Wood Fence Pickets Could be Subject to AD/CVD Duties

A petition filed Sept. 24 could result in the imposition of antidumping and countervailing duties on imports of wood fence pickets from China.

Scope

The subject merchandise consists of wood fence pickets, which are individual wood boards used as the vertical component of outdoor fencing systems, primarily for residential use. Pickets are attached to horizontal rails and may be installed in any spacing arrangement.

Wooden fence pickets are typically made from softwood species, sawn from lumber, and commonly 1/2 to one inch thick with a width of three to twelve inches. The standard length of the pickets ranges from three to eight feet, but custom dimensions can also be manufactured. Covered pickets may be surfaced, rough-sawn, sanded, kiln-dried, heat-treated, stained, painted, primed, sealed, or otherwise finished or unfinished. Pickets can be sold individually, in bundles, or in pre-assembled sections. The proposed scope covers pickets of any form, including dog-ear, flat-top, Gothic, and other decorative designs. Covered pickets may contain knots or other remanufactured wood features and may be drilled, notched, or otherwise processed for fence construction applications, such as drilled, notched, or beveled.

Subject merchandise is typically classifiable under HTSUS subheadings 4404.10.0040, 4407.19.0092, 4421.99.7020, and 4421.99.7040.

Not included in the scope of the petition are pickets made only of bamboo, Brazilian pine, or southern yellow pine, including shortleaf pine, slash pine, longleaf pine, or loblolly pine. Also excluded are wood moldings and millwork products covered by the AD and CVD duty orders on wood moldings and millwork products from China.

AD/CVD Duty Rates

The petition alleges that subject goods are being sold in the U.S. market at less than normal value at margins of 111.87 to 295.89 percent.

However, importers are typically liable for the payment of AD/CVD duties at the alleged rates only when importing from foreign producers or exporters that fail to cooperate with AD/CVD investigations by the Department of Commerce and International Trade Commission. Lower rates are often assigned to imports from cooperative entities.
The petition also argues that subject goods are being subsidized by the government of China but does not assert specific rates.

Next Steps
The DOC and the ITC will consider this petition and quickly launch investigations to determine dumping margins/net subsidy rates and potential injury to the U.S. domestic industry, respectively. Preliminary determinations are due around Nov. 9, 2026 for the ITC and Dec. 18, 2026 (CVD) and March 3, 2027 (AD) for the DOC, although these dates may be extended.

If these preliminary determinations are affirmative, U.S. importers will be required to post AD and/or CVD cash deposits for all entries of subject goods entered on or after the date the DOC determinations are published. However, in certain circumstances duties could be owed three months prior to these dates. In addition, preliminary cash deposit rates can change in the final DOC determinations.
Many important issues affecting coverage, duty rates, and other considerations are argued and decided in the early stages of AD/CVD proceedings before preliminary determinations are issued. Companies that strategically engage in these early stages are thus best positioned to protect their interests and mitigate any potential duty liability. For more information, please contact Sandler, Travis & Rosenberg.