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U.S. polyester textured yarn makers applaud USITC’s ruling on dumping

Posted November 24, 2021

 

WASHINGTON – On November 16, the U.S. International Trade Commission (USITC) reached a unanimous affirmative decision in the final injury investigation on imports of polyester textured yarn from Indonesia, Malaysia, Thailand and Vietnam ("subject imports").

 

"The commission's decision gives new hope for the domestic producers and their workers as fair pricing will be restored to the market,” said lead counsel for the domestic industry, Paul Rosenthal of Kelley, Drye & Warren, LLP. “The industry is grateful for the work of the commissioners and staff, and looks forward to rehiring workers to serve their customers."

 

As a result of the USITC's final affirmative determination, which is expected to be published in early December, the U.S. Department of Commerce will issue antidumping duty (AD) orders covering the subject imports. The AD orders are expected to be published by the end of December. The orders will put into place the Commerce Department's final dumping rates that were published on October 25, 2021. (The rates are listed in the charts.)

 

Based on the affirmative vote, importers must post cash deposits for each shipment of the subject imports, as indicated in the chart above. Importers' liability could increase or decrease depending on the extent of dumping the Commerce Department finds when it conducts a review of the level of dumping, which is expected to take place in 2023.

 

Background

 

In October 2020, two major U.S. synthetic yarn producers – Unifi Manufacturing, Inc. and Nan Ya Plastics Corporation, America – filed petitions with the Commerce Department and the USITC alleging that dumped imports of polyester textured yarn from Malaysia, Thailand and Vietnam were causing material injury to the domestic industry. The Commerce Department initiated the investigations in November 2020, and the USITC preliminarily determined in December 2020 that imports from the four countries are causing injury to the U.S. domestic industry. As noted above, in October 2021, the Commerce Department calculated final AD cash deposit rates.

 

Imports of polyester textured yarn from China and India are currently subject to significant double- and triple-digit AD and countervailing duties as a result of prior investigations that concluded in January 2020.

 

The product covered by the investigation, polyester textured yarn, is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate). Polyester textured yarn is produced through a texturing process, which imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption, insulation and the appearance of a natural fiber.

 

This scope includes all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of plies, finish (luster), cross section, color, dye method, texturing method or packing method (such as spindles, tubes or beams). Polyester textured yarn is used in many applications, including apparel, automotive, furniture, bedding, carpet, fabric and socks. 

 

Source: Kelley Drye & Warren LLP

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