China Hardwood Plywood: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on hardwood plywood from China (A-570-051/C-570-052). The agency will determine whether imports of Chinese hardwood plywood are being sold in the U.S. at less than fair value or are illegally subsidized. The CV duty investigation covers entries Jan. 1, 2015, through Dec. 31, 2015. The AD duty investigation covers entries April 1, 2016, through Sept. 30, 2016.
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This is the second set of investigations on hardwood plywood in the last five years. The ITC ended AD/CVD investigations on hardwood plywood from China in 2013, finding dumped and illegally subsidized hardwood plywood from China is not injuring U.S. industry (see 13110524).
The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized hardwood plywood are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Jan. 3, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in February for CV duties and April for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.
If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the "China-wide rate," which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters (here) are due on or about Jan. 15.
AD/CVD Respondent Selection
Commerce will send quantity and value questionnaires to each potential respondent to the AD and CV duty investigations, and will base respondent selection on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. The quantity and value questionnaire for the AD duty case is (here), and the one for the CV duty case is (here). Responses are due Dec. 22.
Scope of the AD/CVD Investigations
The merchandise subject to this investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this proceeding, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers and a core, with the face and/or back veneer made of non-coniferous wood (hardwood) or bamboo. The veneers, along with the core may be glued or otherwise bonded together. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2016 (including any revisions to that standard).
For purposes of this investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt or flitch. The face and back veneers are the outermost veneer of wood on either side of the core irrespective of additional surface coatings or covers as described below.
The core of hardwood and decorative plywood consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium-density fiberboard (“MDF”).
All hardwood plywood is included within the scope of this investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures or markings of the wood. Examples of surface coatings and covers include, but are not limited to: Ultra-violet light cured polyurethanes; oil or oil-modified or water based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (“MDO”); and phenolic film. Additionally, the face veneer of hardwood plywood may be sanded, smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing. All hardwood plywood is included within the scope even if it is trimmed; cut-to-size; notched; punched; drilled; or has undergone other forms of minor processing.
All hardwood and decorative plywood is included within the scope of this investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width or length). However, the most common panel sizes of hardwood and decorative plywood 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).
Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.
The scope of the investigation excludes the following items: (1) Structural plywood (also known as “industrial plywood” or “industrial panels”) that is manufactured to meet U.S. Products Standard PS 1-09, PS 2-09 or PS 2-10 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and which has both a face and a back veneer of coniferous wood; (2) products which have a face and back veneer 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. See Multilayered Wood Flooring from the People's Republic of China, 76 FR 76,690 (Dec. 8, 2011) (amended final determination of sales at less than fair value and antidumping duty order), and Multilayered Wood Flooring from the People's Republic of China, 76 FR 76.693 (Dec. 8, 2011) (countervailing duty order), as amended by Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Duty Orders, 77 FR 5,484 (Feb. 3, 2012); (4) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (5) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; and (6) products made entirely from bamboo and adhesives (also known as “solid bamboo”).
Imports of hardwood plywood are primarily entered under the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 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; 4412.31.4075; 4412.31.4080; 4412.31.5125; 4412.31.5135; 4412.31.5155; 4412.31.5165; 4412.31.5175; 4412.31.6000; 4412.31.9100; 4412.32.0520; 4412.32.0540; 4412.32.0565; 4412.32.0570; 4412.32.2510; 4412.32.2525; 4412.32.2530; 4412.32.3125; 4412.32.3135; 4412.32.3155; 4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.5600; 4412.94.1030; 4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3131; 4412.94.3141; 4412.94.3160; 4412.94.3161; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130;9 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5115; and 4412.99.5710.
Imports of hardwood plywood may also enter under HTSUS subheadings 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; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.10.9000; 4412.94.5100; 4412.94.9500; and 4412.99.9500. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.
Comments on Scope Due by Dec. 28
Comments on the scope of these investigations are due by Dec. 28.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 11/18/16 | 11/18/16 |
| DOC initiation date | 12/08/16 | 12/08/16 |
| ITC prelim determinations* | 01/03/17 | 01/03/17 |
| DOC prelim determinations† | 04/27/17 | 02/13/17 |
| DOC final determinations† | 07/11/17 | 04/27/16 |
| ITC final determinations‡ | 08/25/17 | 06/12/16 |
| Issuance of orders+ | 09/01/17 | 06/19/16 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 1611180039 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)
The AD duty initiation notice is (here).
The CV duty initiation notice is (here).
The Commerce Department fact sheet on the initiation of these investigations is (here).