No New U.S. Investigation Into Plywood Imports From China

The U.S. Department of Commerce (DOC) will not launch a new investigation into plywood imports from China for the time being. With this decision, the DOC dismissed a petition filed by four U.S. plywood producers on 15 February.

In the petition, the plaintiffs called for more far-reaching reviews to complement the investigation completed at the end of 2017. Specifically, they aimed to expand the subject of the probe into plywood made with softwood veneer faces. The companies report that a variety of Chinese plywood manufacturers have started to switch outer faces with softwood veneers in response to punitive duties imposed on hardwood plywood products at the start of the year.

Section 781c of the U.S. Tariff Act of 1930 allows the investigation to be expanded as long as the new object of the investigation only varies slightly from the grades covered to date. The probes conducted to date addressed laminated and unlaminated plywood with two or more layers whose top face solely consists of hardwood veneers or bamboo. Against this backdrop, the DOC feels that plywood with softwood outer faces cannot be seen as a minor product change to the object of the investigation.

From EUWID: https://www.euwid-wood-products.com/news/wood-based-panels/single/Artikel/us-no-new-investigation-into-plywood-imports-from-china.html

ITC Rules China Dumped Subsidized Plywood, Injuring U.S. Mills

The International Trade Commission (ITC) issued its final determination, activating significant tariffs – nearly 200 percent – on some on imports of Chinese hardwood plywood, voting 4-0 that the domestic industry is materially injured, or threatened with material injury, by reason of these dumped and subsidized imports.

The trade group Coalition for the Fair Trade of Hardwood Plywood, which initiated efforts to get tariffs on Chinese plywood twice before times, commended the unanimous decision by the ITC, as “meaningful relief” for the U.S. hardwood plywood manufacturers. The Coalition says 42 mills have closed many more have had to reduce capacity, with a loss of 52,000 jobs in the U.S., and $2 billion in wages.

“Today’s decision demonstrates that the U.S. Government will not tolerate unfair trade practices and will support American manufacturing and workers,” said Kip Howlett, president of the Hardwood Plywood Veneer Association. “This puts American interests first by standing up to the illegal imports of Chinese hardwood plywood.”

Less exuberant are furniture and kitchen cabinet makers that favor the less expensive plywood from China, including members of  Kitchen Cabinet Manufacturers Association (KCMA), and other buyers who have lobbied against the ITC decision, which will lead to high tariffs. KCMA and other members of American Alliance for Hardwood Plywood – mostly distributors of Chinese plywood – expressed shock at the punitive tariffs that were not disclosed until President Trump returned from his recent trip to Asia following meetings with China’s President Xi.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/verdict-china-dumped-subsidized-plywood-injuring-usmills-says-itc?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

AAHP Critical Of New Duties On Chinese Hardwood Plywood

The American Alliance for Hardwood Plywood expressed disappointment in the April 18 announcement by the U.S. Department of Commerce about imposing preliminary countervailing duties of 9.89 percent on Chinese exporters of hardwood plywood.

Commerce separately applied a penalty margin of 111.09 percent to one Chinese company that did not fully cooperate with the investigation as well as companies that did not return the quantity and value questionnaire, possibly because they do not export plywood.

“The federal government has tied one arm behind the backs of the U.S. cabinetmakers and other manufacturing industries by denying them a level playing field in raw material sourcing with their offshore competitors,” said AAHP chairman Greg Simon in a statement.

“This case is presented as cracking down on Chinese trade ‘cheating’ and protecting American jobs but it will benefit nobody in the United States. The cabinet industry, flooring, recreational vehicle and furniture industries use the Chinese plywood for different purposes than the U.S. plywood. The petitioners’ dreams that they will enjoy sales increases are a fantasy, even with these high duties. The government should not be in the business of trying to pick winners and losers. In fact, in these trade cases, nobody wins.”

In 2012-13 DOC also announced combined antidumping and countervailing duties of nearly 150 percent, but ITC threw the case out after a full investigation.  That ruling was later affirmed by a federal judge of the U.S. Court of International Trade.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/aahp-critical-new-duties-chinese-hardwood-plywood?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

U.S. Producers Seek New Duties Against Chinese Plywood

The Coalition for Fair Trade of Hardwood Plywood has filed “critical circumstances” petitions with the Department of Commerce to stop recent shipments of Chinese hardwood plywood imports into the U.S., according to the Hardwood Plywood and Veneer Association.

HPVA said that the shipments are being made in an attempt to enter the market before anti-dumping and countervailing duty orders are imposed.

If the coalition’s actions are successful, anti-dumping and countervailing duties will be imposed 90 days earlier, subjecting Chinese hardwood plywood imports to duties of up to 100 percent or more.

Commerce’s preliminary determinations in the countervailing duty case and anti-dumping case are due no later than April 17 and June 16, respectively. If critical circumstances are found, Chinese hardwood plywood imported as early as January 17 will be subject to countervailing duties, and Chinese hardwood plywood imported as early as March 16 will be subject to anti-dumping duties.

See https://www.hpva.org/ and https://hardwoodplywoodfairtrade.com/ for more information.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/us-producers-seek-new-duties-against-chinese-plywood?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

China Plywood Dumping Gets Third Review By International Trade Commission

The United States International Trade Commission says there is a “reasonable indication that a U.S. industry is materially injured by reason of imports of hardwood plywood from China that are allegedly subsidized and sold in the United States at less than fair value.”

Noting all six of its commissioners voted in favor, the U.S. Department of Commerce will continue to conduct its antidumping and countervailing duty investigations on imports of hardwood plywood. A judgment on whether countervailing duties should be levied to discourage the imports is due February 13, 2017, and its preliminary antidumping duty determination due on or about April 27, 2017.

The issue is contentious, with U.S. plywood makers – the Hardwood Plywood Coalition – battling to restrict China’s exports, while an opposing group that buys plywood for casegoods, the American Alliance for Hardwood Plywood (its members include the Kitchen Cabinet Makers Association) wants to allow imports to continue as is.

Indeed, the American Alliance for Hardwood Plywood issued a statement expressing disappointment in the ruling by the International Trade Commission. AAHP Chairman Greg Simon issued the following statement:

“We are disappointed that this investigation will proceed, but remain very confident that the facts continue to be on our side. This is now the third time that the federal government will conduct a thorough review and we believe they will reach the same finding as before–imported hardwood plywood products from China are traded fairly at competitive prices and have a rightful place in the global consumer market. This continued legal harassment by CFTHP against imports is putting thousands of U.S. jobs at risk during a time when manufacturing is in desperate need of revival. Our alliance of small medium and large American importers, distributors, retailers of hardwood plywood and domestic kitchen cabinet manufacturers remains united in opposition to these bogus charges and look forward to presenting our side to the ITC and Department of Commerce in the coming months.”

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/china-hardwood-plywood-dumping-gets-third-review-international-trade?ss=news,news,woodworking_industry_news,news,almanac_market_data,news