Hot the heels of the newly adopted anti-dumping tariffs in the US that target a certain number of countries and producers of mass market paper bags, Procos has developed a continuity solution for its customers impacted by the side-effects of this new legislation.
Concerned about the deindustrialization of their economies and the resulting political difficulties, some governments may be tempted to pass protectionist legislations. However, poorly targeted texts can also produce undesirable effects. This is precisely what is happening in the United States with paper bags.
At the end of May 2023, a petition was filed by the Coalition for Fair Trade in Shopping Bags, a consortium of paper bag producers formed to alert the U.S. government about unfair competition and dumping practices from some manufacturers of shopping bags. Nine producing countries were targeted initially: Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, Turkey, and Vietnam. The investigation led the United States Department of Commerce to rule in favor of anti-dumping tariffs for the importation of these products in the USA.
The affected items are machine-made paper bags imported at low prices. However, the product descriptions are very broad: paper bags with any type of handles, regardless of the type of printing or top edge finish, with a minimum width of 4.5 inches (10.16 cm) and a minimum depth of 2.5 inches (5.08 cm).
“While these tariffs mainly target kraft paper bags intended for mass distribution, the lack of sufficiently specific targeting is currently putting companies importing in difficulty,” explains Leander Kritikos, founding CEO of Procos.
Luxury shopping bags, for instance, may be affected by these measures, even though there is no production on the American territory.
A specific bag
Procos has therefore adjusted its offer to provide each of its customers whose bags would be concerned by the new tariffs with a customized solution as close as possible to the original design. These solutions range from adjusting the bag’s dimensions to selecting the materials used, and even making technical modifications in the production process.
“Procos has already started developing alternative solutions, including samples in adapted sizes and modified production processes. We are committed to supporting our clients and partners in navigating these new regulations by providing innovative solutions that comply with the requirements of the U.S. market,” adds Leander Kritikos;
A specific bag is already available for concerned brands. Entirely made of FSC certified paper and compliant with the EU Timber Regulation (EUTR), it incorporates the necessary characteristics to be excluded from the scope of the new duties.
Portfolio
