South Korean Trade Comission (KTC) decided this week to launch an official investigation into alleged price dumping of Chinese softwood plywood. KTC recommend to begin imposing punitive tariffs of up to 5.9 percent on Chinese imports, Yonhap news agency reported.
The investigation comes after a four-month preliminary probe into allegations that importers of Chinese plywood were underselling softwood plywood, Yonhap reports. The move apparently trues to avoid anti-dumping tariffs already imposed hardwood plywood from China, according to the South Korean Ministry of Trade, Industry and Energy.
South Korea began imposing anti-dumping tariffs of 2.42 percent to 27.21 percent on hardwood plywood imports from China in October 2013.
Imports of China-made softwood plywood have since been growing steadily, accounting for 18 percent of total supplies of plywood in South Korea in 2014, the ministry said, quoted by Yonhap.
In 2014, the country's market for plywood reached 710 billion won (US$613.7 million).
Over the course of the formal anti-dumping investigation, which could last up to five months, the Korea Trade Commission recommended that preliminary punitive tariffs of between 3.4 percent and 5.9 percent be imposed on Chinese softwood plywood.