U.S. says plywood imports from Vietnam may circumvent duties on Chinese goods

The United States on Wednesday said it would examine whether hardwood plywood imports completed in Vietnam using Chinese components are circumventing U.S. duties on imports from China, a move that could see Vietnamese imports face similar duties.In a statement, the U.S. Commerce Department said it was initiating the inquiries in response to requests from the Coalition for Fair Trade in Hardwood Plywood, which represents an array of U.S. plywood makers in North Carolina and Oregon.

The United States on Wednesday said it would examine whether hardwood plywood imports completed in Vietnam using Chinese components are circumventing U.S. duties on imports from China, a move that could see Vietnamese imports face similar duties.

In a statement, the U.S. Commerce Department said it was initiating inquiries in response to requests from the Coalition for Fair Trade in Hardwood Plywood, which represents an array of U.S. plywood makers in North Carolina and Oregon. If the probe shows Vietnamese producers are circumventing existing antidumping or countervailing duties, Commerce said it would instruct U.S. Customs officials to begin collecting cash deposits on plywood from Vietnam.

The U.S. International Trade Commission in December 2017 found that hardwood plywood imports from China, which are used in wall panels, kitchen cabinets, table and desktops and flooring, harm U.S. producers, locking in U.S. duties on the imports for five years. The Commerce Department had imposed an anti-dumping duty of 183.6% and anti-subsidy duties ranging up to 194.9% on Chinese imports of hardwood plywood after finding they were being subsidized and dumped in U.S. markets. At the time, it said the imports from China totaled $1.12 billion.

The coalition of U.S. manufacturers asked the Commerce Department to investigate in February, accusing Chinese producers and exporters of hardwood plywood of seeking to avoid paying trade duties through a variety of means, including transshipment through Vietnam.