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CSMS #41484846 - Initiation of AD/CVD: Wood Mouldings and Millwork Products from the China and Brazil

Initiation of Antidumping and Countervailing Duty Investigations:
Wood Mouldings and Millwork Products from the People’s Republic of China and Brazil

On January 28, 2020, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “Wood Mouldings and Millwork Products from the People’s Republic of China (China) and Brazil” (Initiation Notices).  These investigations have been assigned the following case numbers: A-570-117 and C-570-118 (China); and A-351-853 (Brazil).

The Scope of Merchandise covered by these investigations reads as follows:

The merchandise subject to these investigations consists of wood mouldings and millwork products that are made of wood (regardless of wood species), bamboo, laminated veneer lumber (LVL), or of wood and composite materials (where the composite materials make up less than 50 percent of the total merchandise), and which are continuously shaped wood that undergoes additional manufacturing or finger-jointed or edge-glued moulding or millwork blanks (whether or not resawn).

The percentage of composite materials contained in a wood moulding or millwork product is measured by length, except when the composite material is a coating or cladding.  Wood mouldings and millwork products that are coated or clad, even along their entire length, with a composite material, but that are otherwise comprised of wood, LVL, or wood and composite materials (where the non-coating composite materials make up 50 percent or less of the total merchandise) are covered by the scope.

The merchandise subject to these investigations consists of wood, LVL, bamboo, or a combination of wood and composite materials that is continuously shaped throughout its length (with the exception of any endwork/dados), profiled wood having a repetitive design in relief, similar milled wood architectural accessories, such as rosettes and plinth blocks, and finger-jointed or edge-glued moulding or millwork blanks (whether or not resawn).  The scope includes continuously shaped wood in the forms of dowels, building components such as interior paneling and jamb parts, and door components such as rails and stiles.

The covered products may be solid wood, laminated, finger-jointed, edge-glued, face-glued, or otherwise joined in the production or remanufacturing process and are covered by the scope whether imported raw, coated (e.g., gesso, polymer, or plastic), primed, painted, stained, wrapped (paper or vinyl overlay), any combination of the aforementioned surface coatings, treated, or which incorporate rot-resistant elements (whether wood or composite).  The covered products are covered by the scope whether or not any surface coating(s) or covers obscures the grain, textures, or markings of the wood, whether or not they are ready for use or require final machining (e.g., endwork/dado, hinge/strike machining, weatherstrip or application thereof, mitre) or packaging.

All wood mouldings and millwork products are included within the scope even if they are trimmed; cut-to-size; notched; punched; drilled; or have undergone other forms of minor processing.

Subject merchandise also includes wood mouldings and millwork products that have been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, coating, or any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the in-scope product. 

Excluded from the scope of these investigations are exterior fencing, exterior decking and exterior siding products (including solid wood siding, non-wood siding (e.g., composite or cement), and shingles) that are not LVL or finger jointed; finished and unfinished doors; flooring; parts of stair steps (including newel posts, balusters, easing, gooseneck, risers, treads and rail fittings); and picture frame components three feet and under in individual lengths.

Excluded from the scope of these investigations are all products covered by the scope of the antidumping and countervailing duty orders on Hardwood Plywood from the People’s Republic of China.  See Certain Hardwood Plywood Products from the People’s Republic of China:  Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018); Certain Hardwood Plywood Products from the People’s Republic of China:  Countervailing Duty Order, 83 FR 513 (January 4, 2018).

Excluded from the scope of these investigations are all products covered by the scope of the antidumping and countervailing duty orders on Multilayered Wood Flooring from the People’s Republic of China.  See Multilayered Wood Flooring from the People’s Republic of China:  Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order, 76 FR 76690 (December 8, 2011); Multilayered Wood Flooring from the People’s Republic of China:  Countervailing Duty Order, 76 FR 76693 (December 8, 2011).

Imports of wood mouldings and millwork products are primarily entered under the following Harmonized Tariff Schedule of the United States (HTSUS) numbers:  4409.10.4010, 4409.10.4090, 4409.10.4500, 4409.10.5000, 4409.22.4000, 4409.22.5000,4409.29.4100, and 4409.29.5100.  Imports of wood mouldings and millwork products may also enter under HTSUS numbers:  4409.10.6000,4409.10.6500, 4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4418.99.9095 and 4421.99.9780.  While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

Requirements For Submitting Comments On The Scope Of The Investigations:  Please be sure to comply with all three requirements established below.

Deadline for Submitting Comments:

As announced in the Initiation Notices, Commerce is setting aside a period for interested parties to raise issues regarding product coverage (scope).  The period for scope comments is intended to provide Commerce with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determinations, as appropriate.  If scope comments include factual information (see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information.  Commerce requests that all such comments be filed by 5:00 p.m. Eastern Time (ET) on February 18, 2020, which is the first business day after 20 calendar days from the signature date of this notice.  Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on February 28, 2020, which is 10 calendar days after the initial comments deadline.  Commerce requests that any factual information the parties consider relevant to the scope of the investigations be submitted during this time period.  However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact Commerce and request permission to submit the additional information.  All such comments must be filed on the records of each of the concurrent AD and CVD investigations identified above.

Required Entry of Appearance:

Parties wishing to participate in this segment and be included on the public service list must file a letter of appearance.  Section 351.103(d)(1) of Commerce’s regulations states that “with the exception of a petitioner filing a petition in an investigation, to be included on the public service list for a particular segment, each interested party must file a letter of appearance.” The letter of appearance must be filed separately from any other document (with the exception of an application for APO access).  Note, the letter of appearance must state how the party qualifies as an interested party (e.g., an exporter, producer, importer of the subject merchandise) and must include a point of contact, including address, telephone/fax number and email address.

All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS).  An electronically-filed document must be received successfully in its entirety by the time, typically 5 p.m., and date when it is due.  Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines.

For your convenience, Commerce has the following resources available online to assist you in complying with these electronic filing procedures:

ACCESS:  Help Link 

https://access.trade.gov/help.aspx

ACCESS:  External User Guide https://access.trade.gov/help/ACCESS_User_Guide.pdf

ACCESS:  Handbook on Electronic Filing Procedures

https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf

Federal Register notice:  Antidumping and Countervailing Duty Proceedings:  Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011)

http://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf

Enforcement and Compliance:  Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014)

http://www.gpo.gov/fdsys/pkg/FR-2014-11-20/pdf/2014-27530.pdf

Enforcement and Compliance:  General Filing Requirements http://enforcement.trade.gov/filing/index.html

Required Certifications:

Please note that the following certification requirements are in effect for company / government officials as well as their representatives.  In all segments of antidumping duty or countervailing duty proceedings initiated on or after August 16, 2013, parties submitting factual information must use the formats for the certifications provided at the end of the Final Rule.  See Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). See also the frequently asked questions regarding the Final Rule, available at http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.

 
Understanding Critical Circumstances for Antidumping and Countervailing Duties

Critical circumstances is a provision in both the antidumping and countervailing

Duty (AD/CVD) laws that allows for the limited retroactive imposition of duties if certain conditions are met.  Importers should be aware that entries of subject merchandise made after the initiation of an AD/CVD investigation may retroactively be subject to AD/CVD.  

A finding of critical circumstances is an important tool for Commerce and the U.S. International Trade Commission (ITC) to offset possible import surges during the early period of an AD/CVD investigation.  The petitioner in an AD/CVD investigation may allege critical circumstances during an investigation up to 21 days before the date of Commerce’s final determination.  If Commerce makes a determination that critical circumstances exist, it has the statutory authority to order the retroactive suspension of liquidation and posting of a cash deposit for entries made before the issuance of a Preliminary and/or Final AD/CVD determination. 

Commerce’s authority to suspend entries retroactively for AD/CVD is limited to those entries made on or after the later of: (1) 90 days before the effective date the suspension of liquidation was first ordered, or (2) the date on which the determination to initiate the investigation is published in the Federal Register.  In either case, AD/CVD cash deposits are due on entries subject to critical circumstances determinations.

If, following a preliminary determination by Commerce that critical circumstances exist, both Commerce and the ITC reach a final affirmative determination of dumping or subsidization, but either agency makes a negative final determination of critical circumstances, Commerce will instruct U.S. Customs and Border Protection (CBP) to lift suspension from the entries made during the 90-day critical circumstances period and refund cash deposits made with respect to those entries.  Interest is not payable on refunds of cash deposits at this stage in the AD/CVD case. 

 
For Further Information Contact:
AD/CVD Operations, Enforcement and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230: 

George Ayache at (202) 482-2623 (Antidumping Duty Investigation from Brazil);

Michael Bowen at (202) 482-0768 (Antidumping Duty Investigation from China); and

Irene Gorelik at (202) 482-6905 (Countervailing Duty Investigation from China).

Determinations related to these proceedings, issued by Commerce and the ITC, will be published in the Federal Register.  Parties may also view Commerce’s public AD/CVD instructions to CBP in ACE and “ADD CVD Search” at https://aceservices.cbp.dhs.gov/adcvdweb.