The Commerce Department has affirmatively determined that imports of hardwood plywood products from China are being dumped on the U.S. market, as well as receiving countervailable subsidies from the Chinese government.
The Commerce Department on Monday affirmatively determined that imports of hardwood plywood products from China are being dumped on the U.S. market.
In addition, the department determined that these imports receive countervailable subsides from the Chinese government.
Dumping occurs when foreign companies sell their products in the United States at less than fair value, while countervailable subsidies occur when foreign governments provide financial support to companies based on their export performance or use of domestic goods over imports.
Specifically, Commerce determined that Chinese hardwood plywood exporters Shandong Dongfang Bayley Wood Co., Ltd. and Linyi Chengen Import and Export Co., Ltd. sold their products in the United States at 183.36 percent less than fair value. It assessed the same dumping margin to all other Chinese exporters and producers of hardwood plywood.
In its countervailing duty investigation, Commerce calculated final subsidy rates of 22.98 percent and 194.90 percent for Linyi Sanfortune and Shandong Dongfang Bayley, respectively. In addition, the department established a final subsidy rate of 22.98 percent for all other Chinese hardwood plywood producers and exporters.
Commerce will now instruct Customs and Border Protection (CBP) to collect cash deposits from importers of hardwood plywood products from China based on the final rates.
In 2016, imports of hardwood plywood products from China were valued at $1.12 billion.
The U.S. International Trade Commission (ITC) is scheduled to make its final determinations in these investigations by Dec. 21. If the ITC makes affirmative final determinations that these imports from China harm domestic industry, Commerce will then issue antidumping and countervailing duty orders. However, if the commission makes negative determinations of injury, the investigations will be terminated.
The antidumping and countervailing duty investigation petitions were filed on Nov. 18, 2016 by the Coalition for Fair Trade in Hardwood Plywood and its individual members Columbia Forest Products of North Carolina, Commonwealth Plywood Inc. in New York, and Murphy Plywood, Roseburg Forest Products Co., States Industries Inc., and Timber Products Co., all of Oregon.
The coalition called the Commerce determinations a “a strong win” for the U.S. hardwood plywood industry.
“Today’s Department of Commerce results show U.S. importers and purchasers of Chinese hardwood plywood that the government will no longer tolerate illegal Chinese trade practices,” said Tim Brightbill of Wiley Rein, trade counsel to the coalition, in a statement.
“We are extremely pleased with these results, which reflect the level of China’s dumping and subsidies that U.S. hardwood plywood producers have been forced to deal with for years,” he added. “We remain focused on an affirmative injury determination at the U.S. International Trade Commission, and we look forward to securing the long-term trade relief that is so needed by this industry and its thousands of workers.”
U.S. nails Chinese hardwood plywood imports with duties
