MOFCOM Announcement No. 8 of 2016 on the Final Ruling on the Anti-dumping Investigation against Imports of Unbleached Sack Paper Originated in the U.S., the EU, and Japan

April 12, 2016 - 08:41 BJT (15:41 GMT)   MOFCOM

In accordance with the provisions of the Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the “Anti-dumping Regulations”), on April 10, 2015, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued Announcement No. 9 of 2015, deciding to carry out anti-dumping investigation against imports of unbleached sack paper (hereinafter referred to as the “Products under Investigation”) originated in the U.S., the EU and Japan.

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of unbleached sack paper caused by the Products under Investigation and the extent of such damage, as well as the causal relationship between the dumping and the damage. According to the investigation findings and Article 24 of the Anti-dumping Regulations, the Investigation Authority released on December 10, 2015, an announcement on the preliminary ruling, affirming that there was dumping of the Products under Investigation and the domestic industry of unbleached sack paper in China was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

Upon the preliminary ruling, the Investigation Authority continued its investigation into the dumping and dumping margin, the damage and the extent of such damage, as well as the causal relationship between the dumping and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (See the Annex) according to the provisions of Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Final Ruling

Upon investigation, the Investigation Authority made a final ruling that during the investigation period of this case, there was dumping of imports of unbleached sack paper originated in the U.S., the EU and Japan, and China's domestic industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage

II. Levy of Anti-dumping Duties

The Investigation Authority, in accordance with Article 38 of the Anti-dumping Regulations, proposed suggestions on the levy of anti-dumping duties against imports of unbleached sack paper originated in the U.S., the EU and Japan to the Customs Tariff Commission of the State Council, which then decided, as of April 10, 2016, to impose anti-dumping duties on imports of unbleached sack paper originated in the U.S., the EU and Japan.

Details of the Products under Investigation are as follows:

Scope of investigation: imports of unbleached sack paper originated in the U.S., the EU and Japan.
Name of products under investigation: Unbleached Sack Paper, or Unbleached Sack Kraft Paper, or Unbleached Bag Paper, Unbleached Extensible (Semi-Extensible) Sack (Kraft) Paper, etc. 
Description: unbleached sack paper mainly uses unbleached or slightly bleached sulfate wood pulp (or may be mixed with other pulp such as waste paper pulp or bamboo pulp) as the main raw material, and is prepared through certain production technology (whether being processed through clupak equipment or not) and is a kind of high strength packing paper. 
Physical indexes and features: unbleached sack paper features high tensile resistance, large tearing index, high tensile resistance energy absorption index, high air permeability and large elongation. Weight (gram weight) ≤ 115g/ m2; Tensile resistance index (vertical and horizontal) ≥69 N.m/g; tearing index (vertical) ≥10 mN.m2/g; tensile resistance energy absorption index (horizontal) ≥ 1.0 J/g; tensile resistance energy absorption index (vertical) ≥ 0.8 J/g; air permeability≥3.4μm/(Pa.s) and prolongation (vertical) ≥2%
Main purposes: unbleached sack paper is a kind of special packing paper that is mainly used for producing packing bags of products such as cement, chemical products and food (e.g. rice, starch and flour).

The product is listed under tariff numbers of 48042100 and 48043100 in the Customs Import and Export Tariff of the People’s Republic of China.

Rates of anti-dumping duty imposed on companies are as follows:

U.S. companies:
1. Kapstone Kraft Paper Corporation 14.9%
2. All others 14.9%
EU companies:
1. BillerudKorsnäs Sweden AB 23.5%
2. Mondi Stambolijski EAD 29.0%
3. BillerudKorsnäs Finland Oy 26.2%
4. Mondi Frantschach GmbH 26.2%
5. Mondi Steti a.s. 26.2%
6. Mondi Dynäs Aktiebolag 26.2%
7. All others 29.0%
Japanese companies:
1. Oji Paper Co., Ltd. 20.5%
2. Oji Materia Co.， Ltd. 20.5%
3. Chuetsu Pulp & Paper Co., Ltd. 20.5%
4. Daio Paper Corporation 20.5%
5. Nippon Paper Industries Co., Ltd. 20.5%
6. All others 20.5%

III. Methods of Levying Anti-dumping Duties

As of April 10, 2016, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing unbleached sack paper originated in the U.S., the EU and Japan. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: Anti-dumping duties = dutiable value authorized by China Customs x rate of anti-dumping duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and anti-dumping duties as the taxable value.

IV. Retrospective Collection of Anti-dumping Duties

Deposits provided by relevant importers to Customs of the People’s Republic of China from December 11, 2015 to April 9, 2016 according to the announcement on the preliminary ruling, shall be transferred on the basis of detailed description of commodities taxable and the rate of anti-dumping duties determined by the final ruling to anti-dumping duties, and the import value-added tax shall also be levied according to relevant rate of value-added tax. Any excess of the deposits provided by importers during this period over the anti-dumping duties and the corresponding import value-added tax will be refunded by the Customs, and the short-levied duties will not be levied.

Retrospective collection of anti-dumping duties will not be carried out for imports of unbleached sack paper originated in the U.S., the EU and Japan that were imported before the announcement of temporary anti-dumping investigations.

V. Period of Levying Anti-dumping Duties

The implementation period of levying anti-dumping duties on imports of unbleached sack paper originated in the U.S., the EU and Japan shall be 5 years starting from April 10, 2016.

VI. New Exporter Review

Any new exporter in the U.S, the EU and Japan that does not export the Products under Investigation to the People’s Republic of China during the investigation period, if qualified, may apply in writing to the Investigating Authority for a new exporter review according to provisions of Article 47 of the Anti-dumping Regulations.

VII. Interim Review

During the period of levying anti-dumping duties, relevant interested parties may apply in writing to the Investigating Authority for an interim review in light of provisions of Article 49 of the Anti-dumping Regulations.

VIII. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the final ruling of this case and the decision to levy anti-dumping duties may, according to provisions of Article 53 of the Anti-dumping Regulations, apply for an administrative reconsideration or initiate a litigation to the people's court according to law.

This Announcement shall come into force as of April 10, 2016.

Ministry of Commerce of the People’s Republic of China

April 9, 2016

Translated by Hou Zuowei

Proofread by Eddiea

(All information published in this website is authentic in Chinese. English is provided for reference only. )