Notice2024-19673

Fine Denier Polyester Staple Fiber

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 3, 2024

Issuing agencies

International Trade Commission

Abstract

Section 202(f)(3) of the Trade Act of 1974 requires that the United States International Trade Commission ("Commission") publish in the Federal Register a summary of each report that it submits to the President under section 202(f)(1) of the Trade Act of 1974. Set forth below is a summary of the report that the Commission submitted to the President on August 26, 2024, on investigation No. TA-201-78, Fine Denier Polyester Staple Fiber. The Commission conducted the investigation under section 202(b) of the Trade Act of 1974 following receipt of a petition filed on February 28, 2024. The full text of the report (with the exception of confidential business information) will be posted on the Commission's website at https://www.usitc.gov.

Full Text

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<title>Federal Register, Volume 89 Issue 170 (Tuesday, September 3, 2024)</title>
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[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71422-71424]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19673]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. TA-201-78]


Fine Denier Polyester Staple Fiber

AGENCY: United States International Trade Commission.

ACTION: Publication of summary of the Commission's report on the 
investigation.

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SUMMARY: Section 202(f)(3) of the Trade Act of 1974 requires that the 
United States International Trade Commission (``Commission'') publish 
in the Federal Register a summary of each report that it submits to the 
President under section 202(f)(1) of the Trade Act of 1974. Set forth 
below is a summary of the report that the Commission submitted to the 
President on August 26, 2024, on investigation No. TA-201-78, Fine 
Denier Polyester Staple Fiber. The Commission conducted the 
investigation under section 202(b) of the Trade Act of 1974 following 
receipt of a petition filed on February 28, 2024. The full text of the 
report (with the exception of confidential business information) will 
be posted on the Commission's website at <a href="https://www.usitc.gov">https://www.usitc.gov</a>.

DATES: August 26, 2024: Transmittal of the Commission's report to the 
President.

ADDRESSES: United States International Trade Commission, 500 E Street 
SW, Washington, DC 20436. The public record for this investigation may 
be viewed on the Commission's electronic docket (EDIS) at <a href="https://edis.usitc.gov">https://edis.usitc.gov</a>.

FOR FURTHER INFORMATION CONTACT: Kristina Lara (202-205-3386), Office 
of Investigations, U.S. International Trade Commission 500 E Street SW, 
Washington, DC 20436. The media should contact Jennifer Andberg, Office 
of External Relations (202-205-3404 or <a href="/cdn-cgi/l/email-protection#7e341b101017181b0c503f101a1c1b0c193e0b0d170a1d50191108"><span class="__cf_email__" data-cfemail="8ac0efe4e4e3eceff8a4cbe4eee8eff8edcafff9e3fee9a4ede5fc">[email&#160;protected]</span></a>). 
Hearing-impaired individuals may obtain information on this matter by 
contacting the Commission's TDD terminal at 202-205-1810. General 
information concerning the Commission may also be obtained by accessing 
its website (<a href="https://www.usitc.gov">https://www.usitc.gov</a>). Persons with mobility impairments 
who will need special assistance in gaining access to the Commission 
should contact the Office of the Secretary at 202-205-2000.

SUPPLEMENTARY INFORMATION: 
    Procedural summary: On February 28, 2024, the Commission instituted 
this investigation under section 202(b) of the Trade Act of 1974 (19 
U.S.C. 2252(b)) to determine whether fine denier polyester staple fiber 
(``fine denier PSF'') is being imported into the United States in such 
increased quantities as to be a substantial cause of serious injury, or 
the threat thereof, to the domestic industry producing an article like 
or directly competitive with the imported article. The Commission 
instituted the investigation in response to a petition filed on 
February 28, 2024, by Fiber Industries LLC d/b/a Darling Fibers, Nan Ya 
Plastics Corporation, America, and Sun Fiber LLC, producers of fine 
denier PSF in the United States.
    Notice of the institution of the Commission's investigation and of 
the scheduling of public hearings to be held in connection therewith 
was given by posting copies of the notice in the Office of the 
Secretary, U.S. International Trade Commission, Washington, DC, and by 
publishing the notice in the Federal Register (89 FR 18435 (March 13, 
2024)). The public hearing in connection with the injury phase of the 
investigation was held on June 4, 2024, in Washington, DC, and the 
public hearing in connection with the remedy phase of the investigation 
was held on July 23, 2024, in Washington, DC; all persons who requested 
the opportunity were permitted to participate. The Commission voted 
with respect to injury issues on July 9, 2024, and with respect to 
remedy issues on August 13, 2024.

[[Page 71423]]

    The Commission submitted its report to the President on August 26, 
2024. The report included the Commission's injury determination and 
remedy recommendations, an explanation of the basis for the 
determination and remedy recommendations, and a summary of the 
information obtained in the investigation.
    Section 202(f)(3) of the Trade Act of 1974 (19 U.S.C. 2252(f)(3)) 
requires that the United States International Trade Commission 
(``Commission'') publish in the Federal Register a summary of each 
report that it submits to the President under section 202(f)(1) of the 
Trade Act of 1974.
    Determination: On the basis of information developed in the subject 
investigation, the Commission determined pursuant to section 202(b) of 
the Trade Act of 1974 that fine denier PSF is being imported into the 
United States in such increased quantities as to be a substantial cause 
of serious injury to the domestic industry producing an article like or 
directly competitive with the imported article.
    Having made an affirmative injury determination pursuant to section 
202(b) of the Trade Act of 1974, the Commission was required to make 
certain additional findings under the implementing statutes of certain 
free trade agreements (``FTAs'') or under statutory provisions related 
to certain preferential trade programs. Under section 301(a) of the 
United States-Mexico-Canada (``USMCA'') Implementation Act (19 U.S.C. 
4551(a)), the Commission found that imports of fine denier PSF from 
neither Canada nor Mexico account for a substantial share of total 
imports or contribute importantly to the serious injury caused by 
imports. The Commission further found that imports of fine denier PSF 
from Australia, the U.S.-Dominican Republic--Central America Free Trade 
Agreement (``CAFTA DR'') countries, Colombia, Jordan, South Korea, 
Panama, Peru, and Singapore, individually, are not a substantial cause 
of serious injury or threat thereof, under the relevant FTA 
implementing statutes. See 19 U.S.C. 2112 note (Jordan); 19 U.S.C. 3805 
note (Australia, Colombia, South Korea, Panama, Peru, Singapore); 19 
U.S.C. 4101 (CAFTA-DR). The Commission also found that the serious 
injury substantially caused by imports to the domestic industry 
producing a like or directly competitive article does not result from 
the reduction or elimination of any duty provided for under the U.S.-
Israel Free Trade Agreement or from duty-free treatment provided for 
under the Caribbean Basin Economic Recovery Act (``CBERA'') provisions 
of the Caribbean Basin Initiative Trade Program or the Generalized 
System of Preferences (``GSP'') program. See 19 U.S.C. 2112 note 
(Israel); 19 U.S.C. 2703(e) (CBERA); 19 U.S.C. 2253(e)(6) (GSP).
    Remedy recommendations. In order to address the serious injury to 
the domestic industry producing fine denier PSF and be most effective 
in facilitating the efforts of the domestic industry to make a positive 
adjustment to import competition, the Commission recommends several 
actions.
    The Commission unanimously recommends a four-year period of relief. 
It also unanimously recommends that a quantitative restriction 
(``QR''), to be set at zero in the first year of relief increasing by 
one million pounds in each subsequent year over the duration of the 
safeguard, be imposed on imports of fine denier PSF entered free under 
bond as articles to be processed for export under the Temporary 
Importation under Bond (TIB) program. All Commissioners additionally 
recommend a tariff-rate quota (``TRQ'') be imposed on imports of fine 
denier PSF from all countries covered by their affirmative injury 
determination.
    Commissioners Johanson and Schmidtlein recommend a TRQ with an in-
quota volume level of 145,000,000 pounds (inclusive of any imports of 
the article under HTS statistical reporting number 9813.00.0520), with 
an in-quota tariff rate of 15 percent ad valorem and an out-of-quota 
tariff rate of 40 percent ad valorem. They recommend that the in-quota 
tariff rate decrease by 1 percentage point and the out-of-quota tariff 
rate decrease by 2 percentage points, in each subsequent year of the 
four-year relief period. Commissioners Johanson and Schmidtlein 
recommend that any imports of the article under HTS statistical 
reporting number 9813.00.0520 entered after the tariff-rate quota has 
filled for the year would be subject to the over-quota duty rate.
    Chair Karpel recommends a TRQ with an in-quota volume level of 
114,820,000 pounds, with an in-quota tariff rate of 15 percent ad 
valorem and an out-of-quota tariff rate of 45 percent ad valorem. Chair 
Karpel recommends that the in-quota and out-of-quota tariff rates 
decrease by 1 percentage point in each subsequent year of the four-year 
relief period. Chair Karpel recommends that the TRQ's in-quota volume 
level is inclusive of any imports of fine denier polyester staple fiber 
under HTS subheading 9813.00.05.
    Commissioner Kearns recommends a TRQ with an in-quota volume level 
of 110,000,000 pounds (inclusive of any imports of the article under 
HTS statistical reporting number 9813.00.0520, with the exception of 
imports from countries that were not covered by the Commission's injury 
determination), with an in-quota tariff rate of 22 percent ad valorem 
in the first year, reduced to 20 percent ad valorem in the second and 
third years, and reduced to 18 percent ad valorem in the fourth year. 
Commissioner Kearns recommends an out-of-quota tariff rate of 50 
percent ad valorem, reduced by three percentage points in each 
subsequent year of the four-year relief period. Commissioner Kearns 
recommends that fine denier PSF imported under HTS statistical 
reporting number 9813.00.0520, with the exception of TIB entries from 
the FTA and trade preference countries that were not covered by the 
Commission's injury determination, be subject to the in-quota and out-
of-quota tariff rates.
    Having made negative findings with respect to imports from Canada 
and Mexico under section 302 of the USMCA Implementation Act, and 
having made findings that imports from Australia, the CAFTA-DR 
countries, Colombia, Israel, Jordan, Panama, Peru, Singapore, South 
Korea, and the beneficiary countries under the Caribbean Basin Economic 
Recovery Act were not a substantial cause of the serious injury 
experienced by the domestic industry, the Commission recommends that 
the President exclude such countries from any form of the TRQ.
    All Commissioners recommend that the QR imposed on imports of fine 
denier PSF entered under TIB under HTS statistical reporting number 
9813.00.0520 apply to imports from all countries for which they 
recommend application of the TRQ. Chair Karpel and Commissioner 
Schmidtlein recommend that the QR also apply to imports from South 
Korea. Commissioner Kearns recommends that the QR be applied to all 
countries, including South Korea.

[[Page 71424]]



                        Summary of Commissioners' Recommended Actions on Fine Denier PSF
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                                        Year 1              Year 2              Year 3              Year 4
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                 QR: Fine denier PSF entries under HTS statistical reporting number 9813.00.0520
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QR Level (pounds):
All Commissioners...............  zero..............  1 million.........  2 million.........  3 million
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                                                Tariff Rate Quota
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In-Quota Volume Level (thousands
 of pounds):
    Johanson and Schmidtlein....  145,000...........  145,000...........  145,000...........  145,000
    Karpel......................  114,820...........  114,820...........  114,820...........  114,820
    Kearns......................  110,000...........  110,000...........  110,000...........  110,000
In-Quota Tariff Rate (ad          15................  14................  13................  12
 valorem):
    Karpel, Johanson, and
     Schmidtlein.
    Kearns......................  22................  20................  20................  18
Out-of-Quota Tariff Rate (ad
 valorem):
    Johanson and Schmidtlein....  40................  38................  36................  34
    Karpel......................  45................  44................  43................  42
    Kearns......................  50................  47................  44................  41
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    The Commission further recommends that the President authorize the 
establishment of an exclusion process to allow for importation of 
covered imports without application of the remedy measures in the case 
of a demonstrated lack of production in the United States for a 
particularized fine denier polyester staple fiber product or in the 
case of a critical short supply of a particularized fine denier 
polyester staple fiber product from domestic sources.
    Chair Karpel, Commissioner Johanson, and Commissioner Schmidtlein 
recommend that the President consider programs to assist downstream 
users of fine denier PSF and to mitigate the potential impact of the 
remedy on such users.
    Chair Karpel and Commissioner Schmidtlein recommend that the 
President submit to Congress, pursuant to his authority under section 
203(a)(3)(H), a legislative proposal that would permanently preclude 
the importation of fine denier PSF under TIB to avoid payment of cash 
deposits and assessed antidumping and countervailing duties that would 
otherwise apply to the product.
    Commissioner Kearns recommends that the President submit to 
Congress a legislative proposal to permanently preclude the ability to 
avoid payment of any antidumping or countervailing duty through the TIB 
provision provided for in HTS subheading 9813.00.0520.
    Commissioner Kearns also recommends that the President submit to 
Congress a legislative proposal to distribute TRQ revenue generated by 
this action to downstream users of the article, to the extent necessary 
to reduce injury to domestic manufacturers of downstream products.
    Availability of the public version of the report. The public 
version of the Commission's report containing the Commission's injury 
determination, its remedy recommendations, an explanation of the basis 
for its injury determination and remedy recommendations, and a summary 
of the information obtained in the investigation is contained in Fine 
Denier Polyester Staple Fiber, Inv. No. 201-TA-78, USITC Publication 
5536 (August 2024).

    By order of the Commission.

    Issued: August 27, 2024.
Sharon Bellamy,
Supervisory Hearings and Information Officer.
[FR Doc. 2024-19673 Filed 8-30-24; 8:45 am]
BILLING CODE 7020-02-P


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Indexed from Federal Register on September 3, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.