by Rates are as high as nearly 40% on China products and over 20% on products shipped from Thailand pending further investigation
HANOI, Vietnam — Duties that the Vietnamese government is imposing on particleboard and medium-density fiberboard imports from China and Thailand could raise the price of imported wood products just as bedroom and dining furniture resources are trying to stabilize costs and final pricing for the October High Point Market and beyond.
On Sept. 5, the Vietnam Minister of Industry and Trade announced it was applying what it described as a temporary antidumping tax on some wood fiberboard products originating from the two countries. This type of material is used in a range of wood veneer products, from dining table tops to headboards and the side panels and tops of companion dressers, chests and nightstands, for example.
Goods that are excluded from the scope of the antidumping order include wood fiberboard products that are coated with patterned printed paper, melamine, surface paint or acrylic plastic.
The duties assigned to various producers in China range from 2.59% to 39.88%, while duties assigned to Thailand producers range from 8.3% to 20.2%. Companies that cannot provide documents showing the country of origin automatically will be subject to the 39.88% tax on Chinese MDF and the 20.2% tax on Thailand MDF.
Documents from the Minister of Industry and Trade sent to Home News Now Friday state that the duties will take effect 15 days from the Sept. 5 issuance of the antidumping order, or around Sept. 20.
The tax would be in place for an initial 120 days from then. During that period, the Vietnamese customs officials would examine certificates of origin to determine whether the products are being shipped from the two countries subject to the tax.
What happens after that period likely would be the subject of further investigation or negotiation between the parties involved. This includes reviewing information manufacturers send in on survey questionnaires, gathering public comments, sending the final investigation results to relevant parties for further comment and issuing a final investigation conclusion.
It is unclear how much of this type of product Vietnam imports from Thailand or China for use in finished wood furniture shipped to the U.S. market. It is also unclear whether some wood fiberboard production could shift to board producers in Vietnam and, if so, whether the finished products would have the same quality, or meet the same standards required for the U.S. market.
Some importers voiced immediate concern, particularly because these duties could change the cost of products being shown at the upcoming High Point Market just as tariffs already are adding 20% to the price of Vietnam furniture. It also could impact the cost of inline goods made with fiberboard subject to the duties, again falling on top of existing tariffs.
Manufacturers and importers could bear some of the burden, but some costs ultimately may need to be passed along to retailers and consumers.
