The CBSA Launches Investigations into Decorative and Other Non-Structural Plywood from China

The Canada Border Services Agency (“CBSA”) announced that it is launching investigations to determine whether certain decorative and other non-structural plywood originating in or exported from China is being sold at unfair prices in Canada, and whether subsidies are being applied.

The investigations are the result of a complaint filed by Columbia Forest Products, Husky Plywood, Rockshield Engineered Wood Products ULC, and the Canadian Hardwood Plywood and Veneer Association, and is supported by Precision Veneer Products, Ltd. and ProPly Custom Plywood Inc. The complainants allege that the Canadian industry is facing an increase in the volume of the allegedly dumped and subsidized imports, loss of market share and sales, price undercutting, price depression, underutilization of capacity, threat to continuous investments, impacted financial results, and reduced employment.

The CBSA and the Canadian International Trade Tribunal (“CITT”) both play a role in the investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by August 10, 2020. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair and/or subsidized prices, and will make preliminary decisions by September 9, 2020.

Currently, there are 119 special import measures in force, covering a wide variety of industrial and consumer products, from steel products to refined sugar. These measures have directly helped to protect the Canadian economy and jobs in Canada.

Quick Facts

– The subject goods are decorative and other non-structural plywood, whether or not surface coated or covered, and veneer core platforms for the production of decorative and other non-structural plywood. For more product information, please refer to the CBSA’s website.

– Decorative plywood is commonly used in applications such as kitchen cabinets, furniture, wall paneling and architectural woodwork, seat backs, table and desk tops, drawer sides, television and stereo cabinets, furniture components, trailer components, and other components.

– A copy of the Statement of Reasons, which provides more details about these investigations, will be available on the CBSA’s website within 15 days.

– As of December 31, 2018, special import measures have directly helped to protect 31,424 Canadian jobs and $12.25 billion in Canadian production.

Source: Canada Border Services Agency