24 Jan 2019
More Hardwood Plywood Products from Mainland China Could Face Significant AD/CV Duties
More goods made with hardwood plywood and imported from mainland China may be hit with antidumping and countervailing duties as a result of increased scrutiny by U.S. Customs and Border Protection. On 4 January 2018, the United States issued AD and CV duty orders on imports of hardwood and decorative plywood and certain veneered panels from the mainland. All hardwood plywood is included within the scope of these orders regardless of (i) whether or not the face and/or back veneers are surface coated or covered, (ii) whether or not such surface coatings or covers obscure the grain, textures or markings of the wood, (iii) whether the plywood is trimmed, cut-to-size, notched, punched or drilled, or has undergone other forms of minor processing, (iv) dimension, and (v) further processing in a third country.
According to Kristen Smith, who heads Sandler, Travis & Rosenberg’s Trade Remedies Practices, the U.S. Department of Commerce’s International Trade Administration is now holding that some cabinet and furniture products made of hardwood plywood that were previously considered excluded from the scope of these orders are in fact covered if they are not imported in a single box. As a result, importers of such goods face significant duty liability, with current AD duty rates at 171.55 percent to 183.36 percent and CV duty rates at 22.98 percent to 194.90 percent.
Affected companies have until 31 January to request administrative reviews of these orders in an effort to lower these duty rates. It is unlikely this deadline will be extended despite the on-going federal government shutdown, Smith says.