The U.S. Department of Commerce released an affirmative preliminary countervailing duty determination in its investigation entitled Hardwood and Decorative Plywood from Indonesia.
The countervailing preliminary determination was published in the Federal Register on Thursday. As a result, countervailing duties will need to begin being deposited today. For additional information, view the memo and the full determination.
Currently, the investigation includes lauan plywood from Indonesia, though the RVIA’s Government Affairs team is working to exclude the lauan from the investigation. The investigation period is Jan. 1, 2024, through Dec. 31, 2024. The investigation was initiated May 22, 2024, under the previous presidential administration.
RVIA said the Commerce Department preliminarily determined that Indonesia is providing countervailable subsidies to hardwood and decorative plywood producers and exporters. As a result, the department said the hardwood and decorative plywood are being unfairly subsidized.
The resulting countervailing duty rates vary by company. The base rate is 43.18%. Rates for specific companies are:
- Mustika Buana Sejahtera, 128.66%
- Sengon Indah Mas, 2.4%
- Wijaya Cahaya Timber Tbk., 62.68%
The Commerce Department said Mustika Buana Sejahtera refused to respond to Commerce’s data requests. Its 128.66% duty is based entirely on adverse facts available.
The Commerce Department did not make a preliminary determination concerning the scope (product coverage) of the investigation. Once the department reveals the investigation’s scope, the RV industry will learn whether the department intends to exclude Indonesian lauan. The Commerce Department will issue a preliminary scope determination “on or before” the preliminary antidumping determination. The determination is expected to be revealed Feb. 24.
If lauan is removed from the scope, or a negative injury determination is made, importers’ deposits to the U.S. Customs and Border Protection office will be refunded without interest.
RVIA said the association is working with outside counsel to get additional clarity on future deadlines. For more, email RVIA Director of Federal Affairs Samantha Rocci at [email protected].
