Open Enrollment | Subscribe to Printing Impressions HERE
Connect
Follow us on
Advertisement
 

Paper Battle to Be Decided in October

September 24, 2010
2
WASHINGTON, DC—The Commerce Department (DOC) has issued final anti-dumping and countervailing duty margins on coated paper imports from China and Indonesia, providing a victory for domestic paper producers that may be short lived. The U.S. International Trade Commission (ITC) will hold a final vote next month to ultimately determine whether domestic paper producers were harmed by the subject imports.

U.S.-based paper manufacturers and their Indonesian and Chinese counterparts have been down this road before. In 2007, the DOC levied anti-dumping (AD) and countervailing duties (CVD) against Chinese, Indonesian and Korean paper imports, only to have it overturned by the ITC in a 5-1 vote. That process was initiated by a complaint filed by NewPage Corp.

This current case was brought last September following a complaint by NewPage, Appleton Coated, Sappi Fine Paper North America and the United Steelworkers.

The anti-dumping margins announced by DOC on imports from Indonesia were 20.13 percent and ranged from 7.6 percent to 135.83 percent on imports from China. Countervailing duties on products from Indonesia will be subject to tariffs of 17.94 percent and on Chinese imports ranging from 17.64 percent to 178.03 percent. If the ITC votes affirmatively in its upcoming injury determination, these rates will apply for the term of the relief. The ITC will vote on Oct. 19 and the transmittal of its views to DOC will occur on Nov. 4.

The companies and the USW filed unfair trade cases with the DOC and ITC on Sept. 23, 2009, alleging that certain coated paper from China and Indonesia had been dumped and subsidized, resulting in injury to the domestic industry and its employees. The paper products covered by the petitions include coated paper in sheet form used in high-quality writing, printing and other graphic applications, with a GE brightness rating of 80 or higher and weighing up to 340 grams per square meter.

Asia Pulp & Paper (APP), an exporter of coated paper from China and Indonesia, believes the DOC adopted questionable calculation methodologies in rendering its final determination, and feels "more proper" methodologies would have yielded little to no AD/CVD duties.
 
"While we are disappointed in (the) 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."
 
2

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments:
Pat - Posted on September 30, 2010
Paul: Let's just assume for a minute that the domestic paper makers bringing this case are right. Can you convince your print customers that they should pay higher prices for printing to help support American jobs in the paper industry? Does that argument work or do they not -- or cannot afford to -- care and will have to look elsewhere?
Paul Carney - Posted on September 24, 2010
I appreciate the "anti-dumping" issue but question the following. Based on what I've read so far, our domestic companies bringing this issue up fail to consider that there is not a consideration if the actual printing is done in Asia and then shipped to the U.S. Great job in forgetting their actual customers that buy the paper. With this act, the domestic companies get to raise the prices. Thanks again for the total lack of consideration. Shutting down paper making machines in the U.S. tries to make the case for charging more because of less capacity. Yet another great move to further hurt printers in the U.S. Way to go.
Click here to view archived comments...
Archived Comments:
Pat - Posted on September 30, 2010
Paul: Let's just assume for a minute that the domestic paper makers bringing this case are right. Can you convince your print customers that they should pay higher prices for printing to help support American jobs in the paper industry? Does that argument work or do they not -- or cannot afford to -- care and will have to look elsewhere?
Paul Carney - Posted on September 24, 2010
I appreciate the "anti-dumping" issue but question the following. Based on what I've read so far, our domestic companies bringing this issue up fail to consider that there is not a consideration if the actual printing is done in Asia and then shipped to the U.S. Great job in forgetting their actual customers that buy the paper. With this act, the domestic companies get to raise the prices. Thanks again for the total lack of consideration. Shutting down paper making machines in the U.S. tries to make the case for charging more because of less capacity. Yet another great move to further hurt printers in the U.S. Way to go.