South Korea to set Antidumping Duties on Malaysian Plywood

South Korea has imposed preliminary antidumping duties on Malaysian plywood imports. The South Korean Trade Commission (KTC) opened a dumping investigation after receiving a petition from the Korean Wood Panel Association that some plywood manufacturers in Malaysia are selling their products below the production cost and so hurting local South Korean plywood manufacturers. The plywood market in South Korea valued at US$584 million in 2009.

Imposed duties range from 5.11% to 33.81% on plywood imports from Malaysia. These preliminary antidumping duties are in effect until a formal ruling is made within the next 5 months. Some Malaysian plywood manufacturers expressed the fear that the Japanese government may follow the South Korean example and impose antidumping duties on Malaysian plywood.

Decision on Antidumping Duties Postponed

In July, 2010, South Korea announced that a decision had been taken to impose antidumping duties on Malaysian plywood imports. However, on 2 August 2010, the Ministry of Finance and Strategy of the Republic of Korea announced a postponement of this decision until the South Korean Trade Commission in Malaysia has finalised its investigation. The final decision and a formal ruling will be made within the next 5 months.

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