Biden Imposes Section 201 Remedies on Polyester Staple Fiber
President Joe Biden is imposing Section 201 safeguard remedies on imports of fine denier polyester staple fiber (PSF), he said in a Nov. 8 proclamation. The action creates an absolute quota of fine denier PSF that can enter the country under temporary importation under bond (TIB). The safeguard takes effect Nov. 23, and the quota starts at zero.
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The White House proclamation was in response to the conclusion of an International Trade Commission investigation that found that imports of PSF injure U.S. industry and recommended both a tariff-rate quota on imports and an absolute quota on TIB imports for a duration of four years (see 2408150053).
Members of the U.S. PSF industry voiced their dissatisfaction with the extent of the president’s actions in a Nov. 11 news release, saying that “while his decision addresses the TIB import problem -- a very helpful and necessary aspect of the remedy -- it falls short of the import relief needed by U.S. producers for long-term success.”
The companies representing the domestic PSF industry (Darling Fibers, Nan Ya Plastics Corp, America, and Sun Fiber LLC -- all South Carolina companies) initially filed the petition in February 2024.
Biden tailored the safeguard to TIB entries of fine denier PSF since they “contributed significantly to the serious injury to the domestic industry.” He chose not to impose a tariff-rate quota “in the interest of balancing the competing interests of domestic fine denier PSF manufacturers and the impact of the safeguard remedy on downstream United States producers, including manufacturers of textiles, defense products, and consumer products, that rely on fine denier PSF.”
The absolute quota will start at zero pounds and will be imposed for a period of four years, with annual reductions in the within-quota quantities in the second, third and fourth years. Fine denier PSF is classifiable in the Harmonized Tariff Schedule of the U.S. in subheading 5503.20.00 and described in statistical reporting number 5503.20.0025 or 9813.00.0520.
The safeguard measures will not apply to developing countries or Australia, Canada, the CAFTA-DR countries, CBERA beneficiary countries and territories, Colombia, Israel, Mexico, Panama, Peru or Singapore.