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US slaps more duties on Vietnam’s plastic bags

The US Department of Commerce (DOC) will issue countervailing and antidumping tariffs on imports of polyethylene retail carrier bags made in Vietnam.
The US Department of Commerce (DOC) willissue countervailing and antidumping tariffs on imports of polyethyleneretail carrier bags made in Vietnam.

The DOC made the decision based on determinations by the USInternational Trade Commission (USITC) on April 15 that polyethyleneretail carrier bags imported from Vietnam are a threat to the USindustry.

DOC said that polyethylene retail carrier bags produced in Vietnam aresubsidised and sold in the US at less than fair value. It will alsoimpose antidumping tariffs on imports of the same product fromIndonesia and Taiwan.

Polyethylene retail carrier bags will be the first Vietnamese exportline to suffer a countervailing duty in the US market.

Earlier on March 26, DOC announced its final determinations regardingthe antidumping duty (AD) and countervailing duty (CVD) investigationson imports of plastic bags from Vietnam, determining thatproducers/exporters from Vietnam have sold plastic bags at less thannormal value in the United States at 52.30 percent to 76.11 percent.

It also determined that Vietnamese producers/exporters have received netsubsidies ranging from less than 1 percent to 52.56 percent.

According to the DOC's determination, in the AD investigations, 16Vietnamese producers/exporters qualified for a separate rate of 52.30percent. All other Vietnamese producers/exporters of plastic bagsreceived the Vietnam wide rate of 76.11 percent, including theVietnamese mandatory respondents, Advance Polybag Company and the FotaiVietnam Enterprise Corporation, as both companies have withdrawn fromthese investigations.

In the CVD investigations, the three mandatory respondents Chin ShengCompany, the Fotai Vietnam Enterprise Corporation and Advance Polybagreceived final subsidy rates of 0.44 percent, 5.28 percent, and 52.56percent, respectively. All other producers/exporters from Vietnamreceived a final subsidy rate of 5.28 percent.

Responding to the DOC’s final determinations, Vietnamese commercialcounsellor to the US Ngo Van Thoan on March 30 described DOC’s decisionson Vietnam ’s polyethylene retail carrier bags as unfair.

He told the Vietnamese News Agency that even though Vietnam hadprovided the US with adequate information and data relating to itssupport for companies in accordance with the rules of the World TradeOrganisation, of which Vietnam and the US are members, the USstill made unfair conclusions based on their own views.

According to the USITC, imports of plastic bags from Vietnam by theUS were valued at an estimated 43 million USD in 2009, showing asignificant drop from 2008 when the import hit 79.4 million USD./.

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