Duties Placed on Chinese Engineered Hardwood

Washington, DC, March 24, 2011 -- The Commerce Department has placed preliminary countervailing duties on imported engineered hardwood from China after a petition was filed last fall by several domestic manufacturers that claimed the products were being dumped in this country.

While the duties go as high as 27.01%, that rate was placed on 127 Chinese producers that didn't participate in the investigation, according to government documentation.

Three companies, Zhejiang Layo Wood Industry Co., Ltd.; Jiaxing Brilliant Import & Export Co., Ltd., and Zhejiang Yuhua Timber Co., Ltd. received no duties.

All other producers/exporters received a preliminary duty rate of 2.25%.

The countervailing duties reflect what the Department of Commerce says is the level of subsidies the companies receive from the Chinese government.

Still to come is a decision on a request from the manufacturers for imposition of antidumping duties of up to 281% to offset what they claim was unfair low pricing by Chinese manufacturers.

“Although we hoped for a finding of zero subsidies across the board, consistent with the realities of the Chinese market, we are pleased that at least the Commerce Department determined a subsidy level of only 2.25% for the companies that responded to the Commerce Department’s questionnaire," said Jonathan Train, whose group, the Alliance for Free Choice and Jobs in Flooring, has been fighting against the petition.

"We hope that the Commerce Department will maintain or even lower these rates at their final determination."

The Coalition for American Hardwood Parity, which filed the petition, includes Shaw Industries/Anderson Hardwood Floors, Award Hardwood Floors LLP, Baker's Creek, From the Forest, Howell Hardwood Flooring, Mannington Wood Floors, and Nydree Flooring.

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