Glass Bottle Supplier-Why they do so.

On December 29, 2023, the United States imposed antidumping duties and countervailing duties on glass wine bottles from China, Mexico, and Chile. The petition was filed by the U.S. Glass Producers Coalition, which is comprised of Ardagh Glass Inc, a labor union representing workers at the Ardagh Glass plant, and two other U.S. producers – Gallo Glass Company and O-I Glass, Inc. Glass Company – make up the group.

Like many AD/CVD filings, this new case is a continuation of a previous AD/CVD investigation. Unlike most renewals of AD/CVD investigations, however, the previous case investigating glass containers from China in 2020 did not result in the imposition of AD/CVD duties. In that case, the U.S. International Trade Commission (“ITC”) issued a negative injury finding that imports of glass containers from China did not cause substantial injury. While the ITC found that Chinese imports were significant, it did not find any adverse price effects and that Chinese imports were not the cause of the decline in performance of domestic producers.

China Glass Bottle supplier-Hiking Glass

After losing their case in 2020, the Alliance of American Glass Producers is now asking the government again to help protect them from import competition. But now they are targeting only wine bottles, not all glass containers from the previous investigation. By defining the scope of this investigation more narrowly than previous investigations, domestic producers hope that the data collected by the ITC in this case will be different and show that the domestic industry is suffering substantial injury (or the threat of substantial injury) caused by the imports in question.

Mexico is the largest source of imported wine bottles. Wine bottles from China have been subject to a Section 301 tariff (25%), which has been in place since 2018.

In addition to the ITC’s investigation into whether imports are causing injury, the U.S. Department of Commerce (“Commerce”) will investigate whether the named imports are being sold into the U.S. at less than fair value (“dumping”) or benefiting from unfair government subsidies. Both agencies must make an affirmative finding of injury or threat of injury (ITC) or dumping or subsidization (MOFCOM) before antidumping/countervailing duties can be imposed on the imports in question.