APP Requests $50 Million Limit on U.S. Coated Paper Imports

Asia Pulp & Paper Group (APP), Jakarta, Indonesia, a global pulp, paper, packaging, and tissue manufacturing company, has committed to importing certain coated papers manufactured in Indonesia and no more than $50 million dollars worth annually – only 2.5% of the current $2 billion dollar coated paper U.S. manufacturing market. 

In remarks during an International Trade Commission (ITC) hearing, APP's counsel, Frank Morgan informed the commissioners that, if current duties were allowed to expire on certain coated paper imports, it would commit to a $50 million dollar ceiling from Indonesia and no products under this ITC order would be imported from China.

The ITC review of products in question include coated paper and paperboard in sheets suitable for high quality print graphics using sheet-fed presses, having a GE brightness level of 80 or higher and weighing not more than 340 grams per sq. meter.

Morgan says though no U.S. law would prohibit importing additional coated paper, there is a stringent system of checks and balances in place both within APP and within the U.S. Customs and Border Protection for record keeping, accuracy, and transparency.

In addition, Morgan stated he would be back before the ITC in the future and report on APP's commitment.  "The Indonesian paper industry is aware that the Commission will remember what it says here today and what it does subsequently and that the Commission will hold it accountable on that basis."

After the hearing, APP's trade director, Arvind Gupta, said that, if able, it would be a methodical return to the market. "Regaining sales is not like turning on a light switch. It could take years, but we would fully commit to the American market and abide by our promise to deliver both a quality product and on a limited import schedule."

Gupta also had a positive outlook on the future of U.S. paper related jobs if duties were lifted. "Not only is there no conceivable adverse impact on U.S. producers or jobs at an import ceiling of $50 million per year, but long-term it would have the opposite effect – possible U.S. job creation."

APP's VP of Government and Corporate Affairs Michael McManus added that the strong geopolitical relationship the U.S. shares with Indonesia is conducive to the current tariff being lifted. 'Indonesia has been a key supporter of the U.S. and with the largest Muslim population in the world, a loyal ally in the war on terror and a peaceful nation.  It is in the best interests of the U.S. and Indonesian governments to allow these duties to expire.