In a recent development, the U.S. International Trade Commission (ITC) has unanimously voted in favor of addressing concerns related to paper file folder imports from China, India, and Vietnam, acknowledging their impact on domestic file folder manufacturers in the United States. This decision aligns with the determinations made by the U.S. Department of Commerce in October, which found that these imported paper file folders were being sold at prices below fair market value, a practice commonly referred to as "dumping." Additionally, imports from India were identified as receiving countervailable subsidies. The affected paper file folders encompass various types, including manila, hanging fastener, classification, expanding folders, as well as filing pockets, filing jackets, and filing wallets.
The Coalition of Domestic Folder Manufacturers (referred to as the "Coalition") has expressed its satisfaction with the final determinations made by both the ITC and the Commerce Department. As a result of these affirmative findings related to unfair trading practices, the Commerce Department is scheduled to release antidumping and countervailing duty orders during the third week of November.
The Commerce Department's investigation revealed several key findings. It determined that imports of paper file folders from China were being sold in the United States below their normal market value, with a calculated dumping rate of 192.70 percent. Moreover, the investigation found that paper file folders from India were both dumped and subsidized, resulting in anti-dumping margins and countervailing duty rates ranging from 17.22 percent to 173.21 percent. Imports from Vietnam were also identified as being dumped at rates ranging from 97.52 percent to 233.93 percent. Consequently, U.S. importers of paper file folders from these countries will be required to make cash deposits to U.S. Customs and Border Protection (Customs) at these specified rates. These deposits will be based on the value of their future imports. For instance, importers will need to deposit $192.70 with U.S. Customs for every $100 worth of paper file folders imported from China, as a precautionary measure for potential dumping duty liabilities.
The Coalition, represented by the law firm King & Spalding LLP, welcomes the ITC's decision and emphasizes its significance for the long-term prospects of domestic paper file folder producers. Attorney Mike Taylor, speaking on behalf of the Coalition, underlined the commitment of domestic producers to protect their interests and workers, cautioning those contemplating unfair trade practices in this sector.
The Coalition plans to maintain its vigilance in monitoring imports of potentially unfairly traded paper file folders from other countries. Additionally, it intends to actively cooperate with U.S. Customs to ensure full compliance with importers' obligations. Importing paper file folders subject to countervailing and antidumping duties without proper payment may result in severe civil or criminal penalties, including imprisonment.
