China Wood Flooring: AD/CV Duty Investigations Initiated

The ITA will determine whether imports of multilayered wood flooring from China are being, or are likely to be, sold in the U.S. at less than fair value; and whether manufacturers, producers, or exporters in China receive countervailable subsidies.

(The ITA has also determined not to investigate a currency undervaluation allegation in the CV duty investigation¹.)

Comments on CV Respondent Selection due Nov 26

For the CV duty investigation, the ITA expects to select respondents based on U.S. Customs and Border Protection data for U.S. imports during the period of investigation. The ITA invites comments regarding the CBP data and respondent selection in the CV duty investigation by November 26, 2010.

Comments on Scope of AD/CV Investigations due Nov 30

Comments on the scope of all of the AD and CV duty investigations are due by November 30, 2010. (See scope below.)

Comments on Product Characteristics for AD Questionnaires due Nov 30

The ITA is requesting comments from interested parties regarding the appropriate physical characteristics of multilayered wood flooring to be reported in response to the AD questionnaires. This information will be used to identify the key physical characteristics of the subject merchandise in order to more accurately report the relevant factors and costs of production, as well as to develop appropriate product comparison criteria.

Comments on product characteristics to be reported in response to AD questionnaires must be submitted by November 30, 2010. (Rebuttal comments are due by December 7, 2010.)

AD Q&V Questionnaires Due Dec 3

For the AD duty investigation, the ITA will request quantity and value (Q&V) information from known exporters and producers identified with complete contact information in the AD petition. The Q&V data received will be used as a basis to select the mandatory respondents.

Q&V questionnaires are available here. Completed questionnaires are due by December 3, 2010.

AD Separate Rate Applications due Jan 18

The ITA also requires exporters and producers seeking separate rate status in the China AD duty investigation to submit a separate rate application no later than January 18, 2011. The separate rate application is available here.

The ITA requires that the respondents submit a response to both the Q&V questionnaire and the separate rate application by the respective deadlines in order to receive consideration for separate rate status.

The ITA will also calculate combination rates for certain respondents that are eligible for a separate rate in this investigation.

Comments on Targeted Dumping due Feb 14

Any interested party that wishes to make a targeted dumping allegation in the AD investigation may submit allegations by February 14, 2011 (i.e., no later than 45 days before the scheduled date of the ITA’s preliminary determination).

(Note that in December 2008, the ITA issued an interim final rule for the purposes of withdrawing the regulations governing targeted dumping analysis in AD duty investigations. See ITT's Online Archives or 12/15/08 and 01/15/09 news, 08121525 and 09011535, for BP summaries of the interim final rule and extension of the comment period.)

Scope of the AD/CV Investigations

According to the ITA's scope of these investigations, multilayered wood flooring is composed of an assembly of two or more layers or plies of wood veneer(s)² in combination with a core.

The several layers, along with the core, are glued or otherwise bonded together to form a final assembled product. Multilayered wood flooring is often referred to by other terms, e.g., “engineered wood flooring” or “plywood flooring.” Regardless of the particular terminology, all products that meet the description set forth herein are intended for inclusion within the definition of subject merchandise.

All multilayered wood flooring is included within the definition of subject merchandise, without regard to: dimension (overall thickness, thickness of face ply, thickness of back ply, thickness of core, and thickness of inner plies; width; and length); wood species used for the face, back and inner veneers; core composition; and face grade.

Multilayered wood flooring included within the definition of subject merchandise may be unfinished (i.e., without a finally finished surface to protect the face veneer from wear and tear) or “prefinished” (i.e., a coating applied to the face veneer, including, but not exclusively, oil or oil-modified or water-based polyurethanes, ultra-violet light cured polyurethanes, wax, epoxyester finishes, moisture-cured urethanes and acid-curing formaldehyde finishes.) The veneers may be also soaked in an acrylic-impregnated finish. All multilayered wood flooring is included within the definition of subject merchandise regardless of whether the face (or back) of the product is smooth, wire brushed, distressed by any method or multiple methods, or hand-scraped.

In addition, all multilayered wood flooring is included within the definition of subject merchandise regardless of whether or not it is manufactured with any interlocking or connecting mechanism (for example, tongue-and-groove construction or locking joints). All multilayered wood flooring is included within the definition of the subject merchandise regardless of whether the product meets a particular industry or similar standard. The core of multilayered wood flooring may be composed of a range of materials, including but not limited to hardwood or softwood veneer, particleboard, medium-density fiberboard (MDF), high-density fiberboard (HDF), stone and/or plastic composite, or strips of lumber placed edge-to-edge.

Multilayered wood flooring products generally, but not exclusively, may be in the form of a strip, plank, or other geometrical patterns (e.g., circular, hexagonal). All multilayered wood flooring products are included within this definition regardless of the actual or nominal dimensions or form of the product.

Cork, bamboo, laminate excluded. Specifically excluded from the scope are cork flooring and bamboo flooring, regardless of whether any of the sub-surface layers of either flooring are made from wood. Also excluded is laminate flooring. Laminate flooring consists of a top wear layer sheet not made of wood, a decorative paper layer, a core-layer of high-density fiberboard, and a stabilizing bottom layer.

HTS classification. Imports of the subject merchandise are provided for under the following HTS subheadings:

In addition, imports of subject merchandise may enter the U.S. under the following HTS subheadings:

The ITA notes that while HTS subheadings are provided for convenience and customs purposes, the written description of the scope in these proceedings is dispositive.

¹The petitioner in the CV duty investigation alleges that the Government of China ensures that the Renminbi (RMB) exchange rate significantly understates the value of the RMB against the U.S. Dollar (USD) from 25 to 50 percent. However, the ITA states that it does not plan on investigating this program because the petitioner has failed to properly allege the specificity element. (See ITT’s Online Archives or 10/18/10 news, 10101821, for BP summary of the Treasury’s delay of its report to Congress on China’s currency manipulation.)

²A “veneer” is a thin slice of wood, rotary cut, sliced or sawed from a log, bolt or flitch. Veneer is referred to as a ply when assembled.

(See ITT’s Online Archives or 11/15/10 news, 10111514, for BP summary of the ITA's fact sheet announcing the initiation of these AD/CV investigations.

See ITT’s Online Archives or 10/26/10 news, 10102605, for BP summary of the ITC's announcement of these preliminary injury investigations.)

ITA contact - Brandon Petelin (202) 482-8173

(FR Pub 11/18/10, ITA Case Nos. A-570-970 and C-570-971)

The AD initiation notice is available here.

The CV initiation notice is available here.