Dear Valued Customer,
Alliance Rubber Company asked the federal government to penalize foreign rubber band makers who sell their products in the United States for far less than the normal value set by U.S. trade laws.
As an American manufacturer, we asked the United States to respond to the “dumping” of cheap, and often inferior rubber bands, by levying additional tariffs on certain rubber band imports that come from companies in China, Thailand and Sri Lanka. In certain cases, we have seen the sale of rubber bands at 60 percent less than the normal value within the meaning of the Tariff Act of 1930. In addition, the governments in these other countries are providing monetary and tax incentives to the rubber industry, further exacerbating the problem.
Because of the dumping of rubber bands into the domestic market, U.S. rubber band manufacturers face immediate risk of economic injury and the loss of American jobs. Since 2014, rubber band imports from Thailand alone have increased by 146 percent. Chinese imports rose by 115 percent and Sri Lankan imports increased by 26 percent over the same period of time.
The petition filed today asks the Commerce Department to determine that the Asian companies are indeed selling rubber bands for less than normal value, in violation of federal law. The ITC is tasked with determining what, if any, economic injury has occurred to domestic producers.
We have requested that the federal government assess “antidumping duties” on the imports that would counteract the competitive advantage the foreign companies receive by artificially lowering their prices. Additionally, we asked for “countervailing duties” to offset the subsidies and incentives being provided to foreign companies by their governments.
For 94 years we have fought hard to maintain our competitive advantage and we value you as a customer. We want to be forthcoming about this action while recognizing you may also purchase imported rubber bands. As an American business, we understand the importance of a competitive marketplace. As importantly, U.S. businesses deserve a level playing field on which to compete. We are seeking to make sure importers follow the same fair and legal business practices that U.S. Manufacturers do every day. Our staff and I welcome the opportunity to speak with you on any concerns you may have and look forward to continuing our strong partnership.