The United States to Implement Global Safeguard Measures on Polyester Staple Fibers Starting November 23

According to a notification from the Trade Remedies Authority, transportation companies are facing new challenges as President Joe Biden has issued a decision to apply global safeguard measures on imported polyester staple fibers (HS code: 5503.20.00) into the U.S. This decision, effective from November 23, 2024, will directly impact the international shipping services of Vietnamese export businesses.

Export-import service providers should note the import quota that will be enforced over the next four years. Notably, maritime shipping services will be completely restricted in the first year with a quota set at zero, followed by an annual increase of one million pounds in each of the subsequent three years. This requires freight forwarding companies to adjust container shipping plans and seek alternative markets.

In 2023, Vietnam exported polyester staple fiber products to the U.S. valued at $5.2 million.

According to data from the U.S. International Trade Commission (USITC), Vietnam’s exports in this sector reached approximately $5.9 million during 2021-2023, with $5.2 million recorded in 2023 alone. Although accounting for only 3% of the total U.S. import market and ranking 8th among exporting countries, Vietnam’s shipping services have not been exempted from this safeguard measure.

Transport companies should note that this is not the first time the fiber industry has faced trade barriers in the U.S. market. In 2017, export-import services in this sector were subject to anti-dumping investigations alongside other countries. However, Vietnam was excluded from the scope of the investigation. Currently, other countries/territories remain subject to anti-dumping and countervailing duties.

To adapt to the new situation, logistics companies need to optimize sea freight costs and seek opportunities in other markets. Providing cost-effective shipping services while maintaining quality will help sustain competitiveness during challenging times. Additionally, shipping companies should focus on domestic container transport and diversify export markets to minimize risks arising from trade protection measures.

As the U.S. plans to conduct a midterm review before the end of the second year, transport businesses need to closely monitor developments and prepare appropriate response strategies to ensure the continuity and stability of their shipping services in the coming period.