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Petition Filed for New AD/CVD on High Purity Dissolving Pulp From Brazil, Norway

A domestic producer recently filed a petition with the Commerce Department and the International Trade Commission requesting imposition of antidumping duties and countervailing duties on high purity dissolving pulp (HPDP) from Brazil and Norway. Commerce now will decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CVD orders and the assessment of AD and CVD on importers. Rayonier Advanced Materials, Inc. and the United Steelworkers labor union requested the investigation.

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The petitioners described HPDP as a "sustainable raw material suitable for use in various applications from eyeglass frames, excipient in pharmaceutical products, and bulking agent in food, to cellulose film and filtration products."

Proposed Scope

The petition proposes the following scope for the investigations:

"The merchandise subject to this investigation is high purity dissolving pulp (“HPDP”), which is a dissolving pulp with an alpha cellulose percentage of 90 percent by weight or higher on an oven dry basis, as calculated by: alpha cellulose percentage = (100-S10) + 0.5*(S10-S18) where S10 and S18 values are determined by International Organization for Standardization (“ISO”) 692:1982, and having a brightness level of 90 percent or higher, as measured by ISO 2470-1:2016. HPDP may be derived from any virgin or recycled cellulose fiber source (including, but not limited to, those sourced from hardwoods, softwoods, woody crops, agricultural crops/byproducts/residue, and agricultural/industrial/other waste). HPDP may be produced from a chemical pulping process including without limitation a kraft (sulfate) pulping and/or sulfite pulping process.

"HPDP can be shipped in any form, including, but not limited to, a liquid slurry or in any dried form such as flakes, powder, granules, pellets, shreds, rolls and sheets.

"The scope includes merchandise matching the above description that has been finished, packaged, or otherwise processed in a third country, including but not limited to processes such as commingling, blending, diluting, repackaging, or any other process that would not otherwise remove the merchandise from the scope of the investigation if performed in the subject country.

"Excluded from the scope are HPDP with an intrinsic viscosity under 455 milliliters per gram (“mL/g”), as measured by ISO 5351:2010.

"HPDP products are classified under subheadings 4702.00.0020 and 4702.00.0040, of the Harmonized Tariff Schedule of the United States (“HTSUS”). References to the HTSUS classification are provided for convenience and customs purposes, and the written description of the merchandise under investigation is dispositive.”

ITC and Commerce to Accept Comments Before Initiating Investigation

The Commerce Department and the ITC will accept comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. The ITC announced it is initiating an investigation in a notice to be published Aug. 15; it must reach a preliminary determination in both AD and CVD investigations by Sept. 26.