The United States Department of
Commerce today announced the imposition of "antidumping" duties on imports
of certain polyester staple fiber from China. The Commerce Department
calculated preliminary antidumping margins ranging from 44.30 percent to
4.39 percent of the value of Chinese imports. Three Chinese producers were
singled out in the preliminary determination: Cixi Jiangnan Chemical Fibers
Company (15.30 percent), Far Eastern Industries Shanghai (10.45 percent),
and Ningbo Dafa Chemical Fibers Company (4.39 percent).
    Following this decision, U.S. Customs and Border Protection must now
require importers to post a bond or cash deposit in the amount of the
duties, pending the final determination in the investigation and
announcement of final duty amounts, which is expected in May 2007.
    "Today's announcement by the Commerce Department signals a return of
fair pricing and competition in the marketplace," said Paul C. Rosenthal,
lead counsel for the petitioners and Managing Partner of Kelley Drye
Collier Shannon in Washington, D.C. Mr. Rosenthal also noted that final
antidumping duty margins were expected to be even higher.

    The antidumping duty investigation began in June 2006 after American
producers DAK Americas LLC, Charlotte, N.C.; Nan Ya Plastics Corp. America,
Lake City, S.C.; and Wellman, Inc., Shrewsbury, N.J. filed a petition with
the International Trade Commission (ITC) and Department of Commerce. The
petition covered the types of polyester staple fiber typically used as
stuffing.
    In August, ITC Commissioners voted 6-0 to allow the investigation to
move forward based on their belief that there existed a reasonable
indication of injury to U.S. manufacturers.
    Paul C. Rosenthal is Managing Partner of the Washington, D.C. office of
Kelley Drye Collier Shannon, where he practices in the International Trade
and Customs Group and chairs the Government Relations and Public Policy
Group. He was assisted in this matter by Special Counsel David C. Smith,
Jr.
    About Kelley Drye Collier Shannon
    Kelley Drye Collier Shannon, the Washington, D.C. office of Kelley Drye
& Warren, LLP is an international, multidisciplinary law firm that solves
competitive problems for Fortune 500 companies, privately-held
corporations, government entities, and trade associations. Kelley Drye &
Warren has more than 400 attorneys and professionals practicing in eight
locations around the world and specializing in more than 30 areas of law.