U.S. Department of Commerce Announces Preliminary Ruling in Circumvention Inquiry Regarding Uncoated Paper from China
For Immediate Release
November 9, 2020
Contact: Office of Public Affairs
WASHINGTON - Today, the U.S. Department of Commerce announced an affirmative preliminary circumvention ruling involving uncoated paper rolls from China that are circumventing the existing antidumping duty (AD) and countervailing duty (CVD) orders on uncoated paper. Specifically, Commerce preliminarily determined that certain uncoated paper in roll form from China is being converted into paper sheets in the United States, and thereby circumventing the AD and CVD orders on uncoated paper in sheet form.
Accordingly, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect AD and/or CVD cash deposits on certain rolls of uncoated paper from China. The cash deposit rates will be equal to the rates previously established for uncoated paper from China. The applicable AD cash deposit rates range up to 149 percent, and the CVD cash deposit rates range up to 176.75 percent. Suspension of liquidation and cash deposit requirements will apply to certain unliquidated entries on or after October 10, 2019 (the date on which Commerce initiated the circumvention inquiry).
Certain Chinese producers/exporters may be eligible to certify that merchandise exported to the United States is not circumventing. Details regarding the certification requirements will be published in the Federal Register.
Under U.S. law, Commerce may conduct a circumvention inquiry when evidence suggests that merchandise subject to an AD or CVD order is completed or assembled in the United States from parts and components imported from the country subject to AD/CVD orders, and the process of assembly or completion in the United States is minor or insignificant.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current administration, Commerce has initiated 30 new circumvention inquiries (of which nine were self-initiated) – this is a 114 percent increase from the number of circumvention inquiry initiations during the comparable period in the previous administration. In addition, the Trump Administration has issued 55 preliminary or final affirmative determinations in circumvention inquiries – this is a 162 percent increase from the number of such determinations made during the comparable period in the previous administration.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade law and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.