The U.S. Department of Commerce today lowered the antidumping and countervailing duty determinations for the lion's share of Chinese companies that ship engineered wood flooring to the U.S.
The department lowered the antidumping rate for the majority of Chinese engineered wood floor exporters to 3.31 percent from a preliminary rate of 6.78 percent. Meanwhile, the department also lowered the countervailing duty rate for the majority of producers to 1.50 percent from a preliminary rate of 2.25 percent.
One mandatory respondent in the countervailing duty investigation-Fine Furniture (Shanghai) Ltd.-saw its individual rate lowered. The other two mandatory respondents in the countervailing duty investigation retained their "de minimis" rates, or a rate less than 2 percent.
In the antidumping investigation, mandatory respondent Zhejiang Layo Wood Industry Co. Ltd. saw its rate increased from a de minimis preliminary rate to 3.98 percent. Mandatory respondent Zhejiang Yuhua Timber Co. Ltd. retained its de minimis rate, while third mandatory respondent Samling Group saw its antidumping rate lowered to 2.63 percent from a preliminary rate of 10.88 percent.
The Commerce Department also assigns antidumping and countervailing duty rates to companies that are not actively participating in the investigation, which is significantly higher than rates for investigation participants. In the antidumping investigation, those companies were assigned a rate of 58.84 percent, while in the countervailing duty investigation, these companies were given a rate of 26.73 percent.
As a result of this latest determination, U.S. importers of record will continue to pay additional tariffs on engineered wood flooring from China, and the investigation will continue. A final ruling is expected next month. If the International Trade Commission finds that Chinese imports are materially damaging domestic producers, the Commerce Department will issue antidumping and countervailing duty orders. Import duties in the U.S. are primarily retroactive, meaning that if DOC does end up imposing duties, an importer could face a sudden jump in the amount owed a year or two after making a shipment of engineered wood flooring from China.
The investigation, which has been ongoing since October 2010, was prompted by allegations of dumping margins between 194.49 to 280.6 percent on the part of Chinese exporters. The petitioner is the Coalition for American Hardwood Parity (CAHP), consisting of Anderson Hardwood Floors (Clinton, S.C), Award Hardwood Floors LLP (Wausau, Wis.), From the Forest LLC (Weston, Wis.), Howell Hardwood Flooring (Dothan, Ala.), Mannington Wood Floors (Salem, N.J.), Nydree Flooring (Forest, Va.) and Shaw Industries Inc. (Dalton, Ga.). In April 2011, Baker's Creek (Jackson, Miss.) left the group after being purchased by Home Legend LLC (Adairsville, Ga.).
The CAHP is opposed by Home Legend LLC, Lumber Liquidators (Dalton, Ga.), and a group of U.S. importers and retailers that formed the Alliance for Free Choice and Jobs in Flooring (AFCJF), among others.
Updated, Oct. 13
Both the AFCJF and CAHP have commented on the Commerce Department's ruling.
The CAHP's legal counsel, Jeff Levin, said the Commerce Department's ruling is evidence that the "vast majority of Chinese imports are unfairly traded." "We are pleased that the Commerce Department has agreed with what the U.S. industry stated from the beginning of this process … This industry presented a very compelling case to the [International Trade Commission] that we believe will strongly support a favorable judgment from them next month as well."
The AFCJF also responded to the Commerce Department's ruling with a favorable tone. "We applaud the DOC for finding even lower rates in this final phase of their investigation," said AFCJF President Jonathan Train. "This proves that the petitioners initial allegations were exaggerated and erroneous. This gives us strong hope that the ITC final determination to be announced [Nov. 21] could result in a complete dismissal of the case."
