Business
Preliminary Antidumping Duty Rate Announced in US Trade Investigation Against Chinese Import Plywood
TRADING SYMBOL: Toronto Stock Exchange - HWD LANGLEY, BC, May 1, 2013 /CNW/ - Hardwoo...
About this update from Adentra Inc
[{"type":"text","content":"\n\n\n\n\n\nTRADING SYMBOL: Toronto Stock Exchange - HWD\n\n\nLANGLEY, BC, May 1, 2013 /CNW/ - Hardwoods Distribution Inc.\n (\"Hardwoods\" or the \"Company\") today announced that the US Department\n of Commerce (\"Commerce\") has issued its preliminary determination\n regarding antidumping duties against hardwood plywood manufactured in\n China and imported into the United States.\n\n\nOn September 27, 2012 an unfair trade petition was filed in the United\n States seeking the imposition of countervailing duties (\"CVD\") and\n antidumping duties (\"AD\") against Chinese hardwood plywood. The trade\n petition was brought by a coalition of U.S. plywood manufacturers,\n alleging that Chinese imports are sold in the United States at prices\n below cost and are subsidized by the Government of China.  As\n previously announced by the Company, on February 27, 2013 Commerce\n completed the preliminary stage of its CVD investigation and imposed a\n preliminary CVD rate of 22.63% against product imported to the U.S.\n from substantially all Chinese mill producers.\n\n\nOn April 30, 2013 Commerce announced it had completed the preliminary\n stage of its AD duty investigation, imposing a preliminary AD duty rate\n of 22.14% against most Chinese mill producers.  As a result of this\n announcement made yesterday, once the preliminary AD duty takes effect,\n the combined preliminary CVD/AD duty rate on hardwood plywood imported\n from China into the United States will be 44.77%.\n\n\nHardwoods estimates that approximately 14% of its total sales in 2012\n was product that would have fallen within the scope of this U.S. trade\n action.  The majority of the Company's U.S. product mix is comprised of\n products that are not subject to this trade dispute, namely hardwood\n lumber, specialty wood products, domestically produced plywood\n products, and plywood imported from counties other than China.  In\n addition, these preliminary duties have no effect upon Hardwood's\n Canadian operations.\n\n\nIt cannot be determined to what extent imported Chinese hardwood plywood\n will be priced out of the U.S. market after bearing a combined 44.77%\n preliminary CVD/AD duty rate.  Although Chinese product becomes\n immediately more expensive, prices for U.S. produced domestic plywood\n have also been steadily increasing in the past...