Panel Perspectives: EC anti-dumping duties on Chinese hardwood plywood | 47


species specified under subheadings 4412 31, 4412 33 and 4412 34, whether or not coated or surface covered. The 59-page decision report said imports into the EU from China during the investigative period were 794,899m3


(market share – 30%); in 2022 (18%).


imports were 900,104m3 figure was 683,984m3


lacked the capacity to meet demand, and measures would create market shortages. They also said high prices resulting from


, with a


market share of 31%. In 2023 the figure was 750,083m3


(26%); and 2021 the


Imports of hardwood plywood from China increased overall by 16% during the period considered. Imports peaked earlier in 2022, when an increase of 32% was recorded compared to 2021 volumes.


The substitution of products originating from Russia and Belarus was one of the reasons for the increase.


Import prices of the Chinese product were €418/m3


during the investigation period, down from a high of €529/m3 in


2022. EU hardwood plywood production in the investigation period was 1,664,963m3


with an installed production capacity of 2,538,000m3


, – a capacity utilisation rate of


66% (down from 74% in 2022). EU producers say they were forced to reduce their production output from 2022 due to the expansion of cheaper Chinese products. The average sales unit price of the


EU-made product on the market was £1,023/m3


during the investigation period,


whereas the unit cost of production was €1,074/m3


. Higher costs was a major reason. The average EU sales price increased by


41% over the period considered, but the unit production costs increased by 57%. Starting in 2023, the Union industry was unable to raise its sales prices to cover these increased costs due to price pressure from Chinese imports, so EU producers went from a profit-making situation in 2021 and 2022 to a significantly reduced profit in 2023 and -2% losses in the investigation period. The investigation found that 615,248m3 of product was imported to the EU from other countries, including 113,501m3


from


Kazakhstan (4% market share). The EU industry is comprised of around


26 companies, 17 of which supported the complaint. They employ 40,000 workers directly and indirectly. They are located in Austria, Bulgaria, the


Czech Republic, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. The Commission said the absence of


any action would lead to further price suppression, sales reduction, more losses and the closure of production facilities and job losses.


Some 52 importers registered as


interested parties in the investigation. Several argued that the EU plywood industry


Above: The European Commission has imposed provisional anti-dumping duties on Chinese hardwood plywood PHOTO BY GUILLAUME PÉRIGOIS ON UNSPLASH


www.wbpionline.com | June/July 2025 | WBPI


duties could not be passed onto customers and would drive them out of the market. EU producers, they added, were not interested in supplying certain types of hardwood plywood. However, the Commission viewed the risks as limited and believes EU producers have capacity to increase production. It also said there were many other sources other than China.


No decision on a possible retroactive application of anti-dumping measures has been taken yet. The Greenwood Consortium released a


statement following publication of the EC decision. “We welcome the Commission’s decision


to impose provisional anti-dumping duties but, to level the playing field genuinely, we call for definitive duties to be even higher than these provisional levels in the final decision later this year,” it said. “We also deeply appreciate the


Commission’s proactive approach to addressing circumvention attempts by Chinese exporters.” The Greenwood Consortium also pointed out a significant second move made by the EC. “The European Commission for the first


time ever introduced a clause to check on imports of softwood plywood from China. The new Regulation states: “The complainant has pointed to alleged


circumvention practices already at the stage of registration of imports of the product


concerned. This alleged practice consisted of placing very thin outer layers of softwood veneer on top of the hardwood plywood face veneer. Such practice makes the product fall under customs codes which are not subject to registration, without altering its essential characteristics. Consequently, to minimise the risk of circumvention, the Commission considered it appropriate to monitor such imports. Therefore, separate TARIC codes should be created for imports of such products within CN codes 4412 10 00 and 4412 39 00.” The surveillance clause, says the


Greenwood Consortium, will enable the Commission to gather essential information through EU customs authorities. This in turn will allow those negatively affected to request further action against imports that may be circumventing the duties, using not only trade-defence (anti-circumvention) but also customs control and compliance tools potentially with retroactive consequences for exporters and EU importers involved in such essentially deceptive or fraudulent activities. Poland-based Paged Plywood also


welcomed the EC decision. “This move is a clear stance in defence


of fair competition and against long-standing practices of price dumping and customs circumvention by Chinese exporters,” it said.


New managing director of the European


Panel Federation Matti Rantanen also welcomed the decision, which he says shows the EC had listened to EU producers. He cautioned that there were further updates in the process still to come. ●


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