The U.S. Department of Commerce has released its preliminary affirmative countervailing duty findings on hardwood and decorative plywood, identifying "significant" subsidies provided by the governments of China, Indonesia and Vietnam. The department calculated preliminary countervailing duty rates of 81.34% on imports from China, 2.40% to 128.66% on imports from Indonesia, and 4.37% to 26.75% on imports from Vietnam.
“The domestic hardwood and decorative plywood industry has been harmed for decades by unfairly traded imports from China, Indonesia and Vietnam,” said Timothy C. Brightbill, lead counsel to the Coalition for Fair Trade in Hardwood Plywood and co-chair of International Trade Practice at the Washington, D.C.-based law firm Wiley Rein LLP. “[This] decision by the Department of Commerce is another critical step in leveling the playing field for American hardwood and decorative plywood manufacturers.”
The Coalition for Fair Trade in Hardwood Plywood represents a substantial majority of the American hardwood and decorative plywood industry. Nearly 53 million cubic feet of hardwood and decorative plywood imported into the United States comes from China, Indonesia and Vietnam, according to WoodCentral.com.
As soon as the Department of Commerce’s preliminary determination is published in the Federal Register, U.S. Customs and Border Protection will begin collecting preliminary duties on entries of hardwood and decorative plywood from China, Indonesia and Vietnam, according to Wiley. The Department of Commerce also found that critical circumstances exist with respect to imports of hardwood and decorative plywood from China. As a result, duties will be collected on entries of hardwood and decorative plywood from China that were entered on or after 90 days before publication of the preliminary determination.
The countervailing duty investigations are expected to continue over the coming months, with the agency further investigating subsidies—including newly alleged subsidy programs—received by the Chinese, Indonesian and Vietnamese industries. The department’s final determination is scheduled to be made in early May.
For more details click here.
