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Textured Yarn: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on polyester textured yarn from India (A-533-885/C-533-886) and China (A-570-097/C-570-098).

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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized polyester textured yarn are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Dec. 3, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in January for CV duties and March for AD duties, it will set AD and/or CV 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 AD and/or CV duty orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV 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 exceed 200% for some products. Separate rate applications from Chinese producers and exporters are due on or about Dec. 19.

AD/CVD Respondent Selection

Commerce said it will pick respondents for all of its AD/CV investigations, except the AD duty investigation on China, based on CBP import data. For its AD duty investigation on China, Commerce will send quantity and value questionnaires to each potential respondent to the AD duty investigation, and will base respondent selection on the responses it receives. Chinese exporters that don't receive a quantity and value questionnaire can still submit one by obtaining a questionnaire from the Commerce website. Responses are due Nov. 21.

Scope of the AD/CVD Investigations

The merchandise covered by these investigations, polyester textured yarn, is synthetic multifilament yarn that is manufactured from polyester (polyethylene terephthalate). Polyester textured yarn is produced through a texturing process, which imparts special properties to the filaments of the yarn, including stretch, bulk, strength, moisture absorption, insulation, and the appearance of a natural fiber. This scope includes all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of plies, finish (luster), cross section, color, dye method, texturing method, or packing method (such as spindles, tubes, or beams).

The merchandise subject to these investigations is properly classified under subheadings 5402.33.3000 and 5402.33.6000 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.

Comments on Scope Due Nov. 27

Participants in the AD/CVD investigations may submit comments on product coverage under the scope of the investigations. Comments on the scope are due by Nov. 27.

Investigations Timetable

EventCV DutyAD Duty
Petitions filed10/18/1810/18/18
DOC initiation date11/07/1811/07/18
ITC prelim determinations*12/03/1812/03/18
DOC prelim determinations†01/11/1903/27/19
DOC final determinations†03/27/1906/10/19
ITC final determinations‡05/13/1907/25/19
Issuance of orders+05/20/1908/01/19

*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 1810180035 for a summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)

The AD duty initiation notice is (here).

The CV duty initiation notice is (here).

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

(Federal Register 11/19/18)