AD/CV Duty Orders on Mainland Chinese Plywood Products Expanded; Certification Required to Avoid High Duties

The U.S. Department of Commerce’s International Trade Administration on 29 November issued a final affirmative determination in its anti-circumvention review of certain hardwood plywood products from mainland China. Specifically, the ITA confirmed its preliminary determination that certain hardwood plywood exported from mainland China that (i) has both face and back veneers of radiata and/or agathis pine, (ii) has a Toxic Substances Control Act or California Air Resources Board label certifying that it is compliant with TSCA/CARB requirements, and (iii) is made with a resin, the majority of which is composed of urea formaldehyde, polyvinyl acetate and/or soy is circumventing the antidumping and countervailing duty orders on hardwood plywood products from mainland China.

As a result, the ITA will instruct U.S. Customs and Border Protection to continue to suspend liquidation of any entries of subject merchandise from mainland China that were entered or withdrawn from warehouse for consumption in the United States on or after 21 September 2018, the date the anti-circumvention inquiry was initiated. CBP will also be instructed to require AD/CV cash deposits at a rate of 182.9 percent and 22.98 percent, respectively. However, if the importer can certify to CBP that its goods were supplied by a mainland Chinese manufacturer with a company-specific rate, the cash deposit rate will be the rate of that manufacturer.

To avoid liability for such duties, importers and exporters of softwood plywood products must certify that their goods do not meet all three of the criteria listed above and maintain sufficient documentation to support those certifications for at least five years. Importers will not be required to submit these certifications or supporting documentation to CBP as part of the entry process, but importers and exporters will be required to present them to the ITA and/or CBP upon request. Additionally, claims made in the certifications and any supporting documentation are subject to verification by the ITA and/or CBP.