2026-14609NoticeWallet

Indonesia Plywood Subsidies Trigger U.S. Duties

Published Date: 7/21/2026

Notice

Summary

The U.S. Department of Commerce found that Indonesian makers of hardwood and decorative plywood got unfair government help, so they’re adding extra taxes on these imports starting July 21, 2026. This means U.S. businesses selling similar plywood get a fairer chance, and Indonesian exporters will pay more when selling to the U.S. The new rules cover products shipped during 2024 and could affect prices and trade for a while.

Analyzed Economic Effects

5 provisions identified: 1 benefits, 3 costs, 1 mixed.

Specific Duty Rates Announced

Commerce determined estimated countervailable subsidy rates for the period January 1, 2024 through December 31, 2024: PT. Mustika Buana Sejahtera 128.66 percent ad valorem; PT. Sengon Indah Mas 4.22 percent; PT. Wijaya Cahaya Timber Tbk. 58.39 percent; and an All-Others rate of 40.87 percent.

Final CVD Determination Effective July 21, 2026

Commerce made a final affirmative countervailing duty (CVD) determination for hardwood and decorative plywood from Indonesia that is applicable July 21, 2026. Commerce will notify the U.S. International Trade Commission (ITC), which has 45 days to decide whether U.S. industry is materially injured; if the ITC finds injury, Commerce will issue a CVD order and require cash deposits of estimated countervailing duties.

Suspension of Liquidation and Cash Deposit Timeline

Commerce instructed CBP to collect cash deposits and suspend liquidation of Indonesian plywood entries entered or withdrawn from warehouse on or after January 22, 2026 (date of the Preliminary Determination), then discontinued suspension for entries on or after May 22, 2026 while continuing suspension for entries on or before May 21, 2026. If the ITC issues a final affirmative injury determination, Commerce will reinstate suspension of liquidation and require cash deposits for entries on or after the effective suspension date.

May Affect U.S. Prices and Trade Flows

The final determination and the announced duties apply to merchandise covered by the investigation for the period January 1, 2024 through December 31, 2024, and may affect prices and trade flows for U.S. buyers and sellers of hardwood and decorative plywood following these actions.

Many Products Excluded from the Order

The scope excludes a number of products from the investigation, including structural/industrial plywood meeting specified U.S. Product Standards (PS 1/PS 2 variants), products with cork face/back veneers, certain hardwood plywood already covered by orders on China, multilayered wood flooring, fully assembled wooden furniture and ready-to-assemble (RTA) furniture, fully assembled kitchen cabinets and RTA kitchen cabinets, finished tabletops and countertops, specific LVL door/window components and certain two-ply products and Phenolic Film Faced Plyform (PFF).

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Key Dates

Published Date
7/21/2026

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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