VN Trade Counselor: US determinations on plastic bags unfair

A Vietnamese commercial counselor to the US has said the US Department of Commerce (DOC)'s final determinations in the antidumping (AD) and countervailing duty (CVD) investigations on imports of polyethylene retail carrier bags (plastic bags) from Vietnam were unfair.

Counselor Ngo Van Thoan told VNA on March 30 that though the Vietnamese side had provided the US with adequate information and data relating to its support for companies in accordance with the rules of the World Trade Organisation, of which Vietnam and the US are members, the US side still made unfair determinations based on their own views.

On March 26, DOC announced its affirmative final determinations in the AD and CVD investigations on imports of plastic bags from Vietnam.

DOC determined that producers/exporters from Vietnam have sold plastic bags at less than normal value in the United States at 52.30 percent to 76.11 percent.

It also determined that Vietnamese producers/exporters have received net countervailable subsidies ranging from less than 1 percent to 52.56 percent.

According to DOC's determination, in the AD investigations, 16 Vietnamese producer/exporters qualified for a separate rate of 52.30 percent. All other Vietnamese producers/exporters of plastic bags received the Vietnam wide rate of 76.11 percent, including the Vietnamese mandatory respondents, Advance Polybag Co., Ltd. and Fotai Vietnam Enterprise Corporation, as both companies have withdrawn their participation in these investigations.

In the CVD investigations, the three mandatory respondents Chin Sheng Company, Ltd., Fotai Vietnam Enterprise Corp., and Advance Polybag received final subsidy rates of 0.44 percent, 5.28 percent, and 52.56 percent, respectively. All other producers/exporters from Vietnam received a final subsidy rate of 5.28 percent.

DOC made known that as a result of the final AD determinations, it will instruct U.S. Customs and Border Protection to collect a cash deposit or bond on imports of plastic bags based on the final AD rates. Cash deposits of CVD on imports of plastic bags will not be required unless the U.S. International Trade Commission (ITC) reaches a final determination that the U.S. industry is being injured by imports of plastic bags from Vietnam.

The petitioners for these investigations are Hilex Poly Co., LLC in South Carolina, and Superbag Corporation in Texas.

The ITC is scheduled to issue its final determinations on or about May 10, 2010. If the ITC makes affirmative determinations that imports of plastic bags from Vietnam materially injure, or threaten material injury to, the US industry, DOC will issue AD and CVD orders. If the ITC makes negative injury determinations, these investigations will be terminated.

Sources from the US Bureau of Census show that in 2009, imports of plastic bags from Vietnam were valued at an estimated 43 million USD compared to 79.4 million USD in 2008.