For Immediate Release: October 18, 2007
Contact: Brittany Eck (202) 482-3809
COMMERCE ANNOUNCES FINAL DECISION ON UNFAIR DUMPING AND SUBSIDIZATION OF GLOSSY PAPER
WASHINGTON – The U.S. Department of Commerce today announced its affirmative final determinations in the countervailing and antidumping duty investigations on coated free sheet paper (glossy paper) from China, Indonesia, and Korea. This final determination reaffirms the March 30th preliminary decision to alter a 23-year old policy of not applying the countervailing duty (CVD) law to non-market economy countries, reflecting China’s economic development.
Commerce determined that Chinese, Indonesian, and Korean producers/exporters have sold glossy paper in the United States at 21.12 to 99.65 percent, 8.63 percent, and 0.47 percent (de minimis) to 31.55 percent less than fair value, respectively. Commerce also determined that Chinese, Indonesian and Korean producers/exporters received countervailable subsidies ranging from 7.40 to 44.25 percent, 22.48 percent and 0.00 to 1.46 percent, respectively. Glossy paper is used in art books, textbooks, annual reports, magazines and catalogues.
“The United States will enforce U.S. trade laws to ensure American businesses are treated fairly. Subsidies in China keep out our exports and distort global trade flows,” said Assistant Secretary for Import Administration David Spooner. “The Administration will continue to vigorously enforce our countervailing duty and antidumping laws, and will take appropriate remedies based on the facts presented in each case.”
Commerce has the legal authority to apply the CVD law to non-market economies. In 1984, Commerce adopted a discretionary policy of not applying the U.S. countervailing duty law to non-market economy countries. Commerce reasoned that subsidies had no measurable economic impact in the 1980s Soviet-style economies that were then under consideration. Since then, the antidumping law has been a commonly used instrument to address unfair trade practices.
“China’s economy has evolved in recent years and with this change comes the responsibility to play by the rules of the global marketplace. We found in this case that subsidies to the Chinese glossy paper industry violate those rules,” said Spooner.
As a result of these final determinations, Commerce will instruct U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on the final rates.
Commerce initiated these investigations on November 20, 2006, after determining the petitions filed by NewPage Corporation of Dayton, Ohio, met the statutory requirements under the Tariff Act of 1930. From 2005 to 2006, imports of glossy paper from China increased by 166% by volume and were valued at an estimated $224 million in 2006. During this period, imports of glossy paper from Indonesia increased by 87% by volume and were valued at an estimated $50 million and imports from Korea increased by 13% by volume and were valued at an estimated $362 million.
For more information about Import Administration or for the fact sheet on today’s final decisions on coated free sheet paper products from China, Indonesia, and Korea, please visit www.trade.gov/ia.