On February 14, 2024, the U.S. Department of Commerce (DOC) officially initiated anti-dumping (AD) and countervailing duty (CVD) investigations on certain paper plates imported from China, Thailand, and Vietnam.
1. General Information about the Case
– Product under Investigation: Paper plates, excluding (i) plates molded or pressed directly from pulp; (ii) plates with a depth from 1.25 to under 2 inches and a bottom diameter not exceeding 5 inches (if round) or an area not exceeding 20 square inches (if otherwise shaped). These products may be classified under HS codes 4823.69.00.40 or 4823.61.00.40. Additional information suggests that paper plates could also be classified under HS codes 9505.90.4000 and 9505.90.6000 when packaged with other items. The DOC will review comments on the product scope before issuing the preliminary determination. Comments on the product scope are due by 5 PM on March 5, 2024 (U.S. time), and rebuttal comments by 5 PM on March 15, 2024 (U.S. time).
– Case Numbers: A-552-839 and C-552-840.
– Petitioner: Six U.S. paper plate manufacturers.
– Date of Investigation Initiation: February 14, 2024.
– Export Volume: According to the petition, from December 2022 to November 2023, the import volume of the alleged products (under HS code 4823.69.00.40) from Vietnam to the U.S. was approximately 3,240 tons, accounting for about 4.02% of total U.S. imports (China: 73.98%, Thailand: 2.82%). According to U.S. International Trade Commission (ITC) data, Vietnam exported about USD 9.3 million of these products to the U.S. in 2022 and about USD 9 million in 2023, a 3% decrease.
For the newly added HS codes, Vietnam did not export under HS 4823.61.00.40 in 2023 but exported USD 3.7 million under HS 9505.90.4000 and USD 21.4 million under HS 9505.90.6000.
– Accused Exporters: The DOC has issued Quantity and Value Questionnaires to nine named Vietnamese companies to collect information for selecting mandatory respondents.
Other exporting companies may also respond to this questionnaire.
– Investigation Periods:
+ AD Investigation: July 1, 2023, to December 31, 2023.
+ CVD Investigation: January 1, 2023, to December 31, 2023.
– Injury Investigation Period: 2021-2023.
-
- Allegations of Dumping
– Alleged Dumping Margins for Vietnam: 153.09%-165.27% (lower than China’s 154.57%-178.80% and higher than Thailand’s 61.03%-73.17%).
– Surrogate Country and Values: The U.S. treats Vietnam as a non-market economy; hence, the DOC will use surrogate values from a third country to calculate dumping margins. The petitioner suggests using Indonesia, arguing that Indonesia’s economic development is comparable to Vietnam’s and it has a significant number of paper plate manufacturers. Comments on the surrogate country are due within 30 days before the DOC’s preliminary determination, expected within 140 days from the initiation (subject to extension).
1.2 Allegations of Subsidies
The DOC has found the petition sufficient to investigate 22 alleged subsidy programs, including:
(1) Corporate Income Tax Preferences: Programs offering tax exemptions or reductions for exporters, businesses in special economic zones, businesses in economically disadvantaged areas, new investors, and accelerated depreciation.
(2) Import Tax Exemptions: Programs offering import tax exemptions for inputs used in export production, duty drawbacks for raw materials, exemptions for imports into industrial zones, for foreign-invested enterprises, and for enterprises in export processing zones.
(3) Preferential Loans and Guarantees: Programs offering favorable loan terms, factoring, export guarantees from state-owned commercial banks, investment credit from the Vietnam Development Bank (VDB), and interest rate support from the State Bank of Vietnam.
(4) Land Use Preferences: Programs offering land rent exemptions or reductions for prioritized sectors, businesses in industrial zones and economic zones, and foreign-invested enterprises.
(5) Utility Provision at Preferential Rates: Programs offering utilities like electricity and water at preferential rates in industrial and export processing zones.
(6) Grants and Financial Support: Programs providing grants for export promotion and investment support.
2. Investigation Procedures
– Questionnaires: The DOC has issued Quantity and Value Questionnaires for both AD and CVD cases to Vietnamese companies. The deadline for responses is February 28, 2024 (U.S. time), with possible extensions. The DOC will select mandatory respondents based on these responses. Non-selected companies may apply for separate AD rates, subject to eligibility. Applications for separate AD rates are due within 30 days from the investigation initiation. Non-cooperating companies may face the highest possible AD/CVD rates.
– Notification and Preliminary Determination: The DOC has notified the ITC, which will issue a preliminary injury determination within 45 days (by March 11, 2024). A negative injury determination by the ITC would terminate the investigations (unlikely).
– Estimated Timeline of the CBPG and CTC Investigations:
|
Timeline Milestone |
CBPG Case |
CTC Case |
|
Initiation of Investigation by DOC |
14/02/2024 |
14/02/2024 |
|
ITC Issues Preliminary Injury Determination |
11/03/2024 |
11/03/2024 |
|
DOC Issues Preliminary Determination |
03/07/2024 |
19/04/2024 |
|
DOC Issues Final Determination |
16/09/2024 |
03/07/2024 |
|
ITC Issues Final Injury Determination |
31/10/2024 |
19/08/2024 |
|
DOC Issues Implementing Measures |
07/11/2024 |
26/08/2024 |
(Dates are subject to extension.)
3. Recommendations
Here is some information related to the case where the DOC has officially initiated investigations into CBPG and CTC concerning certain imported paper disc products from Vietnam and other countries. The PVTM Bureau respectfully recommends:
(i) Industry Associations:
– Update relevant manufacturers and exporters about the investigation.
(ii) Manufacturers and Exporters:
– Closely monitor the investigation developments, understand U.S. AD and CVD procedures, diversify export markets and products.
– Fully cooperate with U.S. authorities to avoid adverse determinations and the highest possible AD/CVD rates.
– Register on the DOC’s IA ACCESS portal (https://access.trade.gov/login.aspx) for updates and to submit documents.
– Maintain regular communication with the TRA for timely support and guidance.
