New Trade Case on Imports of Certain Glass Wine Bottles from China, Mexico, and Chile
Three new U.S. antidumping (“AD”) petitions were filed on Dec. 28 by the U.S. Glass Producers Coalition (“GPC” or “Petitioner”) against imports of certain glass wine bottles (“wine bottles”) from China, Mexico, and Chile. Petitioner also filed one countervailing duty (“CVD”) petition against imports of wine bottles from China.
The merchandise covered by these petitions consists of certain narrow-neck glass bottles, with a nominal capacity of 750 milliliters (25.36 ounces). The wine bottles can be clear or colored, with or without designs or functional enhancements such as embossing, labeling, or etching. The chemical composition of wine bottles is relatively uniform due to the viscosity requirements for molten glass on high-speed production equipment. Due to similar manufacturing techniques, wine bottles typically have “mold seams” (also referred to as “joint marks” or “parting lines”), which are raised lines of glass running vertically through the length of the bottle and are formed where the edges of different mold sections came together during the production process. Wine bottles have a “finish” at the opening that includes the lip and “collar” or “ring” that is threaded, ribbed, or otherwise designed to be compatible with a closure (lid, cap, cork, etc.) to seal the bottle’s contents. Please see below for the full text of the proposed scope for the investigations.
The Department of Commerce (“DOC”) and the U.S. International Trade Commission (“ITC”) will conduct the investigations. Within the next 20 days, the Department of Commerce (DOC) must decide on whether to initiate an investigation. If they decide to do so, the ITC will determine if there is a reasonable indication that the imports are injuring or threatening to injure the U.S. industry. This determination will be made within 45 days of the investigation being initiated. If the ITC finds that this standard is met, the cases will move to the DOC, which will calculate the preliminary AD and CVD duty margins.
The DOC’s preliminary determinations are currently expected by April 1, 2024 (CVD) and June 25, 2024 (AD). On the date of publication of DOC’s preliminary determinations, importers will be required to deposit the calculated duties upon the products’ entry into the U.S. market. Importers should be aware that entries may be subject to AD/CVD cash deposits 90 days before the DOC preliminary determinations if the DOC and ITC issue a finding of “critical circumstances.” For the DOC, this means that imports increased by at least 15 percent following the filing of the petition compared to a similar period (typically three months) before the petition. For the ITC, a final finding of critical circumstances is less common.
There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available. A schedule of approximate key dates is attached below.
The following are key facts about this trade case:
Petitioner: GPC, which comprises Ardagh Glass Inc. and the United States, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
AD/CVD margins: Petitioner alleged the following AD/CVD margins:
- China: dumping margins between 280.10 and 620.03 percent, ad valorem, and a countervailing duty margin above de minimis;
- Mexico: dumping margins between 78.55 and 102.09 percent, ad valorem;
- Chile: dumping margin of 615.68 percent, ad valorem.
Merchandise covered by the scope of the case:
The proposed scope of these investigations describes the imported merchandise as:
The merchandise covered by the investigations is certain narrow-neck glass bottles, with a nominal capacity of 750 milliliters (25.36 ounces), consistent with the authorized standards of fill in 27 C.F.R. § 4.72; a nominal total height between 24.8 centimeters (9.75 inches) to 35.6 centimeters (14 inches); a nominal base diameter between 4.6 centimeters (1.8 inches) to 11.4 centimeters (4.5 inches); and a mouth with an outer diameter of between 25 millimeters (.98 inches) to 37.9 millimeters (1.5 inches); frequently referred to as a “wine bottle.” In scope merchandise may include but is not limited to the following shapes: Bordeaux (also known as “Claret”), Burgundy, Champagne, or Sparkling. In scope glass bottles generally have an approximately round base and have shapes including but not limited to, straight-sided, a tapered slope from shoulder (i.e., the sloping part of the bottle between the neck and the body) to base, or a long neck with sloping shoulders to a wider base. The scope includes glass bottles, whether clear or colored, with or without a punt (i.e., an indentation on the underside of the bottle), and with or without design or functional enhancements (including, but not limited to, embossing, labeling, or etching). In scope merchandise may be imported with or without a closure, including a cork, stelvin (screw cap), crown cap, or wire cage and cork closure.
Excluded from the scope of the investigations are: (1) Glass containers made of borosilicate glass, meeting United States Pharmacopeia requirements for Type 1 pharmaceutical containers; (2) Glass containers produced by the “free blown” method or otherwise without the use of a mold (i.e., without “mold seams,” “joint marks,” or “parting lines”); and (3) Glass containers without a “finish” (i.e., the section of a container at the opening including the lip and ring or collar, threaded or otherwise compatible with a type of closure, including but not limited to a cork, stelvin (screw cap), crown cap, or wire cage and cork closure).
Glass bottles subject to the investigations are specified within the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 7010.90.5019. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive.
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680), Kevin Williams (kwilliams@clarkhill.com; 312-985-5907), Aristeo Lopez (alopez@clarkhill.com; 202-552-2366), Kelsey Christensen (kchristensen@clarkhill.com; 202-640-6670), Sally Alghazali (salghazali@clarkhill.com; 202-572-8676), or other members of Clark Hill’s International Trade Business Unit.
| Approximate Key Dates* | ||
|
Antidumping Duty Investigation |
||
| Event | No. of Days | Date of Action |
| Petition Filed | 0 | 12/28/2023 |
| Initiation Date | 20 | 1/17/2024 |
| ITC Preliminary Investigations** | ||
| Questionnaires Due | 14 | 1/31/2024 |
| Request to appear at hearing | 18 | 2/5/2024 |
| Hearing | 21 | 2/7/2024 |
| Briefs | 26 | 2/12/2024 |
| ITC Vote | 43 | 2/29/2024 |
| ITC Preliminary Determination | 45 | 3/4/2024 |
| DOC Investigations | ||
| DOC Preliminary AD Determination | 160 | 6/25/2024 |
| DOC Final AD Determination | 235 | 9/9/2024 |
| ITC Final Investigations | ||
| ITC Final AD Determination | 280 | 10/23/2024 |
| DOC Final Investigations | ||
| DOC AD Publication of Order | 287 | 10/30/2024 |
| Countervailing Duty Investigation | ||
| Event | No. of Days | Date of Action |
| Petition Filed | 0 | 12/28/2023 |
| Initiation Date | 20 | 1/17/2024 |
| ITC Determination of Reasonable Indication of Injury | 45 | 3/4/2024 |
| DOC Preliminary CVD Determination | 85 | 4/1/2024 |
| Submission of factual information | 95 | 4/22/2024 |
| Request for a hearing | 122 | 5/17/2024 |
| Briefs | 142 | 6/7/2024 |
| DOC Final CVD Determination | 160 | 6/25/2024 |
| ITC Final CVD Determination | 205 | 8/9/2024 |
| DOC CVD Publication of Order | 212 | 8/16/2024 |
* Deadlines are approximate and may change. When a deadline falls on a weekend or Federal holiday, deadlines will be extended to the next business day, as reflected in the above.
** The ITC preliminary dates may change slightly when the ITC publishes its notice of institution in the Federal Register. When the notice is published, parties will have seven days to file an entry of appearance at the ITC and apply for access to confidential information through counsel under Administrative Protective Order.
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