U.S. duties wrap Chinese rubber bands
Date: Thursday, July 5, 2018
Source: American Shipper
The Commerce Department has found that U.S. imports of rubber bands from China receive subsidies from the Chinese government, while a similar investigation into the same product from Thailand received de minimis subsidies.
Countervailable subsidies are given by foreign governments to companies based on their export performance or their use of domestic materials over imports.
In its China investigation, Commerce assigned a preliminary subsidy rate of 125.77 percent to Graceful Imp. & Exp. Co. Ltd., Moyoung Trading Co. Ltd. and Ningbo Syloon Imp & Exp Co. Ltd. The department assigned the same preliminary subsidy rate to other Chinese producers and exporters.
For its Thailand investigation, Commerce assigned preliminary subsidy rates of 0.23 percent to Liang Hah Heng International Rubber Co. Ltd. and 0.37 percent to U Yong Industry Co. Ltd. Since the preliminary determination is negative, no other Thai rubber band producers and exporters were assigned a countervailing duty rate.
Based on these determinations, Commerce will instruct Customs and Border Protection to collect cash deposits from importers of rubber bands from China based on these preliminary rates. Since the subsidy rates calculated in the Thailand investigation are de minimis, Commerce will not instruct CBP to require cash deposits.
According to Commerce, imports of rubber bands from China and Thailand in 2017 were valued at $4.9 million and $12.1 million, respectively.
The petitioner is Alliance Rubber Co. of Arkansas.
Commerce is scheduled to issue its final countervailing duty determinations in this investigation by Nov. 13.
If Commerce makes affirmative final determinations, the U.S. International Trade Commission will make its final injury determinations by Dec. 28. If Commerce makes affirmative final determinations in these investigations and the ITC makes affirmative final injury determinations, Commerce will issue countervailing duty orders. If Commerce makes negative final determinations or the ITC makes negative final determinations of injury, the investigations will end and no orders will be issued.
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