A preliminary determination on Jan. 9 by the U.S. Department of Commerce to impose countervailing duties (CVD) ranging from 4.43% to 9.93% has U.S. newspaper, book and commercial printers that buy imported Canadian uncoated groundwood paper seeing red.
That’s because it will deliver a severe blow to their bottom lines due to what amounts to an average countervailing duty of 6.53%. In its investigation, the Commerce Department calculated a preliminary subsidy rate of 6.09% for Catalyst Paper, 9.93% for Kruger Trois-Rivieres, and 4.42% for Resolute Forest Products Canada.
Impacted Canadian uncoated groundwood paper includes standard newsprint, high bright newsprint, book publishing, directory, and printing and writing grades. The scope includes paper that is white, off-white, cream, or colored. Papers that otherwise meet this definition, but which have undergone a supercalendering process, are said to be excluded. Click HERE for a more complete fact sheet on the Department of Commerce ruling.
“This preliminary decision allows U.S. producers to receive relief from the market-distorting effects of potential government subsidies, while taking into account the need to keep groundwood paper prices affordable for domestic consumers,” announced U.S. Secretary of Commerce Wilbur Ross. In 2016, imports of uncoated groundwood paper from Canada were valued at an estimated $1.27 billion.
As a result of the ruling, U.S. Customs and Border Protection agents will now collect cash deposits from importers of uncoated groundwood paper from Canada based on these preliminary rates.
more at: http://www.piworld.com/article/u-s-newspaper-book-printers-buying-canadian-uncoated-groundwood-up-in-arms/