Today, U.S. Secretary of Commerce Wilbur Ross announced an affirmative preliminary determination in the countervailing duty (CVD) investigation of twist ties from China. The Commerce Department preliminarily determined that exporters/producers from China received countervailable subsidies at a rate of 122.5 percent. Among the subsidies preliminarily countervailed is China’s undervalued currency – making this the first time Commerce has ever countervailed the Renminbi. This is the second time that Commerce has countervailed a foreign currency with a unitary exchange rate.
“Today’s preliminary determination reaffirms the Trump Administration’s commitment to free, fair, and reciprocal trade,” said Secretary Ross. “The Department of Commerce will continue to use the legal tools at our disposal to aggressively counter currency undervaluation and other unfair subsidies, further ensuring a level playing field for American businesses and workers.”
As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of twist ties from China based on the preliminary rate noted above.
The petitioner is Bedford Industries, Inc. (Worthington, MN).
Commerce is scheduled to announce its final determination in this case on or about February 17, 2021. This deadline may be extended.
If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about April 2, 2021. If Commerce makes an affirmative final determination in this investigation and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will be terminated, and no order will be issued.
The petitioner estimated the value of twist ties imported from China in 2019 at $4.15 million. Read More→
