WASHINGTON, July 18, 2024 /PRNewswire/ -- The Coalition for Fair Trade in Shopping Bags (the "Coalition") applauds the publication today by the United States Department of Commerce ("Commerce") of antidumping duty orders on imports of paper shopping bags into the United States from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, and Vietnam, as well as countervailing duty orders on imports of paper shopping bags from China and India (see https://www.federalregister.gov/documents/2024/07/18/2024-15746/certain-paper-shopping-bags-from-cambodia-colombia-india-malaysia-portugal-taiwan-the-peoples and https://www.federalregister.gov/documents/2024/07/18/2024-15747/certain-paper-shopping-bags-from-the-peoples-republic-of-china-and-india-countervailing-duty-orders).  These orders impose combined dumping margins and subsidy rates of up to 308.13 percent.  As a result, American producers of paper shopping bags can now compete on a level playing field with imported paper shopping bags and help ensure the presence of American manufacturing jobs.

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The new antidumping and countervailing duty orders follow the May 17, 2024 determination by Commerce that imports of paper shopping bags were being traded unfairly and the June 21, 2024 determination by the United States International Trade Commission ("ITC") that a U.S. industry was materially injured by reason of these imports.  The orders also supplement the antidumping duty order on imports of paper shopping bags from Turkey, which was published on May 9, 2024. All producers in all nine countries were found to have engaged in injurious dumping or subsidy practices that violate international agreements on fair pricing, as implemented under U.S. law.

The antidumping and countervailing duty orders cover paper shopping bags with handles of any type, whether printed or unprinted. Paper shopping bags, which often are used to carry items purchased from a retail establishment or restaurant, typically are made of kraft paper but can be made from any type of paper material.   

Senator Sherrod Brown of Ohio made the following statement after the ITC's June 21 vote: "American workers and American companies can compete with anyone in the world on a level playing field and this ruling is a step in that direction."  Senator Brown asked that the U.S. government rule on behalf of his constituents who produce shopping bags and has worked to advance legislation to strengthen American trade enforcement. 

Publication of the new orders means that U.S. importers of paper shopping bags from the nine investigated countries will have to pay cash deposits to U.S. Customs and Border Protection ("Customs") based on the value of their future imports. For example, where a particular supplier has a combined dumping and subsidy rate of 60%, for every $100 of paper shopping bags imported from that supplier, importers will now have to begin paying $60 to U.S. Customs as cash deposits for future duty liability. An importer's final liabilities – which could be higher or lower than the cash deposits paid at the time of importation – will not be known for some time, since the cash deposits are estimates. This means that the final duty assessments can be amended during Commerce's annual administrative reviews, and where the cash deposit rates are understated, importer's will receive an invoice for additional duties on past imports. 

A summary of the country- and company-specific rates is available on Commerce's website, https://www.trade.gov/final-determinations-ad-investigations-paper-shopping-bags-8-trading-partners.

The Coalition is represented in these actions by the law firm King & Spalding LLP. "The Coalition thanks officials at Commerce and the ITC for their hard work throughout this investigation in evaluating the extent of unfair trade and its negative impact on domestic manufacturers and their workers," said Mike Taylor, a partner in the law firm of King & Spalding. "The imposition of these antidumping and countervailing duty orders will go a long way to restoring fair competition to the U.S. market so that manufacturing plants and jobs can remain in the United States." 

The Coalition intends actively to continue monitoring imports for unfairly traded paper shopping bags from other countries, and the Coalition also plans actively to coordinate with Customs to ensure that importers fully comply with their obligations. The importation of paper shopping bags from these nine countries without the payment of antidumping and countervailing cash deposits and duties may result in severe civil or criminal penalties.

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