Print Page   |   Contact Us   |   Sign In   |   Become a Member
Hardwood Plywood from China: AD/CVD Investigation Update

IWPA Disappointed that Commerce Chose to Impose Preliminary Duties In China Plywood Case

On April 18th, the U.S. Department of Commerce announced a preliminary determination in the countervailing duty investigation of imports of hardwood plywood from China. Commerce found subsidized margins ranging from 9.89% to 111.09%.

The Department of Commerce's International Trade Administration has posted a Fact Sheet on the determination, which includes additional information on the preliminary subsidy rates for specific plywood producers in China.

It is also important to note that the Department of Commerce preliminarily determined that critical circumstances exist with respect to all exporters from China except Linyi Sanfortune Wood Co., Ltd. As such U.S. Customs and Border Protection will be instructed to impose provisional measures retroactively on entries of hardwood plywood from China effective 90 days prior to the publication of the preliminary determination in the Federal Register for all exporters except Linyi Sanfortune Wood Co., Ltd.

The Department of Commerce will announce its final determination on or about July 5, 2017, unless the statutory deadline is extended.

In response to the determination, the American Alliance for Hardwood Plywood issued the statement copied below. IWPA encourages affected importers to consider contacting the Alliance to discuss ways to support its work to defeat this case.

 

AAHP: Despite Inflated Initial Duties, Plywood Trade Complaint Is Doomed

 

Washington – The American Alliance for Hardwood Plywood (AAHP) expressed disappointment in yesterday’s announcement by the U.S. Department of Commerce (“DOC”) imposing preliminary countervailing duties of 9.89% on Chinese exporters of hardwood plywood. Commerce separately applied a penalty margin of 111.09% 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, likely because they do not export plywood. The high duty figure is sure to be touted by the small group of domestic plywood producers to sow uncertainty and reduce the supply of a key raw material with no domestic equivalent that is needed by over 100,000 American workers making kitchen cabinets in the United States. Those American workers, who outnumber domestic plywood employees by a ratio of more than 30 to 1, now face competition from imported cabinets that can utilize the unique Chinese plywood free from duties.

AAHP Chairman Greg Simon issued the following statement:

“The federal government has tied one arm behind the backs of the U.S. cabinet makers and other manufacturing industries by denying them a level playing field in raw material sourcing with their offshore competitors. 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.”

The AAHP defeated a similar unfair trade case brought by the same close-knit group of anti-competitive producers in 2012/13. There, the DOC also announced combined antidumping and countervailing duties of nearly 150 percent. Yet, the ITC threw the case out after a full investigation-- by a unanimous ruling. That unanimous ruling was later affirmed by a federal judge of the U.S. Court of International Trade.

 

“We will keep fighting the petitioners’ misguided claims, which have even less merit than they did in 2012. While the DOC announcement of duties will gain headlines for the petitioners, ultimately they will mean nothing when the ITC throws this case out”, said Simon.

The AAHP is an alliance of small medium and large American importers, distributors, manufacturers, retailers of hardwood plywood and the U.S. Kitchen Cabinet Manufacturers Association, collectively representing more than 100,000 American jobs. “We look forward to preserving American manufacturing jobs by defeating this bogus case again,” said Mr. Simon.

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.

###

 

 

U.S. International Trade Commission Releases Public Report, Commerce Announces Postponement of Preliminary Determination

 

In a Federal Register Notice issued on January 27, 2017, the U.S. International Trade Administration indicated that they have granted the Petitioners' request to postpone its preliminary determination in countervailing duty investigation to no later than April 17th.

 

Additionally, the ITC has posted its Public Report with respect to the Preliminary Investigation which can be downloaded here.

 

U.S. International Trade Commission Votes to Move Forward with Investigations on Chinese Hardwood Plywood (December 30, 2016):

 

As announced in a bulletin here, the ITC made affirmative determinations in its preliminary phase antidumping and countervailing duty investigations concerning hardwood plywood from China.

 

In response to the ITC vote, the American Alliance for Hardwood Plywood issued the following statement:

 

AAHP Disappointed Government Pursuing Third Investigation of Imported Chinese Hardwood Plywood


Despite Back to Back Losses, Legal Harassment Campaign Against Imports Continue, Putting Thousands of U.S. Manufacturing Jobs at Risk


Washington – The American Alliance for Hardwood Plywood (AAHP) expressed disappointment in today’s ruling by the International Trade Commission (ITC) that it will proceed with an investigation into alleged “dumping” practices of Chinese hardwood plywood to gain an unfair competitive advantage. The ITC and Department of Commerce rejected a similar petition in 2012 and a federal court also rejected the dubious allegations initiated by the Coalition for Fair Trade of Hardwood Plywood (CFTHP). 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.”

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
.


###

  

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.

 

###

 

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


Copyright © 2008-2016 IWPA - All rights reserved

Connect with IWPA
Find us online in several social media forums.

 


 

Association Management Software Powered by YourMembership  ::  Legal