The U.S. Department of Commerce last week announced the launch of new investigations to determine whether wood mouldings and millwork products from Brazil and China are being unfairly dumped into the United States, and if Chinese producers of such goods are receiving illegal subsidies.
The investigations are in response to complaints filed by the Coalition of American Millwork Producers, a group made up of seven large and small millwork producers from across the nation.
In 2018, imports of wood mouldings and millwork products from Brazil and China were valued at an estimated $291.8 million and $208.4 million, respectively.
The domestic producers of the subject goods allege dumping margins of 269% for Brazilian imports and between 290% to 362% in the case of Chinese imports. Additionally, it’s alleged that Chinese producers may be unfairly benefiting from nearly 40 different government subsidy programs.
Potential Outcome for Importers
- If Commerce determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing the subject goods from Brazil and/or China.
The goods subject to this investigation consist of wood mouldings and millwork products that are made of wood (regardless of wood species), laminated veneer lumber (LVL), or of wood and composite materials (where the composite materials make up less than 50% of the total merchandise), and which are woodwork or building materials that are produced in a mill or otherwise undergo remanufacturing.
- Imports of wood mouldings and millwork products are primarily entered under the following U.S. tariff numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500, 4409.10.5000, 4409.22.4000, 4409.22.5000, 4409.29.4100, and 4409.29.5100.
- Imports of wood mouldings and millwork products may also enter under tariff numbers: 4409.10.6000, 4409.10.6500, 4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4418.99.9095 and 4421.99.9780.
Dates to Watch
- April 2, 2020 - Preliminary determination by Commerce regarding whether Chinese goods are being illegally subsidized.
- June 16, 2020 - Preliminary determination concerning the dumping allegations.
- February 24, 2020 - Preliminary finding expected of the International Trade Commission on its own investigation into whether domestic producers are being materially injured by imports of the subject goods.
Need More Information?
Should you need to confirm whether your imports might be covered by (or specifically excluded from) this particular trade enforcement action and/or if you have any questions about this matter, don't hesitate to contact our trade experts for answers.