DHA eNews – U.S. Company Pleads Guilty To Evading Duties On Hardwood Plywood; Fined $6 Million
Boise Cascade recently pleaded guilty to a felony violation of the Lacey Act for its role in a timber trafficking scheme to evade countervailing and anti-dumping duties on Chinese hardwood plywood. The company was fined $6.3 million.
According to the Department of Justice, "Boise Cascade knew that Horizon had previously tried to hide the origin of the wood that it imported. For example, Horizon transshipped products from China to Malaysia, where it moved product into new containers, and then from Malaysia to the United States. Boise Cascade knew or should have known the plywood purchased from Horizon was sourced from China."
"Boise Cascade was also aware the United States executed a search warrant at Horizon's warehouse in South Florida in January 2021, and despite knowing that Horizon was under federal investigation, Boise Cascade still placed at least 10 new orders for birch plywood in the two weeks following the search warrant and received the orders."
The brazen facts of this case point to a need for increased enforcement of the Lacey Act and U.S. trade law. Purchasers of hardwood plywood should buy products made in the U.S. that have been legally harvested and are sustainable.
We'll talk about trade policy, enforcement, and much more at the DHA 2026 Annual Meeting in Asheville, NC, next week. I look forward to seeing many of you there!
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
On April 27, U.S. manufacturer and distributor Boise Cascade pled guilty to a felony violation of the Lacey Act for its role in a timber trafficking scheme to evade hardwood plywood countervailing and anti-dumping duties. Boise Cascade has been fined $6,382,000.
The U.S. House of Representatives passed the Farm Bill with bipartisan support. The bill includes the Jobs in the Woods Act, a biomass carbon-neutrality provision, and reauthorization of the Wood Innovation and Community Wood Grant programs. However, the amendment to expand the definition of the renewable fuel standard (RFS) to include whole trees and residuals failed by a narrow vote.
Legislation to reform the Endangered Species Act has stalled. The new legislation was designed to give more consideration to the economic impacts of listing animals and plants as endangered, while also limiting litigation by environmental groups.
The Department of Labor has proposed a new rule that would create a nationwide standard for determining joint employer liability under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.
The Departments of Housing and Urban Development and Agriculture recently announced that they will rescind the requirement to use the 2021 International Energy Conservation Code as the minimum energy-efficiency standards for some single-family and multifamily housing programs. The goal is to remove a regulatory barrier that can add tens of thousands of dollars to the cost of a new home.
Forest products associations, including the Hardwood Federation, sent a letter to the EU president and key cabinet members advocating for critical changes to the EU Deforestation Regulation (EUDR), focused on the need to make simple, common-sense changes to the current EUDR definition of "plot of land."
The Department of Commerce has maintained anti-dumping duties on wooden bedroom furniture from China. On April 13, the agency announced its preliminary findings in its latest administrative review of those anti-dumping duties for 2024. Companies included in the "China-wide entity" are subject to a dumping margin of 216.01%. The cash deposit rate will be set at the same level.
DHA member Manthei Wood Products has officially acquired Cahaba Veneer in Centreville, AL, and plans a significant investment in labor and technology upgrades. The acquisition ensures continued operations at the Centreville facility, retaining 67 jobs and adding 37 new jobs, and includes a capital investment of up to $10 million.
The value of U.S. cabinets sold fell to just under $190 million in March, a decline of 7.7% vs. one year ago, as the quantity sold fell by 6.7%. However, March sales were 13.9% higher than February sales.
The Canadian Food Inspection Agency has expanded emerald ash borer regulated areas in Quebec and Nova Scotia after finding the invasive pest outside of current quarantine zones. The agency updated its regulated areas to include three areas in Quebec and one in Nova Scotia.
In Arizona's Coconino National Forest, one of dozens of AI cameras detected something resembling smoke. Human analysts ruled out clouds or dust, then alerted the state's forest service and electric company. Thanks to early detection, firefighters arrived quickly and contained the fire before it grew past 7 acres.
Just how devastating was Hurricane Hugo for the timber industry?