U.S. Government Imposes Preliminary Duties on Polyester Staple Fiber From China

The United States Department of Commerce announced the imposition of antidumping” duties on imports of certain polyester staple fiber from China. The Commerce Department calculated preliminary antidumping margins ranging from 44.30 percent to 4.39 percent of the value of Chinese imports. Three Chinese producers were singled out in the preliminary determination: Cixi Jiangnan Chemical Fibers Company (15.30 percent), Far Eastern Industries Shanghai (10.45 percent), and Ningbo Dafa Chemical Fibers Company (4.39 percent).

Following this decision, U.S. Customs and Border Protection must now require importers to post a bond or cash deposit in the amount of the duties, pending the final determination in the investigation and announcement of final duty amounts, which is expected in May 2007.

Today’s announcement by the Commerce Department signals a return of fair pricing and competition in the marketplace,” said Paul C. Rosenthal, lead counsel for the petitioners and Managing Partner of Kelley Drye in Washington, D.C. Mr. Rosenthal also noted that final antidumping duty margins were expected to be even higher.

The antidumping duty investigation began in June 2006 after American producers DAK Americas LLC, Charlotte, N.C.; Nan Ya Plastics Corp. America, Lake City, S.C.; and Wellman, Inc., Shrewsbury, N.J. filed a petition with the International Trade Commission (ITC) and Department of Commerce. The petition covered the types of polyester staple fiber typically used as stuffing.

In August, ITC Commissioners voted 6-0 to allow the investigation to move forward based on their belief that there existed a reasonable indication of injury to U.S. manufacturers.