Commerce Probes Brazil's Aid to High-Purity Pulp Producers
Published Date: 9/8/2025
Notice
Summary
The U.S. Department of Commerce is starting an investigation into whether Brazil is unfairly helping its high purity dissolving pulp exporters with subsidies. This affects companies importing this pulp from Brazil and could lead to extra taxes to protect U.S. producers and workers. The investigation kicked off on September 2, 2025, and could impact prices and trade soon.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 2 costs, 3 mixed.
Investigation May Lead To Import Duties
On September 2, 2025, Commerce initiated a countervailing duty (CVD) investigation into high purity dissolving pulp from Brazil. The probe is examining whether Brazilian producers received subsidies; if Commerce and the ITC find subsidies and injury, imports could face countervailing duties (extra taxes) that affect companies importing this pulp and aim to protect U.S. producers and workers.
Investigation Opens On 27 Subsidy Programs
Commerce found sufficient information to initiate a CVD investigation on 27 specific government programs alleged by the petitioners. The investigation will examine those 27 programs to determine whether subsidies were provided to producers of high purity dissolving pulp in Brazil.
Bracell Identified As Sole Known Respondent
Commerce identified Bracell Bahia Specialty Celulose SA (Bracell) as the only known Brazilian producer/exporter of the product and intends to individually examine that company. Interested parties may comment within three business days of the Federal Register publication.
Fast Timetable For Preliminary Decisions
Commerce will make a preliminary CVD determination no later than 65 days after initiation, and the International Trade Commission (ITC) will make a preliminary injury determination within 45 days after the petition was filed. A negative ITC decision within that period will terminate the investigation.
Products Covered And Explicit Exclusions
The investigation covers 'high purity dissolving pulp' defined as alpha cellulose ≥ 90% and brightness ≥ 90% (using ISO methods), including various forms and third-country finishing, but excludes pulp with intrinsic viscosity under 455 mL/g and cotton linters pulp that is at least 90% cotton linters by weight. HTSUS subheadings 4702.00.0020 and 4702.00.0040 (and possibly 4706.30.0000 or 4706.92.0100) are listed for convenience.
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