THE US Commerce Department has ruled that imported Chinese rubber bands receive hefty state subsidies from China while Thai companies received much less help, reports American Shipper.
Imports of rubber bands from China were valued at US$4.9 million while those from Thailand in 2017 were valued at $12.1 million.
Commerce assigned a preliminary subsidy rate of 125.77 per cent to Graceful Imp & Exp Co Ltd, Moyoung Trading Co Ltd and Ningbo Syloon Imp & Exp Co Ltd. The department assigned the same preliminary subsidy rate to other Chinese producers and exporters.
For its Thailand investigation, Commerce assigned preliminary subsidy rates of 0.23 per cent to Liang Hah Heng International Rubber Co Ltd and 0.37 percent to U Yong Industry Co Ltd. Since the preliminary determination is negative, no other Thai rubber band producers and exporters were assigned a countervailing duty rate.
Based on these determinations, Commerce will instruct Customs and Border Protection to collect cash deposits from importers of rubber bands from China based on these preliminary rates. Since the subsidy rates calculated in the Thai investigation are minimal, no charge will be made.
The petitioner is Alliance Rubber Co of Arkansas. A countervailing duty determination is expected by November 13.
If Commerce makes affirmative final determinations, the US International Trade Commission will make its final injury determinations by December 28.