Tiếng Việt
中文 (中国)
On September 12, 2022, the US Department of Commerce announced the 4th extension of the time to issue final conclusions on the investigation of circumvention of anti-dumping and countervailing duties on plywood using hardwood materials imported from Vietnam. According to the announcement, the final conclusion is expected to be issued on January 31, 2023.
On July 25, 2022, the US Department of Commerce issued preliminary conclusions on the investigation of circumvention of trade remedies for plywood using hardwood materials imported from Vietnam.
According to that conclusion, if plywood products imported from Vietnam into the US have cores using peeled boards imported from China, they will be subject to anti-dumping and anti-subsidy duties as currently applied with plywood imported from China.
However, plywood from Vietnam with cores using peeled boards manufactured in Vietnam or in other countries will not be subject to anti-dumping and anti-subsidy duties.
Pursuant to the preliminary conclusion of the US Department of Commerce, US Customs and Border Protection will continue to suspend liquidity and require importers to pay a deposit equal to the temporary anti-circumvention duty rate for shipments imported from Vietnam into the United States from June 17, 2020 (the date of the official notice of initiation of the investigation) for cases subject to the application of measures.
Because of the fact that in cases where anti-dumping duty is applied, importers of dutied items are the ones who have to pay a deposit in advance, leading to the hesitation of importers and unwillingness to cooperate with export enterprises subject to anti-dumping and anti-subsidy taxes. Because even though the two parties agree that the exporter pays the full amount of duty, it will be difficult for the importer to recover that amount if the exporter decides to cancel the contract and run away.
In addition, the high duty rate will also make the business between the two parties gain a low amount of profits, even loss, and thereby, not worth the risk.
Extension of time to issue the final conclusion on trade remedy circumvention investigation on plywood using hardwood materials imported from Vietnam
The US Department of Commerce allows Vietnamese exporters as well as US importers participating in the self-certification mechanism to be excluded from circumvention, except for businesses assessed by the US Department of Commerce to be not fully cooperating as requested by the Investigation Agency.
Accordingly, Vietnamese exporters need to complete a self-certification declaration for exporters and provide a copy and supporting documents (invoices, purchase orders, production records, etc.) to the US importer.
In addition, the importer must also complete the self-certification declaration for the importer prior to the date of shipment of the goods. The declarations and supporting documents need to be maintained for a period of 5 years from the date of entry of the goods or 3 years after the conclusion of the lawsuit related to the imported goods in the US court (if any), whichever is longer and available to the DOC/CBP upon request.
Particularly for shipments imported from June 17, 2020, to August 28, 2022 (30 days from the date of publication of the preliminary conclusion), instead of September 12, 2022, as in the preliminary conclusion, the US Department of Commerce will extend the time to complete the declaration and supporting documents to December 1, 2022.
It is estimated that the number of enterprises participating in self-certification accounts for about 80% of Vietnam’s export turnover during the investigation period.
Notice details can be downloaded here.
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
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