The anti-dumping and countervailing (AD/CVD) preliminary investigations of uncoated groundwood paper are among the several contentious trade issues sparking tension between the United States and Canada. While waiting for the final determinations of these investigations, the U.S. is collecting both anti-dumping and countervailing duties on importations from Canada of the product.
On March 19, 2018, the Department of Commerce (DOC) preliminarily determined that certain uncoated groundwood paper from Canada is being, or is likely to be, sold in the U.S. at less than fair value. The period of investigation is July 1, 2016, through June 30, 2017.
The DOC will make its final determination no later than 135 days after the March 19th publication of the preliminary determination on or about August 1, 2018. If affirmative, the International Trade Commission (ITC) will make its final determination by September 17, 2018. If both are affirmative, the final order will be issued on September 24, 2018. If either the DOC’s or the ITC’s final determination is negative, no ADD order will be issued.
Note, dates are subject to change. Also, signed, non-reimbursement certificates should be obtained, including the orders with rates of zero.
The U.S. Customs and Border Protection (CBP) agency suspended liquidation of shipments entered, or withdrawn from warehouse, for consumption on or after March 19, 2018. A cash deposit or the posting of a bond equal to the estimated weighted-average dumping margin for the companies listed below is required:
|Producer and/or exporter (1)||Case Number||Estimated weighed
average dumping margin (2)
|Catalyst Pulp and Paper Sales, Inc./Catalyst Paper General Partnership||A-122-861-001||22.16%|
|Resolute FP Canada Inc./Donohue Malbaie Inc.||A-122-861-002||0.00%|
|White Birch Paper Canada Company/Papier Masson WB LP/FF Soucy WB LP/Stadacona WB LP||A-122-861-003||0.00%|
On January 8, 2018, the DOC announced its preliminary affirmative determination and alignment of its final determination in the countervailing duty investigation of Certain Uncoated Groundwood Paper from Canada from March 25, 2018 until no later than May 22, 2018.
The DOC is scheduled to announce its final determination in the CVD investigation on or about May 22, 2018, unless the statutory deadline is extended. If affirmative, the ITC will make its final determination by July 6, 2018. If both are affirmative, the final order will be issued on July 13, 2018. If either the DOC’s or the ITC’s final determination is negative, no CVD order will be issued. Note, dates are subject to change.
CBP suspended liquidation of shipments entered, or withdrawn from warehouse, for consumption on or after January 16, 2018. A cash deposit or the posting of a bond equal to the subsidy rates for the companies listed below is required:
|Producer and/or exporter||Case Number||Estimated weighed
average dumping margin
|Catalyst Paper Corporation and three affiliates
The three affiliates are: Catalyst Paper, Catalyst Pulp Operations Limited, and Catalyst Pulp and Paper Sales Inc.
|Kruger Trois-Rivieres L.P. and six affiliates. The six affiliates are: Kruger Publication Papers Inc., Corner Brook Pulp and Paper Limited, Kruger Energy Bromptonville LP, Kruger Holdings L.P., Kruger Holdings GP Inc., and Kruger Inc.||C-122-862-002||9.93%|
|Resolute FP Canada Inc. and three affiliates. The three affiliates are: Resolute FP Canada, Fibrek General Partnership (Fibrek), and Resolute Growth||C-122-862-003||4.42%|
The following company received a de minimis subsidy rate in the preliminary determination. No suspension of liquidation, cash deposit, or posting of bond is required at this time for:
|Producer and/or exporter||Case Number||Estimated weighed
average dumping margin
|White Birch Paper Canada Company NSULC and three affiliates
The three affiliates are: Papier Masson WB (White Birch) LP, FF Soucy WB LP, and Stadacona WB LP
The scope description for the AD/CVD investigations of Uncoated Groundwood Paper from Canada include:
- Certain paper that has not been coated on either side and with 50% or more of the cellulose fiber content consisting of groundwood pulp, including groundwood pulp made from recycled paper, weighing no more than 90 grams per square meter.
- Groundwood pulp includes all forms of pulp produced from a mechanical pulping process, such as thermo-mechanical process (TMP), chemi-thermo mechanical process (CTMP), bleached chemi-thermo mechanical process (BCTMP) or any other mechanical pulping process.
- The scope includes paper shipped in any form, including but not limited to both rolls and sheets.
- Certain uncoated groundwood paper includes but is not limited to standard newsprint, high bright newsprint, book publishing, and printing and writing papers.
- The scope includes paper that is white, off-white, cream, or colored.
Excluded from the scope
The following are specifically excluded from the scope:
- Imports of certain uncoated groundwood paper printed with final content of printed text or graphic.
- Papers that otherwise meet this definition, but which have undergone a supercalendering process.
- Papers that otherwise meet this definition, but which have undergone a creping process over the entire surface area of the paper.
- Uncoated groundwood construction paper and uncoated groundwood manila drawing paper in sheet or roll format.
- Uncoated groundwood construction paper and uncoated groundwood manila drawing paper that have:
a) weight greater than 61 grams per square meter;
b) thickness greater than 6.1 caliper, i.e., greater than .0061” or 155 microns;
c) are produced using at least 50 percent thermomechanical pulp; and
d) a shade, as measured by CIELAB, as follows: L* less than or 75.0 or b* greater than or equal to 25.0.
- Uncoated groundwood directory paper that has:
a) basis weight of 34 grams per square meter or less; and
b) thickness of 2.6 caliper mils or 66 microns or less.
Uncoated groundwood paper is classifiable in the Harmonized Tariff Schedule in several subheadings, including:
- 4801.00.0120, 4801.00.0140, 4802.61.1000, 4802.61.2000, 4802.61.3110, 4802.61.3191, 4802.61.6040, 4802.62.1000, 4802.62.2000, 4802.62.3000, 4802.62.6140, 4802.69.1000, 4802.69.2000, and 4802.69.3000.
- Subject merchandise may also be imported under several additional subheadings including 4805.91.5000, 4805.91.7000, and 4805.91.9000.
- The HTS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.
(1) In this investigation, Commerce preliminarily found zero rates for Resolute FP Canada Inc. and Donohue Malbaie Inc. (collectively, Resolute), and White Birch Paper Canada Company, Papier Masson WB LP, FF Soucy WB LP, and Stadacona WB LP (collectively, White Birch Paper). Therefore, the only rate that is not zero, de minimis, or based entirely on facts otherwise available is the rate calculated for Catalyst Pulp and Paper Sales, Inc. and Catalyst Paper General Partnership (collectively, Catalyst). Consequently, the rate calculated for Catalyst is also assigned as the rate for all-other producers and exporters in this investigation.
(2) Commerce will instruct CBP to require a cash deposit equal to the estimated weighted-average dumping margin or the estimated all-others rate, as follows: (1) The cash deposit rate for the respondents listed above will be equal to the company-specific estimated weighted-average dumping margins determined in this preliminary determination, except if that rate is zero or de minimis, no cash deposit will be required; (2) if the exporter is not a respondent identified above, but the producer is, then the cash deposit rate will be equal to the company-specific estimated weighted-average dumping margin established for that producer of the subject merchandise, except as explained below; and (3) the cash deposit rate for all other producers and exporters will be equal to the all-others estimated weighted-average dumping margin.
Because the estimated weighted-average dumping margins for Resolute and White Birch Paper are zero, entries of shipments of subject merchandise from these companies will not be subject to suspension of liquidation or cash deposit requirements. In such situations, Commerce applies the exclusion to the provisional measures to the producer/exporter combination that was examined in the investigation. Accordingly, Commerce is directing CBP not to suspend liquidation of entries of subject merchandise produced and exported by: (1) Resolute; and (2) White Birch Paper. Entries of shipments of subject merchandise from Resolute or White Birch Paper in any other producer/exporter combination, or by third parties that sourced subject merchandise from the excluded producer/exporter combination, or by third parties that sourced subject merchandise from the excluded producer/exporter combinations, are subject to the provisional measures at the all others rate.
Should the final estimated weighted-average dumping margin be zero or de minimis for Resolute and White Birch Paper, entries of shipments of subject merchandise produced and exported by either Resolute or White Birch Paper will be excluded from the potential antidumping duty order. Such exclusion is not applicable to merchandise exported to the United States by Resolute or White Birch Paper in any other producer/exporter combinations or by third parties that sourced subject merchandise from the excluded producer/exporter combinations.