On October 29, 2024, the US Department of Commerce announced that, upon the application of multiple US companies and labor union organizations, it initiated anti - dumping and countervailing investigations on thermoformed molded fiber products imported from China and Vietnam. This decision marks that the US will conduct an in - depth review of the import situation of such products to determine whether there are dumping and subsidy behaviors that cause harm or threat to the relevant domestic industries in the US.

This counter - vailing investigation was announced by the US Department of Commerce on January 19, 2024. The investigation was directed at glass wine bottles imported from China, and at the same time, anti - dumping investigations were also launched on glass wine bottles from Chile and Mexico. The products involved are classified under the US customs code 7010.90.5019.

The petitioners for this investigation include the following companies and labor unions:

• Genera
• Tellus Products, LLC
• United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union(the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union)
• United Steelworkers
• American Federation of Labor and Congress of Industrial Organizations(AFL-CIO, CLC)

These companies and labor unions filed a petition with the U.S. Department of Commerce on October 8, 2024, requesting anti-dumping and countervailing duty investigations on thermally molded fiber products imported from China and Vietnam. The petitioners allege that these products are being sold at prices below fair market value and may have received unfair government subsidies, thereby causing adverse effects on the U.S. domestic industry.

Products Involved and Customs Codes

The thermally molded fiber products under investigation are classified under U.S. Harmonized Tariff Schedule (HTS) code4823.70.0020and4823.70.0040. These products are widely used in eco-friendly packaging applications such as food packaging and takeout containers, and their demand has grown in recent years due to their biodegradability and environmental benefits.

Investigation Timeline

According to the announcement issued by the U.S. Department of Commerce, the investigation timeline is as follows:

1. U.S. International Trade Commission (ITC) Preliminary Injury Determination:
   • ITC is expected to be completed byNovember 22, 2024Issue a preliminary determination on whether the imports of thermally molded fiber products cause or threaten material injury to the U.S. domestic industry.
   • If the ITC determines that the imports of thermally molded fiber products cause or threaten material injury to the U.S. domestic industry, the Department of Commerce will proceed with detailed anti-dumping and countervailing duty investigations.
2. U.S. Department of Commerce Preliminary Countervailing Duty Determination:
   • Expected byJanuary 2, 2025Issue a preliminary countervailing duty determination to decide whether to impose provisional countervailing duties on the subject products from China and Vietnam.
3. U.S. Department of Commerce Preliminary Anti-Dumping Duty Determination:
   • Expected byMarch 17, 2025Issue a preliminary anti-dumping duty determination to decide whether to impose provisional anti-dumping duties on the subject products from China and Vietnam.

Investigation Content

• Exporters Warning: The US, UK and Other Countries Have Recently Launched Double - Anti Investigations on a Variety of Chinese Products | Shanghai Import/Export Agent: Aims to determine whether exporters from China and Vietnam are selling thermally molded fiber products in the U.S. at prices below normal market value, thereby causing unfair market disruption to the U.S. domestic industry.
• Countervailing Duty Investigation: An investigation will be conducted to assess whether Chinese and Vietnamese exporters have received unfair subsidies from their governments, which may enable them to enter the U.S. market at low costs, further harming domestic manufacturers in the United States.

Future Impact

If the U.S. Department of Commerce and the ITC preliminarily determine that these imports cause or threaten to cause material injury to the domestic industry, provisional anti-dumping and countervailing duties may be imposed on Chinese and Vietnamese exporters. These temporary measures will take effect before the final ruling to prevent further market damage.

If the final ruling supports the petitioners claims, the U.S. will formally implement anti-dumping and countervailing measures, imposing corresponding tariff rates on thermoformed molded fiber products from China and Vietnam, which will significantly impact the export performance of these industries in the U.S. market.