US Slaps Preliminary Countervailing Duty on Imports From Canada - Global Trade Magazine
  February 1st, 2018 | Written by

US Slaps Preliminary Countervailing Duty on Imports From Canada

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  • Commerce will instruct US Customs to collect cash deposits from importers of Canadian uncoated groundwood paper.
  • Since January 20, 2017, Commerce’s AD and CVD investigations saw a 58-percent increase from the previous year.
  • Imports from companies that receive unfair subsidies from their governments are subject to countervailing duties.

US Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of uncoated groundwood paper from Canada.

The Commerce Department preliminarily determined that exporters from Canada received countervailable subsidies ranging from 4.42 to 9.93 percent.

“Today’s preliminary decision allows US 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,” said Ross. “The Department of Commerce will continue to evaluate and verify the accuracy of this preliminary determination while standing up for the American business and worker.”

As a result of the decision, Commerce will instruct US Customs and Border Protection (CBP) to collect cash deposits from importers of uncoated groundwood paper from Canada based on these preliminary rates.

In 2016, imports of uncoated groundwood paper from Canada were valued at an estimated $1.27 billion. The petitioner in this case was North Pacific Paper Company (WA).

Commerce is currently scheduled to announce its final CVD determination on or about May 22, 2018. If Commerce makes an affirmative final determination and the US International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

From January 20, 2017, through January 9, 2018, Commerce has initiated 82 antidumping and countervailing duty investigations – a 58 percent increase from 52 in the previous year.

Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks, and low-priced production inputs are subject to countervailing duties aimed at directly countering those subsidies.