CVD Order on Supercalendered Paper from Canada Terminated

SEATTLE (Scrap Monster): The press release issued by Resolute Forest Products stated that the United States Department of Commerce (DOC) has formally terminated the countervailing duty (CVD) order on supercalendered (SC) paper from Canada. The announcement is retroactive to August 3, 2015. Accordingly, this puts an end to collection of cash deposits on imports from Canada. Also, all cash deposits collected will be returned along with accumulated interest, the press release noted.

As of June 30, 20158, Resolute’s cash deposit total $60 million. This amount, along with interest will be returned to the company. However, the expected time of refund will be informed shortly through a Federal Register Notice.

The termination of the CVD order follows the final determination in the recently initiated Changed Circumstances Review. The Review was initiated following the letter written by Verso Corporation-the only remaining petitioner, to Commerce Secretary Wilbur Ross stating that it is not interested in continuing the CVD order. All other interested parties in the dispute including the federal and provincial governments in Canada had notified their support to Verso’s request for a Changed Circumstances Review.

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The DOC had received a CVD petition with regards to imports of SC paper from Canada. The petition, filed by the Coalition for Fair Paper Imports-an association of domestic producers of SC papers in the U.S., had alleged that the Government of Canada and certain provincial governments are providing countervailing subsidies and that such import are threatening to cause material injury to the domestic U.S. industry.

Later, the DOC issued a countervailing duty order on supercalendered paper from Canada, fixing a subdsidy rate of 20.18% for Port Hawkesbury Paper LP and six affiliates, 17.87% for Resolute FP Canada Inc. and four affiliates and 18.85% for all others.