U.S. Department of Commerce Makes Affirmative Subsidy Determination in Trade Case on Glass Wine Bottles from China

WASHINGTON (May 30, 2024) - In a victory for the U.S. glass industry, the U.S. Department of Commerce (Commerce) has preliminarily determined that the government of China unfairly subsidizes its glass wine bottle industry. Commerce calculated affirmative preliminary countervailing duty rates ranging from 21.14% to 202.70% for all Chinese producers.

This determination establishes the preliminary duty rates for this investigation. Following the publication of Commerce’s preliminary determination in the Federal Register, Commerce will instruct U.S. Customs and Border Protection to begin suspending liquidation and collecting cash deposits on entries of wine bottles from China.

These preliminary subsidy rates may increase before Commerce’s final determination, which is expected in August 2024. These rates cover only the countervailing duty investigation and do not yet include the additional duties from the companion antidumping duty investigation on wine bottles from China, or the margins from the ongoing antidumping duty investigations on wine bottles from Chile and Mexico. Preliminary dumping margins in all three antidumping duty investigations will be released in late July 2024.

“We are very pleased with these preliminary rates,” said Daniel B. Pickard, lead counsel to the Petitioner and International Trade and National Security practice group leader at Buchanan Ingersoll & Rooney. “It is critical that Commerce continue to rigorously investigate the Chinese government’s unfair subsidization of its wine bottle industry.”

Importantly, Commerce also made an affirmative “critical circumstances” determination.  This finding triggers a 90-day retroactive application of the cash deposit requirement.  Consequently, importers of Chinese wine bottles will be liable for cash deposits of up to 202.70% for shipments that entered the United States within the 3 months prior to the effective date of Commerce’s decision and also on a going forward basis.

The Buchanan team representing the Petitioner also includes Milton Koch, Claire Webster, Amanda Wetzel, Caroline Bisk, and Grace Welborn.