JOC Staff | Mar 01, 2013 2:55PM EST
The U.S. Department of Commerce has announced its preliminary affirmative countervailing duty determination in the investigation of imports of hardwood and decorative plywood from China.
As a result of the affirmative determination, the majority of imports of plywood from China will be subject to a cash deposit requirement for estimated countervailing duties of either 22.63 percent or 27.16 percent as a condition for entering product into the U.S. market.
Based on the DOC’s preliminary finding that the China’s government is providing unfair subsidies to Chinese exporters of the product, imports from all but three Chinese producers are now subject to the cash deposit requirement for estimated countervailing duties.
The unfair trade investigation of imports from China was initiated after a petition was filed in September 2012 by the Coalition for Fair Trade of Hardwood Plywood.
The countervailing duty rates are preliminary and subject to change in the final determination, which will be issued this summer. A preliminary determination in the companion antidumping investigation is scheduled to be announced in late April.
The International Wood Products Association has reacted with concern regarding the effects this preliminary rate will have on commerce.