Paper Mills Wins One in Antidumping Case

American-Israeli Paper Mills has won a temporary victory against European manufacturers of brown paper. A superficial inquiry found that the European manufacturers were offering brown paper in Israel at anticompetitive prices, or in English - for less than they were selling it in their home countries. That practice is called dumping, and yesterday Israel's Industry and Trade Ministry announced it would slap an anti-dumping levy on imports of brown paper.

The levy will amount to 52 to 67 euros per ton, the ministry said.

Brown paper is used mainly as a raw material in making cardboard boxes. American-Israeli Paper Mills, fondly known as Hadera Paper, complained against its European rivals in January.

The ministry has yet to coordinate the anti-dumping levy on brown paper with the Tax Authority, though that should take place in a matter of days.

The precise scope of the levy will depend on the difference between the prices the European manufacturers charge in their home countries and the prices they charge in Israel. The brown paper imports originate mostly in Germany and Spain.

These are preliminary findings and the investigation continues.