The United States has approved a significant increase in customs duties on paper bags from certain countries, in order to discourage the import of low-cost paper bags. Procos reacts to this new regulation.
"In the United States, imports of low-cost, fully machine-made paper bags are now subject to a duty of around +135 %. While these taxes are aimed at paper bags for mass applications, the specifications of what defines these bags are quite vague, putting companies like ours at risk, even though we don't manufacture these types of products. There is only one customs number for all paper shopping bags".explains Leander Kritikos, CEO of Procos, a German manufacturer of packaging for major luxury brands.
The request comes from the Coalition for Fair Trade in Shopping Bags, which welcomed the final findings announced by the US Department of Commerce that imports into the US of paper shopping bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan and Vietnam are being sold at less than fair value, and that imports from China and India are otherwise being subsidized. This opinion follows a positive final dumping finding concerning imports of paper shopping bags from Turkey, and a petition filed by the consortium in May 2023.
"We informed our customers in advance to avoid unpleasant surprises. We have also proposed other solutions to get around this regulation.explains Leander Kritikos. We have to develop a customized solution for each customer."
To ensure that its shopping bags are not subject to the new taxes, the German manufacturer adjusts the size of the bags, replaces the paper handles with woven ribbon (customs duties only apply to 100 % paper bags), and plays with the weight of the bags. The company stresses that Procos experts have the necessary tools to offer a customized solution for each shopping bag, as close as possible to the original design.
"Procos has already begun to develop alternative solutions, including samples in adapted sizes and has developed modified production processes. We are committed to supporting our customers and partners as they navigate these new regulations, providing innovative solutions that comply with the requirements of the US market. A specific bag is already available for the brands concerned. Made entirely from FSC-certified, EUTR*-compliant paper, it incorporates the features required to escape the scope of the new taxes".explains Leander Kritikos.
* European Union Timber Regulation
Yaël Zajac
