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SCA appeals against lifting of duty on Australian tissue imports

Nov 25 2010  SCA and Kimberly-Clark have appealed against a decision in Australia to lift anti-dumping duties on imports of Chinese and Indonesian toilet paper.

The two tissue giants recently argued before the Federal Court of Australia that the attorney general's decision to revoke the 2009 interim dumping duties should not be allowed.The legal basis of their case is that the Australian Customs Act does not allow for the re-investigation that the attorney general ordered, and on which he based the decision to revoke the duties, Tissue News reports.Paul Thompson, president of SCA Hygiene Australasia, explained that a decision on the case is expected during the first quarter of next year, but would not comment further while it was still before the courts.The case started in December 2008, when the Australian Customs and Border Protection Service ruled in favor of Kimberly-Clark’s and SCA’s claim that imports of premium-grade toilet tissue from China and Indonesia undercut prices and caused material injury to the Australian industry, starting from 2007. As a result, the anti-dumping duties were raised from two to 45 percent on such imports.The measures were to remain in place for five years, but the country's attorney general ordered the reinvestigation of the case, following appeals by several bodies, including two of APP's subsidiaries Gold Hongye Paper of China and Pindo Deli Pulp and Paper Mills of Indonesia, and the Indonesian government.Following the reinvestigation, it was confirmed that Chinese and Indonesian toilet paper imports were dumped in the Australian market and had caused injury to the domestic industry. Nonetheless, the attorney general opted to cancel the duties, as there were more significant factors affecting the industry, including domestic competition and the increasing strength of the Australian Dollar.

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