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ITC Unanimously Finds Chinese Polyester Staple Fiber Imports Injure Domestic Industry

WASHINGTON, May 17 /PRNewswire-USNewswire/ -- A May 15 unanimous (6-0) vote of the U.S. International Trade Commission (ITC) determined that imports of certain polyester staple fiber from the People's Republic of China (PRC) are injuring the U.S. producers of certain polyester staple fiber (PSF). The ITC action follows the Commerce's Department's final antidumping determination that all but one of the Chinese producers were selling PSF at dumping margins ranging from 3.47 to 44.30 percent. The domestic industry currently is considering appealing the Commerce Department's exclusion of one Chinese producer, as well as some of the dumping margins for other Chinese exporters.

The vote by the ITC commissioners confirmed the domestic producers' allegation that imports of Chinese PSF were materially injuring U.S. polyester staple fiber manufacturers, and that Chinese producers relied on unfair, low- pricing tactics and underselling to win market share.

"We are pleased with the Commission's final vote in this investigation," said Paul Rosenthal, lead counsel to the petitioners. "Scores of Chinese producers, no doubt with the Chinese Government's encouragement, targeted the United States for exports of PSF beginning just a few years ago. Today's decision will help restore fair pricing to the marketplace."

The antidumping case on polyester staple fiber was filed in June 2006. Antidumping duties are intended to offset the amount by which a product is sold at less than fair value in the United States. The petition covers only polyester staple fibers with a diameter of three denier and greater, which is generally used as stuffing in sleeping bags, mattresses, bedding, furniture, and ski jackets.

Following Tuesday's vote, the Department of Commerce will issue an antidumping duty order requiring specific cash deposits by the Chinese producers. The U.S. Customs and Border Protection Service will collect cash deposits from importers ranging from 3.47 to 44.30 percent beginning immediately.

The petitioners are DAK Americas LLC, Charlotte, N.C.; Nan Ya Plastics Corp. America, Lake City, S.C; and Wellman, Inc., Shrewsbury, N.J.

Paul C. Rosenthal is Managing Partner of the Washington, D.C. office of Kelley Drye Collier Shannon, where he practices in the International Trade and Customs Law group and serves as the head of the Government Relations and Public Policy group.


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