ICYMI: New Certification Required for Plywood Imports from China as AD/CV Duty Orders Expanded
[Editor’s note: This article was originally published in the June 6, 2019, issue of the Sandler, Travis & Rosenberg Trade Report.]
Importers and exporters of plywood from China that has both outer veneers made of a softwood species of wood will have to certify that these products do not meet certain criteria to avoid liability for substantial and retroactive duties under the existing antidumping and countervailing duty orders on hardwood plywood products from China. This requirement is being imposed in conjunction with the expansion of the scope of these orders following a determination that imports of certain plywood products are circumventing the orders.
The International Trade Administration has made a preliminary determination that certain hardwood plywood exported from China that (a) has both face and back veneers of radiata and/or agathis pine, (a) has a Toxic Substances Control Act or California Air Resources Board label certifying that it is compliant with TSCA/CARB requirements, and (c) is made with a resin, the majority of which is composed of urea formaldehyde, polyvinyl acetate, and/or soy is circumventing the AD/CV duty orders on hardwood plywood products from China.
As a result, for unliquidated entries of such softwood plywood products that were entered or withdrawn from warehouse for consumption in the U.S. on or after Sept. 21, 2018, the date the anti-circumvention inquiry was initiated, the ITA will instruct U.S. Customs and Border Protection to (a) suspend liquidation of those entries and (b) require AD and CV cash deposits at the rates of 182.9 and 22.98 percent, respectively. However, if the importer can certify to CBP that its goods were supplied by a Chinese manufacturer with a company-specific rate, the cash deposit rate will be the rate of that manufacturer.
To avoid liability for such duties, importers and exporters of softwood plywood products must certify that their goods do not meet all three of the criteria listed above and maintain sufficient documentation to support those certifications for at least five years. Importers will not be required to submit these certifications or supporting documentation to CBP as part of the entry process, but importers and exporters will be required to present them to the ITA and/or CBP upon request. Additionally, claims made in the certifications and any supporting documentation are subject to verification by the ITA and/or CBP.
Click here to register for ST&R’s June 27 webinar on how the expansion of this and other AD/CV duty orders could affect your goods.
For more information on this development, please contact Kristen Smith at (202) 730-4965.