US Trade Commission supports importation of duty-free glass packaging from China

USA – The U.S. International Trade Commission (ITC) has ruled in favour of Chinese exporters regarding the subsidization of Chinese manufactured glass packaging and containers exported into the United States.

This follows a petition filed in September 2019 by the American Glass Packaging Coalition, a coalition of producers of food and beverage glass packaging containers filed antidumping and CVD petitions, alleging that the U.S. glass container industry had been materially injured by unfairly priced imports from China.

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However, the Commission said on June 9th that it had determined that the US industry is not materially injured or threatened by imports of glass containers from China.

As a result of the Commission’s ruling, no countervailing duty will be imposed on imports of certain glass containers manufactured in China and duties previously calculated by the Department of Commerce will be removed.

The petition sought to impose duties on certain glass containers with a capacity of 0.059 liters up to and including 4.0 liters includes glass containers used for beer bottles, wine bottles, liquor/spirits bottles, non-alcoholic beverages, ready-to-drink beverages, and food containers.

In May, the Department of Commerce made an affirmative decision that would have seen the final countervailing duty (CVD) on Chinese glass container imports increased from 25.46% to 320.53% for Chinese manufacturers.

By so doing, the Department of Commerce said that the move would have broght the U.S. industry “one step closer to competing in a fair environment.”

While the ITC’s findings nullify the duties proposed by  the Department of Commerce, the parallel antidumping investigation is still pending and will be decided in October 2020.

So far, the decision to remove countervailing duties on imported Chinese glass has been supported by several packaging supplier including one of the world’s largest rigid packaging supplier, Berlin Packaging and global packaging leader, TricorBraun.

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“We are extremely gratified by this decision, as it benefits not only our customers, but their customers, the consumer,” said Mark Lobring, Vice President of Supply Chain at Berlin Packaging.

“As the leading global supplier of rigid packaging, we continue to advocate for fair and open supply chains, so our customers can benefit from the strong relationships we have with our 900+ manufacturing partners on four continents,” Mark said.

Court Carruthers, president & CEO, TricorBraun also commented: “We fully support the U.S. International Trade Commission’s decision as we have been active in this case since October 2019.”

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