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September 11, 2018 02:00 AM

Commerce rules against China, Thailand in rubber band duty case

Miles Moore
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    WASHINGTON—The U.S. Department of Commerce has levied antidumping duties of 5.86 percent against most rubber band imports from Thailand.

    The agency also has determined preliminarily that critical circumstances exist regarding imports of rubber bands from three Chinese importers—Graceful Import & Export Co. Ltd., Moyoung Trading Co. Ltd. and Ningbo Syloon Import & Export Co. Ltd.

    Hot Springs, Ark.-based Alliance Rubber Co. filed petitions with the International Trade Commission in January under Sections 701 and 731 of the Trade Act, alleging that rubber band imports from China, Thailand and Sri Lanka were being dumped on the U.S. market and subsidized by their home governments.

    In March the ITC voted to discontinue the investigation of Sri Lankan rubber band imports but continue those against Chinese and Thai imports.

    On July 9, Commerce issued preliminary countervailing duties of 125.77 percent against all Chinese importers, but found only de minimis subsidies against the Thais—0.23 percent against Liang Hah Heng International Rubber Co. Ltd. and 0.37 percent against U Yeng Industry Co. Ltd.

    In a Sept. 6 Federal Register notice, Commerce issued preliminary antidumping duties of 5.86 percent against U Yong and all other Thai rubber band importers. Against Liang Hah Heng, however, it found a dumping margin of zero.

    This determination means that Customs and Border Protection will begin collecting cash deposits from U Yong and all other Thai rubber band importers except Liang Hah Heng.

    Also in a Sept. 6 Federal Register notice, Commerce agreed with Alliance's June 11 petition stating that critical circumstances exist in the case of Chinese rubber band imports during the calendar year 2017. A critical circumstances finding means that duties can be imposed retroactively.

    Graceful, Moyoung and Ningbo Syloon did not fully cooperate with Commerce's investigation, the agency said in the notice.

    "As such, we are making an adverse inference that Graceful, Moyoung and Ningbo Syloon each benefited from countervailable subsidies," the agency said.

    "Also…we preliminarily determine that Graceful, Moyoung and Ningbo Syloon had massive imports of subject merchandise over a relatively short period," it said.

    Commerce will make a further determination on critical circumstances in the Chinese rubber band case when it makes its final determination, which should be no later than Nov. 13 of this year, the agency said.

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