Thursday, January 13, 2011

Possible upcoming tariff on Chinese engineered floors

From Hardwood Floors E-News: December 3, 2010, China tariff issues to be aware of:

Preliminary Investigation Affirms Chinese Dumping Allegations

The U.S. International Trade Commission issued a unanimous affirmative determination in its preliminary investigation into allegations of dumping of engineered flooring by Chinese manufacturers. The commission, an independent federal agency, determined that there is "a reasonable indication that a U.S. industry is materially injured by reason of imports of multilayered wood flooring from China that are allegedly subsidized and sold in the United States at less than fair value."

As a result of the vote, the U.S. Department of Commerce will conduct a detailed investigation into the pricing practices of Chinese engineered wood flooring manufacturers and exporters, as well as subsidies provided to those companies. Its preliminary countervailing duty determination is due on or about Jan. 14, 2011, and its preliminary antidumping duty determination is due on or about March 30, 2011.

"The fact that today's vote was unanimous, we believe, is a reflection of the weight of the extensive evidence reviewed by the commission, and the seriousness with which the agency viewed the concerns detailed by the domestic industry," said Jeff Levin, counsel for the Coalition for American Hardwood Parity, which filed a petition for the investigation in late October. The coalition consists of Anderson Hardwood Floors LLC, Award Hardwood Floors, Baker's Creek Wood Floors Inc., From the Forest, Howell Hardwood Flooring, Mannington Mills Inc., Nydree Flooring, Forest, and Shaw Industries Group Inc.

Copies of the report from the ITC are expected to be available after Jan. 3, 2011, by e-mailing, calling 202/205-2000, or writing to the Office of the Secretary, 500 E St. S.W., Washington, DC 20436. Requests may also be faxed to 202/205-2104. The press release from the ITC is available here.

In other related news, there is a possibility of import duty on imported Chinese engineered flooring:

The U.S. Department of Commerce (DOC) on Nov. 10 initiated antidumping duty and countervailing duty investigations of engineered wood flooring exported from China and imported to the U.S., according to a department release.

On Oct. 21 the Coalition for American Hardwood Parity (CAHP), an ad hoc group of U.S. engineered wood flooring manufacturers, petitioned the Commerce Department to initiate the investigation. The group alleges that companies that manufacture engineered wood flooring in China dumped products in the U.S. at margins of 194.49 to 280.6 percent.


This "dumping margin" is the amount by which a product's normal market value exceeds the export price. Citing a study by Catalina Research Inc. (Boca Raton, Fla.), DOC said imports of engineered wood flooring from China increased 76 percent by quantity from 2007 to 2009. In 2009, imports of multilayered wood flooring were valued at an estimated $119.7 million.

An antidumping investigation hinges on determining whether an imported product is being sold by a foreign manufacturer into the U.S. market at less than fair value; a countervailing duty investigation determines whether a foreign manufacturer is gaining an unfair competitive advantage through government subsidies. Both DOC and the U.S. International Trade Commission (ITC) play roles in the investigations. ITC expects to make preliminary determinations on both investigations around Dec. 6. If ITC finds no reason to carry on the investigation during this preliminary determination, the investigations will be terminated.

We'll keep an eye on this story.

1 comment:

  1. Engineered flooring has a lot lower price than solid wood flooring. You can get value for great money if you go for engineered floor boards.