U.S. Finds Indonesian Plywood Producers Received Unfair Subsidies; Imports Face New Duties
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On January 22, 2026, the U.S. Department of Commerce (Commerce) announced a preliminary determination in its countervailing duty (CVD) investigation into hardwood and decorative plywood from Indonesia.
Commerce determined that Indonesian producers and exporters are benefiting from unfair government subsidies.
This investigation covers plywood products exported from Indonesia during the period January 1, 2024, through December 31, 2024.
The preliminary findings come under section 703(b) of the Tariff Act of 1930, as amended.
The investigation was originally announced on June 16, 2025. Due to delays caused by the July 2025 postponement, the November 2025 federal government shutdown, and document backlogs, the preliminary decision was delayed and finalized on December 29, 2025.
This determination aligns with the timeline for a related antidumping duty investigation concerning the same product from Indonesia. The final determinations for both investigations are expected by May 11, 2026.
Commerce examined three companies. These companies received the following subsidy rates:
- PT Mustika Buana Sejahtera: 128.66 percent (based on facts available with adverse inferences due to lack of cooperation).
- PT Sengon Indah Mas (and cross-owned PT Java Wood Industri): 2.40 percent.
- PT Wijaya Cahaya Timber Tbk. (WCT): 62.68 percent. WCT was found to be cross-owned with six other companies, one of which remains confidential.
- All other Indonesian producers and exporters received a 43.18 percent subsidy rate.
Commerce used the companies’ export sales data to calculate an “all-others” rate. This ensures unexamined companies are fairly accounted for.
Commerce relied partly on “facts available” and used “adverse inferences” where companies did not fully cooperate in the investigation.
All companies not fully participating may be subject to higher duties based on this approach, as outlined in sections 776(a) and 776(b) of the Tariff Act.
As a result of these findings, Commerce will now instruct U.S. Customs and Border Protection to suspend liquidation of all plywood imports from Indonesia, effective from the date of this notice.
Importers must now pay cash deposits based on the subsidy rates listed above.
Commerce plans to verify all submitted data before making the final determination.
Interested parties may submit written comments after verification. They may also request a hearing within 30 days of this notice.
The U.S. International Trade Commission (ITC) will independently determine if Indonesian plywood imports harm the U.S. industry. The ITC will make its final injury determination by either 120 days from this notice or 45 days after Commerce’s final determination, whichever is later.
This investigation applies to hardwood and decorative plywood, including veneered panels with a wood or bamboo face or back. It excludes structural plywood, bamboo products, ready-to-assemble (RTA) furniture, and other products listed in the full Scope found in Appendix I of the determination.
The public version of the Preliminary Decision Memorandum and full scope language can be accessed via https://access.trade.gov/public/FRNoticesListLayout.aspx.
For further information, contact:
- Benito Ballesteros at (202) 482-7425
- Samuel Evans at (202) 482-2420
Both are from the Office IX, Enforcement and Compliance, U.S. Department of Commerce.
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