U.S. Finalizes Countervailing Duties on Plastic Boxes from China
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On January 22, 2026, the U.S. Department of Commerce announced its final determination in the countervailing duty (CVD) investigation concerning polypropylene corrugated boxes from the People’s Republic of China.
The Commerce Department found that Chinese producers and exporters of these plastic boxes received unfair government subsidies during the period from January 1, 2024, to December 31, 2024.
The subsidy rates for five Chinese companies were set at 62.27%. These companies are:
- 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 exporters or producers of these boxes will also receive the same rate of 62.27%.
The rates are based on “adverse facts available” because these companies and the Government of China did not provide full information requested by the Commerce Department. A verification was not conducted for these companies.
The scope of the case covers plastic boxes made from corrugated polypropylene sheets. These boxes may be made in one piece, two pieces, or multiple pieces. They may include features like lids, handles, tabs, printing, or reinforcements. The boxes fall under the U.S. customs code 3923.10.9000.
This case started with a preliminary determination published on August 20, 2025. The petitioners in the case are:
- CoolSeal USA Inc.
- Inteplast Group Corporation
- SeaCa Plastic Packaging
- Technology Container Corp.
The final stage in the investigation is now in the hands of the U.S. International Trade Commission (ITC). The ITC has 45 days from the Commerce Department’s decision to decide if these imports harm or threaten to harm U.S. industry.
If the ITC makes a final affirmative injury finding, the Commerce Department will issue a formal countervailing duty order. Customs and Border Protection (CBP) will then collect cash deposits based on the 62.27% rate on all future entries of the subject merchandise.
If the ITC finds no harm, this proceeding will end. In that case, all collected deposits will be refunded, and no duties will be applied.
The Commerce Department stopped the suspension of liquidation for goods entered after December 17, 2025. However, it will reinstate this suspension — and resume collecting duties — if the ITC makes a positive injury determination.
The Commerce Department will also provide non-confidential information from this investigation to the ITC and allow secure access to confidential information under proper procedures.
For parties involved under an Administrative Protective Order (APO), if the ITC issues a negative injury determination, they must destroy or return all proprietary information in compliance with federal rules, or convert it to a judicial protective order.
This final determination was signed by Christopher Abbott, Deputy Assistant Secretary for Policy and Negotiations, on January 15, 2026.
The full scope of the investigation and product definitions are included in the official notice.
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