PORTLAND, OR--(Marketwire - Oct 23, 2012) - The American Alliance for Hardwood Plywood (AAHP) today applauded the Kitchen Cabinet Manufacturers Association's (KCMA) formal opposition to a petition filed with the International Trade Commission by some of the world's largest producers of hardwood plywood. The petition demands a tariff and countervailing duties on a unique form of hardwood plywood imported from China that is not produced domestically and would otherwise be unavailable to hundreds of US companies that rely on the material to produce cabinetry, furniture, flooring, boats and other products. Founded in 1955, the KCMA is a national trade association representing 80% of the US manufacturers of kitchen cabinets and bath vanities.
In a hearing before the International Trade Commission (ITC) in Washington, D.C. on October 18th, KCMA Executive Vice President Richard Titus stated his industry's objections to the tariff by pointing out how the unique characteristics of Chinese hardwood plywood are not available from domestic hardwood plywood producers. "Domestic and Chinese hardwood plywood often have different physical characteristics," said Titus. "If our members are cut off from access to a large supply of essential raw materials, which is likely to happen if the proposed tariff is approved, it would have a huge negative impact on our industry. The bottom line is that our industry is able to produce a very competitively priced product in the marketplace for cabinetry and we are part of the global economy."
Titus also expressed concerns that the proposed tariff would shift production of finished cabinets overseas where access to the unique plywood would still be available, resulting in extensive job losses in the US cabinet industry.
The trade petition filed with the US Department of Commerce and the ITC alleges unfair trade practices regarding the importation of hardwood plywood from China and demands a 300% antidumping duty and yet-to-be-specified additional countervailing duties on imported Chinese hardwood plywood. The petition was filed by several large companies who collectively comprise 80% of the domestic hardwood plywood market.
The petition is currently pending review with a vote on whether to move the case forward expected on November 9, 2012. Commission determinations will be filed with the Secretary of Commerce on November 13 and the commissioners' opinions will be delivered to Commerce on November 19, 2012.
The AAHP is an organization of American importers, distributors, manufacturers and retailers of hardwood plywood, along with other US companies who provide tens of thousands of jobs that depend on the availability of global resources. Read more at www.aa-hp.org.
Click here to find out more about the ITC hearing.