Industry News

Commerce Issues Affirmative AD and CVD Determinations Against Imports of Coated Free Sheet Paper from China

October, 25, 2007


Today, the U.S. Department of Commerce issued its final determinations in the antidumping and countervailing duty investigations of Coated Free Sheet Paper from the People’s Republic of China.  (72 Fed. Reg. 60632 and 72 Fed. Reg. 60645).  The Department affirmed its preliminary determination that U.S. countervailing duty law could be applied to imports from China despite China’s status as a non-market economy country (“NME”).    As a result, importers of coated free sheet paper from China will have to deposit countervailing duties ranging from 7.40 to 44.25 percent in addition to antidumping duties ranging from 21.12 to 99.65 percent depending on the Chinese producer or exporter.

The Department rejected arguments that if it were to impose countervailing duties in this instance it must make adjustments to the Department’s NME antidumping methodology, in order to avoid a double remedy.  The Department did, however, leave open the possibility that adjustments  could be necessary in future proceedings, stating that it had not concluded that a double remedy could never arise as a result of parallel AD and CVD investigations in an NME country – only that respondents had failed to demonstrate that such a double remedy would result in this investigation.

The Department also noted that it was considering whether to grant market-economy treatment to individual respondents in future antidumping proceedings involving China.  A Federal Register notice seeking comments on this proposal was published on May 15, 2007 (72 Fed. Reg. 29302) and a second Federal Register notice seeking additional comments was published on October 25, 2007 (72 Fed. Reg. 60649).  Comments are due by November 26, 2007.               

The investigation now continues at the U.S. International Trade Commission which must determine by November 30, 2007 whether the domestic industry was materially injured by reason of subject imports.  Since the Department’s June 4, 2007 preliminary determination in this investigation, six countervailing duty petitioners have been filed against imports from China of quality steel pipe, off-the-road tires, light walled rectangular pipe and tube, laminated woven sacks, lightweight thermal paper, and raw flexible magnets.  All of these petitions also seek the imposition of antidumping duties.