Commerce Department Finds Preliminary Subsidies on Polypropylene Corrugated Boxes from China

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On August 20, 2025, the U.S. Department of Commerce made a preliminary decision. It found that producers and exporters of polypropylene corrugated boxes from China received countervailable subsidies. The investigation period is January 1, 2024, to December 31, 2024.

Investigation Details

The case is handled by the International Trade Administration, Enforcement and Compliance. The investigation follows section 703(b) of the Tariff Act of 1930. The preliminary decision was delayed to August 15, 2025, after an earlier planning notice.

What Is Being Investigated

The product under review is polypropylene corrugated boxes from China. This covers boxes made from corrugated, fluted, or hollow core polypropylene sheets. Sheets include different types such as twin wall or multi wall. Boxes can be different shapes and sizes. They may include lids, handles, or reinforcing wire. Some may be one piece, two piece, or multi-piece. Printed or plain boxes are included.

These products are listed under U.S. tariff code 3923.10.9000. This code is for customs purposes.

Scope of Investigation

No parties commented on changing the scope of goods covered. The list is the same as first stated in the notice starting the investigation.

How the Investigation Was Done

Commerce based its method on section 701 of the Act. It looked for financial contributions from authorities that make a benefit and are specific to certain producers, following sections 771(5) of the Act.

Some companies did not respond to requests for information. Commerce then used facts available and made negative inferences against those companies, as allowed by section 776(a) and (b) of the Act.

Alignment with Antidumping Investigation

The final result for this case will be aligned with the final result of the companion less-than-fair-value (antidumping) investigation for these boxes. This alignment was requested by the petitioners. Both final decisions are expected on or before November 10, 2025, unless delayed.

Preliminary Subsidy Rates

Commerce found that the following Chinese companies received subsidies at a rate of 199.60 percent (ad valorem):

  • Dongguan Jian Xin Plastic Products
  • Jinan Mantis Co Ltd
  • Ningbo Luchen Packaging Technology Co., Ltd.
  • Shandong PPKG I&E Co. Ltd.
  • Suzhou Huiyuan Plastic Products Co.

All other Chinese companies also received the same rate of 199.60 percent. These rates are based on facts available with adverse inferences.

What Happens Next

U.S. Customs and Border Protection (CBP) will suspend liquidation of entries of these products coming into the U.S. after this notice date. Importers must deposit cash equal to the subsidy rates listed.

Commerce will make its calculations public within five days of this notice. It will consider and correct any timely allegations of major calculation mistakes.

Verification and Public Comment

Due to lack of cooperation, Commerce will not conduct verification for non-responsive companies or the Government of China.

Interested parties can submit written comments within 30 days after this notice. They may also submit rebuttal briefs up to five days later. Briefs must include a table of contents, a table of authorities, and a public summary for each issue. Requests for a hearing must be made within 30 days.

International Trade Commission Notification

Commerce will notify the U.S. International Trade Commission (ITC) of its findings. If the final determination is affirmative, the ITC will decide within 120 days of this announcement or 45 days after the final determination if the imports cause injury to U.S. industry.

Official Details

This determination is issued by Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance, and follows sections 703(f) and 777(i) of the Tariff Act.

For more information, the full memorandum is available at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Further procedural and product scope details are found in Appendix I of the notice. The complete process, background, and findings are also listed in Appendix II.

Official contact for more information: Rachel Accorsi or Shane Subler, U.S. Department of Commerce, (202) 482-3149 or (202) 482-6241.

Source: Federal Register, Volume 90, Number 159, August 20, 2025.


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