U.S. Commerce Imposes Antisubsidy Duty on Thermal Paper China Imports

Washington, DC, USA, 11 March 2008 -- /PRNewswire/ -- The United Steelworkers (USW) welcomed the U.S. Department of Commerce's decision announced yesterday to impose preliminary countervailing duties on government subsidized imports of lightweight thermal paper (LWTP) from China in a trade case filed by Appleton Papers, Inc. that could affect 1780 paper workers in Wisconsin, Ohio, and Pennsylvania.

Yesterday's determination will apply duties on thermal paper from certain Chinese producers and exporters ranging from 5.68% to 59.5%, with one producer receiving a duty of less than 1%.

According to trade lawyers handling the petition filed by the company last September with the Commerce Department and the U.S. International Trade Commission (ITC), U.S. Customs and Border Protection will begin to collect a cash deposit or bond from importers of thermal paper, subject to the investigations. The final determination of the Commerce Department is expected on or about 21 July, and if upheld, the ITC's final ruling is scheduled for September.

Foreign governments subsidize industries when they provide financial or other assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, preferential tax breaks, loans, and subsidized inputs.

A separate dumping case against thermal paper imports from China and Germany is also scheduled for a ruling on or about 06 May 2008. Any duties imposed in the dumping case on China would be in addition to the duties imposed in the anti-subsidy case.

Lightweight thermal paper products are used for point-of-sale retail receipts and coupons. In 2007, imports of thermal paper from China were valued at an estimated USD 53.3 million.

Earlier this month, a letter supporting the thermal paper trade case was transmitted to U.S. Commerce Secretary Carlos M. Gutierrez by U.S. Senators Herbert Kohl (D-WI), Russ Feingold (D-WI), Sherrod Brown (D-OH), and Robert Casey, Jr. (D-PA). They wrote: "To the extent that you find imports in this case are being traded unfairly, we encourage you to take a firm hand to continue to protect U.S. jobs and investment."

Source: United Steelworkers (USW)

Web Site: http://www.usw.org/