Coalition Initiates AD/CVD Petitions for Paper Shopping Bags from Multiple Countries

In a recent development, on May 31, 2023, a coalition, identified as the Coalition for Fair Trade in Shopping Bags, took a significant step by lodging petitions for antidumping duty (AD) on certain paper shopping bags sourced from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam. Concurrently, countervailing duty (CVD) petitions were submitted regarding paper shopping bags originating from China and India.

The motivation behind these petitions lies in the coalition’s contention that imports of the specified paper bags from all nine countries are detrimentally impacting the domestic paper bag industry within the United States. This impact is primarily attributed to the alleged practice of selling these imported paper bags below the standard market value. Furthermore, the coalition asserts that imports from China and India receive unfair subsidies, exacerbating the situation for domestic producers.

To address these concerns, the coalition is seeking the imposition of substantial AD/CVD duties ranging from 12.51% to 324.24% ad valorem. The enforcement of these duties is contingent upon the outcomes of thorough investigations to be conducted by the US Department of Commerce (DOC) to ascertain the existence of alleged dumping practices and by the US International Trade Commission (ITC) to determine whether substantial injury or the threat thereof exists due to dumped or subsidized imports.

Should the investigations yield affirmative findings, it would lead to importers of the specified paper bags from the listed countries bearing the responsibility for any potential AD and/or CVD duties imposed. Additionally, there may be broader repercussions for US consumers, potentially resulting in increased prices or reduced availability of certain paper bags in the marketplace. It’s noteworthy that imports of paper bags from China are presently subject to Section 301 (List 3) duties, further complicating the trade landscape.

In terms of scope, the petitions outline that the investigations encompass paper shopping bags with handles of any type, regardless of printing, top edge finishing, or sealability. These bags are required to have a minimum width of 4.5 inches and a minimum depth of 2.5 inches.

However, it’s essential to delineate certain exclusions from the scope:

– Multiwall sacks and bags
– Paper sacks or bags of 1/6- or 1/7-barrel size with flat paper handles
– Paper sacks or bags with die-cut handles, below a certain paper weight, and less than a specified height
– Shopping bags with non-paper handles made of woven fabric and specific finishing features
– Gift bags marked for retail sale bundled into specific units prior to importation

While not definitive, the designated paper bags are classified under certain US Harmonized Tariff Schedule subheadings.

In terms of alleged dumping margins, the coalition posits varying percentages for different countries, ranging from 12.51% to 324.24%. This breadth of variation underscores the complexity and specificity of the allegations made by the coalition against the countries in question.