Commerce Department Finds Majority of Imports of Hardwood/Plywood from China are Unfairly Traded

March 25th, 2013 by Editor

The Department of Commerce (DOC) recently issued a preliminary determination that countervailable subsidies are being provided to producers and exporters of hardwood and decorative plywood from the People’s Republic of China (PRC).

The unfair trade investigations of imports from China result from a petition filed  in September 2012 by the Coalition for Fair Trade of Hardwood Plywood (CFTHP), an organization composed of U.S. manufacturers of hardwood and decorative plywood. The association had claimed that through these unfair trade practices, Chinese manufacturers have gained an unfair competitive advantage.

In addition to the countervailing duty (CVD) investigation on hardwood and decorative plywood, the DOC also initiated an antidumping duty (AD) investigation of the same merchandise from the PRC. The CVD and AD investigations have the same scope with regard to the merchandise covered.

On February 21, 2013, Petitioners submitted a letter, in accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), requesting alignment of the final CVD determination with the final AD determination of hardwood and decorative plywood from the PRC.

“Therefore, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning the final CVD determination with the final AD determination. Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than July 15, 2013, unless postponed,” wrote the DOC.

The DOC notes that, in making these findings, “We have relied, in part, on facts available and, because one or more respondents did not act to the best of their ability to respond to the Department’s requests for information, we have drawn an adverse inference where appropriate in selecting from among the facts otherwise available.”

The DOC has calculated an individual rate for each producer/exporter of the subject merchandise under investigation: The subsidy rate ranges from 22.63 to 27.16 percent.

The DOC also has directed U.S. Customs and Border Protection to suspend liquidation of all entries of hardwood and decorative plywood from the PRC that are entered, or withdrawn from warehouse, for consumption on or after the date of the publication of this notice in the Federal Register.


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