In-depth dialysis of the United States against the Chinese taxation of wooden flooring

In-depth dialysis of the United States against the Chinese taxation of wooden flooring Another "double anti-dumping" (anti-dumping, countervailing) case in China's building materials industry is repeating itself in the wood flooring industry. According to media reports, China's wood flooring companies are facing the "most severe" "double reverse" case, and the number of enterprises involved in this case has reached 169, involving the United States market with an export volume of about 10 billion yuan. Professionals from the wood flooring industry believe that once the US Department of Commerce’s ruling is unfavorable to domestic companies, a chain reaction may affect the domestic market and price wars will likely emerge.

The impact of the "double reverse" case began to dawn on December 3, 2010, the US International Trade Commission initially ruled that China's multi-storey wood flooring exports to the United States caused damage to the United States. At present, the US Department of Commerce has entered a substantial stage of anti-dumping and anti-subsidy investigations of Chinese multi-layer wood flooring exported to the United States. In an interview with the media, one of the top five wood floor manufacturers executives said that under the pressure of the United States local wood floor manufacturers, some US agents have stopped or reduced their imports from China, and the “double reverse” effect began to appear.

This is not the most severe consequence, because at present, it is only the initial decision of the United States International Trade Commission. Therefore, the US Customs has not yet imposed punitive tariffs. Whether or not to levy depends on the preliminary results of the US Department of Commerce. In March of this year, the U.S. Department of Commerce will announce the preliminary results of the “double reverse” investigation of wooden flooring, and the final verdict will be announced in October. The results of the ruling at the beginning of March were already unfavorable to Chinese manufacturers. US Customs will impose temporary punitive tariffs based on the results of preliminary rulings.

What is the highest percentage of punitive tariffs, up to 242.2% of punitive tariffs? It is amazing 242.2%!

It is reported that this "double anti-" investigation initiated by the United States hardwood floor business alliance, the alliance on October 21 last year submitted an application, that China's multi-storey solid wood flooring prices to the United States is too low, requiring the countervailing of such products in China And the investigation of anti-dumping mergers, and proposed to impose an anti-dumping tariff of 242.2%; at the same time, it is required to impose a countervailing duty on exchange rates for Chinese-made wood flooring.

According to Prof. Gao Zhihua, the floor industry pioneer of the China Timber and Wood Products Distribution Association's vice chairman of the flooring industry, he speculated that although only 169 companies were listed in the “Double-Counter” survey, it may be due to customs tariff issues. The number of flooring companies involved far exceeds this figure.

Professional analysts believe that if the domestic wooden floor companies lose the case in the "double reverse" case, it will be possible to pay up to 242.2% of punitive tariffs. Of course, most professionals believe that the tax rate of 242.2% is too high and does not meet the actual conditions of the industry. The US Department of Commerce should not support it. However, due to the large number of domestic export enterprises, most of the profits of wooden floor companies in the United States have been compressed to 10%. At the same time, profits are already thin. Even a 10% tariff may become an unacceptable burden for many companies, causing many companies to be forced to abandon the US market.

The chain reaction was huge in this case. It is understood that the United States is the largest export market for Chinese wooden floor companies, accounting for about one-third of the total export volume. Therefore, if the US market suffers setbacks, it will mean a large-scale reduction in the export market. A related person in charge of a well-known wood flooring company believes that the more crucial issue is that the US judgment will also have a certain demonstration effect on other countries.

Previously, Argentina, Canada and other countries have launched a number of anti-dumping investigations against Chinese wood flooring companies. Although the final result is nothing, if the United States has new legal precedents, will the flooring companies in other countries make the lawsuit come back? This is still not known. Prior to this, the US Department of Commerce had previously ruled on aluminum extrusion companies with a double taxation rate of 196.96% for anti-dumping and countervailing duties. Such a high tax rate has indeed caused many companies to shudder.

The domestic market may be involved. According to reports, the Wood Flooring Association is currently taking the lead in responding to this lawsuit. Nature, living families, icons, and other world-famous floor brands are also helping to participate in this incident.

The person in charge of the nature floor said that the United States' "double reverse" case has no direct impact on the natural floor, because the natural floor sales mainly come from the domestic market. However, the person in charge also said that if the verdict is unfavorable, most of the Export brands may switch to the domestic market in a few months, and the price war in the flooring industry may emerge.

A senior building industry practitioner said that at the beginning, his company also planned to make full use of the domestic sales network to open up the domestic wood floor market. However, the final result of the survey was to abandon this market. Because "the competition in the wood floor market was already very fierce, it is difficult for us new companies to have a good profit. If the ruling of the 'double reverse' case will bring high tariffs, it is believed that there will be a large number of exports. Turned to the domestic wooden floor companies, they will bring a reign of the market, when the home appliance industry's '0 profit' price war may be repeated in the wood flooring industry, the industry will therefore face a new round of reshuffle, consumers said this year Indefinite will also buy 'jumping prices' products."

The United States has imposed a double tax against China's wooden flooring, and this motion has plagued the company for nearly a year. According to foreign media reports, U.S. business will announce plans for the production of multi-layer wood flooring in China tomorrow (October 12). The final tax rate, initially planned to impose an anti-dumping tax of up to 83% and a countervailing duty of up to 27%. This means that in the recent two-counter survey, Chinese wood flooring companies responded or declared failure.

Previously due to the patent issue of wooden floor locks, China's floor companies responded to the United States "337 investigation", which lasted one and a half years, costing tens of millions, the final ruling was that China's floor export companies will no longer be able to export any lock flooring to the United States. For products that have been imported into the United States and inventories, they will be destroyed or paid under a prohibition order. Coupled with this “double reverse” investigation ruling, the enthusiasm for responding to Chinese flooring companies will obviously be greatly hit. China's wood flooring industry's foreign survival path will go from here?

Handle Saw

Diamond Segment,Diamond Saw Blade,Diamond Wire Saw Co., Ltd. , http://www.nsblades.com

Posted on