CBP released the investigation results of anti circumvention investigation on three plywood importers

CBP released the investigation results of anti circumvention investigation on three plywood importers

2019-10-17

Notice on the results of anti circumvention investigation on plywood imported from Cambodia issued by the U.S. Customs and border Investigation Agency

All related plywood enterprises:

CBP filed a case again on June 26, 2019, and sued three companies (inter global forest lllc, American Pacific plywood Inc., U.S. global forest ind.) for anti circumvention investigation from Shupu village plywood. The plaintiff claims that China’s export of plywood to the United States decreased from 1153000 cubic meters in 2017 to 181000 cubic meters in 2018; China’s export of plywood to Shupu village increased from 35896 cubic meters in 2016 to 152510 cubic meters in 2018; Cambodia’s export of plywood to the United States increased from 20452 cubic meters in 2017 to 53831 cubic meters in 2018.

I. investigation results

CBP of the United States announced on October 1, 2019 the investigation results of anti circumvention investigation on the above three American plywood importers. It is considered that the plywood imported from dongpuzhai is “made in China”, which evades the “double anti” tax imposed by the United States on China’s hardwood plywood.

II. Follow up case progress of “double anti” investigation of American hardwood plywood to China

On February 15, 2018, the U.S. plywood industry represented by Columbia and timber company submitted an anti circumvention investigation application for Chinese coniferous plywood to the U.S. Department of Commerce (D0). China Forestry Industry Association and Linyi Wood Industry Association convened 30 Chinese plywood export enterprises to submit defense opinions to d0c.

On April 2, 2018, the U.S. Department of Commerce (d0c) rejected the anti circumvention application of the U.S. plywood industry based on the evaluation of the comments of all parties, and maintained the original double counter order that the needle plywood was not within the scope of the products involved.

On May 2, 2018, the U.S. plywood lawsuit filed an application with the U.S. Court of international trade, telling the U.S. Department of Commerce to reject its application for anti circumvention investigation of coniferous plywood, which was a wrong decision, and requiring the court to order the U.S. Department of Commerce to correct it. On June 26, 2018, the U.S. plywood industry represented by Columbia company once again submitted to the U.S. Department of Commerce (d0c) an application for anti circumvention investigation on Chinese radial pine / shell pine plywood. On September 18, 2018, the U.S. Department of Commerce (d0c) launched an anti circumvention investigation on China’s export of coniferous plywood to the United States. On October 3, 2018, the U.S. Department of Commerce launched an anti circumvention investigation on the “follow-up development” application applied by the prosecution, and sent out a sampling questionnaire. On November 9, 2018, the U.S. Department of Commerce issued sampling results on plywood anti circumvention survey, and selected three companies including Lianyungang Yuantai, Linyi gelirui and Shanghai fuze as compulsory respondents for this anti circumvention survey. On November 13, 2018, the U.S. Court of international trade ruled on the lawsuit case that the U.S. litigant filed a lawsuit against the U.S. Department of Commerce to reject the first anti circumvention application on May 2, 2018. The court held that the U.S. Department of Commerce had launched an anti circumvention investigation on the second anti circumvention application of the litigant, and it was unnecessary to retain the existing litigation cases. Therefore, the court ruled to dismiss the case.

III. I will remind you

In the past two years, some wood processing enterprises in China have invested and built factories in Vietnam, Cambodia, Thailand, Myanmar and other places to explore a way for Chinese enterprises to go abroad, and also promote the development and employment of local industries, which is welcomed by the local people. However, our association also found that some enterprises did not abide by local laws and regulations and international trade rules, evaded taxes or disguised entrepot trade. CBP of the United States has made follow-up investigation on plywood and flooring industry involving overseas investment of China, including dongpuzhai, Vietnam and other countries. The problems reflected in the investigation are worthy of great attention of enterprises in the whole industry (especially overseas enterprises). It has started the investigation on tariff recovery of enterprises that are not standardized. We solemnly request that all enterprises must operate according to law, especially Enterprises operating overseas shall abide by local laws and regulations and international rules, fulfill their corporate social responsibilities, condemn those illegal acts of tax evasion and order them to correct!

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