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THE NEED TO UNMASK HIDDEN TRENDS
INFILM AND BAG IMPORTS
Karen Bland ToliverFBF 2006 Annual Spring Conference
April 4, 2006
© The Society of the Plastics Industry, Inc. All rights reserved.
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COLLECTION OF U.S. IMPORT DATA
International Convention on the Harmonized Commodity Description and Coding System Administered by the World Customs
Organization (WCO) 169 members, covering 98% of world trade Standardized tariff nomenclature (at the 6
digit level) Basis for customs tariffs and publication of
foreign trade statistics
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COLLECTION OF U.S. IMPORT DATA
Harmonized Tariff Schedule of the U.S. (HTS) Embodies the 6-digit Harmonized System (HS) “National” break-downs at the 8 and 10 digit levels Distinct from industry coding systems, e.g.,NAICS/SICS The official basis for collecting trade statistics
International Trade Commission (ITC) Responsible for reviewing and recommending changes
• Conformity with HS amendments• HTS reflects changes in technology and trade patterns• Alleviate unnecessary burdens
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HTS Categories for Film Imports Captured under HTS 3920
Non-self adhesive plates, sheet, film, non-cellular and not combined with any other materials
HTS 6-digit level is based on polymer content e.g., “of polymers of ethylene”
HTS 10-digit level has some break outs based on other physical characteristics, e.g., flexible
Twenty-eight HTS 8-digit categories for non-self adhesive plates, sheet, and film products
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PE Film Import Statistics
0
100
200
300
400
500
600
700
2003 2004 2005
Import Quantities
Million lbs.
455.5
552618
Source – U.S. Official Trade Stats, ITC Trade Database
0
100
200
300
400
500
600
700
800
900
2003 2004 2005
Import Values
$ Million
$ 575
$ 712
$847
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PE Film Top 5 Import Sources - 2005
Canada60%
Mexico5%
China5%
Germany5%
Malaysia4%
Others21%
*Ranked by import volumes
• In ’05, Canada shipped 372.6 million lbs. • Mexican imports grew by 113%, from15.2 million lbs. in ’04 to 32.4 million lbs. in ’05 – due to intra-company transfers?
•Chinese imports increased by 31%, from 24.2 million lbs. in ’04 to 31.7 million lbs. in ‘05.
•Malaysia was not in the top 5 sources based on value, but was ranked # 5 based on quantities. Malaysian imports grew by 170%, from 7.9 million lbs. in ’04 to 21.5 million lbs. in ’05.
Source – ITC Trade Database
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PE Film Imports by Port of Entry - 2005
Port Value ($ Millions)
% of Imports
Detroit, MI $ 214.5 25.3%
Ogdensburg, NY $ 100.4 11.9%
Pembina, ND $ 71.2 8.9%
Buffalo, NY $ 67.5 8%
New York, NY $ 62.7 7.4%
Source – ITC Trade Database
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Questions/Issues
Does the HTS category for PE film reflect business reality?
Is it adequate to accurately monitor/track imports?
Would the industry benefit from more specific break-downs?
If so, where are the “clear dividing” lines?
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HTS Categories for Bag Imports
Captured under HTS 3923 Articles for the conveyance or packing of goods, of
plastics, stoppers, lids, caps and other closures
HTS 8-digit level is based product type e.g., boxes vs. bags vs. bottles vs. stoppers/lids
HTS 10-digit level categorizes bags based on limited physical properties, e.g., PE vs. other plastics Recent modification to break out PE retail carrier
bags with handles
Only six HTS 10-digit categories for PE plastic bags
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HTS Categories for PE Plastic HTS Categories for PE Plastic BagsBags
Re-closable PE bags with no single side exceeding 75 millimeters in length
Re-closable bags with integral extruded closure
Non re-closable PE bags with no single side exceeding 75 millimeters in length
PE retail carrier bags with handles
Non re-closable PE bags
All other PE bags
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Total PE Bag Import Statistics
0
50
100
150
200
250
2003 2004 2005
Import Quantities
1,000 units
126
151
203
Source – U.S. Official Trade Stats, ITC Trade Database
0
200
400
600
800
1000
1200
1400
2003 2004 2005
Import Values
$ Million
$ 776
$946
$ 1.2 B
1.9 B 2.3 B 3.0 BLbs.
Conversion Factor – 15 lbs per 1,000 units
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PE Bag Imports by Port of Entry - 2005
Port Value ($ Millions)
% of Imports
Los Angeles, CA $ 259 20.5%
Detroit, MI $ 175 13.9%
New York, NY $ 97 7.7%
Ogdensburg, NY $ 82 6.5%
Seattle, WA $ 69 5.5%
Source – ITC Trade Database
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Top 5 Import Sources – 2005PE Retail Carrier Bags (HTS 3923.21.00.85)
Thailand43%
China25%
Malaysia15%
Vietnam3%
Mexico2%
Others12%
*Ranked by import volumes
•ITC reports official imports stats for 2005 only.
• Import quantities were approx. 239 million lbs. in ’05 ($15 per 1,000 unit).
• Imports were valued at $ 108 million.
Source – ITC Trade Database
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Non Re-closable PE Bags – HTS 3923.21.00.90
0
20,000
40,000
60,000
80,000
100,000
120,000
2003 2004 2005
Import Quantities
1,000 units
90
105
55
Source – U.S. Official Trade Stats, ITC Trade Database
0
100
200
300
400
500
600
700
800
2003 2004 2005
Import Values
$ Million
$ 658 M
$ 799 M
$ 490 M
1.4 B 1.6 B 822 MLbs.
Conversion Factor – 15 lbs per 1,000 units
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Non Re-closable PE BagsTop 5 Import Sources - 2005
China36%
Canada15%
Thailand10%
Malaysia7%
Taiwan6%
Others26%
*Ranked by import volumes
• It appears that PE bags in this category were re-classified underHTS 3923.21.00.85.
Re-classification makes it difficult to analyze trends because all imports from supplying countries decreased in 2005.
Source – ITC Trade Database
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Re-closable PE Bags – HTS 3923.21.00.19
0
5
10
15
20
25
30
35
40
45
2003 2004 2005
Import Quantities1,000 units
30.2
34.6
44.8
Source – U.S. Official Trade Stats, ITC Trade Database
0
20
40
60
80
100
120
140
160
180
2003 2004 2005
Import Values$ Million
$ 106
$126
$ 169
454 M 519 M 672 MLbs.
Conversion Factor – 15 lbs per 1,000 units
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Re-closable PE BagsTop 5 Import Sources - 2005
China35%
Thailand27%
Hong Kong9%
Chile7%
Mexico5%
Others17%
*Ranked by import volumes
• Imports from China and Thailandaccounted for a substantial portion of total imports in 2005 – 62%.
• Chilean imports rose by 33% from levels in 2004, surpassing Canadian import quantities.
• Although relatively small in terms of absolute amounts, imports from South American and Central America appear to be growing: Brazil (90.4%), Dom. Rep. (3,369%), Colombia (240%), Argentina (511%).
Source – ITC Trade Database
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Questions/Issues
Do the HTS categories for PE bags reflect business reality?
Are they adequate to accurately monitor/track bag imports?
Would the industry benefit from more specific break-downs?
If so, where are the “clear dividing” lines?
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WHAT CAN SPI/FBF DO?
Consider whether to pursue more specific categories Advocacy before ITC and Customs
Form Task Force Need input of knowledgeable industry
participants Assistance of experienced customs attorney
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Recent Trade Developments
China Currency Manipulation
China trade legislation
U.S.-Korea FTA
U.S.-Malaysia FTA