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Plywood group rails against import deposit requirements

The American Alliance for Hardwood Plywood reacted strongly to the U.S. Department of Commerce’s recent findings that show imports of hardwood and decorative plywood from China were sold in the United States at dumping margins ranging from 55.67 percent to 121.65 percent.

“The protectionist campaign against imported Chinese hardwood plywood has effectively eliminated a vital raw material from the supply chain for thousands of manufacturers, creating long-term market uncertainty that will drive jobs out of the U.S.,” the trade group that represents importers, distributors, manufacturers and retailers said in a Sept. 19 release.

“[On Sept. 17], the Department of Commerce announced severe and unprecedented deposit requirements for estimated dumping and subsidy margins, totaling 73 percent on almost all imported Chinese hardwood plywood entering the U.S. The deposit rates are an absurd spike from preliminary Commerce rates announced earlier this spring, which totaled an outrageous 45 percent. Those initial rates have already created a shockwave throughout critical supply chains, increasing the cost of imported hardwood plywood virtually overnight and creating painful shortages due to lack of sufficient domestic supply.”

"This is a deathblow to the U.S. cabinet industry and many other manufacturers that heavily rely on imported Chinese hardwood plywood," alliance co-chairman Greg Simon said. "The methodology in the duty determination by the Department of Commerce clearly ignores sound market variables, equates China and Bulgaria, and is effectively putting the nail in the coffin for an entire industry."

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