Preliminary Hardwood Plywood Countervailing Duty Determination

April 19, 2017

Upon publication of the preliminary countervailing duty (CVD) determination in the Federal Register, U.S. Customs and Border Protection (CBP) will require importers to post either a 9.89% or a 111.09% deposit on imports of hardwood plywood from China. The specific rate depends on the identity of the Chinese producer. These deposit rates all will apply retroactively to import entries from late January 2017, with the exception of Linyi Sanfortunte Wood Co. Ltd. imports, whose CVD deposit rate will only apply prospectively. Obviously, this outcome could cause significant disruption in the market. 

Petitioner sought, and Commerce preliminary approved, retroactive relief (i.e., Commerce found critical circumstances). Keep in mind that the critical circumstances finding is only a preliminary determination - the retroactive deposits can (and many times are) ultimately refunded.

The 111.09% rate applies to import entries from Dongfang Bayley Wood Co. and 62 other companies. The list of companies subject to the 111.09% rate is provided on pages 5-7 of the attached. The 9.89% rate applies to import entries from Linyi Sanfortune Wood Co. Ltd. and should apply to those companies not subject to the 111.09% rate. We have not been able to obtain a definitive list of companies subject to the 9.89% rate from Commerce.