Rayonier paid US $ 91 million in lumber fees to the US

Chemical company Rayonier Advanced Materials reported that it has paid $ 91 million in anti-dumping and countervailing duties to United States customs for a softwood case.

Headquartered in Jacksonville, Florida, the company operates six softwood mills in Ontario and Quebec, Canada and, in 2020, it sold approximately $ 224 million softwood in the United States from Canada.

The United States and Canada have a history dating back to the early 1980s of trade disputes related to the export of softwood lumber from Canada to the United States.

Each dispute has been resolved by settlement or litigation, which generally involved a combination of tariffs and / or quotas, as well as the refund of all or most of the tariffs previously paid by Canadian softwood lumber producers.

In October 2015, a 10-year Softwood Lumber Agreement (SLA) between the United States and Canada expired, resolving the 2001-2006 timber dispute between the countries.

However, no agreement was reached to extend or renew it, and as a result, after a reflection period of one year, the United States began a dumping investigation of Canadian timber exports to the United States.

In 2017, anti-dumping and countervailing duties were assessed by the Commerce Department on timber exported to the United States, Rayonier was assigned an anti-dumping duty rate of 6% and a countervailing duty rate of 14%.

Rayonier

Canada legally challenges these quotas under the dispute resolution processes of the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO).

In December 2020, following its administrative review from April 28, 2017 to December 31, 2018, the Commerce Department determined revised rates for anti-dumping and countervailing duties, and Rayonier is now subject to a duty rate. antidumping of 1.57% and a countervailing rate of 7.42 percent.

Canada has filed an appeal under Chapter 10 of the Mexico-United States-Canada Agreement (USMCA) to challenge these revised rights.

Rayonier expects to receive the money paid in most installments in the event of a favorable decision under the NAFTA or WTO process or a settlement of the dispute.

There can be no guarantee that the fees will be waived or refunded through legal process or negotiated settlement, or that the price of the wood will be sufficient to substantially offset their impact.

Profile

Rayonier is a world leader in cellulose-based technologies, comprising a wide offering of specialty high-purity cellulose, a natural polymer commonly used in the production of chemicals and specialty polymers for use in the production of LCD screens, filters, fibers. , performance additives for pharmaceuticals, food and other industrial applications.

Starting from a tree and building on more than 90 years of experience in cellulose chemistry, Rayonier provides high-quality, high-purity cellulose pulp products that are the essential building blocks for its customers’ products.

Additionally, Rayonier produces high performance wood, cardboard, newsprint and pulp for use in consumer products.