined rate will need to pay $60 in cash deposits. Final duty assessments may be adjusted during annual administrative reviews, potentially resulting in additional duties on past imports.
Legal Representation and Continued Vigilance
The Coalition, represented by King & Spalding LLP, expressed gratitude to Commerce and ITC officials for their thorough investigation. Mike Taylor, a partner at King & Spalding, emphasized that these orders will help restore fair competition in the U.S. market, preserving domestic manufacturing plants and jobs.
Moving forward, the Coalition plans to monitor imports from other countries for unfair trade practices and collaborate with Customs to ensure importer compliance. Failure to pay required cash deposits and duties may result in severe civil or criminal penalties.
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- Source: https://www.environmentenergyleader.com/2024/07/u-s-levels-playing-field-for-paper-bag-industry-with-new-trade-duties/