KUCHING: The European Union (EU) Commission has imposed provisional duties of up to 62.4 per cent on hardwood plywood from China as part of its anti-dumping investigation on hardwood-faced plywood, effective June 11.
The investigation began following a complaint lodged by the Greenwood Consortium, which represents the EU’s hardwood plywood industry on August 27, 2024. The consortium’s complaint alleged that Chinese plywood was being “dumped” onto the EU market and sold below market value, reported International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (June 16-30, 2025).
The EU Commission said the complaint contained evidence of dumping and of resulting material injury to domestic manufacturers that was sufficient to justify the initiation of the investigation.
While the probe is ongoing and due to be completed within six months, the EU has taken the following actions:
- Interim levels of additional duty of 62.4 per cent for all hardwood plywood from China, except products from a single identified Chinese manufacturer, Pizhou Jiangshan Wood Co Ltd, for which a 25.1 per cent rate will apply, and
- A new requirement for customs authorities in each EU member state to keep records of coniferous-faced Chinese plywood arriving at EU borders. This action is designed to help prevent circumvention of the new anti-dumping duties through modification of the Chinese plywood products.
Definitive duties are expected to be published by the EU Commission in December 2025.
On a related matter, the United States Department of Commerce (USDOC) had on June 11, 2025 also initiated an anti-dumping investigation into the imports of hardwood and decorative plywood products from Indonesia, China and Vietnam.
The ITTO report said the Indonesian Trade Ministry, through the Directorate of Trade Security, is fully supporting affected Indonesian businesses by providing assistance as they face anti-dumping and anti-subsidy investigation into the exports of hardwood and decorative plywood products from Indonesia by the US authorities.
The USDOC’s probe is based on a petition from the Coalition for Fair Trade in Hardwood and Plywood (CTFHP) submitted on May 22, 2025. In its investigation initiation document, the USDOC listed 204 Harmonised Tariff Schedule of the United States (HTS-US) tariff posts to be investigated. Some of the types of products that are the focus of the investigation include plywood from hardwood and decorative wood and veneered panels.
However, this list is still subject to change as the investigation progresses. In addition, the dumping margin that will be imposed on Indonesian products is estimated to reach 84.94 per cent, plus 12 programmes that are indicated as subsidies,
One of the new things in this investigation is the finding that some of the 12 programmes are Chinese government programmes that are considered transnational subsidies by the US.
Reza Pahlevi Chairul, director of Trade Security of the Trade Ministry said the Trade Security Directorate would continue to collaborate with relevant ministries and institutions, and affected companies.
“In addition to ongoing investigations related to sectorial and reciprocal tariffs, all stakeholders involved are expected to work together in dealing with this anti-dumping and anti-subsidy case in order to maintain smooth access to the market for plywood from hardwood and decorative timber to the US,” said Reza.
Indonesian Wood Panel Association chairman Bambang Soepijanto hoped that the support from the Indonesian government would continue to be maintained and continue in the next stage of probe, considering that one-third of Indonesia’s production of plywood from hardwood and decorative wood is destined for the US market.
Indonesia’s plywood exports to the US in 2022 was valued at US$570.4 million, and this dropped to US$337.1 in 2023 but recovered to RM$411 million in 2024.
On another matter, Indonesian wood product manufacturers are urging the government to lower import duties on production machines.
Jimmy Chandra, deputy chairman for R&D and Regulations at the Indonesian Sawmill and Woodworking Association, stressed that investing in advanced machines and technologies is the only way for manufacturers to achieve efficiency and improve product quality to stay competitive in the industry.
He urged the government to grant a 20 per cent reduction on import duties for the latest generation of production machines as modernising production machinery is essential for the woodworking industry to be more competitive in international markets.
Chandra also called on the government to provide subsidies or support local companies to showcase their products on the global stage, similar to the support being provided by some other countries.
