Fuji Xerox Australia Argues for “Hidden Dumping”

Originally Written and Published by Print21

Fuji Xerox denies ‘hidden dumping’ of A4 paper

Fuji Xerox Australia (FXA) has defended selling Chinese A4 paper imports to its Australian customers at a loss and denied it is guilty of ‘hidden dumping.’

FXA is one of nine companies who’ve applied to the Anti-Dumping Review Panel for a review of the Anti-Dumping Commission’s decision earlier this year to impose duties on A4 copy paper exported to Australia from China, Brazil, Indonesia and Thailand.

In its submission, the company said the decision to impose anti-dumping measures on exports of A4 copy paper from Chinese company UPM to Fuji Xerox in Australia was ‘not the correct or preferable decision.’

The Anti-Dumping Commission possessed no evidence or information that any compensatory arrangements between UPM and Fuji Xerox for any sales at a loss by Fuji Xerox in Australia…consequently, there was no evidence of what is commonly known as “hidden dumping” in the transactions between UPM and Fuji Xerox, that is sales at a loss by the importer in the country of import that are compensated for, in whole or part, by the exporter.

It also should be noted that all other transactions between UPM and other Australian importers were determined to have been at arm’s length and at dumped prices of 4.0% It is only the treatment of transactions between Fuji Xerox and UPM that has resulted in a dumping margin for UPM of 34.4%, which is manifestly incorrect and an absurd determination that, as previously stated, bears no relationship to commercial reality.

Fuji Xerox argued that selling at a loss is a common commercial practice.

Selling products at a loss is a perfectly lawful transaction in Australia and may be undertaken for sound commercial reasons unrelated to dumping, as is the case here, as verified by the Commission. Indeed, sales at a loss is a common commercial practice, such as in the case of loss leaders, and sales at a loss is regarded as fair trade in Australia and not sanctioned by Australia’s competition and consumer laws.

Indonesia last week launched legal action at the World Trade Organisation in Geneva to challenge the anti-dumping duties imposed by Australia.

In a complaint filing, Indonesia applied for a request for consultations – the first step in a trade dispute, which gives Australia 60 days to settle the dispute before Indonesia can ask the WTO to adjudicate.

The federal government has confirmed it’s received Indonesia’s request for consultations.

“The Anti-Dumping Review Panel is currently undertaking a domestic review of the anti-dumping decision, so I would hope Indonesia would wait for domestic processes to be completed,” Assistant Minister for Industry, Craig Laundy, told Print21. “Australia’s anti-dumping system is independent and rules based. It is modelled on and entirely consistent with relevant WTO obligations.”

Australia’s only paper manufacturer, Australian Paper, called for an investigation in 2014 after paper imports sold below the cost of production began threatening jobs at its Maryvale mill in the Latrobe Valley.

The decision of the Review Panel has been delayed and is now due on or before 4 October 2017.