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U.S. AntiDumping Action filed on China Polyester Fiberfill

WASHINGTON, June 23 /PRNewswire/ -- Three U.S. producers of certain polyester staple fiber today filed an antidumping duty petition charging that dumped imports of certain polyester staple fiber from the People's Republic of China (PRC) are injuring the domestic industry. 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, and furniture. The petition alleges antidumping margins of 88 percent to 109 percent.

Said lead counsel to the petitioners, Paul C. Rosenthal, "In just a few years, China has grown to be the number one import source-country for certain polyester staple fiber, eclipsing even Korea and Taiwan -- two countries whose imports are currently subject to antidumping duty orders in the U.S. There are over 100 Chinese producers of certain PSF affected by this petition, such as Sanfangxiang and Sinopec, that have gained market share by underselling and aggressive, low-pricing of imports that suppress U.S. prices, causing material injury to U.S. manufacturers."

The petition demonstrates that the unfairly priced imports of certain polyester staple fiber have injured the domestic industry and requests that the U.S. government impose antidumping duties on imports of these products from China. Antidumping duties are intended to offset the amount by which a product is sold at less than fair value in the United States (i.e., the amount by which the product is sold below production cost or at a price that is below the price charged in a comparable market).

According to the petition, the International Trade Commission, in its recent "sunset" review re-authorizing the existing Korea and Taiwan antidumping duty orders, noted the "rapid emergence of low-priced Chinese competition" as a factor to be considered in analyzing the likely future impact of imports from Korea and Taiwan.

Dumped imports of certain polyester staple fiber from China constitute a large and increased share of the U.S. market. The petition notes that imports of certain polyester staple fiber from China surged from 75 million pounds in 2003 to 195 million pounds in 2005, or by 161 percent. Chinese shipments accounted for 39 percent of all imports in the latest 12-month period.

"The domestic industry is injured, and facing escalating raw material costs that cannot be fully recovered in the current atmosphere of suppressed pricing caused by Chinese imports; the domestic industry needs relief from the dumped Chinese imports of certain polyester staple fiber so that the industry can earn a reasonable margin," according to Rosenthal.

The filing of the petition starts the process by which the United States International Trade Commission (USITC) will determine if the U.S. certain polyester staple fiber industry has been materially injured, or threatened with material injury, and the United States Department of Commerce determines whether dumping exists, and to what extent. The USITC must reach its preliminary determination of material injury or threat of material injury within 45 days; the Commerce Department is required to announce preliminary antidumping duties in 160 days.

Once the Commerce Department makes its preliminary determination, U.S. Customs and Border Protection will begin to require importers to pay a cash deposit or post a bond equal to the estimated dumping margin. The entire investigative process takes approximately one year. Final determinations of injury and dumping will occur in mid-2007.

Certain polyester staple fiber is a man-made fiber, similar in appearance to cotton or wool. Certain polyester staple fiber principally is specified for its "loft" or "fill" characteristic and is generally used as filling or stuffing. The majority of certain polyester staple fiber is used in sleeping bags, mattresses, ski jackets, comforters, cushions, pillows, and furniture.

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. branch of the law firm, Kelley Drye Collier Shannon, where he practices in the International Trade and Customs Law group.

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

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