The U.S. Department of Commerce has announced a preliminary affirmative determination in the countervailing duty investigation of hardwood and decorative plywood from China.
As a result, a majority of imports of the product will be subject to a cash deposit requirement for estimated countervailing duties of either 22.63% or 27.16% on entry to the United States.
The rates are subject to change when a final determination is issued this summer. Meanwhile, the DOC will conduct on-site verification of questionnaire responses by Chinese producers and legal arguments to the DOC.
The finding means the U.S. DOC found that China provides unfair and illegal subsidies to producers and exporters of the product.
Imports from all but three Chinese producers are now subject to the cash deposit requirement, a press release from the Coalition for Fair Trade of Hardwood Plywood said.
Last year, a group of U.S. hardwood plywood producers filed an antidumping petition with the U.S. government.
The producers said they were concerned about unfair pricing tactics of Chinese competitors and want officials to investigate the pricing of the material, which is used in cabinets, mobile homes, boats, shelving and some furniture.
The Coalition release added that the preliminary determination - to be announced in late-April - in a parallel antidumping investigation of the same imports could further increase the liability for cash deposits by U.S. importers of the Chinese product.
