China Hardwood Plywood: Commerce Issues CV Duty Final Determination
The Commerce Department issued its final affirmative countervailing duty determination on hardwood plywood products from China (C-570-052). Commerce reversed its finding of critical circumstances for many exporters, and will refund CV duty cash deposits collected on imports of subject merchandise from these companies entered prior to April 25, 2017.
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Suspension of liquidation is currently not in effect for entries on or after Aug. 23, and Commerce will only require cash deposits of estimated CV duties on future entries if it issues a CV duty order. Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Dec. 21. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
Commerce also issued a final affirmative determination on hardwood plywood products from China in the companion antidumping duty investigation (see 1711150040).
Scope Exemptions Confirmed in Final Determination
Commerce finalized several exemptions from AD/CV duties on hardwood plywood, including for finished table tops and countertops, furniture kits and laminated veneer lumber door and window components. It also finalized decisions not to exempt grooved wall paneling, drawer sides, “low-grade” plywood, utility panels and underlayment panels and furniture parts. Though it didn't add language exempting finished consumer products and consumer products kits, the agency clarified that they are "not subject to the scope of the investigations."
Commerce also removed several tariff schedule subheadings that cover plywood with both outer veneers of softwood lumber, which is not subject to these AD/CVD investigations, as follows: 4412.39.4011; 4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032; 4412.39.4039; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5010; 4412.39.5030; 4412.39.5050.
'Critical Circumstances' Found for 'All Others' Companies
In a change from its preliminary determination, Commerce found "critical circumstances" do not exist for the "all others" companies, except for the companies that did not fill out a quantity and value questionnaire. Commerce will order the refund of all cash deposits collected retroactively on entries from the "all others" companies prior to April 25, 2017.
The agency continued to find critical circumstances exist for Shandong Dongfang Bayley Wood Co., Ltd. and its affiliate Linyi Yinhe Panel Factory, as well as the 58 other companies listed in Commerce's notice that were assigned a rate of 194.9% because they didn't respond to the agency's questionnaires. Commerce will continue to impose retroactive suspension of liquidation and cash deposit requirements on these 59 companies effective Jan. 25, 2017.
CV Susp/Cash Deposit Through Aug. 22
For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from April 25, 2017, through Aug. 22, 2017, for Linyi Sanfortune Wood Co., Ltd. and the "all others" companies, and from Jan. 25, 2017, through Aug. 22, 2017, for Bayley Wood, Yinhe Panel and the 58 companies that did not submit quantity and value questionnaires.
CV Liq Reinstated and No CV Cash Deposit as of Aug. 23
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after Aug. 23, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CV duty order in place.
CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued
Commerce will issue a CV duty order, reinstate the suspension of liquidation (retroactively for the "all others" companies), and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.
| Company | CV Rate | Sus. Liq. |
|---|---|---|
| Shandong Dongfang Bayley Wood Co., Ltd. and Linyi Yinhe Panel Factory | 194.9% | 01/25/17 |
| Linyi Sanfortune Wood Co., Ltd. | 22.98% | 04/25/17 |
| Non-cooperative companies* | 194.9% | 01/25/17 |
| All other companies | 22.98% | 04/25/17 |
*Commerce said 60 companies did not respond to questionnaires, and as a result of their non-cooperation will be subject to a punitive rate of 194.9%. See Commerce's notice for a full list.
(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of Aug. 23 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/15 -- 12/31/15. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 1704240009 for a summary of the preliminary determination of this investigation.)
(Federal Register 11/16/17)