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US to levy anti-dumping duty on Vietnamese hangers
Jul '12
Apparel hangers from Vietnam would be subject to an anti-dumping duty following a decision taken by the US Department of Commerce.
According to the Department, Vietnamese garment hanger manufacturers have received subsidies from the Government that enable them to produce and sell their products at costs that are lower than their actual cost of production.
The inquiry found that the Vietnamese Government extended rent and tax exemptions to clothing hanger manufacturers.
The final ruling on the exact duty is scheduled for October this year. However, the final order for imposition of anti-dumping duty would be issued only after the US International Trade Commission (ITC) determines that Vietnamese imports threaten to cause material injury to US clothing hanger producers.
In the meantime, however, the US Customs and Border Protection will collect duty ranging from 11 to 21 percent on apparel hangers originating from Vietnam.
Vietnamese garment hangers are already subject to countervailing duties, and the imposition of anti-dumping duties would be in addition to the existing countervailing duties.
In 2011, Vietnam’s apparel hanger exports to the US stood at US$ 32 million, an increase of over 10 percent compared to exports worth US$ 29 million achieved a year earlier.
The Department of Commerce ruling is applicable only for the Government-subsidized manufacturing of hangers in Vietnam.

Fibre2fashion News Desk - India

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