The International Trade Commission announced recently the remedy recommendations it will forward to President Biden after concluding that fine denier polyester staple fiber is being imported into the U.S. in such increased quantities as to be a substantial cause of serious injury to the domestic industry producing a like or directly competitive article. This fiber is used in the manufacture of yarn, apparel, sanitary products, non-woven fabrics (wipes, suit interlinings, mattresses, etc.), carpets, upholstery, and other items.
ITC commissioners have recommended the imposition of a tariff-rate quota on imports of subject goods from most countries (with exclusions mostly focused on countries with which the U.S. has a free trade agreement). This TRQ would allow a certain volume of subject fiber (recommendations vary between 110 and 145 million pounds) to enter the U.S. at an in-quota tariff rate (between 15 and 22 percent), with additional amounts subject to a higher duty rate (between 40 and 50 percent). The in-quota and over-quota tariff rates would decrease by one to three percentage points each year.
Commissioners also recommended the imposition of a quantitative restriction, to be set at zero in the first year and increased by one million pounds in each subsequent year, on imports of subject goods entered as a temporary importation under bond.
All recommended remedies would remain in place for four years.
Other recommendations include that the president (1) submit to Congress a legislative proposal that would permanently preclude the importation of subject fiber under TIB to avoid payment of cash deposits and assessed antidumping and countervailing duties that would otherwise apply, (2) authorize the establishment of an exclusion process to allow for imports of subject fiber without application of the TRQ in the case of a demonstrated lack of U.S. production or a critical short supply of a particular product, and (3) consider programs to assist downstream users of subject fiber and mitigate the potential impact of the remedy on them.
The ITC will forward its recommendations by Aug. 26 to the president, who will make the final decision on whether to provide relief as well as its form, amount, and duration. Other potential remedies could include tariff increases, and voluntary export restraints.
In the meantime, the Office of the U.S. Trade Representative is accepting written comments on whether the potential remedies are appropriate and in the public interest by Sept. 9 and responses to those comments by Sept. 16. USTR will also hold a public hearing on this issue Sept. 30 and requests to testify are due by Sept. 9.
For more information on how the proposed import restrictions could impact your business, please contact attorney Kristen Smith at (202) 730-4965 or via email.
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