Washington, DC, March 1, 2013 -- The U.S. Commerce Department said it has established preliminary duties of up to 27% on imported plywood from China to cover subsidies for the companies that the Chinese government uses to help keep prices low.
U.S. plywood manufacturers in North Carolina, New York and Oregon, who formed the Coalition for Fair Trade of Hardwood Plywood, filed a petition last year asking for help. They are also seeking duties to cover "dumping" of product in the U.S. at prices over 300% below fair market value
The majority of importers will have to post a cash deposit estimated duties of either 22.63% or 27.16% in order to bring their products into the U.S.
The government's just-announced preliminary duties covered only the subsidy portion of the case. It will announce preliminary anti-dumping duties by the end of next month. A final decision on both types of duties is expected this summer.
The U.S. imported about $617 million of the hardwood and decorative plywood from China in 2011. The wood is used for flooring and other housing products.