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The U.S. construction industry maintains steady but consistent growth and drives the import of related supplies, including plywood. China remains the largest exporter of plywood globally, but not necessarily to the United States due to a number of specific tariffs that have been put in place.
Key Takeaways:
We’ll further review the specifics to import both OSB and plywood from China successfully.
When you import OSB and plywood from China, importers should be aware of the standard duty rates assigned by the Harmonized Tariff Schedule of the U.S. (HTSUS) and two other major tariff add-ons.
These, of course, hinge on correct classification of the product using HTS codes. I’ll go over those first.
OSB and plywood are identified under separate HTS base codes. Plywood, which is composed of pressed wood sheets, falls within the heading 4412. OSB exists under the base code 4410 which covers various types of particle board products made with wood scraps rather than whole logs.
Within those base codes, there are numerous descriptions and specified HTS codes based on:
Further complicating this process is the added pressure that using the wrong HTS code can lead to a variety of issues. These issues include paying too much or too little in import duties, facing additional audits from Customs and Border Protection (CBP), and being assessed financial penalties.
One of the most surefire ways to be sure your OSB and plywood is classified with the correct HTS code is to work with a Licensed Customs Broker.
Aside from making sure you don’t over or underpay your import duties, confirming the HTS code will determine which extra fees you’ll need to cover, as we’ll see next.
Related: Importing Wood to USA
The first of the additional duties that your OSB or plywood import may face are through the Section 301 Tariffs. These tariffs specific to China were implemented beginning in 2017 and gradually rolled out through 2019.
The import duty for most plywood products is calculated at about 8% of total value. OSB is a little cheaper, fluctuating between free to 3.9% of value.
Because of Section 301, both products are now subject to an extra 25% ad valorem tax. This will raise your import duties so they are between 25% to 34% of value to be paid at the time of entry.
Related: A Guide to China’s Section 301 Tariffs
In addition to Section 301 duties, AD/CVD penalties are also in place for certain items from China.
As of this article update, OSB imported from China is not subject to AD/CVD penalties. However, hardwood plywood products from China have been under both a countervailing and anti-dumping order since January 2018.
The specifics of these orders are found under 83 FR 504 & 513. Your product may fall under one or both orders, depending on the Chinese supplier/exporter you are working with.
Anti-dumping duties are currently set at 183.36% ad valorem. Countervailing duties are either 22.98% or 194.9% ad valorem.
If plywood importers need to pay both, they are looking at additional fees between 206 - 378% of total product value. Not to mention the additional 25% owed due to Section 301 penalties and the 8% normal trade relation rate (NTR) that starts it off.
With this in mind, it’s vitally important to confirm HTS codes to make sure you’re importing what you think you are.
Even with these penalties in place, China still accounted for about 9% ($328 million) of the U.S. plywood supply in 2022. Please realize this is not a growing number - compared to the prior year, the U.S. exported $81.5 million less.
OSB, despite not being under an AD/CVD order and having somewhat less expensive import duties, is even less popular. Supplies from China now account for less than 1% of U.S. particle board imports.
Because of this dwindling popularity, it’s understandable if you want to look at other potential suppliers. I would suggest taking a closer look at Canada, both for its proximity and its rising status as a timber supplier to the U.S.
Related: Importing from Canada to the U.S.
Our 45 Minute Licensed Expert Consulting Will Personally Guide You.
If you still plan on importing from Chinese suppliers, despite the high fees and lagging popularity of their plywood and OSB, you’ll need to get all your documents in order.
Basic documents that need to be included with your import include:
All of these documents are required in order to legally import your goods into the U.S. and must be provided in English.
Related: What Documents Do I Need to Import and Export?
Chances are your plywood or OSB is going to arrive by vessel, so you’ll also need to complete your Importer Security Filing (ISF) documents at the right time.
Related: ISF Filing Deadline
Finally, you’ll need to secure a Customs Bond to ensure that the various and considerable import duties required when bringing plywood from China are covered upon entry.
Regardless of the value, it’s regulated by the USDA and subject to AD/CVD penalties. A customs bond in such cases is a must.
If you’re overwhelmed or worried about obtaining and submitting all of these documents, that’s why we’re here. Our Licensed Customs Brokers clear shipments for importers every single day, so they know exactly how to get the job done.
All wood products being imported into the U.S. require a Lacey Act Declaration to be filed at the time of import.
This declaration requires some specific information about the wood product being imported:
This declaration can be filed via the paper form, PPQ Form 505, or electronically through CBP’s online filing system ACE (Automated Commercial Environment).
When declaring imported OSB, a Special Use Designation (SUD) can be used in place of providing the genus and species since material often comes from several sources.
Failure to file the Lacey Act Declaration in accordance with the requirements can lead to monetary penalties of up to $200,000 and forfeiture of goods.
Lastly, you may need to obtain a Timber Import Permit.
In most scenarios, this particular permit won’t be required because by definition OSB and plywood are manufactured wood products. However, if the wood is being imported with any unfinished veneers or there is a risk of harmful insect and pest infestation, a timber import permit will be required.
For more information on specifics related to importing plywood from around the world, check out our article on importing plywood to the USA.
Our 45 Minute Licensed Expert Consulting Will Personally Guide You.
Considering the current state of OSB and plywood imports from China, you can’t afford to make any mistakes. Our Licensed Customs Brokers are here to ensure your products can enter safely and with all duties and fees properly calculated.
As part of our full range of brokerage services, we offer:
When you’re ready to get help, give us a call at (855) 912-0406 or reach out with a specific question via our online contact form.
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I will be importing plywood from China. How can you help me get it safely
This is Tony who from playwood factory pls contact with me
Hi Mr/Mrs
Do US regulation have any volume limit / quota for plywood from China that will import to US? Thanks
I heard for importing timber continuously, you have to pay a $500,000 cash bond. How true is this?
Hi Mr/Ms
I will import plywood from China. How can you help me to get them safely such as which certifications need to be completed， how much duty rates，how much fees totally do I need to pay，etc， thank you.
Hi Tommy,
We can definitely help you with this! You'll have many steps to go through as plywood is heavily regulated, especially when it comes from China. The best thing for you to do is consult with our Licensed Customs Brokers. They'll go over the complete process and all of the requirements you'll need to comply with. You'll also receive a comprehensive summary with everything that was discussed after the consultation is complete.
You can sign up for the consultation at the link below. We look forward to helping you!
Customs Broker Consulting