The US Department of Commerce has issued its final determination that hardwood plywood exported from Vietnam using hardwood plywood inputs sourced from China is considered a product of China, according to Woodworking Network.
This means that the plywood is subject to the anti-dumping duty and countervailing duty orders on hardwood plywood from China.
In its ruling, the US Department of Commerce has decreed that “imports of certain hardwood plywood products…completed in [Vietnam] using plywood inputs and components [that are] manufactured in [China] are circumventing the anti-dumping duty and countervailing duty orders on hardwood plywood from China”.
Thirty-seven companies were found to have failed to cooperate or respond to the agency’s investigation. The Commerce Department has ordered US Customs and Border Protection to collect cash deposits from these 37 companies at the China-wide rates of 183% for anti-dumping duty and 23% for countervailing duty.
Other companies wishing to certify that they did not circumvent can provide a certification by 14 Aug 2023. The US Department of Commerce did not change the certification language or requirements from the Preliminary Determination.
The US 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.
Hardwood plywood assembled in Vietnam under scenarios other than the aforementioned scenarios are not subject to these inquiries, the Commerce Department ruled, which means cash deposits are not required for such merchandise if they followed certification requirements.
Dumping occurs when a foreign producer sells a product in the US at a price that is below that producer’s sales price in the producers’ country of origin, or at a price that is lower than the cost of production.
Countervailing is when foreign governments subsidise industries to benefit the production, manufacture, or exportation of goods.
Source: Woodworking Network