The U.S. Department of Commerce recently announced its affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of Hardwood plywood products from the People’s Republic of China.
The CVD law provides U.S. businesses and workers with a transparent, quasi-judicial and internationally accepted mechanism to seek relief from the market distorting effects caused by injurious subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.
Commerce calculated preliminary subsidy rates of 9.89 percent and 111.09 percent for mandatory respondents Linyi Sanfortune Wood Co. Ltd. and Shandong Dongfang Bayley Wood Co. Ltd., respectively. Shandong Dongfang Bayley Wood’s subsidy rate of 111.09 percent was based on adverse facts available because Commerce found that the company had not cooperated to the best of its ability. The 62 companies that did not respond to Commerce’s quantity and value questionnaire also received a subsidy rate of 111.09 percent because, by not responding to the questionnaire, they did not co-operate to the best of their ability. Commerce established a preliminary subsidy rate of 9.89 percent for all other producers/exporters in China.
As a result of the preliminary affirmative determination, Commerce will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary rates.
The petitioners for the investigation were the Coalition for Fair Trade in Hardwood Plywood and its individual members: Columbia Forest Products (Greensboro, NC), Commonwealth Plywood Inc. (Whitehall, NY), Murphy Plywood (Eugene, OR), Roseburg (Roseburg, OR), States Industries LLC (Eugene, OR), and Timber Products Co. (Springfield, OR).
To read the investigation details, visit goo.gl/VxSuOv.
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