Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) is pleased to announce that the United States Department of Commerce is formally revoking the countervailing duty order on supercalendered (SC) paper from Canada, retroactive to August 3, 2015. Collection of cash deposits on imports of SC paper from Canada will cease, and all cash deposits that have been collected from importers of record since August 3, 2015, will be returned with interest.
Resolute's cash deposits as of June 30, 2018, total $60 million. The company will also receive accumulated interest on these deposits. The precise timing of the refund will be set out in a Federal Register Notice to be published in the upcoming days.
Revocation of the countervailing duty order is pursuant to issuance today of a final determination in the Changed Circumstances Review that the Department initiated on May 14, 2018. The Department initiated the Changed Circumstances Review after Verso Corporation, the principal remaining producer of SC paper in the United States and the only remaining petitioner, wrote to Commerce Secretary Wilbur Ross on March 21, 2018, that it was no longer interested in the continuation of the countervailing duty order. All other interested parties in the SC paper proceedings, including the federal and provincial governments in Canada, notified the Department that they supported Verso's request for a Changed Circumstances Review.