Anti-Dumping Commission to Terminate Copy Paper Dumping Case

Late on Friday 14th March, the Anti-Dumping Commission (ADC) announced it proposed to terminate the investigation into alleged dumping into Australia of copy paper exported from China.

The announcement was made in the Statement of Essential Facts (SEF) [http://www.adcommission.gov.au/cases/documents/034-Report-SEF225.pdf]. The SEF is effectively the ADC’s draft report of the investigation which covered white A4 and A3 copy paper exported from China over 2012-13.

The ADC’s key findings are that dumping of copy paper imported from China either did not occur or for the one exporter for whom it did occur, was at a technically and legally negligible margin. Where the dumping margin is less than 2% in respect of a particular exporter or less than 3% of the total Australian market volume is dumped, the Customs Act requires that the ADC terminate the investigation.

Five exporters were analysed. They constituted an estimated 97.4% of the total volume of Chinese copy paper exports for the period concerned.

The ADC’s preliminary assessment is that of the five exporters, only one was engaged in dumping, at a margin of 0.91%. The other exporters were assessed as not dumping, with negative margins of between -0.95% in the case of UPM (China) Co. Ltd and -6.95% in the case of Zhanjiang Chenming Pulp and Paper Co. Ltd.

The ADC’s intention to terminate the investigation is because the instance of dumping is below the 2% individual exporter dumping margin threshold.

The SEF goes into considerable detail in respect of UPM China, UPM Asia Pacific and its substantial domestic customer, Fuji Xerox. This is in part due to the significant volumes of copy imported to Australia through that supply line.

As the SEF is a preliminary report, interested parties have until 3rd April 2014 to provide written responses to the ADC. Should the ADC, based on any written responses, decide to continue the investigation, the ADC must provide advice to the relevant Parliamentary Secretary by 28th April 2014.

Further analysis and commentary will be included in Edition 107 of Pulp & Paper Edge, which will be released on Tuesday 15th April. Further comment and opinion will be available on this blog.

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