U.S. Relations with the People's Republic of China (2005)

U.S. Relations with the People's Republic of China (2005)

Tissue Paper from China Dumped on U.S. Market, Agency Determines

Injury determination by USITC expected in March

Washington -- Imports of tissue paper from Chinese companies were dumped on the U.S. market, the U.S. Department of Commerce has ruled.

In a final determination issued February 4, the department calculated the same dumping rate for all the companies, 112.64 percent.

Imposition of anti-dumping duties requires final affirmative determinations -- both from the Commerce Department that dumping occurred, and from the U.S. International Trade Commission (USITC) that the imports injured or threatened U.S. industry.

A final USITC determination on injury is expected in March. In the meantime, U.S. customs agents will collect a cash deposit or bond on any imports of the products.

U.S. imports of the products under investigation in this case amounted to $18 million in 2003, up from $8.6 million in 2002.

Dumping is the import of goods at a price below the home-market or a third-country price or below the cost of production. A dumping margin represents by how much the fair-value price exceeds the dumped price.

---

International Trade Administration (ITA)
Office of Public Affairs

FACT SHEET

Final Determination in the Antidumping Duty Investigation of
Certain Tissue Paper Products from the People's Republic of China

On February 4, 2005, the Department of Commerce announced its final determination in the antidumping duty investigation of imports of certain tissue paper products from the People's Republic of China (PRC). The Department found that producers/exporters have sold certain tissue paper products from the PRC in the U.S. market at less than fair value, with a margin of 112.64 percent.

Adverse Facts Available: The final antidumping margin of 112.64 percent on imports of tissue paper products is based on total adverse facts available, as the two mandatory respondent companies, China National Aero-Technology Import & Export Corporation Xiamen (China National) and Fujian Naoshan Paper Industry Group Co., Ltd. (Fujian Naoshan), failed to cooperate to the best of their ability.

Companies Qualifying for a "Separate Rate" (Section A Respondents): The Department has determined that certain Chinese companies that voluntarily responded to the Department's Section A questionnaire have demonstrated an absence of government control with respect to their export activities and are eligible to receive "separate rate" status. For this final determination, nine companies qualified for a "separate rate," with a rate of 112.64 percent.

Next Steps: The U.S. International Trade Commission (ITC) is scheduled to announce its final injury determination on or about March 18, 2005. If the ITC makes an affirmative determination that imports of tissue paper from the PRC are materially injuring, or threaten to materially injure, the domestic industry in the United States, the Department will issue an antidumping order and instruct U.S. Customs and Border Protection to collect antidumping duties on the subject imports. If the ITC makes a negative injury determination, the investigation will be terminated and no order will be issued.

Petitioners: The petition requesting this investigation was filed on February 17, 2004, by Seaman Paper Company of Massachusetts, Inc. (MA); American Crepe Corporation (PA); Eagle Tissue LLC (CT); Flower City Tissue Mills Co. (NY); Garlock Printing & Converting, Inc. (MA); Paper Service Ltd. (NH); Putney Paper Co., Ltd. (VT); and the Paper, Allied-Industrial, Chemical and Energy Workers International Union AFL-CIO, CLC.

Product Description: The tissue paper products subject to this investigation are cut-to-length sheets of tissue paper having a basis weight not exceeding 29 grams per square meter. Tissue paper products subject to this investigation may or may not be bleached, dye-colored, surface-colored, glazed, surface decorated or printed, sequined, crinkled, embossed, and/or die cut. The tissue paper subject to this investigation is in the form of cut-to-length sheets of tissue paper with a width equal to or greater than one-half (0.5) inch. Subject tissue paper may be flat or folded, and may be packaged by banding or wrapping with paper or film, by placing in plastic or film bags, and/or by placing in boxes for distribution and use by the ultimate consumer. Packages of tissue paper subject to this investigation may consist solely of tissue paper of one color and/or style, or may contain multiple colors and/or styles. The merchandise subject to these investigations may be classified in the Harmonized Tariff Schedule of the United States in several basket categories, including: 4802.30, 4802.54, 4802.61, 4802.62, 4802.69, 4804.39, 4806.40, 4808.30, 4808.90, 4811.90, 4818.90, 4823.90, and 9505.90.40. Although the tariff classifications are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive.

Final Dumping Margins:

PRODUCER/EXPORTER	MARGIN
Fujian Naoshan Paper Industry Group Co., Ltd.	112.64%
China National Aero-Technology Import & Export Corp. Xiamen	112.64%
PRC-Wide	112.64%
SECTION A RESPONDENTS	MARGIN
Everlasting Business and Industry Co., Ltd.	112.64%
Fujian Nanping Investment and Enterprise Co., Ltd.	112.64%
Fuzhou Light Industry Import and Export Co., Ltd.	112.64%
Guilin Qifeng Paper Co., Ltd. (Formerly Guilin Paper Mill)	112.64%
Max Fortune Industrial Ltd.	112.64%
Ningbo Spring Stationary Co., Ltd.	112.64%
Qingdao Wenlong Co., Ltd.	112.64%
Anhui Light Industrial Import & Export Co. Ltd.	112.64%
Samsam Productions Ltd. and Guangzhou Baxi Products Co., Ltd.	112.64%

Case Calendar:

EVENT	DATE
Petitions Filed	February 17, 2004
Initiation Date	March 8, 2004
ITC Preliminary Determination	April 1, 2004
ITA Preliminary Determination	September 14, 2004
ITA Final Determination	February 3, 2005
ITC Final Determination	March 18, 2005
Issuance of Order*	March 25, 2005

*This will take place only in the event of final affirmative determination by the ITC.

Import Statistics (Estimated Customs Value, in US$):

Product	2001	2002	2003
Certain Tissue Paper Products	$6,300,000	$8,600,000	$18,000,000

Source: Petitioners' Estimates. The subject merchandise falls under "basket" categories of multiple HTS numbers, and therefore data for exact import quantities and values for certain tissue paper products were unavailable.