Subsidies found in Vietnamese sacks

The Commerce Department in a countervailing duty investigation found evidence of government subsidies used by Vietnam to support exports of laminated woven sacks.

   The Commerce Department in a countervailing duty investigation found evidence of government subsidies used by Vietnam to support exports of laminated woven sacks to the United States.
   Countervailable subsidies are generally given by foreign governments to companies based on their export performance or use of domestic materials over imports. 
   Based on its investigation, Commerce assigned preliminary subsidy rates of 6.15 percent to Vietnam’s Xinsheng Plastic Industry Co. Ltd. and 3.24 percent to Duong Vinh Hoa Packaging Co. Ltd. The department’s preliminary subsidy rate for all other Vietnamese producers and exporters is 5.19 percent.
   Commerce will now instruct Customs and Border Protection to collect cash deposits from importers of these sacks from Vietnam based on the preliminary rates.  
   According to the department, U.S. imports of laminated woven sacks from Vietnam in 2017 were valued at $21.1 million.  
   The petitioners for this investigation include the Laminated Woven Sacks Fair Trade Coalition and its members Polytex Fibers Corp. of Houston and ProAmpac Holdings in Cincinnati.  
   Commerce is scheduled to issue its final countervailing duty determination for this investigation by Dec. 17. If Commerce makes an affirmative final determination, the U.S. International Trade Commission will make its final injury determination by Jan. 31, 2019. If both Commerce and the ITC make affirmative determinations of subsidies and harm to domestic industry, then a countervailing duty order will be issued. If negative final determinations are presented by either Commerce or the ITC, the investigation will end and no order will be issued.