China Twist Ties: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on twist ties from China (A-570-131/C-570-132). The CV duty investigation covers entries Jan. 1, 2019, through Dec. 31, 2019. The AD duty investigation covers entries Oct. 1, 2019, through March 31, 2020.
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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized twist ties from China are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Aug. 10, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, due in September for CV duties and December 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 an AD and/or CV duty order 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 antidumping duty “China-wide rate,” which can reach more than 200 percent for some products. Separate rate applications from Chinese producers and exporters will be available (here), and are due on or about Aug. 26.
AD/CVD Respondent Selection
Commerce will base respondent selection in these AD/CV duty investigations on CBP import data quantity and value questionnaires to each potential respondent. Chinese exporters that don't get a quantity and value questionnaire can still submit one by obtaining them from Commerce. Responses are due Aug. 3.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation consists of twist ties, which are thin, bendable ties for closing containers, such as bags, bundle items, or identifying objects. A twist tie in most circumstances is composed of one or more metal wires encased in a covering material, which allows the tie to retain its shape and bind against itself. However, it is possible to make a twist tie with plastic and no metal wires. The metal wire that is generally used in a twist tie is stainless or galvanized steel and typically measures between the gauges of 19 (.0410” diameter) and 31 (.0132”) (American Standard Wire Gauge). A twist tie usually has a width between .075” and 1” in the cross-machine direction (width of the tie – measurement perpendicular with the wire); a thickness between .015” and .045” over the wire; and a thickness between .002” and .020” in areas without wire. The scope includes an all-plastic twist tie containing a plastic core as well as a plastic covering (the wing) over the core, just like paper and/or plastic in a metal tie. An all-plastic twist tie (without metal wire) would be of the same measurements as a twist tie containing one or more metal wires. Twist ties are commonly available individually in pre-cut lengths (“singles”), wound in large spools to be cut later by machine or hand, or in perforated sheets of spooled or single twist ties that are later slit by machine or by hand (“gangs”).
The covering material of a twist tie may be paper (metallic or plain), or plastic, and can be dyed in a variety of colors with or without printing. A twist tie may have the same covering material on both sides or one side of paper and one side of plastic. When composed of two sides of paper, the paper material is bound together with an adhesive or plastic. A twist tie may also have a tag or label attached to it or a pre-applied adhesive attached to it.
Twist ties are imported into the United States under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 8309.90.0000 and 5609.00.3000. Subject merchandise may also enter under HTSUS subheadings 3920.51.5000, 3923.90.0080, 3926.90.9990, 4811.59.6000, 4821.10.2000, 4821.10.4000, 4821.90.2000, 4821.90.4000 and 4823.90.8600. These HTSUS subheadings are provided for reference only. The written description of the scope of the investigation is dispositive.
Comments on the scope of these investigations are due by Aug. 5.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 06/26/20 | 06/26/20 |
| DOC initiation date | 07/16/20 | 07/16/20 |
| ITC prelim determinations* | 08/10/20 | 08/10/20 |
| DOC prelim determinations† | 12/03/20 | 09/21/20 |
| DOC final determinations† | 02/16/21 | 12/07/20 |
| ITC final determinations‡ | 04/02/21 | 01/21/21 |
| Issuance of orders+ | 04/09/21 | 01/28/21 |
*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.
The Commerce Department fact sheet on the initiation of these investigations is (here). See 2007010019 for a summary of the petition requesting these investigations.