New Trade Case on Imports of Certain Paper Shopping Bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam

New U.S. antidumping (“AD”) duty petitions were filed on May 31 by the Coalition For Fair Trade in Shopping Bags (the “Coalition”) against imports of certain paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam. The petitions also seek the imposition of a countervailing duty (“CVD”) on imports from China and India.

The merchandise covered by these petitions consists of certain paper shopping bags (“PSBs”). PSBs are bags with handles. They are commonly used by commercial establishments as shopping, delivery, or take-away bags. PSBs are typically made from Kraft paper that may be made with virgin fiber or recycled fiber. PSBs can be brown, white, or colored paper. They can be sold unprinted or printed with a design or logo. Please see below for the full text of the proposed scope for the investigations.

The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring or threatening to injure the U.S. industry. If the ITC finds that this standard is met, the cases will move to the DOC, which will calculate the preliminary AD and CVD duty margins. Importers should be aware that entries may be subject to AD/CVD cash deposits 90 days before the DOC preliminary determinations if the DOC and ITC issue a finding of “critical circumstances” meaning that imports increased by at least 15 percent following the filing of the petition compared to a similar period (typically three months) before the petition.

The DOC’s preliminary determinations are currently expected by Aug. 23, 2023 (CVD) and Nov. 6, 2023 (AD). On the date of publication of DOC’s preliminary determinations, importers will be required to deposit the calculated duties upon the products’ entry into the U.S. market.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available. A schedule of approximate key dates is attached below.

The following are key facts about this trade case:

Petitioner: Coalition For Fair Trade in Shopping Bags

Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.

AD/CVD margins: Petitioner alleged the following AD/CVD margins:

Merchandise covered by the scope of the case:

The products within the scope of these investigations are paper shopping bags with handles of any type, regardless of whether there is any printing, regardless of how the top edges are finished (e.g., folded, serrated, or otherwise), and regardless of whether the tops can be sealed. Subject paper shopping bags have a width of at least 4.5 inches and a depth of at least 2.5 inches.

Excluded from the scope are:

This merchandise is currently classifiable under subheadings 4819.30.0040 and 4819.40.0040, Harmonized Tariff Schedule of the United States.

If you have any questions regarding the content of this alert, please contact Mark Ludwikowski ([email protected]; 202-640-6680), Kevin Williams ([email protected]; 312-985-5907), Will Sjoberg ([email protected]; 202-772-0924), Aristeo Lopez ([email protected]; 202-552-2366), Kelsey Christensen ([email protected]; 202-640-6670), Sally Alghazali ([email protected]; 202-572-8676), or another member of Clark Hill’s International Trade Business Unit.

Approximate Key Dates*

* Deadlines are approximate and may change. When a deadline falls on a weekend or Federal holiday, deadlines will be extended to the next business day, as reflected in the above.

** The ITC preliminary dates may change slightly when the ITC publishes its notice of institution in the Federal Register. When the notice is published, parties will have seven days to file an entry of appearance at the ITC and apply for access to confidential information through counsel under Administrative Protective Order.