U.S. Issues Countervailing Duty Orders on Imports of Molded Fiber Products from China and Vietnam

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On January 27, 2026, the U.S. Department of Commerce issued countervailing duty (CVD) orders on thermoformed molded fiber products from the People’s Republic of China and the Socialist Republic of Vietnam.

These orders are based on affirmative final findings by both the Department of Commerce and the U.S. International Trade Commission (ITC). The ITC confirmed that U.S. industries are being harmed by unfairly subsidized imports from China and Vietnam.

The Department of Commerce first made its affirmative final determinations on September 30, 2025. The ITC issued its final affirmative injury determinations on January 5, 2026. The ITC also determined that critical circumstances exist for products imported from Vietnam.

As a result of the findings, countervailing duties will be collected on certain molded fiber products imported from both countries. These duties apply to products from Vietnam that were entered or withdrawn for consumption on or after December 14, 2024. For China, the duties apply to entries made on or after March 14, 2025.

The scope of the orders includes molded fiber products used for packaging and food service, such as plates, bowls, trays, clamshells, and lids. These products are made using cellulose fibers and are hardened using heat-molded forms. They can be made from any fiber source and may include additives or surface treatments.

Imports of these kinds of products from Vietnam are subject to retroactive duties because of the ITC’s critical circumstances finding. Retroactive duties cover a 90-day period before the suspension of liquidation, beginning December 14, 2024.

After the December 14 and March 14 preliminary determinations were published, Commerce instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of entries. However, due to the four-month time limit on preliminary countervailing measures, this suspension ended on July 11, 2025.

Entries made between July 12, 2025, and the publication of the ITC’s final determination are not subject to countervailing duties. Moving forward, CBP will reinstitute suspension of liquidation and require cash deposits for entries.

Cash deposit amounts will match the subsidy rates found in the final Commerce determinations. These apply to producers and exporters specifically listed and apply to any others under designated all-others rates.

Commerce will maintain an “annual inquiry service list” for these orders in its document system called ACCESS. Parties must register within 30 days to be included. Petitioners and foreign governments will be automatically added once they register for the first time.

Products excluded from these orders include those covered by earlier orders on paper plates from China, Thailand, and Vietnam. Also excluded are molded fiber products used as packaging containing prepackaged non-subject goods, such as packaging around electronics.

Commerce’s action marks the formal issuance of these CVD orders under section 706(a) of the Tariff Act of 1930. These measures aim to address unfair trade practices that harm U.S. industries.

Full details, including changes and contact information for officials Allison Hollander and Thomas Martin, are available in the Federal Register notice published on January 27, 2026.


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