ITC Proposes Absolute Quotas on Polyester Fiber Imports to Protect U.S. Industry

1) ITC Proposes Absolute Quotas on Polyester Fiber Imports to Protect U.S. Industry

The International Trade Commission (ITC) is recommending that President Joe Biden impose a tariff-rate quota (TRQ) and an absolute quota on imports of polyester staple fiber as safeguard measures under Section 201. The TRQ would allow a specific quantity of polyester staple fiber to be imported at lower tariffs, with higher tariffs applied to any imports beyond this quota. The absolute quota on temporary imports under bond would start at zero and increase gradually over four years.

The ITC’s recommendation follows a finding that these imports harm the U.S. industry. All four ITC commissioners advised that the quotas should last four years, with detailed provisions for quota amounts and tariff rates. They also suggested an exclusion process for fibers in short supply.

While free trade agreement countries like Canada and Mexico would generally be excluded from these measures, some commissioners proposed that South Korea should not be excluded from the absolute quota. Additionally, two commissioners recommended that the administration seek congressional support for a law to permanently ban certain imports to avoid duties and to support programs for downstream users affected by these measures.

President Biden will make the final decision on whether to implement these recommendations and what form the relief will take.