Panels & Furniture Asia May/June 2020

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10 | NEWS May / June 2020, Issue 3 | Panels & Furniture Asia PEFC EXTENDS TRANSITION PERIOD FOR 2020 STANDARDS TO support certified entities and certification bodies during the COVID-19 challenge, Programme for the Endorsement of Forest Certification (PEFC) has extended the transition period for its three revised international standards by six months. This extension applies to the 2020 versions of the Chain of Custody (ST 2002), PEFC Trademarks (ST 2001) and Certification Body Requirements - Chain of Custody (ST 2003) standards. The transition date is now 14 February 2022. This extension gives certified entities and certification and accreditation bodies an additional six months to align their procedures with the requirements in the 2020 versions of these three vital standards. The aim of the extension is to give PEFC stakeholders more flexibility in when they move to the 2020 standards. In addition to this extension, PEFC has also provided guidance to certified entities and certification bodies regarding auditing. The document provides general procedures for the application of this guidance, as well as specific rules for initial and recertification audits, surveillance audits and verification of corrective actions. PEFC is the world's largest forest certification system. P INDONESIA’S CIVIL SOCIETY EXPRESSES DISMAY AT RELAXATION OF THE V-LEGAL REQUIREMENT SEVERAL civil society groups have expressed dismay at the relaxation of the V-legal requirement saying this undermines Indonesia's credibility in international markets. They say since it has adopted the SVLK and V-legal system, increase in trade could be seen in Indonesian wood products, reported ITTO. In a press release, the Coordinating Ministry for Economic Affairs on March 13, 2020 stated, the policy of removing V-legal document from export requirements documents was a non-fiscal stimulus in the context of handling Covid-19. The implication is that there will be a relaxation of export restrictions including those for the timber sector. According to Muhamad Kosar of the Forestry Independent Monitoring Network (JPIK), elimination of mandatory Vlegal document requirements for export products is a mistake because, in the long term, this will reduce the credibility of Indonesian wood products and make it difficult for the small-medium timber industry to establish direct business with international buyers. In related news, the Indonesian Civil Society Coalition has sent a letter to the President asking for the revocation of Trade Regulation No. 15 of 2020 as this change is considered detrimental to efforts of improving Indonesia's forest governance. P U.S. IMPOSED DUTIES ON CHINESE CABINET IMPORTS IN February this year, the U.S. Department of Commerce announced affirmative final determinations in the anti-dumping duty (AD) and countervailing duty (CVD) investigations of wooden cabinets and vanities imported from China, reported ITTO. The petitioner in this case is the American Kitchen Cabinet Alliance. Commerce has determined that producers and/or exporters from China have sold wooden cabinets and vanities at less than fair value in the U.S. at rates ranging from 4.37 per cent to 262.18 per cent. In addition, Commerce determined that producers and/or exporters from China received countervailing subsidies at rates ranging from 13.33 per cent to 293.45 per cent. In 2018, imports of wooden cabinets and vanities from China were valued at an estimated $4.4 billion. The U.S. Department of Commerce has recently issued final duty determinations on Chinese imports of wooden cabinets and vanities. Anti-dumping and countervailing duties are as follows: • Dalian Meisen: 269.91% • Foremost: 122.1% • Ancientree: 13.33% • All others: 58.89%. This means that almost all Chinese manufacturers will now face a combined AD/CVD cash deposit rate of about 59 per cent. In October 2019, preliminary anti-dumping duties ranging from 4.49 per cent to 262.18 per cent, with most Chinese producers facing antidumping duties of 39.25 per cent, were imposed. These anti-dumping duties are in addition to earlier countervailing duties averaging 16 per cent, which have been in effect since August 2019. As a result of this final decision, cash deposits will continue to be required on all wooden cabinets and vanities imported from China. P
May / June 2020, Issue 3 | Panels & Furniture Asia NEWS | 11 HARDWOOD PLYWOOD, WOODEN CABINETS AND VANITIES FROM VIETNAM MAY BE INVESTIGATED BY U.S. FOR TRADE DEFENCE MEASURES HARDWOOD PLYWOOD, wooden cabinets and vanities exported to the U.S. are among the 12 products at risk of being investigated for trade defence measures, origin fraud or illegal conveyance, announced the Trade Remedies Authority of Vietnam, reported Viet Nam News. The rest of the list included mattresses, quartz surface products, seamless refined copper pipes and tubes, forged steel fittings, steel wheels, fabricated structural steel, steel propane cylinders and carton-closing staples exported to the U.S., tyres for buses and lorries to the EU and electric bicycles to both the U.S. and EU. VIETNAM EXPORT OF HARDWOOD PLYWOOD TO THE U.S. ROSE ALMOST TENFOLD IN THREE YEARS For hardwood plywood from Vietnam, the U.S. Department of Commerce may initiate trade defence investigation. From 2016 to 2019, China exports of hardwood plywood fell from US$1.1 billion to $215.6 million after being subject to anti-dumping and anti-subsidy duties by the U.S. In the same period, Vietnam’s exports to the U.S. rose almost tenfold from $33.4 million to $322.2 million. Vietnam’s exports of the remaining products to the U.S. and the EU also saw substantial increases while China exports of these products dropped when the U.S. and the EU’s imposed anti-dumping and anti-subsidy duties. The list was announced based on the tracing of exports of products which were subject to trade defence measures by the importing countries. P
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