U.S. Department of Commerce Finds Subsidies on Vietnamese Plywood

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The U.S. Department of Commerce has officially determined that Vietnam has been providing illegal subsidies to producers and exporters of hardwood and decorative plywood. This results from a thorough investigation by the department. The investigation covered a period from January 1, 2024, to December 31, 2024.

Key Findings

The Department of Commerce found that Vietnamese plywood producers received unfair benefits through subsidies. This action goes against fair trade rules and negatively affects U.S. producers. The period of investigation began after the publication of the Preliminary Determination in the Federal Register on January 22, 2026.

Companies Affected

Two Vietnamese companies, Junma Phu Tho Co., Ltd and Trieu Thai Son Co., Ltd, were primarily investigated. Junma received a countervailing duty rate of 165.39%. This rate was determined using adverse facts due to incomplete verification. Meanwhile, Trieu Thai was given a rate of 47.68%. All other Vietnamese producers or exporters of plywood received the same rate as Trieu Thai.

Critical Circumstances

Critical circumstances were found to exist for Junma’s products. This means the Department of Commerce believes that massive imports of subsidized products occurred, causing further harm to U.S. industries. The department has directed U.S. Customs and Border Protection to suspend liquidation of entries from Junma, with measures retroactively applying from a defined date.

Next Steps

The U.S. International Trade Commission (ITC) will now review the case. They will determine if imported plywood harms or threatens the U.S. plywood industry. If the ITC finds evidence of harm, the Department of Commerce will issue a final order. This will require importing companies to pay duties according to the determined rates.

Public Access and Notifications

The Department of Commerce has ensured public access to all non-sensitive information. They have put in place standard procedures to disclose their calculations to interested parties. Additionally, parties involved must comply with legal requirements regarding sensitive information disclosed during this investigation.

This investigation and its results are significant because they aim to create fair trade conditions and protect U.S. industries from harmful foreign practices.

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.