U.S. Manufacturers of Glass Containers Applaud Commerce Department’s Preliminary Countervailing Duty Determination
Washington, DC – Today, the U.S. Department of Commerce issued an affirmative preliminary determination in the countervailing duty (CVD) investigation into Chinese imports of glass containers. Commerce found that Chinese producers of glass containers receive significant subsidies to produce unfairly traded glass containers and assigned countervailing duty rates ranging from 22.60% to 315.73%.
The American Glass Packaging Coalition (AGPC), a coalition of producers of food and beverage glass packaging containers, filed antidumping (AD) and CVD petitions on September 25, 2019, requesting that Commerce investigate unfair pricing and subsidization of the Chinese glass container industry. Chinese subsidization has resulted in cheaply priced imports of glass containers, which have severely harmed the U.S. glass container industry.
“The Chinese government offers a number of subsidy programs, including grants, loans, and the provision of inputs for less than adequate remuneration, that give Chinese glass container producers an unfair leg up on the U.S. industry,” said Daniel B. Pickard, partner in the International Trade Practice at Wiley Rein LLP and counsel to the AGPC. “Today’s preliminary determination is the first step in ensuring the U.S. industry is able to compete in a fair environment against subsidized glass containers,” Mr. Pickard said.
Because of this affirmative preliminary finding, Commerce will begin collecting provisional duties based on these margins. Commerce will make its final CVD determination in mid-May, if the scheduled deadline is not extended or aligned with the AD proceeding.
Commerce is scheduled to issue its preliminary determination in the companion AD case on April 22, 2020.
Senior Communications Manager