U.S. Department of Commerce Imposes Preliminary Duties on Chinese and Vietnamese Paper Plate Imports

The U.S. Department of Commerce has announced its preliminary determination that the governments of China and Vietnam unfairly subsidize their paper plate industries, resulting in significant duties on imports from these countries. The imposed duties could be as high as 313.14 percent on imports from China and up to 237.65 percent on imports from Vietnam.

The American Paper Plate Coalition (APPC), which represents the majority of American paper plate production, has expressed strong support for the decision. William P. Biggens, Jr., President and Co-Owner of APPC member Aspen Products, Inc., stated, "The unlawful subsidies received by Chinese and Vietnamese producers have given them an unfair advantage in the U.S. market—this has had a direct negative impact on American producers and employees. Imposing duties to offset unlawful subsidies is an important first step to ensuring the future health of our industry. We are encouraged that Commerce has taken preliminary action to restore a level playing field."

These announcements are a response to petitions filed by the APPC in January, which highlighted unfair trade practices, including the sale of unlawfully subsidized paper plates at less than fair value. The Commerce Department began investigating the anti-dumping (AD) and countervailing duty (CVD) claims in February.

The ongoing countervailing duty investigations concerning imports from China and Vietnam may result in even higher final CVD rates. Final determinations in these investigations are expected by early November 2024. Additionally, preliminary determinations in the companion AD investigations of imports from China, Vietnam, and Thailand are due on August 22, 2024.

Robert Epstein, President and CEO of APPC member AJM Packaging Corporation, commented, "Today’s announcement and the high duties being imposed validate the analysis we presented when we filed these cases and the extent of the problem that drove us to file in the first place. We appreciate the Commerce Department’s hard work and diligent efforts to administer our trade laws as Congress intended."

For more detailed information on the petitions, readers can refer to the APPC’s press release. Additional details on the International Trade Commission’s investigation are available in the Commission’s press release, and more on the Department of Commerce's investigation can be found in the agency’s press release.

The American Paper Plate Coalition includes leading U.S. producers such as AJM Packaging Corporation, Aspen Products, Inc., Dart Container Corporation, Hoffmaster Group, Inc., Huhtamaki, Inc., and Unique Industries, Inc. The coalition is represented by Adam H. Gordon of The Bristol Group PLLC, a Washington, D.C.-based international trade law firm dedicated to defending American industry, agriculture, and manufacturing jobs.

For more information on the coalition members, visit their respective websites: AJM Packaging Corporation, Aspen Products, Inc., Dart Container Corporation, Hoffmaster Group, Inc., Huhtamaki, Inc., and Unique Industries, Inc..