U.S. Department of Commerce Makes Preliminary Ruling on Brazilian Dissolving Pulp
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In a recent development, the U.S. Department of Commerce has made a preliminary determination regarding high purity dissolving pulp imported from Brazil. This ruling, announced on March 25, 2026, suggests that producers and exporters of this pulp in Brazil are receiving unfair financial support. These supports are referred to as countervailable subsidies. Such subsidies can make products unfairly cheap, affecting U.S. businesses.
The period examined covers January 1, 2024, through December 31, 2024. The department’s investigation aims to determine if Brazilian producers received government financial aid, allowing them to sell the product cheaper in the U.S. This can hurt American producers. Interested parties are encouraged to provide comments on this preliminary decision.
The investigation started on September 8, 2025, after a notice was published. Originally, the preliminary determination was due earlier but got postponed to March 19, 2026. This was due to government shutdowns, causing delays.
Bracell Bahia Specialty Cellulose S.A. (BSC) is a company in focus. The preliminary findings indicate that they, along with affiliated companies, have benefited from such subsidies. The calculated subsidy rate for them and all other producers and exporters is 3.67%.
The Commerce department has instructed U.S. Customs and Border Protection to suspend liquidation of entries of the high purity dissolving pulp from Brazil. This applies to imports on or after the notice date. A cash deposit matching the subsidy rate must now accompany these goods.
The ruling indicates that Bracell Bahia Specialty Cellulose S.A. and related companies received benefits from the subsidies, and a standard rate applies to other companies.
Moving forward, the U.S. International Trade Commission (ITC) will also review these findings. If they agree with the Commerce Department’s conclusions, they will decide if these imports harm the U.S. industry. This decision is expected within months.
The Department of Commerce remains committed to ensuring fair trade practices, ensuring American industries are not unfairly disadvantaged. This determination is a step towards maintaining a balanced playing field in international trade.
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