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 period of the investigation is January 1, 2024 through December 31, 2024 and it was initiated on May 22, 2024.

The countervailing preliminary determination was published in the Federal Register today, Thursday, January 22nd. As a result, countervailing duties will need to begin being deposited today. For additional information, view the memo and the full determination. 

Commerce 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 rates vary depending on company. The rates per company are as follows:

The 128.66% rate is based entirely on Adverse Facts Available, because Mustika Buana Sejahtera refused to respond to Commerce’s data requests.

Commerce did not make a preliminary determination concerning the scope (product coverage) of the investigation, which is when we will learn whether they intend to exclude Indonesian lauan from the scope of this investigation. They will issue a preliminary scope determination “on or before” the preliminary antidumping determination, which is currently expected on February 24, 2026.   

Commerce now directs U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise entered or withdrawn from warehouse, for consumption on or after the date of publication once published in the Federal Register. Additionally, Commerce will instruct CBP to require a cash deposit equal to the rates above. If lauan is removed from the scope or a negative injury determination is made, deposits will be refunded without interest. Commerce would send instructions to CBP, which would be sent to the ports directing refunds.

Following this preliminary determination, Commerce will now notify the U.S. International Trade Commission (ITC) of its determination. The  International Trade Commission will determine before the later of 120 days after the date of the preliminary determination or 45 days after the final determination whether imports of plywood from Indonesia are materially injuring, or threaten material injury to, the U.S. Industry.

The final AD/CVD determinations are currently scheduled for May 11, 2026, unless postponed.

The RV Industry Association team is working with outside counsel to get additional clarity on future deadlines. Please reach out to Samantha Rocci, Director of Federal Affairs (srocci@rvia.org) with any questions.