Preliminary decision in engineered flooring scandal
The dramatic conclusion to the Chinese engineered flooring scandal in the U.S. was reached at the end of May in a statement from the U.S. Commerce Department.
Duties of over 80% will be imposed on some of the imported goods as it was decided that the Chinese companies were pricing the products for less than the engineered floors’ fair value.
The rates are preliminary and are therefore liable to change but the decision means that the American border controls have now been instructed to take a deposit or bond in line with the current rates.
This decision will come as a great relief to the flooring companies in the U.S. which campaigned for the added taxes to prevent the unfair advantage that the Chinese products had gained.
Engineered wood floors had already suffered a decline in sales between 2008 and 2009 so the Chinese imports were putting pressure on the strained U.S. market.
Industry experts will now be waiting to see if a similar campaign is started over imported solid wood flooring because several flooring firms have already expressed concern.
The final decision on these preliminary rates is expected to be reached in August and will be based on evidence and information which will be analysed by the Commerce Department and the U.S. International trade Commission.