On June 11, 2020, The Canada Border Services Agency (CBSA) initiated an investigation on the dumping and subsidizing of certain decorative and other non‑structural plywood from China.
The anti-dumping investigation follows a complaint filed by Canadian companies and associations: Columbia Forest Products, Husky Plywood, Rockshield Engineered Wood Products, ULC, and the Canadian Hardwood Plywood and Veneer Association.
The subject goods are usually imported under the following tariff classification numbers:
4412.10.00.00
4412.33.00.20
4412.34.00.00
4412.39.00.22
4412.94.00.00
4412.99.90.30
4412.31.00.00
4412.33.00.30
4412.39.00.10
4412.39.00.23
4412.99.10.00
4412.99.90.90
4412.33.00.10
4412.33.00.90
4412.39.00.21
4412.39.00.90
4412.99.90.10
The complaint alleges that the Canadian plywood industry is facing an increase in the volume of imported plywood from China, loss of market share and sales, price undercutting, price depression, underutilization of capacity, threat to continuous investments, impacted financial results, and reduced employment.
The CBSA and the Canadian International Trade Tribunal both play a role in the investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian plywood producers and will issue a decision by August 10, 2020. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair and/or subsidized prices, and will make preliminary decisions by September 9, 2020.
Subject Goods Definition
For the purpose of these investigations, subject goods are defined as: Decorative and other non‑structural plywood, whether or not surface coated or covered, and veneer core platforms for the production of decorative and other non‑structural plywood, originating in or exported from the People’s Republic of China. Decorative and other non‑structural plywood is defined as a flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers and a core, with the face and/or back veneer made of wood. The veneers, along with the core are glued or otherwise bonded together. Decorative and other non‑structural plywood include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP‑1‑2016 (including any revisions to that standard).
Excluding:
- Structural plywood that is manufactured to meet U.S. Products Standard PS 1‑09, PS 2‑09, or PS 2‑10 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and which has both a face and a back veneer of coniferous wood;
- Finished plywood products for use as flooring;
- Plywood which has a shape or design other than a flat panel;
- Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges; and
- Laminated veneer lumber door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger‑jointed or lap‑jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers, and (5) top layer machined with a curved edge and one or more profile channels throughout.
Investigation Schedule
The CBSA and the Canadian International Trade Tribunal both play a role in the investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian plywood producers and will issue a decision by August 10, 2020. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair and/or subsidized prices, and will make preliminary decisions by September 9, 2020.
| June 11, 2020 | Initiation of the CBSA’s dumping and subsidy investigations |
| June 26, 2020 | Statement of Reasons issued regarding the initiation of investigations |
| July 2, 2020 | Importer responses to CBSA’s request for information due |
| July 20, 2020 | Exporter and government responses to CBSA’s request for information due |
October 23, 2020 | Preliminary determinations or termination of the CBSA’s dumping and subsidy investigations |
| September 24, 2020 | Statement of Reasons issued (Preliminary determinations or termination) |
On September 2, 2020, The Canada Border Services Agency extended the preliminary phase of the investigations. Consequently, the decision to issue preliminary determinations or to terminate the investigations will be made on or before October 23, 2020. (Notice of extension of investigations)
| September 9, 2020 | Exporter and importer ruling letters available |
| October 19, 2020, at noon | Closing of the record date |
| October 26, 2020, by noon | Case arguments due to all parties |
| November 2, 2020, by noon | Reply submissions due from all parties in respect of case arguments |
| December 8, 2020 | Final determination or termination of the CBSA’s dumping and subsidy investigations |
| December 8, 2020 | Exporter and importer ruling letters available |
| December 23, 2020 | Statement of Reasons issued (Final determination or termination) |
Quick Facts About Plywood
- The subject goods are decorative and other non-structural plywood, and veneer core platforms for the production of them. Only structural plywood are not under investigation.
- Decorative plywood is commonly used for the manufacture of kitchen cabinets, furniture, wall paneling, and architectural woodwork.
- Canada imported 97,956.00 cubic meters plywood from China in 2019. The total value of imported plywood from China is 50 million U.S. Dollars. Most of the imports are non-structural plywood that is under investigation this time.
Plywood Types & Volume Exported From China to Canada
- Hardwood Faced Plywood
- Pine Faced Plywood
- Film Faced Plywood
- Anti Slip Plywood
- HPL Plywood
- UV Prefinished Birch Plywood
Estimate of Canadian Plywood market
based on volume (m³)
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Sales from Canadian Producers | 34% | 38% | 33% |
| Imports from China | 27% | 34% | 38% |
| Imports from All Other Countries | 38% | 28% | 29% |
| Total Apparent Canadian Market | 100% | 100% | 100% |
Background
This investigation is based on the United States put an anti-dumping tax on hardwood plywood imported from the People’s Republic of China into the United States. Columbia Forest Products who made the complaints in Canada is a U.S. based plywood company.
Final Determinations
On February 19, 2021, the Canadian International Trade Tribunal (CITT), pursuant to subsection 43(1) of SIMA, made a finding that the dumping of the subject goods originating in or exported from China have not caused injury and are not threatening to cause injury to the domestic industry.
Since the CITT concluded in its finding that there is no injury or threat of future injury to the domestic industry, all anti‑dumping duties collected during the provisional period will be refunded. Effective on or after February 19, 2021, imports of subject goods released by the CBSA will not be liable for any anti‑dumping duties.
References: https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/donp-eng.html
