For Immediate Release: August 10, 2006
Contact: Jennifer Scoggins (202) 482-3809
COMMERCE FINDS UNFAIR TRADE IN PAPER FROM INDONESIA
Imposes Tariff on Dumped and Subsidized Paper Products
Washington, D.C. - U.S. Department of Commerce today announced its final decisions in antidumping and countervailing duty investigations on lined paper products from Indonesia.
The Department of Commerce found that Indonesian companies are dumping at 97.85 percent to 118.63 percent of the price in Indonesia. Also, Commerce found that Indonesia subsidized lined paper products at the rate of 40.55 percent. Both values were determined based on adverse facts because the Indonesian exporter and producer PT. Pabrik Kertas Tjiwi Kimia Tbk. and the Indonesian government refused to cooperate in the investigation s to the best of their ability.
“The Department of Commerce found that the Indonesia subsidizes its lined paper industry and exporters sell the paper products at unfair prices in the U.S. market,” said Commerce Assistant Secretary David Spooner. “The Bush Administration will continue working to level the playing field for American companies to increase prosperity, opportunity and to stimulate the economy. ”
The petitions for these investigations were filed by MeadWestvaco Corp; Norcom, Inc., Top Flight, Inc., collectively, the Association of American School Paper Suppliers in September 2005. The Department initiated these investigations on September 29, 2005 , after determining the petitions met the statutory requirements under the Tariff Act of 1930.
Lined paper products are typically school supplies that feature straight horizontal or vertical lines on 10 or more paper sheets, including single- and multi-subject notebooks, composition books, wireless notebooks, loose-leaf or glued filler paper, graph paper, and laboratory notebooks.
If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, the Department of Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit from importers of lined paper from Indonesia. If the ITC makes a negative final injury determination, the investigation will be terminated.
Indonesian imports of lined paper products into the United States increased by 23 percent in volume, valued at an estimated 22.4 million dollars, from 2004 to 2005.
Under the U.S. Title VII of Tariff Act of 1930, the ITC examines whether the U.S. industry is injured by imports of the subject merchandise. The ITC is scheduled to make its final injury or threatened to be injured determinations on or about September 25, 2006.
Background:
Unfair foreign pricing and government subsides distort the free flow of goods and adversely affect American business in the global marketplace. The Import Administration enforces our trade laws and agreements, prevents unfairly traded imports and safeguards jobs and the competitive strength of American industry.
Dumping occurs when a foreign producer sells a product in the United States at a price that is less than fair value, which is often the producer’s sales price in the country of origin (“home market”), or its cost of production. The difference between the price (or cost) in the foreign market and the price in the U.S. market is called the dumping margin. Unless the conduct falls within the legal definition of dumping as specified in U.S. law, a foreign producer selling imports at prices below those of American products is not necessarily dumping.
Foreign governments subsidize industries when they provide financial assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market conciliations. The statute and regulations establish standards for determining when an unfair subsidy has conferred. The amount of subsidies the foreign producer receives from the government is the basis for the subsidy rate by which the subsidy is offset or “countervailed.”
For more information about Import Administration or for the fact sheet on today’s final decisions on lined paper products from Indonesia please visit www.trade.gov/ia.
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