New Trade Case on Imports of Certain Glass Containers from China

New U.S. antidumping (“AD”) and countervailing (“CVD”) duty investigations were filed on September 24, 2019 by the American Glass Packaging Coalition (“Petitioner”) against imports of certain glass containers from China.

The petition targets glass containers used in the food and beverage industry, including beer, wine and liquor bottles, non-alcoholic beverage bottles, ready-to-drink bottles, and food containers. The AD/CVD duties alleged would apply in addition to the Section 301 tariffs already covering imports of these products from China, which are set to increase to 30% on October 1.” The merchandise subject to these investigations consists of glass containers with a nominal capacity of 0.059 liters (2.0 fluid ounces) to 4.0 liters (135.256 fluid ounces) and an opening or mouth with a nominal outer diameter of 14 millimeters to 120 millimeters. The scope includes glass jars, bottles, flasks and similar containers; with or without their closures; whether clear or colored; and with or without, design or functional enhancements (including, but not limited to, handles, embossing, labeling, or etching). The full scope of the merchandise covered is set forth below.

The petition includes AD (less than fair value) allegations against China and CVD (unfair subsidy) allegations against China. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if the imports are injuring the U.S. industry. If the ITC finds injury, then the case will move to the DOC which will calculate the preliminary AD and CVD duty margins. The DOC’s preliminary determinations are currently scheduled for December 18, 2019 (CVD) and March 2, 2020 (AD), which are the dates when importers will be charged the calculated duties upon the products’ entry in the U.S. market.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.

The following are key facts about this trade case:

Petitioner: American Glass Packaging Coalition

Foreign Producers/Exporters and US Importers:  Please contact us for a listing of individual companies named in the petition.

Alleged AD and CVD margins:  Petitioner has alleged the following AD/CVD margins:

• China –   AD margins ranging from 264.13% to 818.57%, with an average margin of 476.36 %. 

The petition has also alleged CVD margins for China above de minimis.

Merchandise covered by the scope of the case:

The merchandise covered by this investigation are certain glass containers with a nominal capacity of 0.059 liters (2.0 fluid ounces) to 4.0 liters (135.256 fluid ounces) and an opening or mouth with a nominal outer diameter of 14 millimeters to 120 millimeters. The scope includes glass jars, bottles, flasks and similar containers; with or without their closures; whether clear or colored; and with or without, design or functional enhancements (including, but not limited to, handles, embossing, labeling, or etching).

Excluded from the scope of the investigation are: (1) Glass containers made of borosilicate glass, meeting United States Pharmacopeia requirements for Type 1 pharmaceutical containers; (2) Glass containers produced by 'free blown' method or otherwise without the use of a mold (i.e., without 'mold seems' (sic), 'joint marks', or 'parting lines '); and (3) Glass containers without a 'finish' (i.e., the section of a container at the opening including the lip and ring or collar, threaded or otherwise compatible with a type of closure , including but not limited to a lid, cap, or cork).

Glass containers subject to this investigation are specified within the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 7010.90.5009, 7010.90.5019, 7010.90.5029, 7010.90.5039, 7010.90.5049, 7010.90.5055, 7010.90.5005, 7010.90.5015, 7010.90.5025, 7010.90.5035, and 7010.90.5045. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive.

If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.comkwilliams@clarkhill.comkwilliams@clarkhill.com