the need to unmask hidden trends in film and bag imports karen bland toliver fbf 2006 annual spring...

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.

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

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

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

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

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

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%


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?

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

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

Total PE Bag Import Statistics

0

50

100

150

200

250

2003 2004 2005

Import Quantities

1,000 units

126

151

203


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

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%


Top 5 Import Sources – 2005PE Retail Carrier Bags (HTS 3923.21.00.85)

Thailand43%

China25%

Malaysia15%

Vietnam3%

Mexico2%

Others12%


•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.


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


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.


Non Re-closable PE BagsTop 5 Import Sources - 2005

China36%

Canada15%

Thailand10%

Malaysia7%

Taiwan6%

Others26%


• 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.


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


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.


Re-closable PE BagsTop 5 Import Sources - 2005

China35%

Thailand27%

Hong Kong9%

Chile7%

Mexico5%

Others17%


• 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%).


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?

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

Recent Trade Developments

China Currency Manipulation

China trade legislation

U.S.-Korea FTA

U.S.-Malaysia FTA

the need to unmask hidden trends in film and bag imports karen bland toliver fbf 2006 annual spring...

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