The US Department of Commerce has made a prelimary determination to impose countervailing duties on imports of laminated woven sacks from China after ruling that Beijing has been providing illegal subsidies to Chinese producers.
 
Woven sacks are typically used to package pet food and bird seed.  
 
The duties range from 2.57 pct to 57.14 pct of the customs value of the imports, depending on the identity of the Chinese producer, according to a statement by law firm King and Spalding LLP.
 
Antidumping duties could follow next year, the statement said.
 
'The Commerce Department's preliminary determination imposes countervailing duties on imports of laminated woven sacks from China to offset the unfair advantage of government subsidies. The Commerce Department also found that critical circumstances exist because of surging imports,' the statement said.  
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Thus, the duty of 57.14 pct may be imposed retroactively by 90 days on imports from two of the largest Chinese producers,' it added.  
 
In August this year, the US International Trade Commission made a preliminary determination that imports of laminated woven sacks from China were negatively impacting the industry in the US, with Chinese imports doubling from 78 mln bags in 2004 to 153 mln in 2006.   According to the statement, unfairly priced imports from China held 80 pct of the US market last year.  
 
The preliminary determination of an accompanying antidumping investigation is due on Jan 24, 2008.  
 
The antidumping petition alleges dumping margins of 74-92 pct, the statement said.
 
'We expect the antidumping duties to be substantial and to be imposed on top of the countervailing duties announced today. The combined duties -- countervailing plus antidumping -- should be very high,' King and Spalding partner Joe Dorn said.
 
After the Department of Commerce makes final determinations in both the countervailing duty and antidumping duty investigations, the ITC is scheduled to complete its final investigation in the summer of 2008, the statement added.