Fair Trade Coalition Requests New Duties on Imported Paper Bags

On May 31, 2023, the Coalition for Fair Trade in Shopping Bags filed antidumping duty (AD) petitions on certain paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam. The Coalition also filed countervailing duty (CVD) petitions on certain paper shopping bags from China and India.

The Coalition and its individual members allege that imports of in-scope paper bags from all nine countries are injuring the US domestic industry because they are sold in the United States for less than “normal value” and that imports from China and India are unfairly subsidized.

The Coalition requests the imposition of significant AD/CVD duties between 12.51% to 324.24% ad valorem. AD/CVD duties will be imposed if the US Department of Commerce (DOC) determines that such alleged dumping is occurring and if the US International Trade Commission (ITC) determines that there is “material injury” (or the threat thereof) by reason of the dumped or subsidized imports.

If the investigations are affirmative, importers of in-scope paper bags from the countries above will be liable for any potential AD and/or CVD duties imposed. These investigations may also impact US purchasers via increased prices or decreased supplies of certain paper bags. Imports of paper bags from China are also currently subject to Section 301 (List 3) duties.

Per the petition, the scope of these investigations covers paper shopping bags with handles of any type, regardless of whether there is any printing, regardless of how the top edges are finished (e.g., folded, serrated, or otherwise), and regardless of whether the tops can be sealed. Subject paper shopping bags have a width of at least 4.5 inches and a depth of at least 2.5 inches.

Excluded from the scope are:

Although not dispositive, the proposed in-scope certain paper bags are classified under US Harmonized Tariff Schedule subheadings 4819.30.0040 and 4819.40.0040.

The Coalition alleges the following dumping margins exist:

The following are estimated key dates for these investigations, once initiated by the DOC and the ITC:

Initial Deadlines: ITC Preliminary Injury Phase

approx. June 14, 2023 – ITC questionnaire responses will be due.

June 21, 2023 – ITC Preliminary Staff Conference

July 17, 2023 – ITC Preliminary injury determinations

DOC Initiation Date

June 20, 2023

DOC Preliminary AD Determinations

November 7, 2023 - AD preliminary determination The preliminary determination deadline can be extended.

Commerce Preliminary CVD Determinations

August 24, 2023 - CVD preliminary determination The preliminary determination deadline can be extended.

Earliest Suspension of Liquidation (theoretical)

June 20, 2023 – Subject to both affirmative critical circumstances finding by ITC and DOC.

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