Hardwoods Distribution Inc. ("Hardwoods" or the "Company") today announced that a coalition of U.S. plywood manufacturers ("Petitioners") filed a summons with the U.S. Court of International Trade to appeal the ruling that had dismissed their trade case against Chinese hardwood plywood.
The trade case was initiated on September 27, 2012 when Petitioners alleged that Chinese imports are sold in the United States at prices below cost and are subsidized by the Government of China. After over a year of investigation, on November 5, 2013 the U.S. International Trade Commission ruled unanimously against the Petitioner's case.
Hardwoods strategy includes selling both imported and domestically produced hardwood plywood to satisfy the demand and diverse product preferences of its customers. The Company estimates approximately 14% of its total sales are of product imported from China that fall within the scope of this trade dispute.
Hardwoods will closely follow the appeal process that has been initiated by Petitioners. It is expected a ruling from the U.S. court system will take 18 to 24 months, and that no duty liabilities related to importing Chinese hardwood plywood would arise during that period of time.