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U.S. Paper Receipts Industry Sees Continued Success in Importer Duties Evasion Campaign

Press release from the issuing company

Springfield, Mass. — As early as 2020, the Paper Receipts Converting Association (PRCA) has recognized and challenged a key problem for the U.S. thermal paper industry: rampant illegal duty evasion on the part of importers. Today, PRCA is proud to announce the latest success in its efforts to work with the Department of Homeland Security’s Customs and Border Protection agency (CBP) to protect the domestic market.

In response to an investigation initiated after PRCA filed allegations on August 10, 2022, CPB determined on August 21, 2023, that the following importers have evaded antidumping duties:

E-Merchant Supplies, A2 Labels & Rolls Inc., POS Supply Solutions, Royal Paper Products (also known as AmerCare Royal LLC), Golden Eagle Distributors LLC, Paper Roll Supplies LLC, Lucky Heap Corp., National POS Paper, Paper Roll Products, BuyRolls Inc., Qualita Paper Products, VBS Cal LLC, Allied Paper Company, and The Advantage Group.

The investigation, initiated on October 17, 2022, was carried out under Title IV, Section 421 of the Trade Facilitation and Trade Enforcement Act of 2015, commonly known as the Enforce and Protect Act (EAPA).

In EAPA Consolidated Case No. 7745, the importers in question claimed that thermal paper rolls imported into the U.S. was of Mexican origin when it actually originated from Germany. CPB notes that the rolls were transshipped through the Mexican company Papeles y Conversiones de Mexico (also known as SA de CV or Convertadora PCM SA de CV).

CBP has also determined that Allied Paper, Paper Roll Supplies, POS Supply, and VBS Cal misclassified products as non-covered merchandise. As a result, no cash deposits were applied to the merchandise at the time of entry into the United States.

“PRCA continues to protect the integrity of the U.S. paper receipt industry, ensuring that all organizations conduct business in compliance with the law,” said Mike Rapier, President of PRCA. “The association fully supports CBP’s recent determination on EAPA Case 7745 and will continue to file additional EAPA allegations if evasion is suspected by other parties.”

This latest victory for PRCA comes after other CBP determinations in 2023, including three in May and two in January.

Bryan Eovaldi, PRCA Vice President, noted, “Our dedication to upholding the law and ensuring a level playing field within the paper receipts industry remains unwavering. We are committed to sustaining our vigilance and fulfilling our mission to protect the industry's integrity into the future.”

In addition to supporting aggressive enforcement of antidumping and countervailing duty orders, PRCA maintains that the use of Good Manufacturing Practices (GMPs) is essential to ensuring that purchasers receive precisely what they have ordered. The association believes that imported converted rolls are often shorter than advertised and/or may be manufactured with improperly identified paper. PRCA has developed a set of GMPs to which its members subscribe precisely to address this issue.

To learn more about PRCA and their contributions to the U.S. thermal paper industry, visit paperreceipts.org.