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Hardwood Plywood from China: AD/CVD Investigation Update

Update: AAHP Statement on U.S. Court of International Trade Opinion (June 24, 2016):

 

Federal Court Releases Full Decision Dealing Victory to AAHP on All Fundamental Issues

Washington, DC – The U.S. Court of International Trade released its public decision upholding the International Trade Commission’s (ITC’s) core findings that Chinese and domestic plywood differ so significantly that the ITC was correct to conclude that imports from China had no impact on the domestic industry’s competitive and financial position. This decision is a victory for the American Alliance for Hardwood Plywood (AAHP) and its members, who argued that the domestic plywood producers’ antidumping and countervailing duty complaint should be thrown out because fundamental differences in the Chinese and domestic products mean that the Chinese product cannot cause any competitive harm to the domestic producers. The ITC unanimously agreed with the AAHP – terminating the unfair trade case in November of 2013. The Court of International Trade’s ruling now confirms the ITC’s core findings and means that the AAHP’s legal theory was supported by evidence while the petitioners’ opposing theories were not.

The court did send the case back to the ITC to specifically address the Commerce Department’s final antidumping duty levels as well as the countervailing duty findings. However, the court only ordered the ITC to provide further explanation on these issues and did not authorize the ITC to revisit its core finding that Chinese plywood had no impact on the domestic plywood industry. The AAHP is confident that the ITC will conclude that the Commerce Department’s antidumping and countervailing duty findings are irrelevant and therefore cannot disturb the ITC’s “no injury” finding. As analogized in AAHP’s prior statement, the decision is “like giving the ITC an A on its term paper but asking them to fill out footnote citations to raise its grade to an A+.”

Read Full Decision from the Court HERE.

The American Alliance for Hardwood Plywood is an organization of American importers, distributors and manufacturers of hardwood plywood, along with other U.S. companies that depend on the availability of global resources.

 

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The ITC voted 5-0 that no material injury has been done to the domestic injury in the Chinese Hardwood Plywood anti-dumping and countervailing duty case. As a result, all duties are removed. You can read the IWPA press releases. The petitioners have appealed the International Trade Commission's negative injury determinations. The case is now before the U.S. Court of International Trade. The deadline for parties, including the American Alliance for Hardwood Plywood, to intervene was March 25, 2014. 

Informational Resources available:

  • IWPA Letter to DOC Requesting Gap Period Guidance: IWPA submitted a letter to the Secretary of Commerce requesting that the Department of Commerce (DOC) issue an initial instruction to CBP to cease collection of AD duties on Chinese hardwood and decorative plywood on the first day of the gap period and lift the suspension of liquidation by October 30 and issue a second instruction later to resume the suspension and duty requirement if an ITC affirmative final determination is published in the Federal Register, closing the provisional period.

  • Fact Sheet: The International Trade Administration has released a fact sheet on Sept. 17, 2013 with information on the next stage of the case.

  • IWPA Press Release: IWPA has released a press release on Sept. 20, 2013 with information on the Sept. 2013 Department of Commerce AD and CVD rates, as well as the Sept. 2013 ITC Final Hearing. 

  • Department of Commerce Federal Register Notice: The Department of Commerce has released the pre-publication Federal Register notices detailing the new AD and CVD rates. The Notices will be published on Monday, September 23rd, at which point the rates become effective. You can read the AD notice and the CVD notice.

Final rates announced for AD and CVD: The anti-dumping (AD) and countervailing duties (CVD) final rates have just been released. The mandatory AD respondents received rates of 55.76% and 62.55%, while the 101 separate rate companies received a rate of 59.46%. The China-wide rate is set at 121.65%. For more information on the CVD rates, you can view the public release of the rates and the full methodology.

The CVD rates have also been announced. all three mandatory respondents have received a de minimis rate (below 2%). All other cooperating respondents received a 13.58% separate rate, and non-respondents received 27.16%. For more information on the CVD rates, you can view the public release of the rates here and the full methodology.

5.1.13  The Department of Commerce released preliminary anti-dumping duty margins on the afternoon of Apr. 30, 2013. 101 Companies received the “separate rate” of 22.14%.  There were two mandatory respondents:  Linyi San Fortune Wood Co received 0.62%, and Jiangyang Group received 1.83%.  The PRC wide rate is 63.96%.  For more information you can read the full IWPA press release.

For more information you can read the American Alliance for Hardwood Plywood  (AAHP) Press Release.

2.28.13 The Department of Commerce released preliminary countervailing duty margins on the afternoon of Feb. 27, 2013. Mandatory respondents received a 0% rate, non respondents received  27.16%, and those that cooperated with the investigation received 22.63%


IWPA Press Release

ITC Factsheet

Background on the Investigation: On September 27th, a petition was filed with the International Trade Commission (ITC) and the U.S. Department of Commerce (Commerce) against imports hardwood plywood originating in China. The petition alleges that margins of approximately 310.02% anti-dumping duties and an unstated percent of countervailing duties can be imposed as early as December 2012 (CV duties) and March 2013 (AD duties) or earlier if the government makes duties retroactive.

IWPA attends ITC Conference, Opposes Petition

The American Alliance for Hardwood Plywood (AAHP) is composed of some of the respondents to the petition; small, medium, and large American businesses that will be hugely affected by this petition. If you are interested in joining AAHP please contact them for more information.

ITC held a conference on October 18, 2013 in Washington D.C. Complete FAQ's on the process available from the AAHP website. And you can read their latest press releases here.

Contact
IWPA - 4214 King Street - Alexandria, Virginia 22302
Phone: 703/820-6696; Fax: 703/820-8550; email


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