DHA eNews – Chinese Cabinets Rerouted To Evade Duties
The Wall Street Journal recently highlighted the challenges domestic manufacturers face when dealing with unfair and illegal imports in a story about the transshipment of Chinese cabinets through Malaysia. The challenge is very familiar to hardwood plywood manufacturers and others trying to keep up with importers' efforts to evade duties.
The Biden administration continues to rush regulatory action out in its final days. One of the latest is EPA's finalization of the risk evaluation for formaldehyde under the Toxic Substances Control Act (TSCA). Fortunately, EPA concluded that wood products in use do not contribute to unreasonable risk, but EPA's decision about occupational exposure could be a challenge. DHA opposed the originally proposed occupational limits, which were raised slightly in this final risk evaluation. When it comes to regulations, January 20 can't come soon enough.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
Decorative Hardwoods Association
The Wall Street Journal recently published "The Not-So-Secret Way Around U.S. Tariffs." The story follows cabinets that were manufactured in China, rerouted through Malaysia, and ended up in U.S. kitchens. It has sparked an investigation by U.S. Customs and Border Protection, whose agents reportedly found cabinets marked as made in China while inspecting a Malaysian facility. This was part of a 2022 inquiry into allegations that a Chinese company was evading tariffs.
The investigation has divided the kitchen cabinet industry, as the Chinese company in question has been a supplier to some of the largest U.S. cabinetmakers and distributors.
The Hardwood Federation has published concerns about a potential trade war and retaliatory tariffs by China and other countries. The association pointed to a dramatic decline in hardwood exports to China following China's imposition of retaliatory tariffs on U.S. hardwoods from 2018 to 2020.
On January 2, U.S. Environmental Protection Agency finalized the formaldehyde risk evaluation. EPA stated that formaldehyde presents an unreasonable risk of injury to human health under its conditions of use. EPA did not identify risk to the general population from wood products regulated under TSCA Title VI. However, EPA's conclusions about occupational exposure to formaldehyde remain problematic. The preliminary risk evaluation set 11 parts per billion as an unreasonable risk level. EPA’s new evaluation changed the levels to 110 and 170 ppb.
After a tense few days in late December, the administration signed a continuing resolution to fund the U.S. government through March 14 that included a one-year extension of the farm bill. A key component of the farm bill is the funding of export promotion programs, including the international marketing activities of the American Hardwood Export Council.
The Department of Agriculture unveiled a new program to support wood processing facilities. The $220 million program will support the processing and use of wood products from national forests to improve forest health and reduce the risk from wildfires, insects, and disease and their detrimental impact on communities and critical infrastructure.
In a win for U.S. kitchen cabinet manufacturers, the U.S. Court of International Trade remanded in part and sustained in part the negative evasion determination by U.S. Customs and Border Protection on Chinese cabinets transshipped through Malaysia. Now, U.S. Customs must revisit its determination and take into account evidence of evasion.
In the second episode of the Mill Closures and Workforce Shortages in the West series, experts explore the role of land management policies and workforce challenges. The episode highlights how policy solutions can mitigate the workforce shortages tied to the ongoing closures of lumber mills in the U.S. West.
A new report highlights the numerous threats to Wisconsin's forests, from fewer loggers and mills to changing weather patterns and invasive species. The report details how the forest products industry, including loggers and paper mills, helps maintain healthy forests through sustainable forest management, enabling the overall canopy to thrive.
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A new study showed that the eastern U.S. has more trees and shrubs than thirty years ago. The growth is fueling wildfires. Some areas in the eastern and southeastern U.S. have experienced ten times the frequency of large wildfires over the past forty years.
The Inflation Reduction Act, the U.S.'s largest climate funding legislation, provides salaries for outreach foresters for the Family Forest Carbon Program. The popular program helps forest owners improve forest health—and get paid to do so.
What is the largest U.S. national forest? Just how big is it?