The U.S. Department of Commerce issued a final determination that hardwood plywood products exported from Vietnam using hardwood plywood inputs and components (face veneer, back veneer, and/or either an assembled core or individual core veneers) sourced from China is, in fact, a product of China and is subject to the antidumping duty (AD) and countervailing duty (CVD) orders on hardwood plywood from China.
“This is an important win for U.S. workers and producers of hardwood plywood who have fought unfair hardwood plywood trade practices from China, including the circumvention of Chinese hardwood plywood through Vietnam,” said Greg Pray, chairman of the Coalition for Fair Trade of Hardwood Plywood and president & CEO of Columbia Forest Products.
The Commerce Department’s findings included the following:
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All five scenarios examined by Commerce were found to be circumventing and subject to the AD/CVD duties.
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A total of 37 companies were found to have failed to cooperate or failed to respond. The Commerce Department ordered U.S. Customs and Border Protection to collect cash deposits from these 37 companies at the China-wide rates of 183% for AD and 23% CVD.
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Other companies wishing to certify that they did not circumvent can provide a certification by August 14. Commerce did not change the certification language or requirements from the Preliminary Determination.
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Commerce will allow ineligible exporters an opportunity to apply for eligibility during annual administrative reviews, but the companies will have to demonstrate that they did not import circumventing product.
The Coalition brought the circumvention case against imports from Vietnam in 2020 after imports from Vietnam spiked following the imposition of antidumping and countervailing duties on China.