Polyester Textured Yarn: Commerce Issues CV Duty Final Determinations for China and India
The Commerce Department issued its final determinations in its countervailing duty investigations on polyester textured yarn from China and India (C-570-098, C-533-886). Suspension of liquidation is currently not in effect for entries on or after Aug. 31, 2019, and Commerce will only require cash deposits of estimated CV duties on future entries if it issues a CV duty order.
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Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Dec. 30. 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 AD duty investigations on polyester textured yarn, setting AD rates ranging from 76.07% to 77.15% for Chinese exporters, and 17.62% to 47.51% for Indian exporters (see 1911180007).
Commerce Amends Scope to Add New HTS Subheading
In these final determinations, Commerce is amending the scope of its AD/CV duty investigations to add Harmonized Tariff Schedule subheading 5402.52.00 to the list of tariff provisions under which subject merchandise may be classified.
Critical Circumstances for All Chinese Exporters, Cash Deposits Still Retroactive 90 Days
Commerce finalized its determination that all exporters of polyester textured yarn from China 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 as of 90 days before the preliminary determination, i.e., Feb. 2, 2019. For India, CV duty cash deposit collection remains in effect for entries on or after May 3, 2019.
CV Susp/Cash Deposit Through Aug. 30
For now, Commerce has instructed CBP to continue the suspension of liquidation of subject merchandise from China entered Feb. 2, 2019, through Aug. 30, 2019, and from India entered May 3, 2019, through Aug. 30, 2019.
CV Liq Reinstated and No CV Cash Deposit as of Aug. 31
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 Aug. 31, 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
| Company | CV Rate | Sus Liq |
|---|---|---|
| JBF Industries Limited | 21.83% | 05/03/19 |
| Reliance Industries Limited | 4.29% | 05/03/19 |
| All Others | 4.65% | 05/03/19 |
China
| Company | CV Rate | Sus Liq |
|---|---|---|
| Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. / Billion Development (Hong Kong) Limited / Billion Industrial Investment Limited. | 32.18% | 02/02/19 |
| Suzhou Shenghong Fiber Co., Ltd. / Jiangsu Zhonglu Technology Development Co., Ltd. / Jiangsu Guowang High-Technique Fiber Co., Ltd. / Jiangsu Shenghong Science and Technology Co., Ltd. / Jiangsu Honggang Petrochemical Co., Ltd. / Shenghong Group Co., Ltd. / Shenghong Holding Group, Co., Ltd. / Shenghong (Suzhou) Group Co., Ltd. / Jiangsu Shenghong Investment Development Co., Ltd. / Jiangsu Shenghong New Material Co., Ltd. / Jiangsu Shenghong Textile Imp & Exp Co. and its successor Jiangsu Huahui Import and Export Co., Ltd. | 473.09% | 02/02/19 |
| Suzhou Shenghong Garmant Development Co | 472.51% | 02/02/19 |
| All Others | 32.18% | 02/02/19 |
(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of Aug. 31 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/17 - 12/31/17 for China, and 04/01/17 - 03/31/18 for India. 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 1905020014 for a summary of the preliminary determination of this investigation, and 1906110011 for Commerce's amended preliminary determination for India.)
(Federal Register 11/19/19)