U.S. Probe Finds Some Canadian Paper Imports Subsidized, Sets Duties

An investigation into imports of supercalendered paper from Canada found on a preliminary basis that producers and exporters there received countervailable subsidies ranging from 2.04 percent to 20.33 percent, the U.S. Department of Commerce said on Tuesday.

As a result, Commerce will ask U.S. Customs and Border Protection to require cash deposits as countervailing duties from Canadian exporters based on the preliminary rates.

Supercalendered paper is uncoated printing paper used to produce such materials as magazines, catalogs, corporate brochures, flyers and directories.

Commerce said it found preliminary subsidy rates of 20.33 percent for Port Hawkesbury Paper LP and 2.04 percent for Resolute FP Canada Inc, with all other producers and exporters in Canada assigned a rate of 11.19 percent.

The probe, announced in March, was sparked by complaints from an industry group consisting of Madison Paper Industries of Maine, owned by Finland’s UPM-Kymmene Corp, and Verso Corp of Ohio, and was backed by unions.

Commerce said in 2014 that imports of supercalendered paper from Canada were valued at an estimated $868.4 million.