Mexico Investigates Dumping of Chinese Denim in “Maquila” Industry
Mexico’s Diario Oficial announced on April 21, 2010, that its Ministry of Economy has initiated an antidumping duty investigation on imports of denim fabric that originate in China.
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Petitioners Allege Price Discrimination for Temporary Imports of Chinese Denim
The petitioners, Manufacturas Kaltex, SA de C.V., Global Denim, Inc. de C.V, and S. Swift Denim Hidalgo S. de R.L. de C.V. allege price discrimination from imports of denim fabric that originates in China and enters Mexico (1) as permanent imports and (2) under temporary importation, warehouse, manufacturing, processing or repair for the IMMEX program (the successor program to the maquiladora program and PITEX for in-bond operations).
The petitioners argue that these imports have been carried out in substantial amounts, causing serious damage or threat thereof to the domestic denim fabric industry that supplies IMMEX program companies. They also allege that “critical circumstances” exist, and that any AD duty should therefore begin 90 days before the date of application of the provisional measures.
1400 Percent Average Dumping Alleged
The petitioners state that due to China’s export price of $0.2215 per square meter and a normal value of $3.3257 per square meter, the average dumping margin is 1401%.
First Time Mexico Has Investigated Temporary Imports
According to legal sources at the law firm of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt, this investigation is the first time Mexico’s Ministry of Economy has agreed to include temporary imports shipped to IMMEX companies within the scope of an AD case. These sources add that the deadline to appear in the preliminary stage of the investigation is June 1, 2010.
Blue Denim Fabric
The denim fabric is identified as fabric where the warp threads are dyed blue and the weft are unbleached, bleached, or colored a lighter blue than the warp. The denim fabric is mainly used in the production of garments, principally for the manufacture of jeans. It is classified under Mexico tariff numbers 5209.42.01, 5209.42.99, 5211.42.01, and 5211.42.99. (See Diario notice for complete description.)
The above information is based on an unofficial translation of the Diario document obtained from www.Translate.Google.com.
Diario Oficial notice (dated 04/21/10) available by emailing documents@brokerpower.com
www.Translate.Google.com version of part of Diario document available by emailing documents@brokerpower.com