New AD/CV Duties Requested on Glass Wine Bottles
A domestic producer coalition seeks the imposition of new antidumping duties on glass wine bottles from China, Mexico and Chile, as well as new countervailing duties on glass wine bottles from China, it said in petitions filed with the Commerce Department and the International Trade Commission Dec. 28. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CVD orders and the assessment of AD and CVD on importers.
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The U.S. Glass Producers Coalition, which includes Ardagh Glass and the United Steelworkers labor union, filed the petition. A different coalition that also included Ardagh Glass had requested AD/CVD investigations on glass containers in China in 2019, but the International Trade Commission ended those investigations after it found no injury to U.S. industry (see 2006090022 and 2010210027).
According to the petition on wine bottles, the ITC's decision on glass containers was influenced by imports of glass containers from Mexico being larger in quantity and increasing more rapidly than imports from China, as well as declining U.S. demand for beer bottles, which were covered by that investigation. The investigations on glass wine bottles requested in these petitions cover Mexico, and don't cover beer bottles.
Proposed Scope
The petition proposes the following scope for the investigations:
"The merchandise covered by the investigations is certain narrow neck glass bottles, with a nominal capacity of 750 milliliters (25.36 ounces), consistent with the authorized standards of fill in 27 C.F.R. § 4.72; a nominal total height between 24.8 centimeters (9.75 inches) to 35.6 centimeters (14 inches); a nominal base diameter between 4.6 centimeters (1.8 inches) to 11.4 centimeters (4.5 inches); and a mouth with an outer diameter of between 25 millimeters (.98 inches) to 37.9 millimeters (1.5 inches); frequently referred to as a 'wine bottle.' In scope merchandise may include but is not limited to the following shapes: Bordeaux (also known as 'Claret'), Burgundy, Champagne, or Sparkling. In scope glass bottles generally have an approximately round base and have shapes including but not limited to, straight-sided, a tapered slope from shoulder (i.e., the sloping part of the bottle between the neck and the body) to base, or a long neck with sloping shoulders to a wider base. The scope includes glass bottles, whether clear or colored, with or without a punt (i.e., an indentation on the underside of the bottle), and with or without design or functional enhancements (including, but not limited to, embossing, labeling, or etching). In scope merchandise may be imported with or without a closure, including a cork, stelvin (screw cap), crown cap, or wire cage and cork closure.
"Excluded from the scope of the investigations are: (1) Glass containers made of borosilicate glass, meeting United States Pharmacopeia requirements for Type 1 pharmaceutical containers; (2) Glass containers produced by the 'free blown' method or otherwise without the use of a mold (i.e., without 'mold seams,' 'joint marks,' or 'parting lines'); and (3) Glass containers without a 'finish' (i.e., the section of a container at the opening including the lip and ring or collar, threaded or otherwise compatible with a type of closure, including but not limited to a cork, stelvin (screw cap), crown cap, or wire cage and cork closure).
"Glass bottles subject to the investigations are specified within the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 7010.90.5019. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive."
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due by Jan. 10.