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U.S. Trade Commission orders duties on coated paper imports from China and Indonesia

The U.S. International Trade Commission’s (ITC) has found that imports of coated paper from China and Indonesi…

The U.S. International Trade Commission’s (ITC) has found that imports of coated paper from China and Indonesia are causing material injury to U.S. producers and workers.

The ITC decision clears the way for the U.S. Department of Commerce to impose antidumping and countervailing duties on imports of coated free sheet paper from these countries. On Sept. 21, 2010, the agency issued its final determination citing imports from China and Indonesia as being both dumped and subsidized by significant margins.  

“NewPage is very pleased with the International Trade Commission’s finding on injury,” said George Martin, president and chief executive officer of NewPage.  “Today’s determination underscores the effects of unfair competition on the U.S. industry, where government subsidies and dumping have suppressed prices and forced mill closures,” said Martin.  “The decision will allow the Commerce Department to impose duties to offset the significant levels of dumping and government subsidies that were found to exist last month.”  Martin added, “We will remain committed to this effort and it’s important to remember that we are willing to compete with anyone in the world as long as we have a level playing field.”

“We’ve waited a long time for this decision, which will help restore a competitive market,” added Mark Gardner, president and chief executive officer of Sappi Fine Paper North America.  “For far too long, some of our competitors have been able to get away with unfair and illegal dumping and subsidies to sell their products.  The ITC’s decision puts us one step closer to being able to compete fairly based on the quality of our products, the investments we make in our mills, equipment and people, and the sustainable manufacturing and procurement practices we implement and pursue,” said Gardner.

The Commerce Dept. found that producers or exporters dumped coated paper in the United States at margins of 7.6 to 135.83% for China, and 20.13% for Indonesia. The agency also determined that these producers or exporters received countervailable subsidies ranging from 17.64% to 178.03% for China, and 17.94% for Indonesia.

Coated paper covered by the cases is used in many high-end commercial printing applications, including annual reports, coffee table books, magazines and brochures.

Once the final antidumping and countervailing duty orders are published in the Federal Register, the U.S. Customs agency will begin applying duties on Chinese and Indonesian coated paper imports.  

Appleton Coated LLC, NewPage Corporation, and Sappi Fine Paper North America – together with the United Steelworkers (USW) — filed unfair trade cases Sept. 23, 2009 with the Commerce Dept. and the ITC, alleging that certain coated paper from China and Indonesia had been dumped and subsidized, resulting in injury to the domestic industry and its employees.