Department of Commerce Preliminarily Rules That Duties of 43 Percent Will Apply to Imports of Plastic Grocery and Shopping Bags From Malaysia

WASHINGTON, DC--(Marketwire - July 9, 2009) - This release is issued by King & Spalding: The U.S. Department of Commerce published today its preliminary decision in the annual administrative review of the antidumping order on plastic grocery and shopping bags from Malaysia. The Department ruled that U.S. importers of plastic bags made in Malaysia by Euro Plastics Malaysia Sdn. Bhd. ("Euro Plastics") will be required to pay antidumping duties of 43 percent of the customs value on imports entered into the United States from August 2007 through July 2008. Euro Plastics exports these bags to the United States primarily through Euro Packaging LLC, its affiliated reseller located in Salem, New Hampshire.

Although Euro Plastics had no shipments of plastic bags to the United States during the previous year, the company ramped up exports after the Commerce Department eliminated its antidumping cash deposit rate in August 2007. A zero cash deposit rate does not mean, however, that products can be imported free of antidumping duties. Even where an importer is not required to pay estimated duties at the time of entry, each shipment may be reviewed later by Commerce in an administrative review to determine the actual duties payable on that entry.

Assuming today's preliminary decision is unchanged in the final results expected to be announced in November, importers of plastic bags manufactured by Euro Plastics will receive a bill from U.S. Customs for duties in the amount of 43 percent of the value of those imports, plus interest. In addition, future entries of bags produced by Euro Plastics will be subject to cash antidumping duty deposit requirements at the 43 percent rate.

"The domestic industry applauds the Commerce Department's preliminary ruling, which, if upheld in the final results, will prevent Euro Plastics from abusing its zero cash deposit rate and expanding its U.S. market share through unfair pricing," said Joe Dorn, a partner with King & Spalding, counsel for the coalition of domestic producers that brought the antidumping petition.

Contact Information: For Further Information, Contact: Joseph W. Dorn King & Spalding LLP Washington, D.C. (202) 626-5445