New Trade Case on Imports of Polyethylene Terephthalate Sheet from Korea, Mexico, and Oman

A new antidumping (“AD”) duty trade case was filed on July 8, 2019 by U.S. producers Advanced Extrusion Inc., Ex-Tech Plastics, Inc., and Multi-Plastics Extrusions, Inc., against imports of polyethylene terephthalate (“PET”) sheet from Korea, Mexico, and Oman.

The merchandise covered by the petition is raw, pretreated, or primed polyethylene terephthalate sheet, whether extruded or coextruded, in thicknesses of equal to or greater than 7 mil (0.007 inches or 177.8 µm) and not exceeding 45 mil (0.045 inches or 1143 µm) (“PET sheet”). The scope includes all PET sheet whether made from prime (virgin) inputs or recycled inputs, as well as any blends thereof. The scope includes all PET sheet meeting the above specifications regardless of color, surface treatment, coating, lamination, or other surface finish.

The merchandise subject to this investigation is properly classified under statistical reporting number 3920.62.0090 of the Harmonized Tariff Schedule of the United States (“HTSUS”). Although the HTSUS statistical reporting number is provided for convenience and customs purposes, the written description of the merchandise is dispositive.

PET sheet is highly desirable for its primary end use, which is the manufacture of a wide variety of rigid (as opposed to flexible) food, beverage, and retail packaging. PET sheet is used in food trays, carry-out containers, fruit and vegetable trays and clamshell containers, bottle preforms, drinking cups, medical trays, paint tray liners, consumer packaging, packaging for electro-static sensitive devices (such as integrated computer circuits), and other products.

The petition includes AD (less than fair value) allegations against imports from Korea, Mexico and Oman. 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 duty margins.

The DOC’s preliminary AD determination is currently scheduled for December 16, 2019, which is the date when importers would be charged the calculated AD 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:

Petitioners: Advanced Extrusion Inc.; Ex-Tech Plastics, Inc.; and Multi-Plastics Extrusions, Inc.

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

Alleged AD margins: Petitioner has alleged the following AD margins:

• KOREA– AD margins ranging from 44.45% to 52.39%.
• MEXICO– AD margins ranging from 27.70% to 120.79%.
• OMAN– AD margins ranging from 75.02% to 119.23%.

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