U.S. Maintains 266.83% Anti-Dumping Duty on Chinese Crepe Paper

On May 20, 2026, the U.S. Department of Commerce issued a final determination to maintain anti-dumping duties on crepe paper from China at 266.83%, citing a likelihood of recurrence of dumping if the order were revoked. This decision directly affects exporters and supply chain participants engaged in packaging, gift wrapping, medical auxiliary materials, and festive decoration — sectors where Chinese crepe paper is widely used in U.S.-bound shipments.

Event Overview

On May 20, 2026, the U.S. Department of Commerce announced its final affirmative determination in the sunset review of the anti-dumping duty order on crepe paper from China. The Department concluded that revocation of the order would likely lead to continuation or recurrence of dumping at a margin of 266.83%. The product scope covers crepe paper as defined under U.S. Harmonized Tariff Schedule (HTS) subheadings applicable to the subject merchandise, including uncoated, crinkled, stretchable paper primarily used for decorative, protective, and functional applications.

Industries Affected by This Determination

Direct Exporters (Small- and Medium-Sized Trading Firms)

These firms face immediate pressure on pricing strategy and margin sustainability. The maintained duty rate directly reduces competitiveness in U.S. price-sensitive markets, especially where buyers are unwilling or unable to absorb added cost. Impact manifests in revised quotation terms, increased scrutiny of commercial invoices, and heightened risk of customs audits or post-entry duty assessments.

Manufacturers (Converters & Finishers)

Firms producing finished crepe paper products — such as pre-cut rolls, gift wraps, or medical-grade rolls — must reassess origin labeling, production process documentation, and traceability of raw materials. Any deviation from declared manufacturing steps may trigger origin challenges or classification disputes under U.S. Customs and Border Protection (CBP) enforcement protocols.

Supply Chain Service Providers (Compliance Auditors, Freight Forwarders, Customs Brokers)

Third-party compliance verification services are seeing increased demand for pre-shipment audits focused on cost accounting, transfer pricing, and factory-level documentation. Forwarders and brokers report longer clearance times for crepe paper consignments due to elevated CBP sampling rates and requests for additional origin evidence beyond standard Certificates of Origin.

Key Considerations and Recommended Actions for Affected Enterprises

Monitor Official Updates from U.S. Trade Remedies Agencies

Track filings and notices from the U.S. International Trade Commission (USITC) and the Department of Commerce regarding any potential reviews of injury determinations or administrative reviews of individual exporter rates. These may affect future duty liability even under the current order.

Review Product Classification and Origin Documentation Rigorously

Confirm HTS classification accuracy for all crepe paper variants — including coated vs. uncoated, width, basis weight, and end-use labeling — as misclassification can trigger penalties independent of the anti-dumping order. Ensure Certificates of Origin reflect full production history, not just export location.

Assess Pricing and Cost-Allocation Models for U.S.-Bound Shipments

Evaluate whether current transfer pricing structures across related-party transactions (e.g., between upstream pulp suppliers and downstream converters) remain defensible under U.S. trade remedy standards. Reassess whether cost-plus markups align with arm’s-length benchmarks cited in prior Commerce Department determinations.

Prepare for Enhanced Third-Party Compliance Audits

Allocate internal resources or engage external auditors to verify recordkeeping practices covering material sourcing, labor costing, energy inputs, and overhead allocation — all of which may be examined during CBP or Commerce-initiated verifications.

Editorial Perspective / Industry Observation

Observably, this determination functions less as a new policy shift and more as a formalization of an existing trade remedy framework. The 266.83% rate has applied since the original order; the May 2026 action confirms its continued applicability through the next five-year cycle. Analysis shows that the decision reflects procedural continuity rather than intensified enforcement — yet it signals sustained regulatory attention on niche paper products often overlooked in broader trade discussions. From an industry perspective, the persistence of such high duties underscores how narrowly defined product scopes can exert outsized impact on fragmented, SME-driven export segments. Current monitoring should focus less on reversal likelihood and more on operational adaptation across documentation, costing, and audit readiness.

This determination reaffirms the long-term trade remedy posture toward a specific paper product category, not a broad-based escalation. Its significance lies not in novelty but in durability: it confirms that even low-value, high-volume decorative and functional paper goods remain within the scope of active U.S. anti-dumping enforcement. For affected enterprises, the priority is not anticipation of change but consolidation of compliant, transparent, and defensible export operations.

Source: U.S. Department of Commerce, Final Results of Sunset Review – Crepe Paper from China (A-570-961), published May 20, 2026. Note: Administrative reviews of individual exporters’ duty rates, and potential USITC injury re-evaluations, remain subject to ongoing monitoring.