China Hardwood Plywood: New AD/CV Investigations Deadlines & Scope

The AD period of investigation is Jan. 1, 2012, through June 30, 2012. The CV period of investigation is Jan. 1, 2011, through Dec. 31, 2011.

Alleged AD/CV Margins

An ITA fact sheet says the alleged dumping margins for hardwood plywood from China are 298.36 to 321.68 percent. The alleged CV margin is above de minimis (i.e., above 1% or 2%, depending on the country's stage of development).

AD Respondent Selection

For the AD investigation, the ITA will request quantity and value information from all known exporters and producers identified with complete contact information in the petition. The quantity and value data received from these Chinese exporters/producers will be used as the basis to select the mandatory respondents. Responses to the Q&V questionnaire are due no later than Nov. 7.

Exporters and producers of hardwood plywood that do not receive Q&V questionnaires from the ITA but intend to submit a response can obtain a copy here.

CV Respondent Selection

For the CV investigation, the ITA expects to select respondents based on CBP data for U.S. imports during the period of investigation. Interested parties may submit comments regarding the CBP data and respondent selection within seven calendar days of the publication of the ITA's initiation notice (by about Oct. 31, 2012). The ITA intends to make its decision regarding respondent selection within 20 days of the publication of its CV initiation notice in the Federal Register (by about Nov. 13).

AD Separate Rate Applications

For AD investigations involving non-market economy (NME) countries such as China, the ITA requires that respondents submit a response to both the Q&V questionnaire and the separate rate application by the respective deadlines in order to receive consideration for separate rate status. The ITA will calculate combination rates for certain respondents that are eligible for a separate rate in this investigation.

Separate-rate status applications are due by 60 days after publication of the AD initiation notice in the Federal Register (on or around Dec. 24). The separate rate application for China is available here.

Targeted Dumping Allegations

Any interested party that wishes to make a targeted dumping allegation in the AD investigation may submit allegations no later than 45 days before March 6, 2013 (the scheduled date of the ITA’s preliminary determination).¹

Scope of the AD/CV Investigations

Hardwood and decorative plywood is a panel composed of an assembly of two or more layers or plies of wood veneer(s) in combination with a core. The several layers, along with the core, are glued or otherwise bonded together to form a finished product. A hardwood and decorative plywood panel can be composed of one or more species of hardwoods, softwoods, or bamboo, (in addition to other materials that are used for the core, as detailed below).

Hardwood and decorative plywood is generally manufactured to American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2009; it is differentiated from “structural plywood” (also known as “industrial plywood” or “industrial panels”), which must meet the “bond performance” requirements set forth at paragraph 5.8.6.4 of U.S. Products Standard PS 1-09 for Structural Plywood.

Hardwood and decorative plywood is primarily manufactured as a panel. The most common panel sizes are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 1219 x 3048 mm (48 x 120 inches). However, these panels may be cut-to-size by the manufacturer in accordance with a customer’s requirements, or made to other sizes.

A “veneer” is a thin slice of wood, rotary cut, sliced or sawed from a log, bolt or flitch. The face veneer is the exposed veneer of a hardwood and decorative plywood product which is of a superior grade than that of the other exposed veneer of the product (i.e., as opposed to the inner veneers). The face veneer is also either side of the product when the two exposed veneers are of the same grade. The face veneer is also the side of the product that is intended to be exposed for view after installation.

The core of hardwood and decorative plywood consists of the layer or layers of material(s) that are situated between the front and back veneers. The core may be composed of a range of materials, including but not limited to veneers, particleboard, and medium-density fiberboard (MDF).

All hardwood and decorative plywood is included within the definition of subject merchandise regardless whether or not the face and/or back veneers are surface coated. Additionally, the face veneer of hardwood and decorative plywood may be sanded, smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing. The face veneer may also be stained (i.e., to achieve a particular color).

Unless subject to a specifically enumerated exclusion detailed below, all hardwood and decorative plywood is included within the definition of subject merchandise, without regard to: dimension (overall thickness, thickness of face veneer thickness of back veneer, thickness of core, and thickness of inner veneers; width; and length); wood species used for the face, back and inner veneers (including hardwoods, softwoods or bamboo); core composition; the grade of the face and back veneers; and whether or not surface coated (i.e., “unfinished” or “prefinished”). The face and/or back veneers of the product may be sanded, smoothed, scraped or stained.

Hardwood and decorative plywood is generally manufactured to American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2009. Regardless of whether the product meets the ANSI/HPVA standard, all hardwood and decorative plywood is included within this definition if it meets the physical description set forth therein.

The scope of the investigation excludes the following items: (1) structural plywood that is manufactured and stamped to meet U.S. Products Standard PS 1-09 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including but not limited to the “bond performance” requirements set forth at paragraph 5.8.6.4 of that Standard and the performance criteria detailed at Table 4 through 10 of that Standard; (2) plywood platforms with a face and back ply of cork; (3) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on Multilayered Wood Flooring from the People’s Republic of China, Import Administration, International Trade Administration, U.S. Department of Commerce Investigation Nos. A-570-970 and C-570-971 (published December 8, 2011); (4) plywood further manufactured or further worked aside from sanding, surface coating (i.e., “prefinishing”), scraping or staining (e.g., bent or molded plywood; bent or molded plywood is defined as a flat panel that is purposely further manufactured through whatever means to achieve a shape or design other than a flat plane).

Imports of the subject merchandise are provided for under the following subheadings of the Harmonized Tariff Schedule of the United States (HTSUS): 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.2510; 4412.31.2520; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.5135; 4412.31.5155; 4412.31.5165; 4412.31.5175; 4412.31.6000; 4412.31.9100; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.2510; 4412.32.2520; 4412.32.3135; 4412.32.3155; 4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.5600; 4412.39.1000; 4412.39.3000; 4412.39.4011; 4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032; 4412.39.4039; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5010; 4412.39.5030; 4412.39.5050; 4412.94.1030; 4412.94.1050; 4412.94.3111; 4412.94.3121; 4412.94.3131; 4412.94.3141; 4412.94.3160; 4412.94.3171; 4412.94.4100; 4412.94.6000; 4412.94.7000; 4412.94.8000; 4412.94.9000; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5710; 4412.99.6000; 4412.99.7000; 4412.99.8000; and 4412.99.9000. While HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise as set forth herein is dispositive.

Comments on Scope Due by Nov. 6

The ITA said it discussed the scope with petitioners to ensure that it is an accurate reflection of the products for which the domestic industry is seeking relief. The ITA invites comments on the scope by Nov. 6, 2012.

Investigations Timetable

¹In December 2008, the ITA issued an interim final rule for the purposes of withdrawing the regulations governing targeted dumping analysis in AD duty investigations. ITA states that this change allows it to exercise the discretion intended by statute, and thereby develop a practice that will allow interested parties to pursue all statutory avenues of relief in this area. (See ITT's Online Archives 08121525 and 09011535 for summaries of the interim final rule and extension of the comment period.)

²If the ITC makes a negative determination of injury, the investigations are terminated.

³These deadlines may be extended under the governing statute.

⁴This will take place only in the event of ITA final affirmative determinations.

⁵This will take place only in the event of ITA and ITC final affirmative determinations.

(See ITT's Online Archives 12092817 for summary of the ITA's receipt of the petition underlying the initiation of this investigation.)

CV notice of initiation (FR Pub 10/24/12) available here.

AD notice of initiation (FR Pub 10/25/12) available here.

ITA fact sheet available here.