The US Department of Commerce (DOC) and the US Trade Commission (ITC) has found that paper exporters in China and Indonesia received countervailable subsidies of up to 131%.
The countervailing duty (CVD) investigation instigated by four US paper manufacturers and the United Steelworkers (USW) union in January has preliminarily determined that exporters in China and Indonesia received countervailable subsidies ranging from 5,82% to 126,42% and 43,19% to 131,1%, respectively (the 126,42% rate and the 131,12% rate are based upon adverse facts available).
As a result of the preliminary affirmative determinations, the DOC will instruct US Customs and Border Protection to require cash deposits based on these preliminary rates.
The CVD investigation has been aligned with the concurrent antidumping petition against certain uncoated paper imports from China and Indonesia and the DOC is due to announce its final determinations around November.
The department said if it makes affirmative final CVD determinations and the ITC makes affirmative final determinations for anti-dumping (due in December), CVD orders will be issued.
The anti-dumping petition also involves paper exporters from Brazil, Portugal and Australia.
Source: Michelle Sturman, OPI