Commerce Department Reaffirms Chinese Polyester Staple Fiber Dumping

WASHINGTON, April 13 /PRNewswire/ -- The U.S. Commerce Department announced a final antidumping duty determination involving imports of polyester staple fiber from China. The Commerce Department found dumping margins generally ranging from 3.47% to 44%. Two large Chinese polyester staple fiber producers, Ningbo Dafa Chemical Fibers Company and Far Eastern Industries Shanghai received dumping margins of 4.86% and 3.47%, respectively. The Commerce Department found de minimis dumping margins by Cixi Jiangnan Chemical Fibers Company. Other Chinese companies' dumping margins will range from 4.44 to 44 percent.

The antidumping duty investigation began in June 2006 after American producers DAK Americas LLC, Charlotte, N.C.; Nan Ya Plastics Corp. America, Lake City, S.C.; and Wellman, Inc., Shrewsbury, N.J. filed a petition with the International Trade Commission (ITC) and Department of Commerce. The petition covered the types of polyester staple fiber typically used as stuffing.

The lawyer for the U.S. producers, Paul Rosenthal of Kelley Drye Collier Shannon said, "While we are pleased that the Commerce Department confirmed that the Chinese are dumping their imports into the U.S., and we expect that the duties that will be applied will benefit U.S. producers, the dumping duties should have been much higher."

Rosenthal commented that, "It appears that the Commerce Department decision to implement a controversial WTO-mandated policy involving the calculation of duties, despite the Administration's and Congress' criticism of the policy, reduced the dumping margins. It is clear that Congress needs to act to roll back this Department policy."

Rosenthal mentioned that the level of duties will be reviewed in the next year, and that the industry is considering an appeal to the Court of International Trade. "We fully expect that when the court and the additional administrative processes are complete, the duties will be higher."

The case now goes to the U.S. International Trade Commission for its final determination on injury.

Paul C. Rosenthal is Managing Partner of the Washington, D.C. office of Kelley Drye Collier Shannon, where he practices in the International Trade and Customs Group and chairs the Government Relations and Public Policy Group. He was assisted in this matter by Special Counsel David C. Smith, Jr.

About Kelley Drye Collier Shannon

Kelley Drye Collier Shannon, the Washington, D.C. office of Kelley Drye & Warren, LLP is an international, multidisciplinary law firm that solves competitive problems for Fortune 500 companies, privately-held corporations, government entities, and trade associations. Kelley Drye & Warren has more than 400 attorneys and professionals practicing in eight locations around the world and specializing in more than 30 areas of law.

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