The U.S. Department of Commerce (DOC) on Nov. 10 initiated antidumping duty and countervailing duty investigations of engineered wood flooring exported from China and imported to the U.S., according to a department release.
The U.S. Department of Commerce (DOC) on Nov. 10 initiated antidumping duty and countervailing duty investigations of engineered wood flooring exported from China and imported to the U.S., according to a department release.
On Oct. 21 the Coalition for American Hardwood Parity (CAHP), an ad hoc group of U.S. engineered wood flooring manufacturers, petitioned the Commerce Department to initiate the investigation. The group alleges that companies that manufacture engineered wood flooring in China dumped products in the U.S. at margins of 194.49 to 280.6 percent. (See the related story involving Armstrong World Industries' potential adverse effects from the investigation.) This "dumping margin" is the amount by which a product's normal market value exceeds the export price. Citing a study by Catalina Research Inc. (Boca Raton, Fla.), DOC said imports of engineered wood flooring from China increased 76 percent by quantity from 2007 to 2009. In 2009, imports of multilayered wood flooring were valued at an estimated $119.7 million.
An antidumping investigation hinges on determining whether an imported product is being sold by a foreign manufacturer into the U.S. market at less than fair value; a countervailing duty investigation determines whether a foreign manufacturer is gaining an unfair competitive advantage through government subsidies. Both DOC and the U.S. International Trade Commission (ITC) play roles in the investigations. ITC expects to make preliminary determinations on both investigations around Dec. 6. If ITC finds no reason to carry on the investigation during this preliminary determination, the investigations will be terminated.