Wood Mouldings and Millwork: AD Cash Deposit Rates Take Effect for China, Not Brazil
The Commerce Department made a preliminary affirmative antidumping determination that wood mouldings and millwork from China (A-570-117) is being sold in the U.S. at less than fair value. The agency will impose AD duty cash requirements on entries of subject merchandise from China beginning on Aug. 12.
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The agency also found that wood mouldings and millwork from Brazil (A-351-853) is not being dumped in a preliminary negative antidumping duty determination, and will not suspend liquidation or impose AD duty cash deposit requirements for imports from Brazil at this time. Commerce may still impose AD duties in the final determination.
Wood mouldings and millwork from China is already subject to suspension of liquidation and countervailing duty cash deposit requirements, announced in Commerce's preliminary CV duty determination (see 2006110010). Suspension of liquidation for subject merchandise from China began June 12. Commerce is not conducting a CV duty investigation on Brazil.
Scope Amended With New Exemptions, Clarification of Scope Coverage
Commerce is preliminarily modifying the scope of its AD/CVD investigations on wood mouldings and millwork to set several new exemptions and clarify products covered by the scope.
New exemptions for stair stringers, countertops and butcher blocks are added to the scope by amending a paragraph listing other exempt products as follows:
“Excluded from the scope of this investigation are countertop/butcherblocks, exterior fencing, exterior decking and exterior siding products (including solid wood siding, non-wood siding (e.g., composite or cement), and shingles) that are not LVL or finger jointed; finished and unfinished doors; flooring; parts of stair steps (including newel posts, balusters, easing, gooseneck, risers, treads, rail fittings and stair stringers); picture frame components three feet and under in individual lengths … .”
Commerce is also adding exemptions for unassembled wooden kitchen cabinets, wooden bedroom wardrobes and bathroom cabinets that are covered by other AD/CVD orders. New paragraphs in the scope of the China AD duty investigation say goods covered by the existing AD duty orders on wooden bedroom furniture from China and wooden cabinets and vanities from China are exempt from the wood moulding and millwork investigation. Likewise, the China CV duty scope is amended to exempt goods subject to the CV duty order on wooden cabinets and vanities from China.
These unassembled products can still be covered by these AD/CV duty investigations if they are not subject to another AD/CVD order. As there is no CV duty order on wooden bedroom furniture from China, unassembled wooden bedroom furniture may still be subject to AD duties under this investigation. Likewise, unassembled wooden bedroom furniture and cabinets from Brazil would be potentially covered by the wood mouldings and millwork duties should Commerce find dumping.
Finally, Commerce is setting a new exemption from AD/CV duties for some lumber, but at the same time is clarifying that wood surfaced on one side and two edges is subject to AD/CV duties. The new scope exemption for lumber says:
“Excluded from the scope of these investigations are … lumber whether solid, finger-jointed, or edge-glued. To be excluded from the scope, finger-jointed or edge-glued lumber must have a nominal thickness greater than 1.5 inches and a certification stamp from the American Lumber Standard Committee-Certified Grading Bureau. The exclusion for lumber whether solid, finger-jointed, or edge-glued does not apply to screen/’surfaced on 4 sides’ (S4S) and/or “surface 1 side, 2 edges” (S1S2E) stock (also called boards) that are finger jointed, edge-glued mouldings, or millwork blanks (whether or not resawn).”
Meanwhile, Commerce is adding language to clarify that door components, whether imported alone or with an unassembled wooden door set, are included in the scope of these investigations. The new language is as follows:
“The merchandise subject to these investigations … interior and exterior door frames or jambs (including split, flat, stop applied, single- or double-rabbeted), frame or jamb kits, and packaged door frame trim or casing sets, whether or not the door components are imported as part of a door kit or set.”
Commerce is also adding tariff subheadings 4418.20.4000, 4418.20.8030 and 4418.20.8060 to the list potentially covered by the scope.
​AD Suspension of Liquidation and Cash Deposit Requirements
Commerce will instruct CBP to suspend liquidation for AD duty purposes for all entries of subject merchandise from China that are entered, or withdrawn from warehouse, for consumption on or after Aug. 12, and require AD duty cash deposits as follows:
Exporter | Producer | AD Rate | Adjusted* |
---|---|---|---|
Bel Trade Wood Industrial Co., Ltd. Youxi Fujian | Bel Trade Wood Industrial Co., Ltd. Youxi Fujian | 146.91% | 136.18% |
Fujian Yinfeng Imp & Exp Trading Co., Ltd./Fujian Province Youxi City Mangrove Wood Machining Co., Ltd. | Fujian Yinfeng Imp & Exp Trading Co., Ltd./Fujian Province Youxi City Mangrove Wood Machining Co., Ltd. | 40.3% | 29.57% |
Non-individually examined companies | 79.4% | 68.67% | |
China-wide Entity* | 359.16% | 348.43% |
*As adjusted for export subsidies found in the concurrent CV duty investigation. This rate is the AD duty cash deposit rate while CV duty suspension of liquidation remains in effect.
Average rate. Commerce assigned a rate of 79.4% (68.67% adjusted) to 41 producer-exporter combinations that were deemed eligible for a separate rate, but were not individually examined. See Commerce's notice for a full list.
(The period of investigation is 07/01/19 - 12/31/19. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 2002040019 for a summary of initiation of this investigation, and 2001140029 for the underlying petition.)