On October 29,2024,the US Department of Commerce announced that it would launch anti-dumping and anti-subsidy investigations into thermoformed molded fiber products imported from China and Vietnam,in response to applications from multiple US companies and trade union organizations.This decision signifies that the US will conduct an in-depth review of the import situation of such products to determine whether there are dumping and subsidy practices that cause harm or pose a threat to related domestic industries in the US.

This counter - vailing investigation was announced by the US Department of Commerce on January 19,2024.The investigation was directed at glass wine bottles imported from China,and at the same time,anti - dumping investigations were also launched on glass wine bottles from Chile and Mexico.The products involved are classified under the US customs code 7010.90.5019.

The petitioners for this investigation include the following companies and labor unions:

• Genera
• TellusProducts,LLC
• UnitedSteel,PaperandForestry,Rubber,Manufacturing,Energy,AlliedIndustrialandServiceWorkersInternationalUnion(theUnitedSteel,PaperandForestry,Rubber,Manufacturing,Energy,AlliedIndustrialandServiceWorkersInternationalUnion)
• UnitedSteelworkers
• AmericanFederationofLaborandCongressofIndustrialOrganizations(AFL-CIO,CLC)

These enterprises and trade union organizations submitted an application to the US Department of Commerce on October 8,2024,requesting a double anti-dumping and anti-subsidy investigation into thermoformed molded fiber products from China and Vietnam.The applicants claimed that the import prices of these products are lower than reasonable market prices and that they may have received unfair government subsidies,which have adversely affected the domestic industry in the United States.

Products Involved and Customs Codes

The thermally molded fiber products under investigation are classified under U.S.Harmonized Tariff Schedule (HTS) code4823.70.0020and4823.70.0040.These products are widely used in eco-friendly packaging applications such as food packaging and takeout containers,and their demand has grown in recent years due to their biodegradability and environmental benefits.

Investigation Timeline

According to the announcement issued by the U.S.Department of Commerce,the investigation timeline is as follows:

• U.S.InternationalTradeCommission(ITC)PreliminaryInjuryDetermination:
  • ITCisexpectedtobecompletedbyNovember22,2024IssueapreliminarydeterminationonwhethertheimportsofthermallymoldedfiberproductscauseorthreatenmaterialinjurytotheU.S.domesticindustry.
  • IftheITCdeterminesthattheimportsofthermallymoldedfiberproductscauseorthreatenmaterialinjurytotheU.S.domesticindustry,theDepartmentofCommercewillproceedwithdetailedanti-dumpingandcountervailingdutyinvestigations.
• U.S.Department of Commerce Preliminary Countervailing Duty Determination:
  • ExpectedbyJanuary2,2025IssueapreliminarycountervailingdutydeterminationtodecidewhethertoimposeprovisionalcountervailingdutiesonthesubjectproductsfromChinaandVietnam.
• U.S.Department of Commerce Preliminary Anti-Dumping Duty Determination:
  • ExpectedbyMarch17,2025Issueapreliminaryanti-dumpingdutydeterminationtodecidewhethertoimposeprovisionalanti-dumpingdutiesonthesubjectproductsfromChinaandVietnam.

Investigation Content

• ExportersWarning:TheUS,UKandOtherCountriesHaveRecentlyLaunchedDouble-AntiInvestigationsonaVarietyofChineseProducts|ShanghaiImport/ExportAgent:AimstodeterminewhetherexportersfromChinaandVietnamaresellingthermallymoldedfiberproductsintheU.S.atpricesbelownormalmarketvalue,therebycausingunfairmarketdisruptiontotheU.S.domesticindustry.
• CountervailingDutyInvestigation:AninvestigationwillbeconductedtoassesswhetherChineseandVietnameseexportershavereceivedunfairsubsidiesfromtheirgovernments,whichmayenablethemtoentertheU.S.marketatlowcosts,furtherharmingdomesticmanufacturersintheUnitedStates.

Future Impact

If the U.S.Department of Commerce and the ITC preliminarily determine that these imports cause or threaten to cause material injury to the domestic industry,provisional anti-dumping and countervailing duties may be imposed on Chinese and Vietnamese exporters.These temporary measures will take effect before the final ruling to prevent further market damage.

If the final ruling supports the petitioners claims,the U.S.will formally implement anti-dumping and countervailing measures,imposing corresponding tariff rates on thermoformed molded fiber products from China and Vietnam,which will significantly impact the export performance of these industries in the U.S.market.