China Carton-Closing Staples: New AD Duty Investigation Deadlines & Scope

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped carton-closing staples are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due May 15, the investigation will immediately end. Conversely, if Commerce finds dumping in the preliminary determination of this investigation, currently due in September, it will set AD duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD duties on importers and potentially change AD duty cash deposit rates.

If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the "China-wide rate," which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters (here) are due on or about May 30.

Respondent Selection

Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one (here). Responses are due May 5.

Scope of the AD/CVD Investigations

The scope of this investigation is carton-closing staples. Carton-closing staples may be manufactured from carbon, alloy or stainless steel wire, and are included in the scope of the investigation regardless of whether they are uncoated or coated, regardless of the type of coating.

Carton-closing staples are generally made to American Society for Testing and Materials (ASTM) specification ASTM D1974/D1974M-16, but can also be made to other specifications. Regardless of specification, however, all carton-closing staples meeting the scope description are included in the scope. Carton-closing staples include stick staple products, often referred to as staple strips, and roll staple products, often referred to as coils. Stick staples are lightly cemented or lacquered together to facilitate handling and loading into stapling machines. Roll staples are taped together along their crowns. Carton-closing staples are covered regardless of whether they are imported in stick form or roll form.

Carton-closing staples vary by the size of the wire, the width of the crown, and the length of the leg. The nominal leg length ranges from 0.4095 inch to 1.375 inches and the nominal crown width ranges from 1.125 inches to 1.375 inches. The size of the wire used in the production of carton-closing staples varies from 0.029 to 0.064 inch (nominal thickness) by 0.064 to 0.100 inch (nominal width).

Carton-closing staples subject to this investigation are currently classifiable under subheadings 8305.20.00.00 and 7317.00.65.60 of the Harmonized Tariff Schedule of the United States (“HTSUS”). While the HTSUS subheadings and ASTM specification are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive.

Comments on Scope Due by May 10

Comments on the scope of the investigation are due by May 10.

Investigations Timetable

*If the ITC makes a negative determination of injury, the investigations are terminated.

†These deadlines may be extended under the governing statute.

‡This will take place only in the event of Commerce Department final affirmative determinations.

+This will take place only in the event of Commerce and ITC final affirmative determinations.

(See 1704040025 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)

The Commerce Department fact sheet on the initiation of these investigations is (here).