Lauan Impacted in Commerce's Initial Finding In Indonesian Plywood Countervailing Duty Investigation

On Friday, January 16, the US Department of Commerce released an affirmative preliminary countervailing duty determination in its investigation entitled Hardwood and Decorative Plywood from Indonesia. Currently, the scope of the investigation includes lauan plywood from Indonesia, though the RV Industry Association's Government Affairs team is working to exclude it. The countervailing preliminary determination was published in the Federal Register requiring duties to begin being deposited on Thursday, January 22nd. 

The period of the investigation is January 1, 2024 through December 31, 2024 and it was initiated on May 22, 2024. For additional information, view the memo and the full determination.

The Commerce Department preliminarily determined that countervailable subsidies are being provided to producers and exporters of hardwood and decorative plywood from Indonesia, meaning that the foreign product is being unfairly subsidized. The resulting countervailing duty rate for lauan providing companies is 43.18% required to be paid starting January 22nd.

Commerce did not make a preliminary determination concerning the scope (product coverage) of the investigation. The Department will issue a preliminary scope determination "on or before" the preliminary antidumping determination, which is currently expected on February 24, 2026, though that date is subject to change. That preliminary scope determination is when we will learn whether the Department intends to exclude Indonesian lauan from the scope of this investigation. 

If lauan is removed from the scope or a negative injury determination is made, deposits will be refunded without interest. In that case, Commerce will send instructions to CBP, which would be sent to the ports directing refunds. However, it is also possible through this process for duty rates to be raised or kept the same.

Commerce will now notify the U.S. International Trade Commission (ITC) of this preliminary determination. The ITC will determine before the later of 120 days after the date of this Commerce Department preliminary determination (December 29, 2026) or 45 days after the Commerce Department’s final AD/CVD determinations whether imports of plywood from Indonesia are materially injuring, or threaten material injury to, the U.S. Industry. The due date will be “the later of” these two possibilities and must come after Commerce’s final determinations.

 The final Commerce Department AD/CVD scope determinations are currently scheduled for May 11, 2026, unless postponed. On Friday, January 23, the respondents requested a postponement of Commerce’s final antidumping determination to a date 135 days after the preliminary antidumping determination. The request will likely be granted, which pushes the dates of the final antidumping and countervailing duty determinations into July 2026. As the dates are fluid, the RV Industry Association will continue to alert members to further changes as they are confirmed.

The RV Industry Association team is working with outside counsel to get additional clarity on future deadlines and continues to work to ensure fair treatment of lauan. Please contact Director of Federal Affairs Samantha Rocci at srocci@rvia.org with any questions.