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US Commerce Dept. finalizes duties on PET imports from four countries
HOUSTON, March 8, 2016 (PCW) –- The US Commerce Dept. took another step toward imposing import duties on PET from four countries late Monday when it made "final" a preliminary ruling issued last October that the chemical was sold at less than fair market value.
The case centered in imports in 2014 from Oman, China, Canada and India.
It's now up to the International Trade Commission to determine whether US producers were injured by the imports in question. If it decides yes, the duties become part of a final order; if no, the duties are lifted and the case is closed.
Appeals can be filed with the US Court of International Trade.
The duties require importers of PET from these countries to post a cash bond with US Customs and Border Protection before they are cleared for entry. The amount of the bond is based on a percentage, or margin, of a shipment’s value.
For instance, in the case of Canada the duty is 13.6%. A shipment from Canada’s only PET producer, Selenis Canada, valued at $1 million would require a cash bond of $130,600 before being cleared.
Selenis shipped more PET to the US in 2014, valued at $239 million, than other country. In 2015, all US PET imports totaled 593,424 metric tons valued at $695.5 million.
Three US PET producers filed the dumping complaint: Dak Americas, M&G Chemicals, and Nan Ya Plastics Corp, America. M&G is building what it says will be the world’s largest PET plant in Corpus Christi, Texas. It expects the plant to be completed by the end of 2016 and has said it would sell virtually all the PET in the US.
The duty rates for other countries:
Oman’s OCTAL SAOC-FZC, the country’s only PET producer: 7.82%
China “country-wide” rate: 126.43%
--Xavier A. Cronin