Catalyst to Seek Expedited Review of U.S. Countervailing Duties
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Catalyst Paper, Richmond, B.C., Canada, reports that it will seek an expedited review of the Final Determination by the U.S. Department of Commerce (DOC), dated Oct. 13, 2015, to impose countervailing duties on the company's exports of supercalendered paper to the U.S.
The DOC imposed preliminary countervailing duties on imports of supercalendered paper from four Canadian paper producers—Port Hawkesbury Paper, Resolute Forest Products, Irving Paper, and Catalyst Paper—on July 27, 2015. Despite its statutory obligation to examine each of the companies, the DOC refused to examine Catalyst Paper and Irving Paper individually, and instead assigned them a preliminary "all-others" rate of 11.19%, which is the simple average of the preliminary rates assigned to Port Hawkesbury Paper and Resolute Forest Products.
Since Aug. 4, 2015, based on this rate, Catalyst has deposited to the U.S. treasury approximately $1.3 million, representing sales of 17,000 metric tons of supercalendered paper to U.S. customers.
In its Final Determination, the DOC once again refused to examine Catalyst Paper and Irving Paper individually and instead assigned them a final "all-others" rate of 18.85%, which this time is a weighted average of the final rates assigned to Port Hawkesbury Paper and Resolute Forest Products.
"We are disappointed with this outcome," said Joe Nemeth, president and CEO. "We will seek an expedited review of our case by the U.S. Department of Commerce as soon as possible."
The Coalition for Fair Paper Imports—U.S.-based Madison Paper and Verso Corp.—alleges that the Canadian federal and provincial governments subsidized the four Canadian supercalendered paper producers. Supercalendered paper is glossy paper used in retail catalogues, flyers, and magazines.
"Catalyst rejects the allegation that we've received government subsidies, and we're confident that a full and fair investigation by the U.S. Department of Commerce would confirm this," said Nemeth.
Following the DOC's Final Determination, the U.S. International Trade Commission (ITC) will consider whether imports of supercalendered paper from Canada have injured the U.S. industry. If the ITC reaches an affirmative determination, the DOC is expected to issue its Final Order on the case in early December, after which time Catalyst may request an expedited review of its case by the DOC.
