Commerce Department Issues Final Antidumping and Countervailing Duty Determination on Wood Mouldings and Millwork Products from China

Washington, DC – On December 29, 2020, the U.S. Department of Commerce announced its final determination that Chinese producers have sold dumped and subsidized wood mouldings and millwork products into the United States in violation of international trade rules. As a result, Commerce has imposed on Chinese imports antidumping duties at rates ranging from 44.60% to 230.36% and countervailing duties at rates ranging from 20.56% to 252.29%. The Coalition of American Millwork Producers, which filed these trade cases, commends the Commerce Department for this positive result for the domestic industry. Commerce also issued a negative finding in the companion antidumping duty investigation on wood mouldings and millwork products from Brazil. 

“Today’s final determination of illegal dumping by Chinese producers, who have also benefited from unfair subsidies, is another key step in remedying the harm caused by these imports of wood mouldings and millwork products,” said Tim Brightbill, partner in Wiley’s International Trade Practice, and trade counsel to the Coalition. “The industry looks forward to relief from Chinese imports when the International Trade Commission issues its final determination later this month. However, the Coalition is concerned by the result in the Brazil investigation, which is not reflective of marketplace realities.”

U.S. Customs and Border Protection has suspended liquidation and collected cash deposits on entries of wood mouldings and millwork products from China since preliminary duties were imposed in June and August 2020. Today’s determination establishes the duty margins for China going forward, and cash deposits will be collected at these rates. However, duty rates on Chinese imports may increase, retroactively, through the annual administrative review process. Antidumping and countervailing duties will be added to the 25% Section 301 duties in place on Chinese imports. 

Duties are assessed on the importer of record of the merchandise. Duty evasion, absorption, and circumvention are illegal and closely monitored by U.S. Customs and Border Protection, in conjunction with the Commerce Department, and severe penalties may apply.

The antidumping and countervailing duty cases were filed on behalf of the Coalition of American Millwork Producers (CAMP), an alliance of large and small wood moulding and millwork producers from across the United States. CAMP is committed to addressing the unfair trade practices of foreign producers, including the dumping and subsidizing of wood mouldings and millwork products sold into the United States.