U.S. Announces Preliminary Countervailing Duties on Chinese Plywood
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On January 22, 2026, the U.S. Department of Commerce released a preliminary finding in the Federal Register. The agency found that hardwood and decorative plywood from the People’s Republic of China received unfair subsidies. This is a countervailing duty (CVD) investigation.
The period of investigation covers January 1, 2024, through December 31, 2024.
Key Findings
The Department of Commerce preliminarily determined that certain producers and exporters in China received countervailable subsidies. Subsidies are financial help from the government that gives unfair benefits in trade.
The following companies were found to receive such subsidies:
- Xuzhou Shelter Import and Export Co., Ltd.
- Linyi Evergreen Wood Co., Ltd.
- Bergey (Tianjin) International
- Larkcop International Co., Ltd.
- Linyi Dongstar Import & Export Co., Ltd.
- Linyi Jiahe Wood Industry Co. Ltd.
- Linyi Ocean International Trading Co.
- Xuzhou Edlon Wood Products Co., Ltd.
- Xuzhou New Defu Wood International
- Xuzhou Tianshan Wood Co., Ltd.
- Yishui Win-Win Wood Co., Ltd.
These companies did not cooperate with the investigation. The Commerce Department applied “facts available with adverse inferences” (AFA) under section 776 of the Tariff Act of 1930. Based on this, each received a preliminary subsidy rate of 81.34%.
The “all others” subsidy rate is also 81.34%, because all individually examined companies received that rate based on adverse facts.
Critical Circumstances
Commerce made a preliminary affirmative determination of “critical circumstances.” This means that the imports may have surged in a short period, harming the U.S. industry. The determination applies to Linyi Evergreen, Xuzhou Shelter, the non-responsive companies, and all others.
As a result, suspension of liquidation and duties will apply to entries made up to 90 days before this public notice.
Suspension of Liquidation
U.S. Customs and Border Protection (CBP) will:
- Suspend liquidation of subject imports (plywood from China) entered on or after 90 days before January 22, 2026.
- Require cash deposits equal to the 81.34% preliminary subsidy rate.
Scope of Products
The products covered are hardwood and decorative plywood from China. These include multilayered panels that have:
- Two or more wood veneers with or without a core.
- At least a face or back veneer made from hardwood, softwood, or bamboo.
The plywood may be coated, covered, or finished. It may also have minor processing like cutting or drilling. It includes plywood processed in third countries that fits the criteria.
Products excluded from the investigation include:
- Structural plywood certified to U.S. standards.
- Certain bamboo products.
- Hardwood plywood already under existing orders from 2018.
- Multilayered wood flooring.
- Assembled or ready-to-assemble furniture and kitchen cabinets.
- Finished countertops and table tops.
- Specific LVL window and door components.
- Two-ply products not glued to additional plies.
Product codes under the Harmonized Tariff Schedule of the United States (HTSUS) are listed, but Customs may classify the imported goods differently.
Alignment With Companion AD Investigation
Commerce is aligning the final CVD determination with the final Antidumping Duty (AD) determination in the related case. The final determination is expected by May 11, 2026, unless postponed.
Public Comments
Interested parties may submit written case briefs within 30 days from publication. Rebuttal briefs may be filed within five days after that.
Each brief must have:
- A table of contents.
- A table of authorities.
- A public executive summary for each issue, limited to 450 words per issue.
Hearing requests must be submitted within 30 days of publication.
No Verification
Because the companies did not cooperate, Commerce will not conduct on-site verification.
International Trade Commission Notification
Commerce will inform the U.S. International Trade Commission (ITC). If the final determination is affirmative, the ITC will decide whether the U.S. industry is materially injured or threatened.
Next Steps
This notice is the preliminary stage. The final decision may confirm or change these findings.
Authority
The notice is issued under authority of sections 703(f) and 777(i)(1) of the Tariff Act of 1930 and 19 CFR 351.205(c).
Dated: 2025-12-29
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations,
Performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Legal Disclaimer
This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
