Paper Shopping Bags: Commerce Issues CV Duty Final Determinations for China, India

Before Commerce issues a CVD order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due July 1. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.

Commerce also issued a final determination in its concurrent antidumping duty investigations on paper shopping bags from China and India, setting AD rates ranging from 73.05% to 146.32% for Chinese exporters and zero to 53.05% for Indian exporters (see 2405230049). Those rates will be adjusted downward should CV duties on China and India resume effect. Commerce also concurrently issued its AD final determinations on paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, and Vietnam, and recently issued an AD order on paper shopping bags from Turkey (see 2405090060).

Critical Circumstances for All Indian Exporters, Cash Deposits Still Retroactive 90 Days

Commerce finalized its determination that all exporters of paper shopping bags from China, and a single exporter of paper shopping bags from India -- Velvin Paper Products -- increased their exports to the U.S. in the months before the preliminary determination of this investigation. As a result of this “critical circumstances" finding, Commerce continues to retroactively suspend liquidation and require CV duty cash deposits for subject merchandise from China and the Indian company Velvin as of 90 days before the preliminary determination, i.e., Aug. 18, 2023.

For all remaining companies from India, CV duty cash deposit collection remains in effect for entries on or after Nov. 6, 2023.

CV Susp/Cash Deposit Through March 4, 2024

For now, Commerce has instructed CBP to continue the suspension of liquidation of subject merchandise entered Aug. 18 or Nov. 6, 2023, depending on the company, through March 4, 2024.

CV Liq Reinstated and No CV Cash Deposit as of March 5, 2024

Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise from China and India entered on or after March 5, 2024, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CV duty order in place.

Suspension of liquidation currently remains in effect for AD duty purposes.

CV Liq to Be Suspended Again and CV Cash Deposit Required If Order Issued

Commerce will issue a CV duty order, reinstate the CV duty suspension of liquidation for all Chinese and Indian exporters, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.

India

China

(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of March 5 until the date an ITC final affirmative injury determination is published in the Federal Register.)

(The period of investigation is 01/01/22 - 12/31/22. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2311030057 for a summary of the preliminary determinations of this investigation.)