Although not final yet, the United States plans to impose anti-dumping duties on imports of uncoated paper sheets from Indonesia. On Monday (11/01) the US Commerce Department said it plans to introduce anti-import duties in the range of 2.05 percent to 222.46 percent for uncoated paper sheet imports from Indonesia, Australia, China, Portugal and Brazil. On 22 February 2016 the final decision is expected to be announced by the US Commerce Department.
Anti-dumping duties are a protectionist tariff imposed by a government on foreign imports because it believes the imported products are priced below fair market value. In this paper case a complaint was made by US-based paper companies Domtar, Finch Paper Holdings, Packaging Corp of America, PH Glatfelter as well as two US labor unions about the unfair value of uncoated paper imports from Indonesia, Australia, China, Portugal and Brazil.
The US Commerce Department made the announcement after having conducted an investigation - for almost one year - into the pricing of imports of uncoated sheets for copy paper, book pages, envelopes, utility bills and other uses.
Trade data show that the USA imported around USD $200 million of ucoated paper from Indonesia in 2014. However, most imported uncoated paper imports (about USD $211 million) originated from Brazil.
Most Indonesian paper exporting companies received a 2.05 percent dumping margin for their uncoated paper exports to the USA. Other Indonesian companies - such as Indah Kiat Pulp & Paper, Pabrik Kertas Tjiwi Kimia and Pindo Deli Pulp and Paper Mills - received a 17.39 percent dumping rate as these companies were reluctant to participate in the investigation. The highest dumping margins were given to Australian firms (the USA imported USD $61 million of uncoated paper from Australia in 2014).