US Extends Việt Nam Plywood Tariff Circumvention Investigation

VIETNAM, August 11 – HÀ NỘI — The U.S. Department of Commerce (DOC) has announced an extension of the deadline for issuing its final conclusion on an investigation into circumvention of trade remedy rights regarding hardwood plywood imported from Việt Nam, according to the Ministry of Industry and Trade (MoIT).

Accordingly, the DOC plans to issue the finding on October 17.

Currently, the United States applies an anti-dumping duty of 183.36% and an anti-subsidy tax of 22.98% to 194.9% on product from China.

US Customs said hardwood plywood exports from Việt Nam to the United States increased from $112.3 million in 2018 to $226.4 million in 2019, $248.5 million in 2020 and $356.7 million last year. Export turnover increased by 57.6% in 2021 compared to the year before the initiation of the investigation.

According to the DOC’s preliminary findings, plywood from Việt Nam using materials from China should be subject to the same anti-dumping and anti-subsidy duties applied to China. If the materials are produced in Việt Nam or other countries, the products will be exempt from any duty.

The department will direct U.S. Customs and Border Protection (CBP) to continue withholding cash and requiring importers to post a bond equal to the interim anti-avoidance tax rate for shipments from Việt Nam since June 17, 2020, when the investigation was announced.

Vietnamese exporters and US importers were allowed to participate in the self-certification mechanism to be excluded from the circumvention measure.

However, the self-certification mechanism does not apply to companies that do not provide information or provide incomplete or inaccurate information as requested by the DOC during the investigation.

Statistics show that companies eligible for the self-certification mechanism accounted for around 80% of the value of Việt Nam’s exports during the investigation period.

Affected parties must send their written comments on the DOC’s preliminary findings, and a written request for a hearing on the comments must be submitted to the department within 30 days of the announcement of the preliminary findings. The DOC will also verify the information before issuing a final conclusion. —VNS