Commerce Amends Final Countervailing Duty Results for Chinese Wood Millwork Following Court Mandate
On October 15, 2026, the Department of Commerce announced a significant amendment to its 2020-2021 countervailing duty administrative review for wood mouldings and millwork products imported from the People's Republic of China. This action comes after a September 23, 2026, judgment by the U.S. Court of International Trade CIT that found Commerce's initial determination for certain Chinese companies, specifically China Cornici Co. Ltd. and RaoPing HongRong Handicrafts Co. Ltd., was not in harmony with legal requirements. The decision mandates that these companies are now subject to the review and assigned cash deposit rates, though it highlights complexities regarding already liquidated past entries.
Background of the Countervailing Duty Review
The case originates from Commerce's September 11, 2023, Final Results of the 2020-2021 administrative review covering the period from June 12, 2020, through December 31, 2021. Countervailing duties CVD are tariffs imposed to offset subsidies provided by foreign governments to their exporters. In this specific review, China Cornici and RaoPing each claimed they had reviewable entries entitling them to participate. However, Commerce initially rescinded their administrative reviews. Commerce's reasoning was that it found no "suspended entries" of subject merchandise during the period of review POR for either company, a crucial criterion for active participation in such proceedings.
Specifically, Commerce noted that while China Cornici demonstrated efforts to change the classification of its entry and pay CVD duties owed, these attempts were not fully reflected as suspended entries by the time of Commerce's final determination due to statutory deadlines. For RaoPing, Commerce found that the information provided did not sufficiently demonstrate a connection between the evidence of a Type 03 entry and the company itself, nor did it correspond clearly to the CBP data on record.
The Judicial Intervention by the CIT
Challenging Commerce's rescission, China Cornici and RaoPing appealed to the U.S. Court of International Trade. On September 5, 2025, the CIT issued a remand order. The court instructed Commerce to revisit its determination to rescind the reviews, urging it to consider under what circumstances and how to adjust its proceedings when companies make prior disclosures and deposits to rectify mistakes on entry papers. The CIT emphasized a need to address all relevant statutes at play, not just unfair trade statutes and preferred practices, when handling such situations.
Commerce's Revised Stance and Remand Redetermination
In response to the CIT's remand, Commerce conducted a redetermination. It solicited additional information from China Cornici, RaoPing, and U.S. Customs and Border Protection CBP. This new evidence ultimately corroborated the companies' claims regarding their entries. As a result, Commerce reversed its initial stance, deciding not to rescind the reviews for China Cornici and RaoPing. It proceeded to assign them applicable cash deposit rates based on the findings of the broader administrative review. However, Commerce also clarified a critical limitation: it lacks the administrative authority to reliquidate entries that have already been processed and finalized by CBP.
The "Not in Harmony" Determination and its Implications
The CIT's September 23, 2026, judgment sustained Commerce's Final Remand Redetermination. This judicial decision was deemed "not in harmony" with Commerce's original Final Results for the 2020-2021 review. This designation triggers specific publication requirements under the Timken doctrine, established by the U.S. Court of Appeals for the Federal Circuit. The Timken doctrine mandates that Commerce publish notice of such court decisions and suspend liquidation of entries pending a conclusive court decision. This current notice fulfills that requirement, formally recognizing the divergence between the initial administrative outcome and the final judicial ruling.
Amended Final Results and Cash Deposit Rates
In accordance with the CIT's final judgment, Commerce has now formally amended its final results for the 2020-2021 review. China Cornici and RaoPing are now officially deemed subject to the administrative review. As a result, Commerce is assigning both companies a cash deposit rate of 8.89 percent ad valorem. This rate aligns with the rate assigned to non-selected companies in the broader review, specifically reflecting the subsidy rate calculated for the period January 1, 2021, through December 31, 2021. CBP will be instructed to apply these new cash deposit rates to future entries from these companies, pending any appeals.
The Liquidation Conundrum for Past Entries
A significant nuance of this amended decision pertains to the liquidation of past entries. While China Cornici and RaoPing are now confirmed to be part of the review, the CIT affirmed that Commerce lacks the authority to reliquidate entries from the 2020-2021 period that had already been liquidated. This means that even though the companies are now recognized as having reviewable entries for that period, Commerce will not issue instructions to CBP to assess countervailing duties on those specific past entries. The practical effect is that the new cash deposit rates will apply going forward, but the past entries that were already processed under the original rescinded status will remain untouched. This highlights the definitive nature of entry liquidation once it has occurred.
