Asia Pulp & Paper Disappointed in Commerce Department Ruling
WASHINGTON, DC—Sept. 21, 2010—Asia Pulp & Paper (APP), the leading exporter of coated paper from China and Indonesia, received today the lowest combined antidumping and countervailing duty (AD/CVD) margin among Chinese exporters, but is still disappointed with the U.S. Department of Commerce’s (DOC) final AD/CVD margin. According to APP, the DOC adopted questionable calculation methodologies in rendering its final determination; whereas more proper methodologies would have yielded little to no AD/CVD duties.
“While we are disappointed in today’s announcement of the final AD and CVD rates, we remain confident that the entire trade case will be thrown out at the conclusion of the International Trade Commission’s injury investigation in mid-October,” said Terry Hunley, Acting President, APP Americas.
“This is the second such investigation conducted in the last two years, both of which have involved exports of coated paper produced by APP,” Hunley noted. “The prior investigation was terminated by the U.S. government because APP’s imports of coated paper did not injure the U.S. industry. We believe we will secure a similar result in this case. In fact, this investigation has even less basis than the last one, since the U.S. industry itself has benefited from large, direct federal subsidies for its production of the pulp used to make paper.”
The U.S. International Trade Commission (ITC) held a hearing in the current case on Sept. 16 and will hold a final vote on Oct. 19. Only an affirmative decision that the domestic industry has been harmed by the subject imports would lead to the imposition of a duty order.
“As demonstrated before the ITC, our actions are not the cause of the domestic industry’s problems,” Hunley said. “We are not taking business away from the U.S. paper makers. In fact, domestic producers gained market share between 2007 and 2009. During that time we lost our largest U.S. customer to NewPage when NewPage lured them away with lower prices made possible by the enormous ‘black liquor’ subsidies they received.”
The DOC’s final determination calls for a 25.2 percent AD/CVD duty rate on APP product from China. No other Chinese company received a lower rate and other Chinese companies were assessed a 153.4 percent rate. For APP product from Indonesia, a duty rate of 38.0 percent was announced.
About Asia Pulp & Paper
Asia Pulp & Paper Group (APP Group) is one of the largest vertically integrated pulp and paper companies in the world with annual combined pulp, paper, packaging products, and converting capacity of over 15 million tons globally. Headquartered in China and Indonesia, the company markets its products in 65 countries, across 6 continents. The APP Group is dedicated to providing superior value to customers, employees, shareholders, and to the communities in which it operates. APP's production facilities are among the most advanced and environmentally efficient in the global pulp and paper industry. The company recognizes that a combination of social and economic best practices is the foundation for long-term business success, and is a leader in economic development in all of the communities in which it operates. The APP Group operates within globally recognized and verified standards in all of its production facilities, ensuring pulpwood suppliers meet stringent guidelines, guaranteeing sustainable forest management. Global Paper Solutions is a North American distributor of APP products.
Source: Company press release.