DOC Issues Final Ruling on Chinese MLWF Dumping

Washington, DC, July 9, 2015—The Commerce Department has announced the final results of the second administrative review of the antidumping duty order on multilayered wood flooring (MLWF) from China.

As expected, and consistent with the preliminary results announced in early January, Dalien Dajen Wood Co., the first "mandatory respondent," received a 0% margin. However, the second mandatory respondent, Jiangsu Senmao Bamboo Wood Industry Co. received a preliminary margin of 13.74%. 

Moreover, the approximately 50 Chinese companies that are subject to this review, and which were accorded "separate rate applicant" status, also received a preliminary rate of 13.74%. 

In addition, approximately 32 companies, which are subject to this review but which did not apply for or which were not granted "separate rate applicant" status, received the so-called "PRC-wide entity" rate, 58.84%. 

In all, and after taking into account the companies that are not covered by the AD order as a result of the initial investigation, and including Dalien Dajen, which received a de minimis preliminary margin in this current review, approximately 68% of total Chinese imports are subject to either a 13.74% rate, or the 58.84% PRC-wide entity rate.

In dollar terms, today's announcement equates to approximately $44 million in antidumping duties owing. This may well cause some pronounced hardship to certain U.S. importers, many of whom may well be caught unawares by this liability.  

U.S. suppliers of MLWF may find it important to note that, first, the U.S. importers of product from the relevant Chinese producers will now be billed an amount equal to the final results rate for all entries of MLWF from China for the period December 1, 2012 through November 30, 2013 (the period of review for this second administrative review). Since the "case deposit rate" at the time of entry was (significantly) below the final results rate, the importers will be billed for not only the difference in the rates but also for interest that accrued from the date of entry to the present time (for most imports, the cash deposit rate in effect at the time of entry was 5.92%).  

Second, the cash deposit requirement at the border now changes, at least as of the date of publication of these final results in the Federal Register, which will occur within seven to ten days.

Third, the rates issued today are subject to revision if the calculations behind the rates contain so-called "ministerial errors." The confidential documents that detail the calculations will be issued tomorrow or early next week.