2025-04708NoticeWallet

Uncle Sam Battles Chinese Wood Flooring Subsidies in Bizarre Trade Clash

Published Date: 3/20/2025

Notice

Summary

The U.S. Department of Commerce found that some Chinese makers of multilayered wood flooring got unfair government help during 2022. This means extra duties might be charged on their products to keep things fair for U.S. businesses. The review covers 14 companies and invites comments before final decisions, starting March 20, 2025.

Analyzed Economic Effects

5 provisions identified: 0 benefits, 5 costs, 0 mixed.

Preliminary Duty Rates for Specific Exporters

Commerce preliminarily assigned countervailable subsidy rates for certain Chinese multilayered wood flooring exporters for the period January 1, 2022 through December 31, 2022. Riverside Plywood Corp. (and cross-owned affiliates), Benxi Wood Company, and Dalian Jaenmaken Wood Industry Co., Ltd. were preliminarily assigned an 11.17% ad valorem subsidy rate; Huzhou Fulinmen Imp. & Exp. Co., Ltd. and Tongxiang Jisheng Import and Export Co., Ltd. were preliminarily assigned a 430.38% ad valorem rate (rates published in the preliminary results released March 20, 2025).

Adverse Inferences Produce Very High Rates

Commerce preliminarily found that Huzhou Fulinmen and Tongxiang Jisheng did not respond to information requests and therefore used facts otherwise available with adverse inferences to set their rates. As a result, those two companies were preliminarily assigned a rate of 430.38% ad valorem based entirely on facts available with adverse inferences (preliminary results published March 20, 2025).

Cash-Deposit Collection After Final Results

Commerce intends, upon publication of the final results of this review, to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts shown for each listed company on shipments entered or withdrawn from warehouse for consumption on or after the date of publication of the final results. These cash deposit requirements will remain in effect until further notice.

Non-Selected Firms Assigned Mandatory Respondent Rate

For two companies in the review that were not individually examined (Benxi Wood Company and Dalian Jaenmaken), Commerce preliminarily assigned the subsidy rate calculated for the mandatory respondent Riverside Plywood (11.17% ad valorem) because only Riverside’s rate was above de minimis and not based entirely on facts available.

Rescission for Nine Companies; Assessment Rule

Commerce is rescinding this administrative review for nine listed companies because there were no suspended entries during January 1, 2022 through December 31, 2022. For those companies, Commerce will instruct U.S. Customs and Border Protection (CBP) to assess countervailing duties on appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time of entry during the POR.

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Key Dates

Published Date
3/20/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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