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U.S. Commerce Department Amends Preliminary Determination on Thermoformed Molded Fiber Products from China

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U.S. Commerce Department Amends Preliminary Determination on Thermoformed Molded Fiber Products from China

The U.S. Department of Commerce has changed its preliminary decision in the investigation of thermoformed molded fiber products from China. The Department is correcting mistakes found in its first review of whether these products are being sold in the United States at less than fair value.

Background and Investigation

The investigation began with a publication on May 12, 2025. Companies from China, such as Shaoneng Group Guangdong Luzhou Eco Technology Co., Ltd., Shaoneng Group Luzhou Eco (Xinfeng) Technology Co., Ltd., and Zhejiang Zhongxin Environmental Protection Technology Group Co., Ltd. said the Department made some errors. These mistakes included missing some producer names and using the wrong amount for electricity costs.

Errors Corrected

The Department agrees with the companies. It fixed the list of exporter-producer combinations. It also corrected the rate for the company group called Zhongxin Group, because it had used the wrong number for electricity in its calculations.

Since the rate for other companies was based on Zhongxin Group’s numbers, these rates were also changed. The changes in rates were large, more than five percentage points, which is considered significant.

New Cash Deposit and Dumping Margin Rates

The Department has listed new rates. Here are some examples:

  • Zhejiang Zhongxin Environmental Protection Technology Group Co., Ltd. and related companies: 136.54% estimated dumping margin, 136.27% cash deposit rate.
  • Many other exporter-producer combinations: 110.30% estimated dumping margin, 110.16% cash deposit rate.
  • China-wide Entity: 477.97% rate (based on facts available with adverse inferences).

These rates show by how much products from China are considered by the Department to be sold below fair value in the U.S.

Retroactive Changes

The new cash deposit rates will be used starting from May 12, 2025. This is the same date as the first publication of the preliminary decision. This means that money collected for imports after this date will use the new rates.

Notification

The Department will tell the U.S. International Trade Commission about these changes. All parties interested will be notified.

Scope of the Investigation

The investigation covers all thermoformed molded fiber products from China. These goods are made from cellulose fibers, shaped and dried in heated molds. Items include plates, bowls, trays, food containers, and packaging. They may have different sizes, shapes, and finishes. They are usually dense and have smooth surfaces. They can be made from any fiber source, may be printed, colored, or include different chemicals for function.

Some products are not included in this investigation, such as:

  • Products already covered by other orders on paper plates from China, Thailand, and Vietnam.
  • Products imported as packaging around other final goods, like molded fiber around mobile phones.

Products processed in a third country are still included if they match the description.

The main customs codes used are 4823.70.0020 and 4823.70.0040 of the Harmonized Tariff Schedule of the United States (HTSUS), but other codes may also apply.

Conclusion

These changes affect the rates and cash deposits for all the companies involved in importing thermoformed molded fiber products from China. The Department has corrected the mistakes and updated the rules moving forward.

This update is required by law and was dated June 5, 2025.

Source: Federal Register, Volume 90, Number 111, June 11, 2025


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