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Hardwood Plywood from China Subject of New AD/CV Petition

Friday, November 18, 2016

A petition filed Nov. 18 alleges that hardwood plywood from China is being sold at less than fair value in the U.S. market and benefitting from countervailable subsidies. The alleged weighted average dumping margin is 105.94 percent and the petitioners have identified 33 programs as providing unfair subsidies.

Hardwood plywood has a wide variety of uses, including wall panels, kitchen cabinet components, seat backs, table and desk tops, drawers sides, furniture components, recreational vehicle and trailer components, floor underlayment, and the raw material for certain engineered (i.e., multilayered) wood flooring.

The product covered by the petition is hardwood and decorative plywood, which is a flat panel composed of an assembly of two or more layers or plies of wood veneers in combination with a core. Either the face or back veneer must be composed of one or more species of hardwood or bamboo. All hardwood and decorative plywood is included within the scope of this investigation, without regard to (1) dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length), (2) whether the veneers are surface coated, (3) whether the plywood is trimmed, cut to size, notched, punched, or drilled or has undergone other forms of minor processing, and (4) whether the plywood has been further processed in a third country.

Specifically excluded from the petition are (1) structural plywood manufactured and stamped to meet specified standards, (2) products that have a face and back veneer of cork, (3) multilayered wood flooring described in the AD/CV duty orders on such goods from China as well as multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo, (4) plywood that has a shape or design other than a flat panel (except any minor processing), and (5) products made entirely from bamboo and adhesives.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible. 

 For more information contact Kristen Smith at (202) 730-4965, Mark Ludwikowski at (202) 730-4967 or David Craven at (312) 279-2844.

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