US Importer Warns Ruling on Chinese Hardwood Plywood Detrimental to US Manufacturers, Jobs
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Calling it a potentially disastrous development for thousands of small businesses, the top executive for a major US importer predicts that today's announcement by the US Department of Commerce of its decision to impose a 22.14% anti-dumping penalty on Chinese hardwood plywood will cause prices to increase, severely jeopardizing the livelihoods of tens of thousands of small businesses.
The new Anti-Dumping margin will go into effect this week and, combined with an existing 22.63% countervailing duty the Department imposed in February, will result in a total 44.77 % duty on imported plywood.
"This decision will only serve to pad the pockets of a few large and influential manufacturers at the expense of more than 20,000 US small businesses that rely on this material to build furniture, cabinetry, boats and other specialized products," said Ryan Loe, President of Portland Oregon based Shelter Forest International (SFI). "The US Commerce Department hasn't solved an existing problem. It has created a new one."
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Chinese hardwood plywood importers such as SFI and organizations such as the Kitchen Cabinet Manufacturers of America (KCMA) have always believed that the highly specialized hardwood plywood imported from China is not available from US manufacturers and therefore poses no threat to them. They further maintain that imposing steep penalties will only shift production of finished cabinets and other products overseas where more affordable access to the unique plywood would be available. This would be detremental to the United States economy which is already struggling to come out of recession, itself caused in part by the Financial Crisis.
Shelter Forest International (SFI), an American company that manages the global supply chain for TigerPLY™ hardwood plywood, used by thousands of US manufacturers, has been working on building partnerships with wood fiber suppliers in China for the past decade. SFI's unique relationships have allowed the company to engineer specialty plywoods for a number of industries such as marine, recreational vehicles, furniture components and cabinet manufacturers.
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