The U.S. Commerce Department on Wednesday announced its preliminary affirmative determination in the countervailing duty (CVD) investigation against imports of hardwood and decorative plywood from China, signaling that it may pose punitive duties on the products.

The department said that Chinese producers and exporters of hardwood and decorative plywood had received countervailing subsidies of 0.22 percent to 27.16 percent.

The Commerce launched antidumping (AD) duty and CVD investigations against imports of hardwood and decorative plywood from China on Oct. 18, 2012, alleging that these products were sold at less than fair value in U.S. market, with a dumping margin of 298.36 percent and 321.68 percent and additional subsidies.

The department is scheduled to make its preliminary determination of AD investigation at the end of April 2013. The due date for both final determinations is currently scheduled for July 2013.

Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission (USITC) make affirmative final rulings. The USITC is scheduled to make its final determination on Aug. 29, 2013.

The petitioner for this investigation is the Coalition for Fair Trade of Hardwood Plywood of six U.S.-based companies.

In 2011, imports of hardwood and decorative plywood from China were at an estimated 616.5 million U.S. dollars, according to the Commerce Department.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.