Tariffs Imposed in Sweater Dumping Case

Sweaters from Hong Kong, South Korea and Taiwan that are being sold in the United States at less than fair market value harm U.S. industry and thus are subject to anti-dumping duties, the government ruled Wednesday.

The National Knitwear & Sportswear Assn. in New York had filed complaints last September against sweater makers in the three countries. The sweaters are made mostly of acrylic fiber.

By a 2-1 vote, the International Trade Commission determined the imports “materially injure or threaten injury to the U.S. industry.” The Commerce Department ruled earlier that the imports were being sold at less than fair market value.

Since the Commerce decisions, the Customs Service has been requiring bonds equal to the amount of anti-dumping duties for the imports. The bonds now will be converted and actual duties will be imposed on subsequent imports. The duties are designed to make the prices of the imported sweaters comparable to those charged for domestic sweaters.

Commerce had described the sweaters as knitted or crocheted outer-wear garments, including jackets, vests, cardigans and pullovers. It said imported sweaters represent 72% of the $1.3-billion U.S. market and the three countries ship 55% of the imports.

It said the value of sweaters imported from Hong Kong in 1989 was $208.8 million; South Korea, $476.1 million; and Taiwan, $485.5 million.