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Appleton Applauds Government's Ruling in Trade Case

Oct. 30, 2008 - Appleton applauded today's decision by the U.S. International Trade Commission (ITC) that the U.S. industry producing lightweight thermal paper (LWTP) has been materially injured by unfairly traded imports from China and Germany. The decision clears the way for the U.S. Department of Commerce to impose antidumping and countervailing duties on imports of LWTP from those countries.

"We are pleased with the ITC's decision because it acknowledges the negative impact of unfair trade conditions we have experienced, and it restores a level playing field on which we can compete in this market," said Mark Richards, Appleton's chief executive officer. "We appreciate the consideration given to our petition by the ITC and the Department of Commerce and the strong support and testimony provided by our employees, customers, the United Steelworkers, and our state and federal elected representatives during the ITC's proceedings."

On September 26, the Commerce Department affirmed that certain Chinese producers and exporters of LWTP sold the product in the United States at prices below fair value and imposed final antidumping duties of 19.77% to 115.29%. The Department also affirmed that German producers and exporters of LWTP sold the product in the U.S. at prices below fair value and imposed final antidumping duties of 6.5%.

The Commerce Department also announced its final determination concerning subsidized imports of LWTP from China. For all but one company, the Department imposed countervailing duties of between 13.17% and 137.25%. Countervailing duties offset the subsidies that Chinese producers receive from the Chinese government. Between the countervailing and antidumping duties, Chinese paper imports face total tariffs of 19.77% to 252.54%.

Importers of LWTP affected by the ITC decision must now post cash deposits in the amount of the duties established by the Department of Commerce. Those deposits go to the Department of Treasury. Appleton receives no part of the tariffs, nor does the company recover any damages associated with its petition.

BACKGROUND

In September 2007, Appleton filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission alleging that the Chinese government is subsidizing the Chinese LWTP industry. Foreign governments subsidize industries when they provide financial or other assistance to benefit the production, manufacture or exportation of goods.

Appleton also alleged in its petitions that LWTP products, typically used for point-of-sale retail receipts and coupons, imported from China and Germany are being wrongfully dumped in the United States. Dumping occurs when a foreign producer sells goods in the United States at prices below fair value. Appleton asked the Commerce Department and the ITC to impose offsetting duties on LWTP products imported from those countries.

SOURCE: Appleton




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