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of entries of the subject plywood and to require a cash deposit equal to the preliminary rates for entries entered, or withdrawn from warehouse, for consumption on or after the date this notice published in the Federal Register (January 22, 2026).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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Previous: 2026-01185, Hardwood and Decorative Plywood From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
The U.S. Department of Commerce found that Chinese makers of hardwood and decorative plywood are getting unfair government help. Because of this, the U.S. plans to add extra taxes on these imports to keep things fair for American businesses. This decision starts January 22, 2026, and could affect prices and trade for companies dealing with this plywood.
Next: 2026-01187, Hardwood and Decorative Plywood From the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Determination of Critical Circumstances, and Alignment of Final Determination With Final Antidumping Duty Determination
The U.S. Department of Commerce found that Vietnam’s hardwood and decorative plywood makers are getting unfair government help, so they’re starting to add extra taxes to these imports. This affects companies importing plywood from Vietnam and could mean higher prices starting soon. The final decision will line up with related trade cases, so watch for updates in 2026!