US-based textile companies – Unifi Manufacturing and Nan Ya Plastics Corporation – have filed petitions alleging that dumped and subsidized imports of polyester textured yarn from China and India. The petitions were filed concurrently with the United States Department of Commerce and the United States International Trade Commission.
The objective of these petitions is to set up conditions of fair competition in the US market. The petitioning domestic producers are asking the government to investigate the dumping, subsidies and injury and to impose antidumping and countervailing duties on the imports of polyester textured yarn from the subject countries.
The petitions include all forms of polyester textured yarn, regardless of surface texture or appearance, yarn density and thickness (as measured in denier), number of filaments, number of plies, finish (luster), cross section, color, dye method, texturing method, or packing method (such as spindles, tubes, or beams).
The petitions also allege that the Chinese polyester textured yarn industry benefits from at least 20 different Chinese government subsidies, and that the Indian polyester textured yarn industry benefits from at least 38 different Indian government subsidies.
The allegations identify a number of significant national and regional programs, including preferential export financing, export loans, and export credits; preferential income tax treatment; tax exemptions, rebates, and credits on inputs and capital goods used in the production of polyester textured yarn.
Subject import volumes increased at an astounding rate over the last five years, growing from approximately 38.4 million pounds in 2013 to 68.9 million pounds in 2017 (an increase of approximately 79%). The injury to the domestic polyester textured yarn industry is likely to continue if duties are not imposed to offset these unfair trading practices.