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Letter to Penny Pritzker, Secretary, US Department of Commerce - Lightweight Thermal Paper

Letter

Date: Feb. 3, 2014
Location: Washington, DC
Issues: Trade

The Honorable Penny S. Pritzker
Secretary of Commerce
U.S. Department of Commerce
Attention: Enforcement and Compliance
APO/Dockets Unit, Room 1870
14th Street and Constitution Avenue, N.W.
Washington, D.C. 20230

Re: Antidumping Administrative Review Of Lightweight Thermal Paper From Germany

Dear Madam Secretary:

We are writing to express concern regarding the December 26, 2013 preliminary results issued in the Fourth Administrative Review of Lightweight Thermal Paper from Germany. In those preliminary results, the Department of Commerce found that the antidumping margin for Papierfabrik August Koehler (Koehler) was zero percent. This represents a significant change from the 75.36 percent margin found in the final results of the Third Administrative Review issued on April 18, 2013. This outcome is especially concerning because we understand that fraud committed by Koehler extended into the fourth review period.

In the final results of the Third Administrative Review, the Department cited Koehler's "deliberate scheme to conceal home market sales and manipulate home market price data, as well as Koehler's submission of {questionnaire responses} based on fraudulent data," noting that it was "not possible to reach any reliable conclusions based on Koehler's questionnaire responses." In the subsequent, review, however, the Department appears to have accepted Koehler's data in spite of evidence of continuing fraudulent behavior. Koehler should not be given credit for acknowledging its fraudulent behavior only after being caught.

We understand that the Department has the legal authority to disregard certain sales data if it is outside the ordinary course of trade, or if those sales create a fictitious market. We strongly urge the Department to fully review the case evidence and utilize the legal mechanisms provided by U.S. trade laws to address fraudulent behavior by foreign companies found to be dumping in the U.S. market.


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