Petition for the Imposition of Antidumping Duties

Dear Valued Customer:

2020 presented continuous challenges for our customers and our industry due to the on-going pandemic. Its effects have been substantial and further complicated by the ever-changing state and local restrictions. These varying policies have led to many periods of volatility for your business and ours. Overcoming challenges has become a normal part of our collective efforts however, like you, Iconex remains committed to supporting our customers. We deeply appreciate the collaborative partnership during these difficult times.

As part of our continued support, we wanted to provide an update on the pending Petition for the Imposition of Antidumping duties filed by Appvion Operations Inc. and Domtar Corporation on October 7th, 2020. For clarification, Domtar acquired Appvion’s thermal point-of-sale paper coating operations in April of last year. Our intent is to provide information regarding the allegations of the petition, the current status, and the potential impact to the market.

The petitioners have asserted that thermal paper originating from Germany, Japan, Korea, and Spain are being imported into the United States at less than fair value. Per the official petition, “The significant and increasing volume of dumped imports has severely damaged the U.S. thermal paper industry. As shown above, the subject imports occupy a significant and increasing share of the U.S. market and supply that market at significantly lower prices than the domestic industry. As a result, U.S. producers have lost sales volume and market share and have been unable to increase prices on remaining sales to cover increased costs of production.”

The initial phase of the investigation has been completed. In November, the USITC determined that there is sufficient evidence for the petition to move into the next phase of investigation. Our understanding is that the USITC and the Department of Commerce will make a final ruling in the Spring 2021 timeframe. At that time, they will rule to agree or disagree with the petitioners.

If they agree with the petitioners, the US Department of Commerce will levy duties against the originating countries. The exact duties may vary by country of origin. Any duties assessed to the country of origin will be effective for both jumbo and converted products. It is also important to note that the duties are effective against the country of origin regardless of where the jumbo rolls are converted. This petition will not impact the existing prevailing duties in effect for jumbo thermal paper rolls originating from China.

While impossible to accurately predict the full impact of these proceedings it is important to us that we provide the most relevant market data so that you can plan appropriately for the year ahead. At this juncture we have seen multiple suppliers announce their intention for price increases. If history serves consistent, we anticipate that this will lead to a full market increase from all suppliers. Iconex remains committed to providing updates regarding any impacts as they develop.

Lastly, we want to extend our safest wishes for you, your business, and your families as we continue to navigate the pandemic. We deeply miss our customers and look forward to a time in the future where we can resume our normal interactions.


Craig Gunckel
Chief Executive Officer

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