Petition Seeks Safeguard Quotas, Tariffs on Fine Denier Polyester Staple Fiber

Three domestic manufacturers filed a petition Feb. 28 asking the International Trade Commission to conduct a Section 201 safeguard investigation on imports of polyester staple fiber.

Fiber Industries (d/b/a Darling Fibers), Nan Ya Plastics America and Sun Fiber seek a quota, tariff-rate quota or tariffs on imports of fine denier polyester staple fiber, as well as the “correction” of a “loophole that allows imports to be brought in without paying remedial duties under temporary import bond.”

They say antidumping and countervailing duty orders imposed on fine denier polyester staple fiber from China, India, South Korea and Taiwan in 2018 (see 1803150008 and 1807190015) resulted in only a “short-lived and inadequate” recovery for the industry as imports “from numerous other countries and foreign producers not subject to remedial duties surged into the U.S. market and captured market share from the domestic producers.”

“The cumulative effects of a repetitive onslaught of imports have resulted in serious injury to the domestic industry -- including the closure of facilities by two domestic producers since the antidumping and countervailing duty orders were imposed -- that necessitates the filing of this safeguard petition,” their petition said.

The scope of the safeguard investigations proposed by the petition is the same as the scopes of the existing AD/CVD orders, covering fine denier polyester staple fiber “not carded or combed, measuring less than 3.3 decitex (3 denier) in diameter,” and “whether coated or uncoated.” Low-melt polyester staple fiber is excluded. Fine denier polyester staple fiber is covered under tariff schedule subheading 5503.20.0025, the petition said.

Darling, Nan Ya and Sun Fiber “need a remedy that will arrest the dramatic increase in import volumes and the low pricing levels of imports that have decimated the domestic industry over the past several years,” they said.

That would include, “but not [be] limited to,” an absolute quota, or, if the “TIB entry loophole is addressed,” new tariffs or a tariff-rate quota on fine denier polyester staple fiber. The petition also seeks “tax incentives for domestic producers to enhance competitiveness and incentives for U.S. purchasers” of fine denier polyester staple fiber “to similarly promote increased purchases of domestic product.”

The petition also requests “modification of current trade agreements containing ‘yarn forward’ rules to apply to U.S.-produced fiber.”

Darling, Nan Ya and Sun Fiber said “all or some of these potential forms of relief are necessary to address the serious injury, and threat thereof, caused by imports.” They also said they “would welcome participation in any other program that will encourage U.S. manufacturing of both fine denier [polyester staple fiber] and the products made by the industry's customers.”

The petition requested that any remedy should last at least four years, “with the opportunity to extend any remedy to eight years,” which is the legal maximum for safeguard duties. It said Canada and Mexico should not be included under the safeguard.

The ITC will now consider the petition, and must make an injury finding within 150 days (i.e., by the end of July), and must submit a report that also includes a remedy recommendation to the president within 180 days (i.e., by the end of August). The president then has 60 days after that to impose any safeguards or take other action.