Three U.S. senators are asking the Department of Commerce to reopen an AD duty case against lined paper products from China to investigate charges of possible fraudulent conduct by the mainland Chinese respondent. A re-examination of the case could result in the imposition of higher AD duties on such goods imported into the United States. It could also set a precedent for other U.S. industries seeking ways to remain competitive amid the continuing economic downturn.

In a 20 May letter to Commerce Secretary Gary Locke, Democratic senators Charles Schumer of New York, Sherrod Brown of Ohio and Robert Casey of Pennsylvania said they have been advised by the Association of American School Paper Suppliers that during a recent administrative review of the AD duty order on lined paper products from China, the mainland Chinese respondent and its U.S. counsel submitted a fabricated annual report. The DOC relied upon that report in calculating the final results of that review, which were published on 14 April and included an AD duty rate of 22.35 percent for several companies. The original AD duty order established duty rates ranging from 76 percent to 252 percent.

The final results of this administrative review have been appealed to the U.S. Court of International Trade in light of these allegations, but the senators said this process may not work quickly enough to avoid substantial economic harm to the affected U.S. producers. With retail stores already beginning to stock up on school supplies for the fall back-to-school season, they stated, U.S. companies face significant lost sales and serious injury, possibly including lost jobs, unless remedial action is taken in the near future. To avoid such a circumstances, and to combat the threat to effective enforcement of U.S. trade remedy laws posed by the alleged fraudulent conduct, the senators asked the DOC to give full consideration to the Association's request that it reopen and reconsider the final results of its administrative review.