Apparel Label Tape Subject to China Woven Ribbons Duties, Commerce Says
Rolls of label tape imported by D&F Consolidated are subject to antidumping and countervailing duties on narrow woven ribbons with woven selvedge from China (A-570-952/C-570-953), said the Commerce Department in a July 27 scope ruling. D&F claimed that only decorative ribbon is subject to the orders, but Commerce found that ribbon with a utilitarian purpose can be subject to AD/CV duties.
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The ribbon at issue was manufactured in and exported from China by Huzhou Hengxin. D&F, which does business as Car-Mel Products, imported the ribbons for use in the manufacture of labels for the inside of apparel and other textile items. The ribbons are made of 100% woven textured polyester, are 10 mm to 54 mm wide, and are imported in rolls of 300 meters. Prior to importation, the label tapes are “calendered,” with heat and pressure applied to make them a uniform thickness, including by eliminating the difference in width between the ribbon’s face and selvedge.
Commerce found the ribbons meet the physical requirements described by the scope of narrow woven selvedge duties. The scope says the tape is at most 12 cm wide, composed entirely or partly of manmade fibers, and wound on spools. It also says ribbons may be of any color, style, pattern or weave construction. D&F’s ribbons thus meet all requirements, Commerce said.
D&H argued that the calendering its label tape undergoes prior to importation is not a treatment listed as permissible in the scope, so its label tapes aren’t covered. But the scope lists only a series of examples of treatments, and also says the ribbons may be subject to “various treatments, including but not limited to those examples,” Commerce said. The scope also doesn’t distinguish ribbon with a selvedge that’s the same width as the ribbon’s face.
And “labels” are specifically mentioned in the scope language, Commerce said. The scope actually excludes tapes that are cut to length to form labels, but D&F’s label tape is imported in rolls. Finally, nowhere in the scope does it say that only decorative tape is subject to AD/CV duties, Commerce said. In its final injury determination in the original investigation, the International Trade Commission said that, while subject ribbons are “typically” used for a “decorative purpose,” it also said that, “in some instances, differing forms of narrow woven ribbons have specific uses,” Commerce noted