U.S. to Impose Countervailing Duties on Chinese Hardwood Plywood

The U.S. Department of Commerce will impose countervailing duties of 9.89 percent and 111.09 percent on imports of Chinese hardwood plywood after it determined the products were being subsidized by the Chinese government.

Sixty-three Chinese companies will have a preliminary 111.09 percent countervailing duty, while all other producers and exporters will face a preliminary countervailing duty of 9.89 percent.

The decision to levy countervailing duties comes less than a month after the Coalition for Fair Trade of Hardwood Plywood filed a “critical circumstances” petition with the Commerce Department.

The Coalition was pleased with the Commerce Department’s decision.

“Today’s preliminary finding of unfair subsidization is an important step in remedying the harm caused by unfairly traded imports of Chinese hardwood plywood,” said Tim Brightbill, trade counsel to the Coalition, in a statement. “U.S. hardwood plywood producers look forward to further relief when preliminary antidumping duties are announced in about two months.”

Meanwhile, the American Alliance for Hardwood Plywood, an organization that opposes leveling duties against Chinese hardwood plywood imports, said in a statement that the Commerce Department’s decision ties an arm behind the backs of U.S. cabinet makers and other wood products manufacturers.

“This case is presented as cracking down on Chinese trade ‘cheating’ and protecting American jobs, but it will benefit nobody in the United States,” AAHP Chairman Greg Simon said in a statement. “The cabinet industry, flooring, recreational vehicle and furniture industries use the Chinese plywood for different purposes than U.S. plywood. The petitioners’ dreams that they will enjoy sales increases are a fantasy, even with these high duties.”

The Commerce Department’s decision is only preliminary. It will issue its final determination around July 5, barring a statutory deadline extension.