ADENTRA receives final determination on Vietnam hardwood products

ADENTRA Inc. has received the US Department of Commerce's final determination regarding a trade case involving hardwood plywood products from Vietnam. The case alleges that the products imported by the company from Vietnam bypassed the anti-dumping and countervailing duty order against hardwood plywood from China.

Following the final determination, Commerce made several changes to its preliminary decision issued on July 25, 2022. As a result, ADENTRA's estimated import value of products subject to potential duties from Vietnam decreased from US$25-US$30 million to US$7.6 million. 

“While we welcome a decision being rendered in this matter, we disagree with Commerce’s final determination and believe that the duty is unwarranted,” said Rob Brown, president and CEO. “We believe the products we imported from Vietnam are clearly outside the scope of Commerce’s own definition of circumventing products, and therefore should not be subject to duty. We have comprehensive documentary evidence regarding material sourcing in our supply chain which commerce failed to consider." 

The duty rate for this trade case stands at 206%, which will be applied to the US$7.6 million worth of imports from Vietnam. The company expects to incur duties of US$15.7 million and will reflect this impact on its financial results in the third quarter of 2023.

"There are well-established legal avenues to appeal this decision by Commerce and we intend to vigorously pursue recovery of any duties paid," he said.