4/9/2019
Dear Valued Customer,
In late 2017, Alliance Rubber Company petitioned 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. Tariffs were subsequently levied against China and Thailand in response to the unfair “dumping” of cheap, and often inferior rubber bands. To combat their artificially low prices, Commerce assessed an Antidumping duty of 5.86% against subject exporters and importers of Thai made rubber bands as well as an antidumping duty of 27.27% and Countervailing duty of 125.77% against Chinese made rubber bands. The judgment effectively ends the case at the International Trade Commission.
With formal antidumping orders in place, rubber bands from the subject exporters and importers in the United States are now in the U.S. Customs and Commerce Department “margin review systems,” which means that the imports will be subject to “annual reviews” before the Commerce Department which will retroactively examine and potentially apply higher dumping margins for periods that follow the period of investigation in the original case.
Alliance intends to pursue all rights and avenues of relief to which it is entitled under U.S. trade laws, including preventing circumvention of the AD/CVD duty orders, and ensuring that import transactions that occur this year and in future years are subject to higher margins if Commerce ultimately finds a basis for increasing the margins, and Commerce would apply any such margin increase retroactively to imported bands.
For 96 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.
Thank you for your continued support,
Bonnie Spencer Swayze
President
