Decorative Plywood: Anti-dumping Decisions

Summary#

On January 21, 2021, the Canada Border Services Agency (CBSA) closed dumping and/or subsidizing investigations into certain decorative and other non-structural plywood from China for a number of named exporters, and made final dumping/subsidy findings for other Chinese exporters still under investigation under the Special Import Measures Act. Provisional duties on the goods will remain in place until the Canadian International Trade Tribunal (CITT) issues its injury decision by February 19, 2021; some importers may get refunds where investigations were terminated.

What it does#

• On January 21, 2021, the Canada Border Services Agency terminated the dumping investigation for these Chinese exporters:
  • Celtic Co., Ltd.
  • Linyi Evergreen Wood Co., Ltd.
  • Linyi Huasheng Yongbin Wood Co., Ltd.
  • Pingyi Jinniu Wood Co., Ltd.
  • Pizhou Jiangshan Wood Co., Ltd.
  • Shandong Good Wood Imp. and Exp. Co., Ltd.
  • Xuzhou Shengping Imp and Exp Co., Ltd.
• On the same day the CBSA terminated the subsidizing investigation for those exporters and additionally for:
  • Linyi Jiahe Wood Industry Co., Ltd.
• For all other exporters from China (those not listed above), the CBSA made final determinations that dumping and/or subsidizing occurred.
• The goods are usually classified under tariff codes beginning with 4412 (various sub‑codes listed in the decision).
• Provisional duty will continue to be imposed on subject goods from China until the Canadian International Trade Tribunal issues its injury decision by February 19, 2021.
• Provisional duties will no longer be applied to imports of the same goods when the investigation for that exporter was terminated, and any provisional duty paid or security posted for those imports will be refunded, as appropriate.
• If the CITT finds injury (or threat of injury), then permanent anti‑dumping and/or countervailing duties will be applied to future imports of the subject goods and importers will be required to pay those duties.
• The CBSA will publish a Statement of Reasons within 15 days of the decisions; it will be available on the CBSA website or by contacting the agency.

Who's affected#

• Importers and customs brokers who bring decorative and other non‑structural plywood from China into Canada.
• The named Chinese exporters listed above and other Chinese plywood exporters still under investigation.
• Canadian plywood manufacturers and other businesses that compete with imported decorative plywood, because the CITT’s injury finding could affect future duties and prices.
• Anyone who already paid provisional duties or posted security for shipments of these goods (they may be eligible for refunds if their exporter’s investigation was terminated).

Why it matters#

• For importers, provisional duties may still apply until the CITT decides on February 19, 2021, so costs and cash flow could change soon.
• Some importers will get refunds for provisional duties if their exporter’s investigation was stopped.
• If the CITT finds injury, anti‑dumping or countervailing duties could become permanent for the remaining exporters, which could raise the price of these plywood products in Canada and affect supply choices for builders, retailers, and manufacturers.
• The decisions narrow which exporters face duties now and which may be cleared, so businesses that buy or sell this plywood should check whether their supplier is on the terminated list and watch the CITT decision.