New AD/CVD Cases on Imported Paper Shopping Bags

Blog originally posted on 03/06/2024 07:45 AM

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Importers of paper shopping bags should be aware that these bags may be subject to antidumping and countervailing duties.

On July 20, 2023, the U.S. International Trade Commission determined that there is a reasonable indication that an industry in the United States is materially injured by imports of paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam, that are alleged to be sold in the U.S. at less than fair value. 

With the exception of Colombia, which is still pending a preliminary determination, Commerce issued preliminary affirmative determinations of these antidumping/countervailing investigations. This means that CBP will suspend liquidation of entries and collect cash deposits for paper shopping bags described in the scope of these orders.  

For imports from China, Taiwan and Vietnam, Commerce also found that critical circumstances exist. Critical circumstances arise when Commerce determines that exporters are flooding the U.S. market with imports of a product subject to an ongoing AD/CVD investigation. When Commerce finds that critical circumstances exist, it may authorize CBP to retroactively suspend liquidation and collect duties on previously filed entries.  

What bags are covered under the AD/CVD Scope?
Paper shopping bags with handles of any type, regardless of whether there is any printing, regardless of how the top edges are finished (e.g., folded, serrated, or otherwise finished), regardless of color, and regardless of whether the top edges contain adhesive or other material for sealing closed. Subject paper shopping bags have a width of at least 4.5 inches and depth of at least 2.5 inches. 
Paper shopping bags typically are made of kraft paper but can be made from any type of cellulose fiber, paperboard, or pressboard with a basis weight less than 300 grams per square meter (GSM).

These bags are provided for in subheadings 4819.30.00 and 4819.40.00 of the Harmonized Tariff Schedule of the United States. However, AD/CVD orders are not limited to the classifications listed within.  Merchandise falling within the scope description are subject to the orders.

What does this mean to you as an importer?

If you import paper shopping bags meeting the scope description, your imports may be subject to antidumping duties well over 100% percent of the value of the goods.  Because of the critical circumstances determination for paper shopping bags from China, Taiwan and Vietnam, these AD/CV duties can be applied retroactively.

As these additional duties will impact your bottom line, it is important to review your imports of paper shopping bags from these countries to determine whether they are or are not subject to these AD/CVD cases. There are some notable exclusions to scope that need to be reviewed. 

If you need support determining whether your imported products are subject to AD/CVD, please feel free to contact Tradewin for assistance.

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Topics: AD/CVD, Antidumping, Countervailing

Blog originally posted on 03/06/2024 07:45 AM

Lisa Murrin, Senior Consultant

Written by Lisa Murrin, Senior Consultant

Lisa is a licensed Customs professional with 15 years of international trade experience. Prior to joining Tradewin in 2013, Lisa worked in international trade banking and for a large plywood importer. Her experience includes letter of credit and trade finance, risk mitigation and import logistics. Lisa specializes in HTS classification consulting. Lisa is a US Licensed Customs Broker and has her B.S. in Business Administration from Saint Michael’s College. Lisa can be reached at 978-531-0001.