China Issues Preliminary Determination for Rayonier Dissolving Pulp Imports

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Rayonier Inc., Jacksonville, Fla., USA, reports that in regard to its import of dissolving pulp products into China, MOFCOM (China’s Ministry of Commerce) has preliminarily exempted the company’s high purity cellulose acetate and other high purity products from dumping determination. These grades will not be subject to any duties. However, MOFCOM announced that Rayonier’s lower purity Fibernier grade product used in commodity viscose applications is subject to a 21.7% interim duty, effective November 7.

Paul Boynton, chairman, president, and CEO said that "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.

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