2026-01186Notice

Indonesia's Plywood Subsidies Trigger U.S. Duty Crackdown

Published Date: 1/22/2026

Notice

Summary

The U.S. Department of Commerce found that Indonesian makers of hardwood and decorative plywood are getting unfair government help, which could mean extra taxes on their products. This affects Indonesian exporters and U.S. buyers, aiming to keep trade fair. The final decision will line up with related antidumping rules, with important deadlines set for early 2026.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 4 costs, 0 mixed.

Preliminary Finding: Subsidies Found

The Department of Commerce preliminarily found that producers and exporters of hardwood and decorative plywood from Indonesia received countervailable subsidies for the period January 1, 2024 through December 31, 2024. Commerce assigned estimated countervailable subsidy rates for investigated companies and an "All Others" rate (see separate provision for the specific numbers).

Preliminary Subsidy Rates Announced

Commerce preliminarily assigned estimated countervailable subsidy rates: PT. Mustika Buana Sejahtera 128.66% ad valorem (based on facts available with adverse inferences), PT. Sengon Indah Mas 2.40%, PT. Wijaya Cahaya Timber Tbk. 62.68%, and an All Others rate of 43.18%.

CBP Suspension and Cash Deposit Requirement

Commerce will direct U.S. Customs and Border Protection to suspend liquidation of entries of the subject plywood and to require a cash deposit equal to the preliminary rates for entries entered, or withdrawn from warehouse, for consumption on or after the date this notice published in the Federal Register (January 22, 2026).

Final CVD Aligned With AD Determination

Commerce will align the final countervailing duty determination with the final antidumping duty determination for plywood from Indonesia; the final CVD will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than May 11, 2026, unless postponed.

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Key Dates

Published Date
1/22/2026

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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