Letter to Meredith Broadbent, Chairman of U.S. International Trade Commission - Stand Up for West Carrollton's Appvion Paper Against Fraudulent Foreign Competitors

Letter

Dear Chairman Broadbent:

We write to express support for the continuation of orders on lightweight thermal paper from China and Germany. These orders are critical to ensuring the domestic industry can compete on a level playing field, and a negative sunset review determination would lead to the dumping of imports in the U.S. market.

The dumping orders on lightweight thermal paper from China and Germany have stopped the flood of imports from those two countries. Before the orders took effect, lightweight thermal paper imports grew rapidly from January 2005 to June 2008. The original investigation found that China undersold their product by more than 20 percent. After the dumping duties were imposed, Chinese exports of lightweight thermal paper dropped to negligible quantities. In the 2010-2011 annual review, the Department of Commerce imposed a 75.36 percent dumping margin on the German producer, Koehler, after finding that the German company misrepresented sales. This has forced Koehler to announce they are no longer shipping to the U.S. market. These orders have succeeded in ending unfair trade and should be continued.

If the dumping orders were revoked, the domestic industry would face renewed material injury. China maintains excessive production capacity that is greater than the total Chinese consumption of lightweight thermal paper. German producers have also increased their thermal paper production capacity. In addition, Germany continues to fight the dumping orders aggressively, which reveals their ongoing interest in exporting to the U.S. The American market remains attractive for foreign producers of lightweight thermal paper, and both China and Germany would resume underselling in the U.S. if the orders were lifted. The Department of Commerce confirmed that the domestic industry would be injured by a revocation of the orders in its preliminary determination earlier this year.

There is one other factor that we want to raise because it could affect your evaluation of data and information provided by Germany during the proceedings. The Department of Commerce found that Koehler had engaged in a transshipment scheme to avoid dumping margins and accordingly used adverse facts available to impose a high margin on their products, a finding that was upheld by the U.S. Court of International Trade in New York. We ask that you keep in mind their deceptive behavior and their desire to avoid the dumping duties as you evaluate this case.

The dumping orders on lightweight thermal paper imports from Germany and China have been successful, and without them the domestic industry would suffer from unfair trade practices. We urge you to maintain the orders so that American companies can compete on a level playing field.

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