The uncertainty around the future of white office paper production in Australia has prompted the Anti-Dumping Commission (ADC) to initiate an exemption inquiry in relation to anti-dumping measures applying to A4 copy paper exported to Australia from all countries subject to anti-dumping measures.

 

The inquiry follows several applications by local paper and packaging distributor Jackaroo Pty Ltd, which submits that there is currently no local producer of A4 copy paper, which means that the company must source A4 copy paper from outside of Australia. 

 

A4 copy paper imported to Australia from Brazil, Indonesia, Thailand and India is currently the subject of dumping and countervailing duties, with the effect that the ‘landed cost of this product exceeds the normal imported cost’.

 

The dumping duties were instigated in recent years by Japanese-owned Opal Australian Paper, which last month said it was “seriously considering” the closure of white side operations at its Maryvale Mill in Victoria following long-running industrial issues associated with the supply of timber.

 

The ADC has invited interested parties to lodge written submissions concerning the inquiry no later than the close of business on 24 February 2023.

 

There is no legislated timeframe for completing the report and recommendation to the Minister for Industry, Science and Resources.

 

Jackaroo’s submission and Opal’s Chinese imports

 

In Jackaroo’s submission to the ADC, law firm Clayton Utz stated that Paper Australia (trading as Opal Australian Paper) is currently importing goods from Chenming Paper (a Chinese manufacturer), to meet current domestic demand. 

 

“Accordingly, Paper Australia is acting as an importer/distributor of A4 copy paper, rather than a manufacturer. It cannot be contended that any material injury is being caused to Paper Australia by importers of goods subject of the notice in the current circumstances and importers should therefore be Nippon Paper Industries,” the law firm said.

 

“Until such time as Paper Australia can demonstrate their ability to produce like goods in Australia, we submit that Jackaroo should receive an exemption under section 8(7)(a) of the Customs Tariff Act. This is particularly relevant in these circumstances, where there is no directly substitutable product available on the domestic market and a suitable substitute product cannot be purchased from Australian producers.

 

“We submit that having regard to the evidence in this application, the ADC cannot reasonably be so satisfied. In circumstances where Paper Australia is currently relying on importations of A4 copy paper from China to service domestic demand, the ADC must consider how it can continue to refute the submission that like or directly competitive goods are not offered for sale in Australia (within the meaning of relevant section the Customs Tariff Act.”