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Domestic Industry Files for AD/CV Duties on Hardwood Plywood from China

Wednesday, October 03, 2012
STR Client Advisory

Domestic Industry Files for AD/CV Duties on Hardwood Plywood from China
On Sept. 27 a number of domestic parties filed petitions seeking antidumping and countervailing duties on imports of hardwood plywood from China. These petitioners have alleged substantial margins of dumping and subsidization and shipments of covered plywood products could be subject to sharply higher (and definitely uncertain) duties as soon as Dec. 6. The structure of U.S. trade remedy laws tends to deter imports immediately after AD/CV cases are filed, and this deterrent effect can potentially last for years. As a result, the impact of these new cases on U.S. imports of Chinese plywood could be swift and substantial. 

For AD and CV duty orders to be imposed, the International Trade Administration must determine that the subject merchandise is being sold at least 2% below normal value and subsidized at margins greater than 1% and the International Trade Commission must determine that this dumping and subsidization is injuring a domestic industry. Preliminary determinations indicating whether these criteria have been met are expected Nov. 11 for the ITC (both cases) and Dec. 21 (CV) and March 6, 2013 (AD) for the ITA. More immediately, U.S. importers of subject merchandise will receive questionnaires from the ITC very shortly and must answer them by Oct. 11. 

The plywood covered by these petitions is a panel composed of an assembly of two or more layers of wood veneer(s) in combination with a core. The several layers, along with the core, are glued or otherwise bonded together to form a finished product. Virtually all hardwood plywood is included without regard to dimension , wood species used, core composition, the grade of the face and back veneers, and whether or not it has been surface coated. It should be noted that there is a good bit of overlap in the coverage of the plywood petitions and the ongoing AD/CV duty investigations of wood flooring from China. 

For further information on the scope of these petitions and the possible ramifications for your business, please contact our Trade Remedies Practice Group.

Key Contacts:

Mark Ludwikowski
(202) 730-4967

Kristen Smith
(202) 730-4965

Mark Tallo
(202) 730-4968

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