Paper Shopping Bags: Commerce Issues AD Duty Final Determinations

The next step is for the International Trade Commission to make its final injury determination, currently scheduled for July 1. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.

Commerce calculated a zero percent AD rate for Aeroplast Packaging and its affiliates in its final determination for India. As a result, Aeroplast Packaging will be exempt from any AD order issued in connection with this AD investigation, and isn't subject to any suspension of liquidation or cash deposit requirement for merchandise both produced and exported by the company.

Commerce is also issuing its final determination in the concurrent countervailing duty investigations on paper shopping bags from China and India (see 2405230022). The agency set CV duty rates at 40.76% to 172.36% for Chinese exporters, and 2.38% to 4.81% for Indian exporters. Collection of CV duties is currently on hold pending the ITC's final injury determination. Commerce also recently issued an AD order on paper shopping bags from Turkey (see 2405090060).

Critical Circumstances for Vietnam, Cambodia, Taiwan and China; Cash Deposits Still Retroactive 90 Days

Commerce finalized its determination that all exporters all exporters of subject merchandise in Vietnam, and some exporters from Cambodia, Taiwan and China, increased their exports to the U.S. in the months before the preliminary determination. As a result of this “critical circumstances" finding, Commerce continues to retroactively suspend liquidation and require AD cash deposits for subject merchandise from all Vietnamese companies and some Cambodian, Taiwanese and Chinese companies to 90 days before the preliminary determination, i.e., Oct. 5, 2023.

The partial critical circumstances finding for Cambodia applies to Pan Pacific; for Taiwan, it applies to Juang Jia Guoo; and for China, it applies to all Chinese exporters except UUPAK China.

However, Commerce reversed its finding of critical circumstances for the "all others" companies in the Taiwan investigation, and will end suspension of liquidation and refund all AD duty cash deposits collected on entries prior to Jan. 3, 2024.

Otherwise, AD suspension of liquidation and cash deposit requirements take effect Jan. 3 for companies from Cambodia, Taiwan and China not covered by the critical circumstances findings, as well as the four other countries for which Commerce is issuing preliminary determinations.

Estimated AD Cash Deposit Rates

Commerce will instruct CBP to continue to suspend liquidation for AD purposes and collect cash deposits for subject merchandise entered on or after the dates listed below, and set cash deposit rates as follows beginning May 24:

Cambodia

Colombia

India

*As adjusted for export subsidies found in Commerce's preliminary CV duty determination. This rate is the cash deposit rate while CV duty suspension of liquidation remains in effect. If CV duty suspension of liquidation is lifted (e.g., if the “provisional measures” period expires, the rate in the “AD Rate” column will be the AD duty cash deposit rate).

Malaysia

Portugal

Taiwan

China

*As adjusted for export subsidies found in Commerce's preliminary CV duty determination. This rate is the cash deposit rate while CV duty suspension of liquidation remains in effect. If CV duty suspension of liquidation is lifted (e.g., if the “provisional measures” period expires, the rate in the “AD Rate” column will be the AD duty cash deposit rate).

Vietnam

(The period of investigation is 04/01/22 - 03/31/23 for Cambodia, Colombia, India, Malaysia, Portugal and Taiwan, and for China and Vietnam it's 10/01/22 - 03/31/23. See Commerce’s notice for more information, including the scope of the investigation, detailed instructions on cash deposit rates, etc. See 2401030046 for a summary of the preliminary determination of this investigation.)