Rayonier to Challenge China's Interim Duty on Commodity Grade Cellulose Pulp
In February 2013, China’s Ministry of Commerce initiated an anti-dumping investigation of imports of dissolving wood, cotton and bamboo pulp into China from the U.S., Canada and Brazil during 2012.
Nov. 8, 2013 (Press Release) - Rayonier Inc. announced today that on November 6, China’s Ministry of Commerce (MOFCOM) issued the following preliminary determination regarding the import of Rayonier dissolving pulp products into China:
- Rayonier’s high purity cellulose acetate and other high purity products will not be subject to any duties as they are specifically exempted.
- Rayonier’s lower purity Fibernier grade product used in commodity viscose applications will be subject to a 21.7 percent interim duty effective November 7.
Paul Boynton, Chairman, President and CEO stated, “While we are pleased that MOFCOM recognized the unique characteristics of our high-purity cellulose specialty products, we intend to challenge the interim duty on commodity viscose as it appears to be based on inaccurate assumptions.”
In February 2013, MOFCOM initiated an anti-dumping investigation of imports of dissolving wood, cotton and bamboo pulp into China from the U.S., Canada and Brazil during 2012. These determinations by MOFCOM are preliminary and subject to change upon the completion of its investigation and issuance of its final determination, which is expected in the first half of 2014.
Rayonier is currently reviewing the basis for MOFCOM’s duty calculation and expects to submit a formal response next week. In addition, the Company is evaluating all potential product and market segment options that its broad range of capabilities provides in the event that MOFCOM’s preliminary duty is not materially reduced or eliminated.
Rayonier does not expect that MOFCOM’s preliminary duty will materially affect its business results.
Rayonier is a leading international forest products company with three core businesses: Forest Resources, Real Estate and Performance Fibers. The company owns, leases or manages 2.7 million acres of timber and land in the United States and New Zealand. For more information visit: www.rayonier.com.