According to the latest information from the Trade Remedies Department – Ministry of Industry and Trade, on July 25, 2022, the US Department of Commerce (DOC) announced its preliminary findings in the investigation into circumvention of trade remedies on plywood made from hardwood imported from Vietnam. Hardwood plywood is a product made from layers of veneer bonded together with glue, then covered with one or two layers of hardwood veneer on the surface. The US is applying anti-dumping duties (ADD) and countervailing duties (CTC) on this product from China, with an ADD rate of 183.36% and CTC rates ranging from 22.98% to 194.90%.

According to US customs statistics, Vietnam’s exports of hardwood plywood to the US have continuously increased from US$112.3 million in 2018 to US$226.4 million in 2019, US$248.5 million in 2020, and US$356.7 million in 2021. Compared to the year before the investigation was initiated (2019), Vietnam’s exports of hardwood plywood to the US in 2021 increased by 57.6%. The preliminary conclusion of the DOC states that plywood from Vietnam with a core made from veneer imported from China will be subject to countervailing duties and anti-dumping duties as currently applied to plywood imported from China. Plywood from Vietnam with a core made from veneer produced in Vietnam or other countries will not be subject to countervailing duties and anti-dumping duties.

Based on this preliminary finding, the DOC will request the U.S. Customs and Border Protection (CBP) to continue suspending clearance and require importers to deposit a security deposit equal to the provisional anti-circumvention duty rate on shipments from Vietnam to the United States from June 17, 2020 (the date of the investigation initiation notice) for cases subject to the measure.

The DOC allows Vietnamese exporters as well as U.S. importers to participate in a self-certification mechanism to be excluded from the circumvention measure. This self-certification mechanism will not apply to businesses that the DOC assesses as failing to provide information or providing incomplete or inaccurate information as required by the DOC during the investigation. It is estimated that the number of businesses participating in self-certification accounts for approximately 80% of Vietnam’s export value during the investigation period.

Interested parties have the right to submit written comments on the DOC’s preliminary findings (the deadline will be announced later), and written requests for hearings on the comments must be submitted to the DOC within 30 days of the notification of the preliminary findings. The DOC also plans to conduct further verification before issuing its final findings.

According to the latest announcement, the DOC has extended the deadline for issuing its final findings in this case to October 17, 2022.