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U.S. Commerce Dept. Issues Revised Duties for Canadian Uncoated Groundwood Paper

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On Aug. 2, 2018, U.S. Secretary of Commerce Wilbur Ross announced the final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of uncoated groundwood paper from Canada.

The Department of Commerce has revised downward its preliminary determination from between 0.00 22.16% to between 0.00 16.88% in its final determination in the antidumping duty investigation of several Canadian producers of groundwood paper. The Department determined that two individually investigated companies had final dumping rates of 0.00%, and one company had a final dumping rate of 16.88%. The department also determined, based on the unique facts of this investigation and the arguments made by interested parties, that the final dumping margin assigned to all other producers is a rate of 0.00%.

In addition, the Department of Commerce found that Canada is providing countervailable subsidies to producers of uncoated groundwood paper ranging from 0.82 9.81%, which is a modification downward from the preliminary determination of between 4.42 9.93%. All other producers have been assigned a countervailable subsidies rate of 8.54%.

"This was a complicated and unique case. The Department worked hard to address the arguments raised, and I am satisfied that the final determinations appropriately targets bad actors," said Secretary Ross. "Today's decisions are the culmination of an open and transparent process which ensured a full and fair assessment of the specific facts of this case."

In 2017, imports of uncoated groundwood paper from Canada were valued at an estimated $1.21 billion.

The petitioner is North Pacific Paper Company (WA).

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 120 new AD and CVD investigations this is a 216% increase from the comparable period in the previous administration.

Antidumping duty and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the U.S. Commerce currently maintains 456 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trading practices.

The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determinations on September 17, which is independent from the Department of Commerce's determinations of dumping and subsidization. Only if both the Department's and the ITC's final determinations are affirmative will orders be issued. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued. Companies receiving a zero or de minimis dumping and/or subsidy rate will be excluded from any orders.

The U.S. Department of Commerce's Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based on factual evidence provided on the record.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to countervailing duties.

SOURCE: U.S. Department of Commerce (Wash. D.C., USA). 

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