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US keeps tariff on plastic bags

Update: August, 21/2015 - 08:10

Plastic bags pictured in a store. Vietnamese polyethylene retail carrier bags will continue to face countervailing duties in the US. — Photo

HA NOI (VNS) — The US continues to impose countervailing duty (CVD) as well as old duty rates on polyethylene retail carrier bags (plastic bags) from Viet Nam after the first sunset review on the duty in May, reported Viet Nam Competition Authority.

According to the final results of sunset review, the US Department of Commerce held that revoking the CVD on plastic bags from Viet Nam was likely to lead to continuation or recurrence of countervailing subsidies.

The tax rate would remain 52.56 per cent for Advance Polybag Co. Ltd and 5.28 per cent for Fotai Vietnam Enterprise Corp. and Fotai Enterprise Corporation. Meanwhile, all other entities would face a CVD rate of 5.28 per cent on the plastic bags exported to the US.

On May 4, 2010, the department published the order imposing the CVD on plastic bags from Viet Nam with tariffs ranging between 5.28 per cent and 52.56 per cent.

This was the first dual investigation regarding anti-dumping and anti-subsidy mechanisms carried out by the US into exports from Viet Nam.

In addition to the CVD, Viet Nam exporters also must face anti-dumping duty on the plastic bags they export to the US, levied at rates between 52.3 per cent and 76.11 per cent.

On April 1, 2015, the Department published a notice of initiation of the first sunset review of the CVD order on plastic bags from Viet Nam.

Thirty days after the notice, the Department did not receive substantive responses from the respondent party.

As a result, the Department conducted an expedited (120-day) sunset review into the matter.

According to the Viet Nam Plastic Association, Viet Nam's plastic products' exports to the US rose by 17.8 per cent year-on-year in value, reaching US$66.3 million in first quarter of 2015. With this, the US became the second largest export market for Vietnamese plastic products.

The US market continues to be not just large but also with potential for further growth for the Vietnamese plastic products, primarily comprising plastic home utensils and bags. — VNS

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