China Hardwood Plywood: Prelim AD Cash Deposit Rates Take Effect, Retroactive for Some

However, Commerce found "critical circumstances" for all "China-wide rate" companies that did not demonstrate independence from state control, finding they increased exports to the U.S. before cash deposits were imposed in this this preliminary determination. As a result, Commerce will impose retroactive AD duty cash requirements on entries from the China-wide companies effective on or about March 25, 2017.

Commerce found no dumping by Linyi Dongfangjuxin and Linyi Chengen, preliminarily assigning the producer-exporter combination a zero percent AD duty rate. As such, Commerce will not direct suspension of liquidation or impose cash deposit requirements at this time on subject merchandise produced by Linyi Dongfangjuxin and exported by Linyi Chengen.

Hardwood plywood products from China are also subject to an ongoing countervailing duty investigation. Commerce ordered suspension of liquidation and the collection of CV duty cash deposits for entries of merchandise subject to these investigations in its preliminary CV duty determination, issued in April (see 1704240009).

Commerce Preliminarily Clarifies Scope

Commerce is making several changes to the scope of the AD and CV duty investigations on hardwood plywood in response to comments received from Chinese exporters, U.S. importers and the U.S. companies that requested the investigation. The agency is adding the following new exemptions:

• "Excluded from the scope of this investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing."
• "Excluded from the scope of this investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing."
• "Excluded from the scope … is ready to assemble furniture … defined as … “(B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.”
• "Excluded from the scope of this investigation are laminated veneer lumber door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout."

In addition, Commerce is removing two HTS subheadings, 4412.39.1000 and 4412.39.3000, which refer to hardwood plywood with outer plies of coniferous wood, because such products are not covered by the scope of these investigations.

On the other hand, Commerce declined to add exemptions for grooved wall paneling, drawer sides, “low-grade” plywood, utility panels and underlayment panels and furniture parts. Commerce also preliminarily determined not to add an explicit exemption for finished consumer goods, finding that doing so "may cause confusion among importers and purchasers."

Email ITTNews@warren-news.com for a copy of the Commerce memorandum outlining its preliminary decisions on changes to the scope.

AD Suspension of Liquidation and Cash Deposit Requirements

Commerce will instruct CBP to suspend liquidation for entries of subject merchandise from China, except entries from Linyi Dongfangjuxin, that are entered, or withdrawn from warehouse, for consumption on or after June 23 for all companies below that were assigned a separate rate, and on or after March 25 for companies not listed below that are part of the China-wide entity (note that liquidation for some or all of these companies may already be suspended due to Commerce's CV duty investigation). Commerce will also require AD duty cash deposits as follows:

* Companies that received a zero rate in this preliminary determination will not be subject to AD duty suspension of liquidation and cash deposit requirements until further notice. If any of these companies' zero rates are confirmed in Commerce's final determination, they will be permanently exempt from any AD duty order issued in connection with this investigation.

Average rate companies. Commerce calculated a separate antidumping rate for hundreds of combinations of Chinese producers and exporters that demonstrated independence from state control, but were not individually reviewed in this investigation. See Commerce's notice for a full list.

China-wide entity. The China-wide entity includes, among others, Shandong Dongfang Bayley Wood Co., Ltd., which Commerce found did not demonstrate independence from state control and eligibility for a separate rate.

(The period of investigation is 04/01/16 - 09/30/16. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 1612160026 for a summary of initiation of this investigation, and 1611180039 for the underlying petition.)

AD/CVD Operations contact -- Amanda Brings (202) 482-3927

(Federal Register 06/23/17)