The U.S. Department of Commerce issued its final determination that hardwood plywood exported from Vietnam using hardwood plywood inputs sourced from China is, in fact, a product of China. That means the plywood is subject to the antidumping duty (AD) and countervailing duty (CVD) orders on hardwood plywood from China.

Thirty-seven companies were found to have failed to cooperate or failed to respond to the agency's investigation. The Commerce Department ordered U.S. Customs and Border Protection to collect cash deposits from these 37 companies at the China-wide rates of 183% for AD and 23% for CVD.

In its ruling, the U.S. Department of Commerce "determines that imports of certain hardwood plywood products (hardwood plywood), completed in the Socialist Republic of Vietnam (Vietnam) using plywood inputs and components (face veneer, back veneer, and/or either an assembled core or individual core veneers) manufactured in the People’s Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on hardwood plywood from China." 

Dumping occurs when a foreign producer sells a product in the United States 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 subsidize industries to benefit the production, manufacture, or exportation of goods.

“This is an important win for U.S. workers and producers of hardwood plywood who have fought unfair hardwood plywood trade practices from China, including the circumvention of Chinese hardwood plywood through Vietnam,” said Greg Pray, chairman of the Coalition for Fair Trade of Hardwood Plywood, in a statement issued by the group.

Pray is also president and CEO of Columbia Forest Products in Greensboro, N.C., a U.S. manufacturer of plywood products.

The Commerce Department’s findings included the following:

• All five scenarios examined by Commerce were found to be circumventing and subject to the AD/CVD duties.
• A total of 37 companies were found to have failed to cooperate or failed to respond. The Commerce Department ordered U.S. Customs and Border Protection to collect cash deposits from these 37 companies at the China-wide rates of 183% for AD and 23% for CVD.
• Other companies wishing to certify that they did not circumvent can provide a certification by August 14. Commerce did not change the certification language or requirements from the Preliminary Determination.
• 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.
• The Coalition brought the circumvention case against imports from Vietnam in 2020 after imports from Vietnam spiked following the imposition of antidumping and countervailing duties on China.

Hardwood plywood assembled in Vietnam under scenarios other than the five production scenarios identified above are not subject to these inquiries, the Commerce Department ruled. Therefore, cash deposits are not required for such merchandise, subject to the following certification requirements.

The Coalition brought the circumvention case against imports from Vietnam in 2020 after imports from Vietnam spiked following the imposition of antidumping and countervailing duties on China.