2026-21138NoticeWallet

Brazilian Pulp Faces Duties in Another Unusually Specific Trade Dispute

Published Date: 10/16/2026

Notice

Summary

The U.S. Department of Commerce found that Brazilian producers of high purity dissolving pulp got unfair government help during 2024. Because of this, extra taxes (countervailing duties) will be added to their products starting October 16, 2026. This move protects U.S. businesses from unfair competition and could affect prices and imports.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 2 costs, 2 mixed.

9.37% Countervailing Duty Finding

Commerce found countervailable subsidies for high purity dissolving pulp (HPDP) from Brazil for the period January 1, 2024 through December 31, 2024 and calculated estimated countervailable subsidy rates of 9.37 percent ad valorem for Bracell Bahia Specialty Cellulose S.A. and 9.37 percent for all other producers/exporters. The final determination is listed as applicable October 16, 2026.

What Products Are Covered

The scope covers high purity dissolving pulp (HPDP) with alpha cellulose of 90 percent or higher and brightness of 90 percent or higher (measured by ISO methods). Excluded are HPDP with intrinsic viscosity under 455 mL/g and cotton linters pulp that is at least 90 percent cotton linters by weight. The notice also lists HTSUS subheadings 4702.00.0020 and 4702.00.0040 (and possibly 4706.30.0000 or 4706.92.0100) for convenience.

Cash Deposits and Suspension Dates

Commerce instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation for entries of the subject merchandise that were entered, or withdrawn from warehouse, for consumption on or after March 25, 2026 (the date of the Preliminary Determination). Commerce also directed CBP to discontinue suspension of liquidation for entries on or after July 23, 2026, but to continue suspension for entries on or before July 22, 2026.

ITC Injury Decision Determines Final Duties or Refunds

Commerce will notify the U.S. International Trade Commission (ITC) of this final affirmative subsidy determination. The ITC must determine within 45 days whether U.S. industry is materially injured or threatened by imports of HPDP from Brazil. If the ITC makes a final affirmative injury determination, Commerce will issue a countervailing duty order, reinstate suspension of liquidation, and require cash deposits of estimated countervailing duties for entries on or after the effective suspension date; if the ITC finds no injury, the proceeding will be terminated and any estimated duties deposited will be refunded.

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Key Dates

Published Date
10/16/2026

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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