Plastic bag producers file dumping complaint
By Purchasing Staff -- Purchasing, 4/30/2009 2:00:00 AM
Superbag of Houston and Hilex Poly of Hartsville, S.C., are seeking punitive tariffs in the form of countervailing duties against Vietnamese, Taiwanese and Indonesian producers of ultra-high molecular-weight polyethylene bags.
The trade complaint alleges that the Hanoi government is providing subsidies to its domestic bag makers in violation of World Trade Organization rules. The petitions also allege that polyethylene retail carry bags from Indonesia are being dumped in the U.S. market at prices as much as 51% below fair value and that bags from Vietnam and Taiwan are being dumped at prices 75% and 100% below fair value respectively.
If it is established by Commerce Department trade officials that plastic bags from those three countries are being dumped in the U.S. market, the International Trade Commission then will have to determine whether the dumping is causing or will likely cause material harm to Hilex and Superbag.
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