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  November 22nd, 2017 | Written by

US Finds Dumping and Subsidization of Imports of Hardwood Plywood Products from China

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  • CBP will collect deposits from importers of hardwood plywood products from China based on Commerce decision.
  • Ross: “This is not our idea of a properly functioning trade relationship.”
  • Since January, Commerce has initiated 61 percent more AD and CD investigations that last year.

US Secretary of Commerce Wilbur Ross has announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of hardwood plywood products from the People’s Republic of China.

The Commerce Department determined that exporters from China sold hardwood plywood products in the United States at 183.36 percent less than fair value. Commerce also determined that China is providing unfair subsidies to its producers of hardwood plywood products at rates ranging from 22.98 to 194.9 percent.

As a result of today’s decisions, Commerce will instruct US Customs and Border Protection (CBP) to collect cash deposits from importers of hardwood plywood products from China based on the final rates.

“The dumping and unfair government subsidization of products is something this administration takes very seriously,” said Ross. “While the United States is committed to free, fair and reciprocal trade with all countries, this is not our idea of a properly functioning trade relationship.”

In 2016, imports of hardwood plywood products from China were valued at an estimated $1.12 billion.

The petitions were filed on behalf of the Coalition for Fair Trade in Hardwood Plywood and its individual members: Columbia Forest Products (NC), Commonwealth Plywood Inc. (NY), Murphy Plywood (OR), Roseburg Forest Products Co. (OR), States Industries, Inc. (OR), and Timber Products Company (OR).

From January 20, 2017, through November 13, 2017, Commerce initiated 77 antidumping and countervailing duty investigations – a 61 percent increase from 48 in the previous year. Commerce currently maintains 412 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

If the US International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

Foreign companies that price their products in the US market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.