DOC’s final ruling on Vietnam Plywood, a narrow door for Vietnamese plywood in the US market

The U.S. Department of Commerce has issued a directive ordering 37 companies in Vietnam to pay duties for circumventing Chinese duties on hardwood imports. These companies are accused of importing hardwood products from China through other countries to avoid paying the required duties. The directive follows an investigation initiated in 2017 by the Commerce Department’s International Trade Administration, which found evidence of this trade practice.

Appendix V: List of 37 companies failed to cooperate or respond to  Commerce’s investigation

The companies were found to have circumvented the duties by importing hardwood from other countries and mislabeling it as another product. The ruling comes as part of an ongoing effort by the US government to crack down on unfair trade practices. The companies involved will be required to pay the tariffs, which could have significant financial implications for them.

The companies involved in this case are primarily from China, but also include businesses from other countries such as Malaysia, Indonesia, and Brazil. They were found to have used various methods to avoid the Chinese tariffs, including transshipping their products through other countries such as Vietnam and mislabeling the origin of the goods. The Commerce Department’s ruling states that the companies will now be subject to anti-dumping and countervailing duties.

This ruling is significant as it aims to prevent unfair trade practices and protect domestic producers in the United States. By imposing duties on these companies, the U.S. government is trying to level the playing field for American hardwood producers who have been negatively impacted by the circumvention of Chinese tariffs. The Commerce Department’s decision is expected to have a substantial impact on the hardwood industry, potentially creating new opportunities for domestic manufacturers.

The directive comes in the context of ongoing trade tensions between the United States and China. The U.S. government has been actively pursuing measures to address what it perceives as unfair trade practices by China, including imposing tariffs on Chinese imports. This latest ruling serves as a reminder that companies seeking to evade these tariffs can not use the practice and will hold responsibility.

TADEX GROUP