NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT
ON
SAFEGUARDS ON INITIATION OF AN INVESTIGATION AND
THE REASONS FOR IT
United States
Fine Denier Polyester Staple Fiber
The following communication, dated and
received on 11 March 2024, is being circulated at the request of the delegation
of the United States.
_______________
Pursuant
to Article 12.1(a) of the WTO Agreement on Safeguards (Safeguards Agreement),
the United States notifies that a safeguard investigation has been initiated as
follows:
1. Specify the date when the investigation was initiated
The
U.S. International Trade Commission (Commission) initiated the investigation on
February 28, 2024.
A copy
of the notice of institution of the investigation, which includes the scheduling
of public hearings and the applicable rules of procedure, is attached.[*]
The
Commission has determined that this investigation is "extraordinarily
complicated" within the meaning of 19 U.S.C. § 2252(b)(2)(B) and will make
its serious injury determination by July 9, 2024. If the
determination is affirmative or the Commission is equally divided, the
Commission will submit its report to the President within 180 days of the date
on which the petition was properly filed, August 26, 2024.
2. Specify the product subject to the investigation
The product
covered by this investigation is fine denier polyester staple fiber (PSF), not
carded or combed, measuring less than 3.3 decitex (3 denier) in diameter. The
scope covers all fine denier PSF, whether coated or uncoated.
The
following products are not covered by this investigation: (1) PSF equal to or
greater than 3.3 decitex (more than 3 denier, inclusive) currently
imported under Harmonized Tariff System of the United States (HTSUS)
statistical reporting numbers 5503.20.0045 and 5503.20.0065; and (2) Low-melt
PSF defined as a bicomponent polyester fiber having a polyester fiber component
that melts at a lower temperature than the other polyester fiber component,
which is currently imported under HTSUS statistical reporting number
5503.20.0015.
For customs
purposes, the fine denier PSF covered by the investigation is provided for
under HTSUS subheading 5503.20.0025. These HTSUS numbers are provided for
convenience and the written description of the scope is dispositive.
3. Provide the reasons for the initiation of the investigation
i._
Was the investigation initiated pursuant to a petition from the
domestic industry?
Yes, the
investigation was initiated pursuant to a petition filed by Fiber Industries
LLC d/b/a Darling Fibers, Nan Ya Plastics Corp, America, and Sun Fiber
LLC, producers of fine denier PSF in the United States. The Commission deemed
the petition to have been properly filed on February 28, 2024.
ii._ Evidence on the basis of which the investigation was initiated.
Increased Import Quantities
The
petition[2]
alleges that imports have increased, both in absolute terms and relative to
U.S. production and consumption. According to the petition, fine denier
PSF imports increased from 195.2 million pounds in 2019 to 282.3 million pounds
in 2023, an increase of 44.6 percent. The ratio of imports to domestic
production increased steadily over the same period.
Serious Injury or Threat of Serious
Injury to the Domestic Industry
The petition
alleges that imports are a substantial cause of serious injury because:
·_
The substantial increase in
imports' share of the U.S. market has resulted in plunging domestic production
and the significant closures and idling of U.S. production facilities;
·_
The displacement of U.S.
producer sales by low-priced imports led to severe reductions in the domestic
industry's capacity utilization;
·_
The financial performance of
the domestic industry fell from 2019 to 2023; and
·_
The loss of U.S. market share
over the past five years has had a negative effect on the domestic industry's
employment.
With
regards to threat of serious injury to the domestic industry, the petition alleges
that the domestic industry suffered significant market share losses,
deteriorating financial performance, low and declining capacity utilization,
and suppressed investment and employment as evidence of threat of serious
injury to the domestic industry.
Unforeseen Developments
The
petition does not make reference to any unforeseen developments.
More
detailed information regarding all of the above is contained in the petition,
which can be found at https://edis.usitc.gov.
iii._ Evidence, if any, of critical circumstances where delay would could
damage which it would be difficult to repair.
The
petitioner did not allege critical circumstances in the petition.
4. Provide a point of contact for the investigation and identify the
preferred means for corresponding.
The
point of contact for the investigation is:
Kristina
Lara
Office
of Investigations
U.S.
International Trade Commission
500
E Street, SW
Washington,
DC 20436
Tel:
(202-205-3386)
The public record for this
investigation may be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov.
5. Provide the deadlines and procedures for importers, exporters and
other interested parties to present evidence and their views, including (i)
deadlines and procedures for Members and exporters to identify themselves as
interested parties, if so required, to participate in the investigation, and
(ii) the date of an intended public hearing as provided for in Article 3.1.
Persons
wishing to participate in the investigation as parties must file an entry of
appearance with the Secretary to the Commission not later than 21 days after
publication of the notice of institution in the Federal Register. The Secretary
will prepare a service list containing the names and addresses of all persons,
or their representatives, who are parties to this investigation upon the
expiration of the period for filing entries of appearance.
The
Secretary will make confidential business information gathered in this
investigation available to authorized applicants representing interested
parties under the administrative protective order issued in the investigation,
provided that the application is made not later than 21 days after the
publication of the notice of institution in the Federal Register. A separate
service list will be maintained by the Secretary for those parties authorized
to receive confidential business information under the administrative
protective order.
Each
party who is an interested party may submit a prehearing brief to the
Commission. The deadline for filing prehearing briefs on serious injury is May
28, 2024; that for filing prehearing briefs on remedy is July 16, 2024.
The
Commission has scheduled separate hearings in connection with the serious
injury and remedy phases of this investigation. The hearing on serious injury
will be held on June 4, 2024, at the U.S. International Trade Commission
Building, 500 E Street, SW, Washington, DC.
In the
event that the Commission makes an affirmative serious injury determination or
is equally divided on the question of serious injury in this investigation, a
hearing on the question of remedy will be held on July 23, 2024.
Requests
to appear at the hearings should be filed in writing with the Secretary to the
Commission on or before May 24, 2024 for the serious injury hearing, and July
17, 2024 for the remedy hearing.
All
parties and nonparties desiring to appear at the hearings and make oral
presentations should participate in prehearing conferences to be held on May
31, 2024 for the serious injury hearing and July 19, 2024 for the remedy
hearing, if deemed necessary.
Parties
may file written testimony in connection with their presentation at the
hearing. A nonparty who has testimony that may aid the Commission's
deliberations may request permission to present a short statement at the
hearings. Parties must submit any request to present a portion of their hearing
testimony in camera no later than 7 business days prior to the date of the
respective hearings.
The
deadline for filing posthearing briefs for the serious injury phase of the
investigation is June 11, 2024; the deadline for filing posthearing
briefs for the remedy phase of the investigation, if any, is July 29, 2024.
In
addition, any person who has not entered an appearance as a party to the
investigation may submit a written statement of information pertinent to the
consideration of serious injury on or before June 11, 2024, and pertinent to
the consideration of remedy on or before July 29, 2024.
The
attached notice of institution provides further information regarding deadlines
and procedures applicable to this investigation.
The
Commission's Handbook on E-Filing, available on the Commission's website at https://www.usitc.gov/secretary/documents/handbook_on_filing_procedures.pdf,
elaborates upon the Commission's rules with respect to electronic filing.
__________
[*]
The notice of institution of the investigation has been submitted
electronically, and is available from the WTO Secretariat. To consult it,
please contact Ms Anne Richards of the Rules Division (anne.richards@wto.org).
[2] Much
of the serious injury data is confidential business information. However, the
United States has included relevant data and information regarding serious
injury or threat of serious injury where possible.