U.S. Department of Commerce Finds Indian Paper Bag Companies Violating Trade Rules

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On October 7, 2026, the U.S. Department of Commerce announced preliminary findings concerning certain paper shopping bags from India. The department found that two Indian companies, Ckaari Packaging Private Limited and Velvin Packaging Solution Private Limited, sold paper shopping bags in the U.S. at prices below fair market value. This review covered sales from January 3, 2024, to June 30, 2025.

Key Findings

The U.S. Commerce Department determined that Ckaari and Velvin were selling these bags at dumping margins of 1.23% and 3.01%, respectively. This indicates they were selling paper bags for less than what they usually sell for in India.

There were also 23 other producers and exporters reviewed, and for those not directly investigated, the department assigned a weighted-average rate of 2.44%. This includes companies like Adeera Packaging Pvt. Ltd, Archies Limited, and others.

Administrative Rescissions

The Department of Commerce rescinded the review for seven companies. This means that for these companies, it was found that there were no entries into the U.S. during that time that needed review. The companies include Amate Products Pvt. Ltd. and Dynaflex Private Limited, among others.

Next Steps

The department is inviting comments on these preliminary results. Companies and interested parties can submit their comments or requests for a hearing. The final results will determine future trade duties on these products.

Background

The review was initiated because of concerns that Indian producers were undercutting U.S. companies by selling paper shopping bags at an unfairly low price. The investigation follows laws meant to protect U.S. industries from unfair foreign competition.

Conclusion

The investigation underscores the commitment of the U.S. Department of Commerce to enforce trade laws and ensure fair competition. The final outcomes of this review could have significant implications for U.S.-India trade relations in the paper products sector.

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