The U.S. Department of Commerce International Trade Commission has assigned duties of up to 27 percent on plywood imported from China. The duty is meant to counter subsidies the Chinese government uses to keep prices low, allowing Chinese companies to sell plywood at a price well below what American companies can offer.
The Coalition for Fair Trade of Hardwood Plywood (CFTHP) filed a petition with the DOC last year asking for some protection from the "dumping" of Chinese plywood. The coalition claimed the wood was being sold for 300 percent below the fair market value.
But some in the industry don't consider Chinese plywood to be a problem, nor do they see duties as a solution. The International Wood Products Association said in a press release yesterday that it is concerned about "how high rates will affect the many Americans who depend directly and indirectly on this unique product. American businesses, including many of the petitioners, will pay a heavy price as a result of this decision, just as the economy is emerging from one of the worst economic recessions in American history."
Many in the building industry see less expensive supplies where the CFTHP sees crippling competition. Those opposing the petition argue importers will really be bearing the brunt of the duties, while the Chinese companies will be largely unaffected, focusing on other markets around the world.
The preliminary duties cover only the subsidy part of the investigation. The DOC will announce the anti-dumping duties by April 29. The final decision is expected in September.
A similar case involving engineered wood flooring from China concluded at the end of 2011. In that case, the DOC instituted both antidumping and countervailing duties.
