The U.S. Department of Commerce has set preliminary countervailing duties of up to 27.01% on engineered wood flooring from 127 Chinese companies to offset alleged government subsidies.
Three companies named in the investigation—Zhejiang Layo Wood Industry Co., Jiaxing Brilliant Import & Export Co. and Zhejiang Yuhua Timber Co.—were assigned duty rates of zero because it found no evidence they had benefited from government subsidies, while all other companies that participated in the investigation but were not named in the case have been assigned a duty rate of 2.25%.
“Although we hoped for a finding of zero subsidies across the board, consistent with the realities of the Chinese market, we are pleased that at least the Commerce Department determined a subsidy level of only 2.25% for the companies that responded to its questionnaire,” said Jonathan Train, vice president of Swiff-Train in Houston and president of the Alliance for Free Choice and Jobs in Flooring (AFCJF), referring to questionnaires DOC uses to conduct its investigation. The AFCFJ opposes duties being enacted on Chinese engineered wood flooring imports. “These findings certainly undermine the overblown allegations of the petitioners that they are injured by overseas subsidies.”
The investigation was initiated by a petition from the Coalition for American Hardwood Parity, an ad hoc association of U.S. engineered wood flooring manufacturers that includes Anderson Hardwood Floors, Award Hardwood Floors and Shaw Industries. They have also asked for antidumping duties of up to 281% to offset what they said was unfairly low pricing by their Chinese competitors. The Commerce Department has not yet made a decision in that portion of the case.